What is the Decentralized P2P Crypto Trading Platform Bisq?

by | Apr 29, 2023

Bisq is a decentralized platform for trading Bitcoin and other cryptocurrencies where anyone on the platform can make or take trades for a small, Bitcoin-denominated fee.

The platform is secure and does not require working through a third party to execute trades. Bisq is also known as Bitsquare and is one of the few leading decentralized exchanges with servers scattered worldwide, making it difficult for hackers to exploit all the exchange servers, thus ensuring security with minimal server downtime.

It is an open-source application that works peer-to-peer in allowing traders to buy and sell cryptocurrencies in exchange for national or paper currencies without having to register on the exchange platform.

 

Why we need Bisq

Trading with a good deal of privacy is quite simple within the cryptocurrency space. With many exchanges offering good limits before requiring KYC, cheap VPNs available and a host of DEX services now available – exchanging one crypto for another in a safe and private manner has never been easier.

The problem arises when you want to get in, or out of crypto. This is where your privacy is most vulnerable.

For a longtime, Localbitcoins offered an on ramping solution for those wishing to avoid exchanges. Offering P2P transactions, Localbitcoins for over 10 years offered people a safe and reliable platform to buy and sell bitcoin for fiat currencies with little identity friction. However, as time went on, the platform came under increasing scrutiny from authorities until it was finally regulated out of existence.

Localbitcoins closed its doors to users earlier this year.

Bisq does what Localbitcoins did, but more securely and with even more privacy.

So, How does it work?

Localbitcoin users will be familiar with the process of buying and selling. Those wishing to sell crypto can create a listing, they can state the terms of the trade and price of the crypto they are wanting to sell. The listing then goes public and buyers can open up a trade with the seller.

LocalBitcoins used an escrow system to prevent scammers. The platform acted as a middleman, locking up the seller’s bitcoin when a buyer initiated a trade. The buyer would then send payment through their preferred method, and once the seller received the funds, they would confirm on the platform that they had received payment. LocalBitcoins would release the bitcoin to the buyer at this point. If any disputes arose during the process, the funds would remain locked until LocalBitcoins resolved the issue. Although the system was not foolproof, it generally worked well as long as both parties used common sense.

Bisq of course is decentralized, so a slightly different approach is used.

Bisq traders must have a deposit equal to a percentage of the trade they want to make. When a trade is initiated, a portion of the trade value is locked in a multi-sig contract, serving as an escrow. Funds are only released when both parties complete and sign off on the trade, ensuring that both parties have a shared incentive to not deceive each other during the transaction.

Using Bisq, anyone can buy and sell just about any cryptocurrency, including privacy coins like monero using any payment method, even cash!

Though if you do plan to buy or sell cryptocurrency using cash, be very careful – particularly if an in-person exchange is agreed. I donโ€™t think i need to explain why this could be very risky!

The following video gives you a quick tour of the Bisq interface:

The Bisq platform is available for download on Windows and Linux operating systems. Currently only a notification app is available on mobile devices:

Protect your Privacy

In today’s world, safeguarding your privacy is crucial. Your financial information is particularly valuable, and both businesses and governments may be interested in it. Businesses may want to use your activity data for profit, while governments may want to extort you for excessive taxes or even imprison you for activities they consider illegal. Thus, it is vital to secure your transactions and safeguard your wealth to maintain your and your family’s freedom.

We offer a wide range of one-on-one consultations here at the People Empowerment Project. If you are interested in learning more about protecting your privacy we offer a session on just this.

Our ‘Become Invisible Online’ session will take your through the essentials in protecting your privacy online. Book Today

0 0 votes
Article Rating
Subscribe
Notify of
guest
0 Comments
Inline Feedbacks
View all comments

Recent

Loading...