Bisq Review | How Safe is Bisq? Features and Fees Explained – EconomyWatch.com

Bisq is one of the few cryptocurrency exchanges in the online space that operates in a decentralized manner. Meaning, instead of being owned and operated by a single entity, this platform has its servers scattered around various independent locations.

If you want to know the benefits and drawbacks of using a DEX for your cryptocurrency trades, then our Bisq review is a must-read. Within it, we cover the core features of this platform, what fees to consider, and find out how it keeps up with the needs of crypto traders across all levels.

Recommended Broker – eToro

What is Bisq?

There are a variety of ways for you to buy and sell cryptocurrencies. However, the vast majority of platforms in this arena will require you to provide your personal details and verify your identity. If you are looking for a way to get around this, then Bisq might be of interest to you.

Launched in 2014, Bisq is a decentralized and open-source cryptocurrency exchange platform that allows you to trade digital assets on a peer-to-peer basis with minimal requirements. In other words, you can download the software to your computer and be in total control of how you use the platform and what information you share with others.

For a cryptocurrency trader, another important reason to consider Bisq is that there is no need to rely on the platform for the safety of your funds. You will not be holding any assets on this software itself but instead – will be directly transferring the fiat money or digital coins to the buyer’s/seller’s wallet when you make a trade.

However, there are also a few notable disadvantages, such as high trading fees and lack of scalability. As we go forward with our Bisq review, we will take a closer look at these aspects to provide you with a clear picture as to whether or not this DEX is right for you.

Bisq Pros and Cons

Our Bisq review concluded that using the decentralized exchange comes with the following pros and cons.

Pros

Cons

Cryptoassets are highly volatile unregulated investment products. No EU investor protection. 67% of retail investor accounts lose money when trading CFDs with this provider.

How Bisq Works

Since Bisq is not a centralized exchange, some of you might be wondering how the cryptocurrency trading process actually works. In a nutshell, our Bisq review found that you will initially need to download the application to your computer via the official website. You can then configure the software with your payment method details. When you are ready to proceed, you can look for your trading pair.

• If you then want to buy or sell Bitcoin, you can browse the application for existing offers.
• For instance, let’s say that you are looking to trade BTC/USD.
• When you have found an offer that matches your requirements, you can connect directly with the other user to perform the transaction.
• You can then transfer the USD to the seller’s bank account and indicate on Bisq that you have completed the transaction from your end.
• Once the other trader receives the money, they will also confirm it with Bisq.
• Finally, you will receive the Bitcoin to your built-in Bisq wallet address, and the trade will be completed.

The platform highly recommends that you move your BTC tokens to a private wallet right away. As you can see, there is no need for you to sign up on Bisq or submit your personal financial information.

Instead, you can perform trades entirely anonymously. However, before you can start trading, you will need to make a security deposit of at least 0.01 BTC. This needs to be locked in a multi-signature escrow wallet until the trade is complete to prevent any fraud.

Bisq Supported Markets

In simple terms, BSQ is the native token of the Bisq protocol. Technically, it is a colored coin, with its value equalling 100 satoshis (0.00000001 BTC). On the network, this token has additional governing properties that facilitate the smooth functioning of the project.

• If you are a BSQ holder, then you have the power to propose changes and improvements to the protocol or vote on the suggestions made by others.
• Additionally, this digital token is also how the network compensates contributors for its work. 
• You can trade this coin like any other Altcoin on the platform, but you will have to use the in-built BSQ wallet to store your digital assets.
• This is because, outside the Bisq network, this token only represents a few satoshis.

Note that the only way to buy BSQ tokens is via the Bisq network. And more importantly, Bisq allows you to pay your trading fees using BSQ tokens. If you do, you will be able to receive a discount on the network.

Bisq Fees

When choosing a cryptocurrency platform, trading fees are an aspect that you should pay close attention to. In the case of Bisq, the network charges fees in a slightly different way to traditional centralized exchanges.

