Bisq Review 2022: More complex decentralized exchange than most investors need - GOMISTORES

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Wednesday, 6 April 2022

Bisq Review 2022: More complex decentralized exchange than most investors need

 Bisq is a peer-to-peer network where you can exchange Bitcoin for fiat money and other cryptocurrencies.

The company says the motto of Bitcoin is "Be Your Own Bank" and Bisq's "Be Your Own Exchange". In contrast to centralized exchanges, which act as a central platform for transactions, Bisq acts as a platform to engage with other individuals for direct crypto trading. Bisq is unnecessarily complex for new investors, and it will appeal to you if you are a top investor who prioritizes anonymity and complete control over your crypto.

bisq


All transactions on Bisq must include Bitcoin and must be credited to your wallet before it can be launched. Bisq does not require identity verification and you maintain full control over your funds as it is not a trustee. Bisq runs on the Tor network, a browser that anonymizes its users and their activities, and is associated with what is described as the "dark web". There is nothing inherently wrong with Tor & Dark Web, and the privacy it guarantees to users also provides cover for illegal (and anonymous) activities. For most everyday crypto investors, a more mainstream exchange like Coinbase or Gemini might be the simplest choice - and without such a direct link to the dark web.

Advantages and disadvantages of Bisq

Advantages

  • Anonymous, decentralized peer-to-peer network for exchanging Bitcoin for fiat and cryptocurrencies
  • Support for over 120 cryptocurrencies and global Fiat
  • There are many ways to exchange fiat money for Bitcoin, including ACH, Amazon gift cards, face-to-face transactions, US postal money orders, and more
  • Bisq does not require personal information or a bank account to use the platform

Disadvantages

  • Bitcoin is required for all currencies
  • Higher exchange rates set by individual users
  • Coins cannot be purchased directly using a bank account, credit card, or debit card
  • A confusing interface for new Bitcoin investors
  • There is no learning platform for new cryptocurrency investors

Cryptocurrencies are available in Bisq

You can exchange Bitcoin for more than 120 different digital currencies and fiat currencies, depending on what users add to the market. Crypto options currently include:

Ethereum (ETH)
Litecoin (LTC)
Monero (XMR)
Dogecoin (DOGE)
DASH
BSQ (BSQ)
Grin (GRIN)
Because Bisq is decentralized, you do not need to create an account or share personal information to get started. Instead, Bisq recommends that you create a new wallet to facilitate trading, send security deposits, and pay trade fees. Instead of syncing online with cloud-based software, the wallet file - as well as the password and encryption - live offline and only connects to the blockchain when the coins are exchanged.

You can choose from over 50 transactional methods, from sending a US Postal Service money order to exchanging an Amazon eGift card. To trade Bitcoin using altcoin, you need to link another wallet that accepts those coins. Currently, the most popular offers on altcoins include Monero, Ethereum, and Bisq BSQ coin holders. Once you and another user have agreed to buy or sell Bitcoin, you will be communicated within the Bisq platform to coordinate payment details. Both parties will make a deposit on Bisq as a measure of integrity, which will be refunded once the trade is completed.



At first glance bisq

  • A decentralized peer-to-peer network that uses Bitcoin to transact
  • Bisq does not facilitate money transfers or deposit
  • Low comparable transaction fees compared to other exchanges
  • The transaction fee community funds the DAO (Decentralized Independent Organization)
  • Transactions can be anonymous based on agreements between the buyer and the seller

Bisq Exchange Fees

Each buyer sets the price they want to buy Bitcoin and the sellers offer the price they want to sell. When you log in, you will see the offers currently available on both sides.

Some offers may be higher or lower than the Bitcoin market rate and other exchange rates, which is something to keep in mind when considering any exchange. And you get the anonymity of sharing with peers. Instead of signing up with a major cryptocurrency exchange like opening a bank account, you can sell your bitcoin and exchange very little information in the process.

When you and another user agree to a sale, Bisq charges a transaction fee, which is paid to the decentralized independent organization (DAO). The company claims that its DAO is based on software, but ultimately on a self-contained economy determined by the community. DAO is tasked with keeping the Bisq community software online with quarterly transaction processing fees.

Bitcoin or Bisq Community Token, trading fees must be paid using BSQ. When paid using Bitcoin, the trading fee is equal to 1% of the total amount traded. The buyer pays 0.88% of the fee and the seller pays 0.12% of the fee. In comparison, BSQ halves payments by half as tokens directly support the community. DAO members set exchange rates on a quarterly basis.

Bisq Security

The security features of the platform assume that you understand the key cryptocurrency terms and how the crypto environment works. Without a basic knowledge of how to exchange tokens online - or their inherent value - Bisq can outweigh the rewards.

Because Bisq is not centralized, the platform holds no assets, so Bitcoin or Hard Currency are not directly available for trading on Bisq. Just as Uber connects drivers with drivers, Bisq connects those who want to buy Bitcoin with those who want to sell theirs. This way, you do not have to link your bank account or personal crypto wallet directly to buy or sell.

Bisq requires both parties to place a refundable security deposit to ensure the transaction is completed. If things are not going well, the platform offers a three-tier dispute resolution process of negotiation, mediation, and arbitration.

There are several security layers to dealing with, and you are encouraged to be extra careful with your information. As with any other use of your wallet outside of your own platform, there is no way to recover a lost password or password. As a result, your information and property may be lost forever. If you plan to use Bisq, be sure to not only write down your security password and passphrase in a secure location but also run regular data backups to ensure your information is secure.

Additionally, since Bisq is peer-to-peer, there is always potential for targeted cryptocurrency fraud. One of the most common scams is the demand for Bitcoin payments that allegedly come from a government agency or utility. At this point, a government agency will never ask for Bitcoin as payment - but if you send money to another wallet, it will be lost forever.

Who is Bisq more suitable for?

Although anyone can use Bisq to manage Bitcoin transactions from peer to peer, the network is designed for cryptocurrency users who want complete control over their personal information and how it is used. New investors should stick to more mainstream crypto exchanges for simplicity and the extra security that often comes with them.

As with any cryptocurrency market, it is important to understand how the platform works and where you can safely withdraw Bitcoin to use as an investment or exchange for other digital assets. If switching bitcoin between crypto wallets is not easy for you, this may not be the best platform for your needs.




How to open an account with Bisq?

Because Bisq is completely decentralized, you do not need to create traditional accounts to use it. Instead, the process starts with downloading the software and installing it on your computer. Currently, Bisq is available in several versions of Windows, macOS, and Linux.

For anonymity, once you have started and connected to the Bisq network built above the Tor network, you will need to create a Bitcoin wallet in the system. Bisq Video supports new users going through the setup process with information on how to save and back up a crypto wallet.

You will find this to be another great platform that will save you money. See if you can find a better one, let me know.

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