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Bisq Review 2022

Blockchain Technology


Bisq was founded to keep the original spirit of cryptocurrencies (Bitcoin) alive. Bitcoin originated to let traders trade without the need for a centralized authority to verify or process their transactions. However, other exchanges for cryptocurrency with an objective like this rely on the traditional financial system that requires Identity verification, but not Bisq. More than a company, it is a DAO or Decentralized Anonymous Organization.

DAOs are open-source organizations with digitally encoded rules that function without the need for any third party or intermediaries. Instead of a central authority like an HQ or a board, DAOs are run by this digitally encoded set of rules and a community surrounding them. The best thing about these DAOs being open-source is that they are run and supported by the community. Let us have a look at the detailed Bisq review.

What Is Bisq?

Bisq, or “Bitsquare” as it is commonly known, is one of the few leading decentralized exchanges with servers scattered worldwide, thus making it hard for hackers to exploit all the exchange servers, thus ensuring security with minimal server downtime. The exchange was founded in 2014 by a renowned Austrian cryptocurrency wizard Manfred Karrer, to eliminate the need for a third party in monetary transactions executed on the platform. It is a peer-to-peer (P2P) exchange that embraces all Bitcoin and blockchain technology features – decentralization, transparency, and anonymity.

Unlike most cryptocurrency exchanges, there is no central authority and thus no single point of failure. The difference between Bisq and most other exchanges is that it is a network where peers can trade directly. Everything is open-source and thus 100% transparent. Traders can buy and sell Bitcoin and almost all other leading cryptocurrencies on Bisq for national currencies (government-issued currencies) or other coins as long as both the users agree to it.

How Does Bisq Work?

Instead of going through a website, users need to run an app to trade on this platform. It is a desktop application that requires users to install the application on their computers. All that is needed to be done is to add the respective bank account of the trader or select a payment method, and traders are all set to begin trading on the platform. Because of its P2P nature which means no central server, there is also no need to verify anything on the platform, and neither does it store them on its servers.

Centralized exchanges might ask their clients to provide a photo ID proof (passport or driver’s license) or proof of residence (any utility bill like electricity bill, phone bill, etc.) and wait for their approval. In contrast, traders can directly start trading on Bisq in less than 10 minutes after verifying their accounts on the platform.

Working Procedure of Bisq Exchange

Here’s how Bisq works when a trade is executed:-

1. It is the trader who decides whether to make a trade offer or accept one on the crypto community, and the Bisq links them together.

2. Both users then must deposit 0.03 BTC plus the trading fees into the wallet. This security deposit towards the wallet ensures that both parties are ready to comply with the trading rules on the platform. It is sometimes used as collateral in case anything goes wrong.

3. Once things proceed, like the deposits, trading fees, and mining fees are processed, Bisq trades can be placed in a 2 (out of 3) multisig wallet.

After this, an arbitrator is selected randomly to ensure everything goes right. The trade is finally executed as soon as all the three parties sign off that the transactions went right.

According to the various available reviews on Bisq, users tend to like the Bisq platform because of its security, ease of use, accessibility, and decentralization; with no third parties to coordinate, traders can simply trade on the platform with another party. Thus, by nature, Bisq emerges to be more of an independent crypto trading platform and less of a brokerage service that assists people to trade on various cryptocurrency exchange platforms.

Quick Summary of Bisq

1. Formerly known as “Bitsquare.”

2. It works on a P2P network

3. It is a decentralized exchange

4. It has an easy user interface

Features of Bisq

Bisq offers the following core functionalities to its users:-

Ease-of-Use

Traders can start trading on Bisq much more quickly, in less than 10 minutes, because of its relatively simple interface. Most decentralized exchanges often have a complicated design, so they cannot be called user-friendly. It is one of the primary reasons many traders lean towards centralized exchanges despite switching to decentralized exchanges. The developers of Bisq have successfully coped with this issue and created a comfortable and easy-to-use interface for traders to enjoy the benefits of decentralized exchanges on a simple interface.

Security

Bisq exchange prioritizes the exchange’s security and has thus designed the system for maximizing traders’ safety. However, P2P networks come with their risks. Still, since it is a decentralized exchange, it doesn’t store traders’ money, nor does it store any confidential private information of the traders in its servers, and thus traders are never at risk of any cyber hacks.

