Bisq is a decentralized exchange that was built for the sake of privacy and security. You’ll find it’s a little more difficult to trade than traditional brokerage accounts, but you can rest assured knowing your information will be kept as private as possible. If anonymity matters most to you in an online trading environment, then Bisq may just be what you’re looking for.
Decentralized Exchange
Decentralized exchanges use blockchain technology to create a peer-to-peer network that matches buyers and sellers. This means no middleman, so your trades are 100% secure! The decentralized nature of these platforms also makes it easier for you to trade in cryptocurrency without having the investment restrictions traditional brokers have such as minimums or funds being locked up until an expiration date.
Benefits of Bisq
Bisq may not be considered a “conventional” exchange by some, but it is popular for its central focus on decentralization. It’s important to note that this parallelism between Bisq and cryptocurrency as a whole showcases how the two are deeply intertwined in many ways. The benefits are:
- Increased privacy and anonymity
- Lower fees
- You keep control of your crypto
- It’s open to unbanked users
And, a bit like a credit union, Bisq is owned and run by its traders and contributors. Its founding principles are user privacy, user security, and censorship resistance. The idea of censorship resistance is a core part of decentralization.
Payment Option
You have many things to consider when purchasing cryptocurrency. How quickly do you want the purchase? Will it be in fiat or another form of currency, and what are your personal preferences for how much information should be shared during the process?
Bisq is a decentralized, peer-to-peer trading platform that lets you buy and sell cryptocurrencies without the need for any USD or fiat. You can make deposits in cash at participating banks around the world (in over 55 countries), using Zelle to transfer funds from your bank account into Bisq’s BTC wallet (which takes just minutes) or by transferring money via electronic wire payments directly into our accounts.
Cryptocurrency Selection
The cryptocurrency exchange Bisq, unlike other exchanges out there, is not limited to just the currencies it trades in. You can choose your own fiat currency; you’re almost certain to find big cryptocurrencies such as Bitcoin and Ethereum on this platform too- assuming that people put those up for trading. You’re more likely to find a market for better-known currencies and Bisq’s own coin (BSQ). For example, recent trades include:
- Bitcoin (BTC)
- BSQ (BSQ)
- Monero (XMR)
- Ethereum (ETH)
- Dash (DASH)
- Litecoin (LTC)
- Zcash (ZEC)
- Galilel (GALI)
Security of Bisq
The decentralized nature of Bisq helps it to be more secure than other platforms. The information is stored on a central server and if this person were hacked, your money could potentially go missing as well as personal information that would allow hackers access to all sorts of things from bank accounts to emails so they can’t get in the way when you’re logging into an account for one service or another.
As we’ve discussed, there is a risk of individual scams. Unfortunately, anonymity can attract fraudsters, scammers, and criminals. The security deposit and dispute resolution goes some way to mitigate that risk. But sadly, you can’t trust everybody.
It is worth nothing that Bisq had to shut down temporarily last year when a flawed security patch allowed a hacker to steal a total of $250,000 from seven individuals. Bisq fixed the problem and pledged to compensate the victims.
How to Start with Bisq?
You don’t have to provide any private information. Centralized exchanges may ask you to provide a photo ID or proof of residence and wait for approval. In contrast, you can start trading in less than 10 minutes with Bisq.
Here’s how:
- Download the app to your desktop: It sets up a peer-to-peer network that allows users to directly exchange cryptocurrencies.
- Set up your security: You are the only one with access to your Bisq account; there isn’t a handy ‘forgot password’ button. You’ll need to encrypt your wallet and set up your backup location. You will then be given a number of seed words. Write them down on a piece of paper along with the date. You will need these words to restore your system if anything goes wrong, so keep them someplace safe.
- Set up a payment method: As we’ve discussed, you don’t need to fund your account, but you do need to choose the way you’ll pay.
- Make a trade: You can either make an offer and wait for someone to accept it, or take an existing offer. Both parties need to put down a deposit in case anything goes wrong. Bisq requires you to use Bitcoin for this — its help page suggests a few ways you can get some.
- Transfer your money: Each step is tracked and supported on the Bisq platform. When the seller receives your payment, they transfer the coin. You will both get your security deposit back.
The idea of transferring your money to a stranger on the internet may sound scary. And you’d be right to be cautious. But there are protections, such as the deposit and Bisq’s dispute resolution process. In addition to the money from the buyer and seller, the system puts in an additional arbitrator deposit. Moreover, there are not many customer complaints, which suggests it works.
