Bisq DEX is an application that allows users to buy and sell Bitcoins in exchange for national currencies or alternative cryptocurrencies. Users simply download the app or build it from the source, add national or crypto accounts, create a new offer or take an existing one, and then proceed to finalize the trade. It is not a company but a project organized as a Decentralized Autonomous Organization (DAO).
The open-source platform supports nearly 150 altcoins and more than 20 payment methods for fiat. Additionally, crypto companies can support their own altcoins. Like all DEXs, Bisq does not hold any Bitcoins when users are trading. The Bitcoins are on a multisig address rather than a Bisq-controlled wallet.
Consequently, the exchange does not hold any national currency but it is directly transferred from one trader to the other.
How does it work?
It uses a Peer-to-Peer network over Tor. It does not store data belonging to users and does not require registration.
For traders, there is no limit to the number of trades although, for most bank-based payment methods like SEPA or Zelle, the trade limit is 0.25 BTC per trade. For Swish, OKPay, PerfectMoney, and AliPay it is 0.5 BTC and for altcoins, it is 1 BTC.
The trade limit is 0.16 BTC for Venmo, Cash App, Revolut, Popmoney and MoneyBeam (N26). During the first month, the trade limit is 25% of the full trade limit.
Trading and Depositing
During the process of trading, the traders — both the buyer and seller — will create a security deposit to make sure both of these follow rules of the protocol with little chances of abandonment. The security deposit is lock into a multisig escrow together with the Bitcoin being trading.
Parties who violate the trading protocols after an arbitration process lose the deposit. Thus, deposit (some or all) is an award to the other party. However, traders will approve the arbitrator. They also lock a higher amount than the trade in a BSQ Bond and if a resolution they will not provide facilitates at by both parties. Therefore, the two can request to have the BSQ bond confiscation. This helps avoid collusion between arbitrators and traders.
The duration of trading on the platform depends on the region in which you are. However, there is a set period after which the trade goes into arbitration automatically. This includes 6 days for Eurozone for SEPA method, 1 for UK and Sweden.
It takes 4 days for global cash deposits, Western Union, and National bank transfers to automatically go to arbitration stage.
It discourages chargebacks by not supporting methods such as PayPal and credit cards and removing accounts where chargebacks are noted.
See more details on their FAQ page.