Privacy

Everything on the Bisq exchange is 100% transparent, and as the exchange does not ask the users for any personal data or information, Bisq trading remains 100% anonymous.

Functionality

Trade execution on Bisq involves the interference of Arbitrators to see everything is going in the right way; this involvement of an arbitrator makes the process a bit complex. Otherwise, the functionalities of the platform are pretty smooth. Transactions might take a long time, but that would depend on the payment options that the traders choose.

Coins

Bisq exchange supports multiple altcoins like ETH, DASH, DOGE, and ZEN. Traders can see the complete list of supported coins and altcoins from the dashboard of the exchange’s website.

Fees

The fees for deposit and trading per transaction are a bit higher on the Bisq exchange. However, as per the various reviews on Bisq available online, it seems that traders don’t mind paying a bit high fees as long as they can trade on a legit platform and can trade almost all leading crypto pairs.

Is Bisq Regulated?

Bisq is just a software code and not any corporation or a legal entity of any kind, and so it is not subject to any external regulations. Also, It cannot be externally regulated because it deals with Bitcoin which cannot be externally controlled. Bisq is an automated system that has its encrypted code and incentives systems, and deterrents.

These self-regulatory systems and mechanisms are sufficient. Several because the encrypted systems work independently, and individuals can use them freely. Therefore, there is neither any place for any external regulations here nor any justification or need. It is a radically transparent platform free from any third-party interference, open-source, and non-custodial, which means that, like Bitcoin, traders are in complete control of their funds.

Bisq: Pros and Cons

Pros Cons  Decentralized exchange; no KYC required to begin trading, therefore provides instant approval for withdrawals.  Trading fees are a bit on the higher side.  Works on a P2P network.  Basic application; not fit for experienced traders.  Allows traders to buy almost all leading cryptocurrencies with fiat currencies. Users can also buy Bitcoin.    Various payment options are available.

How to Open an Account on Bisq

As already discussed, Bisq is an application that needs to be downloaded to one’s smartphone to begin trading. Account creation on Bisq involves the following steps:-

Download the App

Downloading the app to one’s mobile involves setting up a peer-to-peer network that allows users to directly exchange their preferred cryptocurrencies with other users on the platform. Users can download the Bisq exchange from its official website or use Github to download it from other Os (operating systems) like Windows, Linux, or Mac.

Set Up the Security

Once traders have downloaded and installed Bisq on their smartphones, they will now be required to back up their profile and personal information on the platform. Since the platform is decentralized in nature this step is mandatory, as there is no central entity to address if things go wrong.

That being said, Bisq has a dedicated dispute resolution system that involves mediation, trader chat, and arbitration. It is the sole responsibility of the traders to keep their passwords safe because there is no way to retrieve the password if it is lost. The only way to retrieve personal information is to encrypt the wallet and set up the backup location. After this, the users will be given some seed words required to note down on a piece of paper because they will be needed to restore the system.

Set Up a Payment Method

The next step is to fund the trader’s account by choosing the payment options that the traders want to use. If traders want to buy and sell crypto with any fiat currency, they will need to fund their accounts through an outside entity. Traders can choose any supported third parties like Advanced Cash, National Bank Transfer, Perfect Money, Western Union, Zelle, SEPA, and Face-to-Face (F2F). Traders can also use their existing cryptocurrency pool on Bisq.

Make a Trade 

After funding the Bisq account, users can start making trades on the platform, for which it charges a mining fee in Bitcoin for every transaction made on the platform. More specifically, a trade can choose to accept a transaction that someone else has put out there for someone to accept. Each step is tracked on the platform. When the seller receives the payment, they transfer the coins, and the buyer gets his security deposit back.

However, traders should have specific amounts of Bitcoin for initiating a transaction from either side. They can either make an offer and then wait for bitcoin confirmation, or else they can take an existing request. Both parties need to deposit funds of a certain amount from accepted deposit methods such as wire transfer in case anything goes wrong, and Bisq requires either party to use Bitcoin for this.

Trading on Bisq

Trading on Bisq is pretty straightforward. Being a decentralized exchange, Bisq does not require its users to register on its platform; users can simply begin Bisq trading on the platform by downloading and installing the app on their smartphones and crediting their accounts with the required deposits.