That is to say, our Bisq review found that you can either choose Bitcoin or BSQ tokens for this purpose.

• For every Bitcoin traded, a maker will be charged 0.001 BTC, and a taker will have to pay 0.007 BTC.
• On the other hand, if you choose to cover the cost of transactions in BSQ tokens, the fees will amount to 13.16 BSQ and 92.15 BSQ accordingly.
• In addition to this, you will also have to pay mining fees, which will fluctuate based on how busy the network is at the time of the trade.
• Furthermore, no matter the size of your trades, you will need to meet the minimum charge, which is set at 0.00005 BTC.
• Although Bisq does not charge you any other fees, since you are paying in Bitcoin, you might end up paying a sizable amount depending on the timing of your trade.

Furthermore, you might also encounter additional fees charged by the payment method you use when funding your trades on Bisq.

Bisq Mobile App

As with the desktop version, you can also download Bisq to your mobile to monitor ongoing trades. Once you have it installed, you can pair it with your PC version by scanning your QR code. You can then set up the different notifications and alerts that you want to receive on your phone.

However, you will not be able to buy or sell Bisq on the go. This means that the app is only useful for you to monitor the market or get updates about any offers you have made.

Is Bisq Safe?

The main attraction of Bisq is that it is decentralized, which comes with certain advantages when it comes to security and anonymity. To begin with, you will not have to divulge your personal details to any third party, nor do you have to worry about your financial information getting hacked via this software.

On the contrary, our Bisq review found that the software is entirely non-custodial, meaning – you are in full control of your fiat and crypto funds. However, this means that if you lose your private key or if your computer gets hacked by any other means, you alone will be entirely responsible for the loss.

And perhaps, most importantly, unlike centralized exchanges, Bisq is censorship-resistant. As this platform does not adhere to any legal jurisdictions, the laws or rules of specific countries do not have an impact on the tool or how you use it. 

Bisq Security

To avoid further security issues – the platform adopts the following guidelines:

• All traders are required to make security deposits to prevent fraud
• Any trading funds and security deposits involved with open positions are locked in a multi-signature escrow wallet
• Built on Tor, and inherit censorship resistance
• In case of any disputes, Bisq has set up decentralized human mediation and arbitration systems to handle any potential issues
• Data concerning trade details are encrypted
• To add more protection, you should encrypt your Bisq wallet with a strong password and back up the seed words.

And to make things crystal clear, Bisq is only a code. It is not a company or organization.

Bisq Customer Support

Bisq has set up detailed documents, video tutorials, and how-to guides on how you can get started with the platform and access its features. Since this is a decentralized exchange, you will not find any dedicated customer support.

Instead, you can reach out and engage with the community via the Bisq forum, subReddit, or Keybase. You will also find active social media pages on Twitter and YouTube from where you can receive the latest news and updates.

Unfortunately, this means that if you encounter any problem, you are well on your own. But the platform has also created a system for dispute resolution in case a problem arises between two traders.

Safety and Regulation

Bisq aims to maintain a high degree of user privacy, security, and censorship resistance. However, this also means that you are practically on your own. You will have no access to any kind of protection when using this platform.

On the other hand, eToro offers you a fully regulated environment. The platform holds multiple licenses in different jurisdictions – including the SEC in the US. Yes, this requires you to go through identity verification, but, in return, you will receive access to a high level of protection. Some financial authorities also offer you insurance coverage for the fiat funds that you store on the site.

Trading Volume and Markets

As a centralized broker, eToro offers you access to more markets with high levels of liquidity. Although Bisq lists a wide range of pairs, there is no guarantee that you will find another trader who can match your offer. This means that you might have to wait a while for the trade to be completed.

Instead, on eToro, you will be able to gain access to dozens of crypto-to-crypto and crypto-to-fiat trading pairs. Also, if you want to diversify, you can also trade or invest in stocks, commodities, forex, indices, or ETFs.