Bisq Exchange Review

/Bisq Exchange Review

Bisq Exchange Review 2018-05-04T09:35:35+00:00
Bisq Exchange Review

Note: Bisq used to be known as Bitsquare, however, the company has rebranded from Bitsquare to Bisq.

Quick inner navigation:

  1. What is Bisq?
  2. How to use Bisq?
  3. Is Bisq safe?
  4. Bisq Verification
  5. Bisq Fees 

Decentralized exchanges are more popular than centralized exchanges because they offer anonymity. You don’t need to provide your personal details like a bank account or credit card details to trade on a decentralized exchange. On the flip side, you are solely responsible for the security of your own funds.

Not many decentralized crypto exchanges offer cryptocoin-to-fiat exchange and vice versa. You’ll find that either they do not support Fiat currency exchange or they use server architecture. This does not make them fully decentralized.

This is why Bisq is so unique because it is completely decentralized and it offers one of the best features that most crypto traders want – complete anonymity. So, here is what we found out about Bisq.

What is Bisq?

Bisq is a peer-to-peer cryptocurrency exchange. The only difference between Bisq and many other exchanges is that it is decentralized software. It was created in 2014 by Manfred Karrer as a client-side and not a website. Bisq is not a company, but a decentralized autonomous organization (DAO). So, all the decisions are made by the users and the contributors’ through a vote. Bisq is open source and licensed under the GNU Affero General Public License v3.0. Bisq does not hold any funds or cryptocoins. They are held in multisignature addresses. Bisq does not collect or store any trader information.

Supported countries

Bisq offers its services to all countries.

Bisq Limitations

The trade limits are as follows:

  • Bank transfers: 0.25BTC per trade
  • PerfectMoney, Swish, OKPay, AliPay: 0.5BTC
  • Altcoins: 1BTC

There is no minimum limit on deposits, but a security deposit must be paid by new users to Bisq to protect it against abuse and fraud.

The security deposits for sellers and buyers are as follows:

Buyers

  • 0.01 BTC
  • 2.00 LTC
  • 0.50 DASH

Sellers

  • 0.003 BTC
  • 0.600 LTC
  • 0.150 DASH

Payment Methods

The following payment methods are accepted on Bisq.

  • SEPA
  • National bank transfer
  • Western Union
  • Cash Deposit
  • OKPay
  • Alipay
  • And many more

Bisq does not support payment methods in which chargebacks are easy. This is why it does not support PayPal and credit cards.

Available Cryptocurrencies

There are 100+ supported cryptocurrencies on Bisq including Monero, Litecoin, Dash, DeepOnion, Dogecoin, Bitcoin Cash and Ethereum.

Bisq Verification

To use Bisq, you do not need to register an account. So there is no verification. Furthermore, it is a p2p exchange, where buyers and sellers trade directly with each other.

Bisq Fees

Bisq uses the maker-taker model. The taker’s fee is calculated differently from the maker’s fee. The calculations are as follows:

The trading fees for the offer maker are based on trade amount and distance to the market price.

  • Min. fee (MinFee) = 0.0002 BTC, default fee (DefFee) = 0.002 BTC/per Bitcoin, market price factor (MF) = square root of percent value (e.g. 1% -> 1, 9% -> 3, 0.01% -> 0.1).
  • Makers trading fee = max (MinFee, DefFee * amount * MF). E.g. 0.002 BTC for 1 BTC trade at 1% market price distance equivalent to 0.2% of the trade amount.
  • The trading fees for the offer taker depend only on the trade amount.
  • Min. fee (MinFee) = 0.0002 BTC, default fee (DefFee) = 0.002 BTC/per Bitcoin.
  • Takers trading fee = max (MinFee, DefFee * amount). E.g. 0.002 BTC for 1 BTC trade. That is 0.2% of the trade amount.”
  • The maker is responsible for paying the miner fee, while the taker has to pay three times the miner fee paid by the maker.

Special features

  • Arbitrator system – Bisq has a team of arbitrators whose main role is to try to resolve trade disputes between traders.

Is Bisq safe?

Bisq uses three mechanisms to enhance its security:

  • All altcoins traded with Bisq are secured in multisig addresses.
  • Both the buyer and seller are required to make a security deposit before they can start trading, which is refundable.
  • Bisq has an arbitrator system, which is used to resolve trade disputes.

Community trust

Bisq has a good following on Reddit. Many users recommend the exchange because of its anonymity, which is what most crypto traders want – to keep their crypto activities private. By virtue of being decentralized peer-to-peer software, Bisq has gained the confidence of many users, especially those who love to remain anonymous.

Security

Bisq uses a peer-to-peer network built upon Tor hidden services to provide a high level of anonymity. Its client side, so it does not collect or store any of your information. It also doesn’t hold any of your currency or store your password.

Customer support

You can contact the Bisq support team through the Bisq forum, which is on their website, or via social media (Twitter). There is also a community page where you can interact with other Bisq users and get answers to your questions.

For technical issues, you can contact them directly on their tech support number. Usually, the support team responds quickly and issues are resolved within 24 hours.

Handling speed

Trade periods vary depending the on the payment method and your location. For instance, Bitcoin transactions take about 10 minutes, while transactions via Western Union take four days.

How to use Bisq?

To use Bisq, you need to download it and install it on your PC (Windows, Mac OS). You can download directly from the Bisq website.

  1. Once you have downloaded and installed the Bisq app, it will launch. Go to the account section and edit your profile. You can also add your cryptocurrency and fiat accounts; backup your wallet; change your password and more.
  2. To make a deposit, navigate to the “Funds” tab. Before you deposit any currency make sure that your account is properly configured. If you are plan on using Fiat currency, select your national currency or your preferred currency and then add a new account.
  3. If you are planning on using Altcoins, on the Account section, click on, “Altcoin accounts” then click on “Add New Account.” Select the cryptocoin you want to add, enter the wallet address and click on “Save new account.”
  4. To protect your wallet, on the Account section, click on “Wallet password” to set your password. Once you have setup your password, click on “Wallet seed” to get your 12-word passphrase. Once that’s done, backup your wallet by clicking on the “Backup” button. This is an extremely important step and it should not be missed.
  • Fund your wallet

Before you can start buying and selling crypto on Bisq, you need to deposit some coins to fund the security deposit, transaction fee, and trading fee. You can fund your Bisq wallet from an external wallet.

Click on “Funds” and select the cryptocurrency address you want to send to. You can create a new wallet by clicking on the “Generate a new address” button.

  • To buy and sell

To start trading, click on the “Market” button. You will see the offer book, spreads, and trades. When you click on offer book, you will see the available sell or buy offers. You can also create your own offer.

Bisq Review Summary

Bisq is an open-source desktop application designed to facilitate the trading of cryptocurrencies with Fiat currencies and vice versa directly between traders. The app was designed with simplicity in mind such that anyone can use it, beginner or expert.

Since it’s a decentralized peer-to-peer exchange, your crypto activities remain private. Bisq does not store any user information or data on its servers and neither does it hold users funds. With that said, Bisq should, however, seek to improve their software to increase the transaction speed.

Pros

  • It is decentralized and therefore free from outside interference.
  • Masks the identity and personal information of all the traders.
  • Never holds users funds.
  • Never collects or stores user information or data.
  • Supports a wide range of altcoins.
  • Easy to use.
  • It’s open source; therefore, transparent.
  • Arbitration mechanism available for dispute resolution.
  • Positive user reviews.
  • No registration needed.

Cons

  • Low trading volumes.
  • Sluggish transaction speed.

Thank you for reading our review and please check out our website to see other reviews.

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