Are you tired with the regulatory and privacy issues of centralized cryptocurrency exchanges? Do you want to buy and sell Bitcoin in a secure and private way, without relying on a third party? Look no further than Bisq.
What is the Bisq?
Bisq is a Bitcoin exchange that operates without a central authority or intermediary. It is a 100% decentralized platform that aims to provide privacy and prevent censorship.
Bisq connects buyers and sellers directly through a peer-to-peer. It is an open-source project that emphasizes decentralization and freedom for you. With Bisq Network, You can buy and sell Bitcoin in fiat currency directly with other traders, without the need for a third party.
Buy and Sell Bitcoin on Bisq
Bisq sets itself apart from other cryptocurrency exchanges by being entirely decentralized and open-source.
This means that the process of buying and selling Bitcoin on Bisq is unique and may seem complicated at first glance. However, fear not! In this article, I'll guide you through the step-by-step process of how to buy and sell Bitcoin on Bisq.
Make Bisq Account
Step 1: Download Bisq on your PC
First, you will need to download the Bisq software (289MB) onto your PC. The software is available for download on both macOS and Windows. To download it, simply visit the Bisq homepage and click All Downloads.
Select your operating system and click on the green highlighted link to begin your Bisq software download.
Your Bisq software download has begun. While you wait for it to complete, Bisq recommends checking out these helpful tips to optimize your download experience.
Now, open the downloaded file. Click Next.
Select the destination folder in your computer where you want to store the Bisq files, then click Next.
Step 2: Open Bisq on your PC
Open the Bisq Network software on your PC. Bisq will prompt you to review and agree to their User agreement, so take a moment to read through them and then click I agree.
Now the process of connecting with the decentralized Bitcoin network starts. The software takes a brief moment to load and synchronize with the network, ensuring that you have access to the latest data.
Your Bisq software has started.
Don't get worried with this complex interface.
Step 3: Set Up Bisq Account
Click Wallet Password.
Enter your password, confirm it and click Set Password.
Click on Wallet Seed to view the seed phrase for your Bisq wallet, which is where your Bitcoins will store in Bisq. Its crucial to keep this seed phrase in a secure location since it's key to access your Bitcoins in your Bisq wallet.
Click I understand.
Enter your password which you set recently.
You have your Bitcoin wallet seed now, just copy and save it.
Now click National Currency Accounts.
Click Add New Account.
Select your Payment Method.
You can select amount Wise, Wechat pay, Western Union, Money gram, ACH transfer, Face to Face (in person), cash deposit, SWIFT international wire transfer, Amazon eGift card and others. For instance, I selected Wise.
Bisq has requested me to input my Wise email address and select the currency in which I wish to receive funds in Bitcoin trading. Additionally, it is displaying the limitations of my account. Once I've filled in these details, I will click on Set New Account.
Click I Understand.
You have successfully set up your fiat account to receive funds while selling Bitcoin on Bisq.
When you are willing to receive cryptocurrency instead of fiat by selling Bitcoin, you must set up an Altcoin Account. Just click Altcoin Account here.
Click Add New Account.
Enter the coin name, add your altcoin receiving address and click Set New Account. Only DogeCoin is a well-known cryptocurrency on the platform to use buy or sell Bitcoin, while other offered altcoins are still unpopular.
Know the Security Deposit and Disputes on Bisq
Bisq is a fully decentralized peer-to-peer Bitcoin exchange, scammers may try to take advantage of you.
To address the scams on platform, Bisq has implemented a protocol called the Security Deposit. When a user buys or sells Bitcoin on Bisq, both the buyer and seller are required to deposit a certain amount of Bitcoin into an escrow account. After the trade is completed, both parties can retrieve their security deposit.
You can see the required security deposit for each trade in the offer.
In case of any issues whether you're buying or sell Bitcoin on Bisq, you can communicate with fellow trader through Bisq's messaging system to resolve the problem. When you're unable to resolve the issue with the other party, you can contact a mediator appointed by Bisq DAO.
Mediators can provide human support and suggestions, but they do not have the authority to control trade wallet or anything. To implement, suggestion of mediator both parties have to agree on it.
According to approved proposal of Bisq DAO, When you're not satisfied with the mediator's suggestions, you can opt for arbitration. Arbitrators are also peers who are elected by Bisq DAO. When you chooses this option, you will need to present all the relevant details to the arbitrator.
