Review of Bisq — The very first Decentralized Exchange — 10/28/2018
I don’t usually do write-ups on exchanges; but, I had to do one on this one. I’ve been using Bisq since it was BitSquare. It’s an awesome project that deserves as much coverage as it can get. It’s probably the most decentralized application in existence. Based on my early use of the product and interviews that I have seen of the creator, I believe it was created out of love for the community.
History
Bisq, formerly known as BitSquare, was started by Austrian developer Manfred Karrer. Using his talent and expertise, he turned his dream into reality by releasing the BitSquare whitepaper in 2014. In 2016 BitSquare entered beta. Karrer visited 15 cities across Europe trying to get the word out about his amazing product. In 2017, due to trademark reasons, BitSquare changed its name to Bisq. That year, Bisq had 5200 transactions conducted on its platform for a total of $4.1 Million in trades.
What is Bisq?
Bisq is a decentralized crypto-currency exchange that facilitates the trading of Bitcoin, Altcoins and Fiat currencies. It’s a fully distributed peer to peer network app built with privacy in mind and integrates with the Tor network for added privacy. It uses a peer to peer protocol to facilitate trades without middlemen. Bisq does not require users to register or KYC themselves to use the application as trades do not happen on the platform, they are peer to peer.
How does it work?
1. You download and run the Bisq application on your laptop or desktop computer
2. You configure Bisq with your USD payment method details
3. You browse Bisq’s offer book for existing offers to sell BTC for USD
4. You take an existing offer, agreeing to buy the seller’s BTC for your USD
5. You send USD from your bank to the seller’s bank and indicate you have done so in Bisq
6. You and the seller wait for your USD payment to arrive at the seller’s bank
7. The seller receives your USD and indicates they have done so in Bisq
8. You receive the seller’s bitcoin and the trade is complete
How is it different?
Bisq is a little different from other DEX’s. Usually, a DEX will automatically match your order on their exchange based on the price you want to sell/buy at. There is no auto order matching on Bisq. Users check the listings for particular coins or currencies and pick the opportunity that is best for them. Buyers who can’t find the right price can create an order to buy specifically at the price that is right for them. Conversely, sellers who can’t find buyers can setup sell orders that work best for them. What’s also unique is the way you pay for the fiat or coins. Unlike most exchanges where you are forced to use the trading pairs for the coin/token you want to purchase, on Bisq you can make purchases via Money Order, PopMoney or even Zelle. They have taken peer to peer crypto purchases to the next level. Unlike other exchanges, you will need to leave a deposit in a 2 of 3 multi-sig wallet to trade on this truly decentralized exchange. If there is an issue, human arbitrators can be employed to resolve issues. It’s a win/win for both seller and buyer alike.
Bisq is a little different from other DEX’s. Usually, a DEX will automatically match your order on their exchange based on the price you want to sell/buy at. There is no auto order matching on Bisq. Users check the listings for particular coins or currencies and pick the opportunity that is best for them. Buyers who can’t find the right price can create an order to buy specifically at the price that is right for them. Conversely, sellers who can’t find buyers can setup sell orders that work best for them. What’s also unique is the way you pay for the fiat or coins. Unlike most exchanges where you are forced to use the trading pairs for the coin/token you want to purchase, on Bisq you can make purchases via Money Order, PopMoney or even Zelle. They have taken peer to peer crypto purchases to the next level. Unlike other exchanges, you will need to leave a deposit in a 2 of 3 multi-sig wallet to trade on this truly decentralized exchange. If there is an issue, human arbitrators can be employed to resolve issues. It’s a win/win for both seller and buyer alike.
My experienceWhen I first used the product I found it a little difficult. I didn’t take the time to read the instructions on their website (which is why I had some many problems) and didn’t understand the need for a deposit. But after using the exchange for more than a year now, I understand why it was set up that way. The deposit is your skin in the game. Don’t rip off anyone and you won’t lose your hefty deposit. I get it. But the tradeoff to the hefty deposit is the ability to use money orders and other unique payment methods to make transactions. Almost as good as cash and no charge backs. I love how the wallets of the 71 crypto coins they accept are built into the wallet. That makes it extremely convenient and secure; as long as your PC is secure. It’s much safer than only online exchange or a hot wallet.
Thanks for taking the time to view my write up. Feedback, either good or bad, is greatly appreciated. Have a good day!
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