Get the weekly summary of crypto market analysis, news, and forecasts! This Week’s Summary The crypto market ends the week at a total market capitalization of $2,17 trillion. Bitcoin continues to trade at around $62,300. Ethereum experiences no changes and stagnates at around $2,400. XRP is down by 2%, Solana by 1%, and Dogecoin by 3%. Almost all altcoins are trading in the red, with very few exceptions. The DeFi sector decreased the total value of protocols (TVL) to around…
The Bisq Exchange – An Easy to Follow Guide for New Users
The Bisq exchange was one of the first DEXs (decentralized exchanges) to enter the market. The platform facilitates crypto trading in a peer-to-peer manner and via a non-custodial protocol. According to the platform’s creator, Bisq is a code more than a company. It’s an open-source project organized as a decentralized autonomous organization (DAO) and built on top of Bitcoin’s blockchain.
Features of the Bisq Exchange
Bisq’s coding is available on Keybase and GitHub. As one of the first successful DEXs in the market, Bisq helped pioneer non-custodial trading with its decentralized trading approach. Notably, Bisq functions as a global Peer-to-Peer network of users. Every network participant runs the Bisq client separately on their machines scattered across the globe. In this way, the platform features a truly decentralized design that proves nearly impossible to shut down.
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Non-custodial
At its core, Bisq is a non-custodial exchange. Non-custodial exchanges differ from custodial exchanges in that they never take control of your crypto. Instead, advanced smart contracts simultaneously swap your crypto with other users directly. Non-custodial exchanges remove hacking risks from the equation because they don’t hold any of their user’s funds. There’s no real financial gain for a hacker to attack this platform.
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Privacy
As a DEX, Bisq can provide high-level privacy features to users. For example, there is never any KYC or registration required to participate in the network. Keenly, all trading data is stored locally on your disk. Bisq never gets access to your trading data because it’s never sent to a central server. Additionally, every Bisq node integrates a Tor hidden service by default. In this way, all data is transferred over Bisq’s secure peer-to-peer network, built on top of the Tor network.
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Trade Fiat
Bisq is the first DEX to provide fiat trading services. Keeping in line with its non-custodial approach, Bisq does not hold any fiat currencies as well. Impressively, all national currencies transfer directly between traders using traditional banking and payment services.
The platform managed to secure a large number of ways to accomplish this task. Specifically, options include Zelle, MoneyGram, Postal Money order, WeChat Pay, Western Union, and many more. Best of all, Bisq makes no mention of crypto activities to your bank when withdrawing funds. In the past, banks have closed users’ accounts for crypto purchases. Bisq users avoid these risks thanks to the platform’s discretionary measures.
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Community
Bisq is a community-based project. This community is always seeking out highly-skilled developers, designers, and security experts. If you want to become a part of this decentralized trading platform, check out the Bisq community forums.
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Transparency
Bisq’s open-source code and transparent nature make it ideal for anyone seeking an open trading experience. Every trade is easily visible on the platform. There are never any hidden fees or masked codes using this exchange. Impressively, Bisq encourages all developers to test its code and develop Dapps to improve the UX for all.
How Does The Bisq Exchange Work?
Bisq functions as a desktop application that relies on a decentralized arbitration system to complete trades. This protocol allows users to create fiat or cryptocurrency accounts, construct new offers, or take existing ones. The interface makes it easy to trade, buy, and sell Bitcoin and other cryptocurrencies safely.
Bisq Exchange – Security Deposit
Uniquely, you will need to provide a security deposit to trade on Bisq. This deposit is what incentives buyers and sellers to follow the guidelines. These deposits remain locked into a multi-sig escrow contract. When the trade completes successfully, the deposits are returned to each user. If one side fails to meet their obligations, they forfeit their deposit.
Easy to use Interface
Bisq features an interactive interface that removes the technical barriers to DEX trading. You can see what trading pairs are available and execute trades in seconds.
Bisq Exchange DAO
Bisq also incorporates a decentralized governance mechanism known as the Bisq DAO. This protocol allows users to vote on significant upgrades and changes to the platform. For example, users vote on BTC and BSQ fee adjustments periodically to accommodate for market fluctuations.
Users gain more voting rights depending on how much BSQ they hold in their network wallet. This strategy ensures that those with the most to lose control of the network. This way, it guarantees that all voting participants have something to lose/gain in the network’s success.
BSQ Token
BSQ tokens function as the primary utility and governance tokens for the platform. Users can also pay fees, trade, and send and receive this token using the network.
History of the Bisq Exchange
Bisq originally entered the market as Bitsquare in 2014. It was way ahead of the curve in terms of DEX platforms. Currently, the exchange’s headquarters is based in the EU. Manfred Karrer is the founder of Bisq.
How to Use the Bisq Exchange
Bisq is easy to use. First, you need to go to their webpage and download the app. You can also build it from the source code listed on Github.
Next, you need to fill your fiat or cryptocurrency accounts. Once your account is loaded, you can create a new offer or take an existing one. From there, you follow the user interface to finalize the trade. The entire process is seamless. However, transactions do take a bit longer than centralized exchanges depending on the payment methods utilized in the transaction.
Bisq Exchange – A Pioneer that Still Plays a Vital Role in the Market
As the DEX market continues to expand, it would be hard to argue that Bisq wasn’t years ahead of the competition with its decentralized trading protocol. This platform has stood the test of time and continues to provide a useful service in the market. For these reasons, you can expect Bisq to remain a popular DEX option for both new and experienced cryptocurrency traders for years to come.
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