Bisq Fees

The fees, both trading, and withdrawal, are important considerations to follow before selecting a cryptocurrency exchange platform to trade on. At Bisq, the fees charged are a little different from most similar crypto exchange platforms.

Bisq Trading Fees

The Bisq cryptocurrency exchange does not distinguish between the takers and the makers; both parties must pay the same price, that is 0.001 BTC, for trading on the platform. Then there is an additional mining fee of 0.0003 BTC charged for trading on Bisq, which is charged three times (at the time of depositing money from the external wallet, during the actual trade, and finally at the time of funds withdrawal to the external wallet).

Therefore, the total mining fees charged on the exchange is 0.0009 BTC. The exchange also employs an innovative way to discourage dishonest traders by charging trade security deposits of around 0.1 BTC and an arbitrator’s deposits of equal amounts. However, the total of 0.001 BTC and the mining fees take the total trading fees charged on the platform on a bit higher side, and therefore, traders should be aware of the Bisq trading fees.

Bisq Withdrawal Fees

The Bisq withdrawal fees consist of one-third of the mining fee charged for trading (withdrawal to the external wallet), which is currently around 0.0003 BTC. Thus, the withdrawal fee at Bisq is below the global industry average, which is around 0.0008 BTC per BTC withdrawal. However, nowadays, most crypto exchanges charge 0.0005 BTC per BTC withdrawal, thus making the average withdrawal fees 0.0005 BTC the global industry average, considering Bisq’s fees for BTC withdrawals are pretty competitive.

Bisq Mobile App

The Bisq mobile notifications app lets users get notifications from their Bisq desktop on their iPhone or Android devices. The app also explains how to set up the Bisq software and how the software works. However, the compatible Bisq mobile app can only monitor any trade notifications, but it does not allow traders to trade on the go. For trading, users are only allowed to use the desktop version of the exchange. Plus, the computers should be connected to a robust internet connection for the offers to go live.

Bisq Supported Currency & Countries

There is no specific list of cryptocurrencies set on the Bisq platform. It depends on what cryptocurrencies people put on the crypto market. Traders from all over the world can trade on Bisq.

Bisq Security

Bisq is a decentralized cryptocurrency exchange. Its servers are spread out all across the globe, and this is where DEX (decentralized exchanges) differs from CEX (centralized exchanges), where servers are generally located in one place, concentrated servers. This spread-out of servers in decentralized crypto exchanges leads to a lower risk of server downtime, implying that decentralized exchanges are virtually immune to cyber-attacks. Under any circumstances, even if hackers compromise one server, it hardly makes any difference for the network of servers in totality.

Also, none of the servers of a decentralized exchange like Bisq have access to the users’ funds hence, prevent money laundering, which means that the hackers in no way can access the clients’ money. Even if the hacker can somehow manage to hack the exchange, they will not be able to access the clients’ assets as, unlike centralized exchanges (where the users generally hold the assets on the exchange until they are moved to their private online or offline crypto wallet), the decentralized exchanges (DEXs) do not hold clients’ assets. Considering all these security measures, it can be computed that Bisq is a highly secure exchange due to its decentralized nature where users can trade without any worries.

However, it should be kept in mind that Bisq has low trading volumes and slow processing speed, just like most decentralized platforms.

Bisq Customer Support

There is a strong customer support team backing the platform. Traders can directly report to the Bisq support team via mail and can also solve their queries through the FAQ section.

Conclusion

Thus, on reviewing Bisq, it appears that Bisq is a useful platform trading platform for bitcoin and other leading cryptocurrencies. The exchange’s nature of decentralized control makes it a very secure platform that does not need to work with third-party platforms to sell bitcoins. Bisq allows anyone to execute trades for a small, Bitcoin-denominated fee on the platform. Suppose traders are comfortable using a P2P network and paying a bit high fee. In that case, the Bisq exchange can be an excellent platform for the – 100% anonymous, safe, and decentralized, that every crypto maniac would love to experience.

While it is a good option for experienced investors who are familiar with the cryptocurrency market, comfortable working on DEXs (decentralized exchanges), and are well aware of how they work, it may be limited for beginners and other traders who prefer working with a brokerage.

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