The arbitrator will then make a decision on the matter. For example, arbitrator recognize you innocent, he will pay you the trade amount plus the security deposit, and the counter trader will receive nothing, not even their security deposit back.
The arbitrator will pay you from their own pocket and he will be reimbursed by Bisq DAO later.
Although this process may seem complex, it is necessary to ensure the security and reliability of this fully decentralized peer-to-peer Bitcoin exchange.
Buy Bitcoin on Bisq
Come back to the Market interface of Bisq.
Choose your currency, payment method and Bisq will show you the offers match with your requirements.
Percentage is shown in front of a price, indicates that the price being offered is higher than the market price by that percentage.
Choose the best offer for you and click Buy.
You can enter the amount of Bitcoin you want to buy, but you can't select an amount below the threshold set by the seller and above the threshold set by Bisq on your account.
Click Next Step.
Bisq will now ask you to deposit a security amount of Bitcoin. You can send this amount from your external wallet to the Trade wallet address, or transfer funds from your own Bisq wallet.
When you click on Transfer Funds from Bisq Wallet, Bisq will automatically fund your trading wallet with a security deposit. This deposit will be returned to you after the trade is completed, minus the mining fee.
When you have submit the security deposit, just click Review.
Review the order details, and click Confirm.
Click Go to portfolio/open trades.
On the screen, you can see the trader you're trading with. You can chat with him on any issue.
Meanwhile, the blockchain will be confirming your trade contract. Once it is confirmed, Bisq will display the seller's account details to you. You must carefully send the required money. After you sent the money, click Payment Started.
Next, Bisq will ask you to confirm your action. Click Yes, I have started the payment.
After sending the payment, you must wait until the trader receives it. The screen will display a timer, indicating the time remaining for the trader to complete the transaction.
After your trading peer confirms the transaction, it will be displayed on the screen and the initial limits imposed by Bisq on your account will be lifted.
Bisq limits will lift after 30 days of your first trade with signed accounts and you'll also become one signed account on Bisq. Signed accounts are considered trustworthy on Bisq because they have completed successful trades on the platform.
You have successfully completed the trade and have Bitcoins in your Bisq wallet, along with the security deposit. You can choose to keep them there or send them to external wallet.
Sell Bitcoin on Bisq
Open the Sell tab on Bisq interface.
To sell bitcoin, select the desired payment method and currency from the available offers.
Click Sell on the selected offer.
Enter the amount of Bitcoin, you want to sell and click Next.
Click I understand.
Read the amount of Bitcoin, you need to transfer trade wallet and click Close.
To initiate the trade, transfer the required amount of Bitcoin to the trade wallet address. You can transfer funds from your Bisq wallet or from an external Bitcoin wallet.
Now Bisq will confirm you that your trade wallet has funded.
Now wait for the blockchain confirmation. You will be able to see a timer set by your trading peer before he published the offer, indicating the time period within which you will receive the fiat money you are trading for.
Bisq doesn't show the time period when we are deciding to take an offer. However, there's no need to worry as very few people set longer time periods since they don't want to lock up their money for weeks.
Now, you will receive the notification that your trading peer has transfered you the money in your account.
Once you have received the fiat in your designated account, click on Confirm Payment Receipt.
Bisq is a fully decentralized peer-to-peer exchange that allows you to trade Bitcoin with other traders directly. Bisq doesn't require KYC verification from you. Buying and selling Bitcoin on Bisq seems complicated due to its decentralized nature and general public dealing, but privacy is at the heart of the Bitcoin community, and you often have to pay the price for freedom.
Frequently Asked Questions
1. What is Bisq DAO?
The Bisq DAO is an organization that manages the Bisq network in a decentralized manner. It's run by community members who hold BSQ tokens, which are used for voting on proposals related to the development of the platform, fund allocation, and other important decisions.
2. How to participate in Bisq DAO governance?
When you download the Bisq software, there is tab DAO. There you can participate in Bisq DAO but you have to use BSQ token to participate in governance. Here is an official guide for potential Bisq DAO contributors.
3. Where to connect with Bisq community?
4. Who founded the Bisq Network?
5. Where to buy BSQ token?
BSQ token can be traded within the Bisq software. You can't withdraw BSQ tokens outside of Bisq software. The Bisq DAO issues the BSQ token to reward contributors and reimburse arbitrators. 1 BSQ token is equal to a fraction (100 satoshis) of Bitcoin. BSQ token has functions in Bisq DAO governance and can help traders save on fees.