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Bisq, formerly known as Bitsquare, is a decentralized cryptocurrency exchange with servers located around the globe. Bisq’s decentralized autonomous organization (DAO) means it isn’t headquartered in any one location or country, which gives it a number of advantages. You can use Bisq to trade cryptocurrency peer-to-peer instead of through a third party, and its decentralized nature makes it safer than other, more normal exchanges. If you’re looking to invest in crypto through an exchange, you may want to consult with a financial advisor beforehand.
Services and Features: What Does Bisq Offer?
Bisq is a decentralized, blockchain-powered cryptocurrency exchange platform designed for seamless peer-to-peer transactions. It allows users to securely buy and sell cryptocurrency without relying on a third party. The platform is available for download on its official website or GitHub and is compatible with Windows, Mac and Linux operating systems.
After installing Bisq, it’s crucial to back up your profile and transaction data. Since Bisq operates without a central authority, recovering lost information can be challenging. However, the platform offers a structured dispute resolution system that includes trader chat, mediation and arbitration to help resolve transaction issues.
To start trading, you’ll need to fund your Bisq account. If you’re purchasing cryptocurrency with fiat currency, deposits must be made through external payment services such as Advanced Cash, Perfect Money, National Bank Transfer, SEPA, Western Union, Zelle or Face-to-Face (F2F) transactions. Alternatively, you can use your existing cryptocurrency holdings to fund your account.
Once your account is funded, you can begin trading. Bisq charges a Bitcoin-based transaction fee for each trade. You can either accept an existing trade offer or create one for others to accept. Regardless of the approach, you’ll need a minimum amount of Bitcoin to initiate a transaction.
Bisq supports a wide range of cryptocurrencies, including Bitcoin, Bitcoin Cash, Ethereum, Dogecoin, Dash and many others, making it a versatile choice for crypto traders.
Pricing: How Much Does Bisq Cost?
When selecting a brokerage, trading fees are a crucial consideration. Bisq structures its fees differently from most other brokerages. As mentioned earlier, its trading fees are denominated in Bitcoin. Alternatively, users can pay in BSQ, Bisq’s colored Bitcoin, which serves as its governance and funding mechanism.
For each Bitcoin traded, the combined fee for trade makers and takers amounts to 1.3%, with makers paying 0.15% and takers 1.15%. The minimum fee to avoid dust is 0.00005 BTC.
If paying in BSQ, the combined trading fee is set at 0.65%, with makers paying 0.075% and takers 0.575%, while the minimum fee to prevent dust is 0.03 BSQ.
Additionally, both trade makers and takers must cover mining fees, which vary since they depend on network congestion at the time of transaction processing.
Beyond these trading and mining fees, Bisq does not impose additional charges. However, users may incur fees from their banks or financial institutions when transferring or wiring funds. Since Bisq charges fees in Bitcoin, the actual cost of trading can fluctuate significantly depending on Bitcoin’s market value at the time of the transaction.
Effectiveness: How Well Does Bisq Work?
Bisq is definitely a platform for those who are comfortable with and knowledgeable about the cryptocurrency space. Other platforms, such as Coinbase, can be easier to use for beginners since they offer resources with trends and graphs that show historical prices. You should note that platforms and brokerages vary in terms of resources, offering similar or more comprehensive tools and data.
Bisq users, however, tend to like the platform because of its security, decentralization and accessibility. With no third parties to coordinate with, you simply trade with other Bisq users. In this sense, it’s a very independent cryptocurrency trading platform and less of a brokerage service that helps people trade.
Bottom Line
Bisq is a useful platform for trading Bitcoin and many other types of cryptocurrency. The platform’s decentralized nature makes its very secure, and you won’t need to work through a third party to execute trades. Anyone on the platform can take or make trades for a small, Bitcoin-denominated fee. While Bisq is a good option for investors who are familiar with cryptocurrency and comfortable working on a decentralized platform, it may be limited for beginners and other cryptocurrency traders who prefer working with a brokerage or centralized exchange.
Tips for Investing
- Cryptocurrency is perhaps a unique investment currently on the market. A financial advisor, therefore, can be extremely helpful if you have questions about it. Finding one doesn’t have to be hard. SmartAsset’s free tool matches you with vetted financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
- In these days, many people are interested in making cryptocurrency investments a part of their investment portfolios. If you’re working through things on your own, try using SmartAsset’s free investment calculator.
Photo credit: Bisq