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 an easy-to-use, decentralized, blockchain-based cryptocurrency exchange platform that allows users to securely buy and sell cryptocurrency. These transactions are completed between peers without the help of a third party. You can download the Bisq platform from its website or Github to use with Windows, Mac or Linux.
Once you download and install Bisq, you’ll want to back up your profile and information. This step is particularly important due to Bisq’s decentralized nature, as there’s not a central entity to turn to if things go wrong. That being said, Bisq does have a process in place for dispute resolution that involves trader chat, mediation and arbitration.
Once you’ve set yourself up with Bisq, you’ll want to go ahead and fund your account. If you want to buy cryptocurrency with fiat currency, you’ll need to fund your account through an outside entity. Supported third parties include Advanced Cash, Perfect Money, National Bank Transfer, SEPA, Western Union, Zelle and Face-to-Face (F2F). You can also use your existing cryptocurrency pool on Bisq.
As soon as you’ve funded your Bisq account, you can start making trades. The platform takes a fee in Bitcoin for every transaction you take or make. More specifically, you can choose to accept a transaction that someone has put out or put a transaction out there for someone to accept. You must have certain amounts of Bitcoin in order to initiate a transaction from either side.
Bisq supports dozens of cryptocurrencies. These include Bitcoin, Bitcoin Cash, Ethereum, Dogecoin, Dash and more.
Pricing: How Much Does Bisq Cost?
When picking a brokerage, trading fees are one of the most important factors to pay attention to. In Bisq’s case, it charges fees differently than most other brokerages. As we stated above, its trading fees are charged in Bitcoin. You can also pay them in BSQ, which is Bisq’s colored Bitcoin that it uses to govern and fund itself.
Per one Bitcoin traded, each trade maker and taker are charged a combined fee of 1% (0.12% by maker and 0.88% by taker). And the absolute minimum fee to avoid dust is 0.00005 BTC. In BSQ, the combined trading fee is targeted at 0.5% (0.06% by maker and 0.44% by taker), with the absolute minimum fee to avoid dust also at 0.03 BSQ.
Trade takers and makers will also need to pay mining fees, though these rates fluctuate since it’s impossible to know what the mining fees will be at the time when a trade is processed.
Bisq doesn’t charge fees beyond the ones mentioned above. You may need to pay fees to your bank or financial institution when transferring or wiring money, but Bisq itself only charges for trades and mining. However, because the platform charges fees in Bitcoin, you could end up paying far more depending on when you trade, since Bitcoin’s value fluctuates significantly.
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. So tread lightly if you’re new to the crypto game.
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 up to three 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