Have you heard of the Bisq P2P platform? As you may know, there are various methods to buy Bitcoin nowadays, such as through exchanges, direct sellers (P2P), and even digital banks that offer the option to purchase Bitcoin.
However, it’s important to understand that these options meet different market needs.
Some people prioritize ease of purchase and are willing to sacrifice privacy by using platforms that require personal information. Others prefer services that offer more privacy, without requiring personal data, but these can sometimes be more complicated or costly to use.
Today, we’ll explore Bisq, a P2P Bitcoin trading platform where you trade directly with another person instead of using an exchange or bank.
Let’s get started!
What is Bisq?
Bisq is a decentralized, open-source exchange that operates in a peer-to-peer (P2P) manner, enabling you to buy or sell Bitcoin directly with another person. Thus, the platform acts only as an intermediary in the negotiation.
The platform was created in 2014 by a software developer known by the pseudonym “Manfred Karrer“.
Initially named Bitsquare, it was later rebranded to Bisq. The idea behind its creation was to provide a decentralized alternative to traditional digital currency exchanges, allowing for more private and secure transactions between users without relying on a central authority or intermediary.
As an open-source platform, anyone can review its code, suggest improvements, or even replicate it.
The project is maintained by a community of developers and volunteers and continues to evolve based on the principles of free and open-source software.
On Bisq, you can buy and sell Bitcoin using your local currency.
You can also see on the homepage which users are selling Bitcoin, which are buying, and what the minimum accepted amount is for each.
Pretty cool, right?
Is it better to buy Bitcoin with or without KYC?
KYC, or Know Your Customer, refers to procedures implemented by financial service companies to comply with legal and tax regulations in a specific country.
For example, in Brazil, when opening an account with a digital bank or exchange, it’s common for companies to request personal information such as:
- CPF (equivalent to a Social Security number),
- Residential address,
- Proof of income,
- A photo of your identity document.
These measures are part of government-mandated compliance policies aimed at preventing fraud, money laundering, and other financial crimes.
However, users may feel uneasy providing this level of personal information, often because they are unsure how these companies will handle their data. Data breaches are frequent, and personal information is sometimes shared online without adequate protection.
That’s where platforms like Bisq come in, offering decentralized services that don’t require personal information to use.
This is the primary advantage of Bisq. In a world increasingly focused on surveillance, especially when it comes to Bitcoin, Bisq provides a valuable option for users who prioritize their privacy.
Key features of Bisq
As we’ve discussed, Bisq is a decentralized exchange and an open-source platform that operates in a peer-to-peer (P2P) manner.
Below are some of its key features:
1. Software
Unlike exchanges and digital accounts that you can access directly via a website, Bisq requires you to download software to your computer.
But don’t worry—there are versions available for Windows, Mac, Linux, and other operating systems.
2. No KYC
As mentioned earlier, Bisq does not require identity verification. You simply download the software and access the platform.
No registration or approval from a central entity is needed.
3. Decentralization
You trade directly within a global P2P network of users running Bisq on their own devices, allowing for direct interactions without intermediaries.
4. Non-custodial
Bisq never holds your funds. As a P2P platform, your money is sent directly to your wallet and not held by the platform.
5. Security
Transactions on Bisq include multiple layers of security, such as security deposits for both parties, arbitration for disputes, and a user reputation system.
6. Arbitration
Bisq has a decentralized arbitration mechanism to handle disputes. If an issue arises, a trusted third party reviews the evidence and makes an impartial decision, ensuring fair resolution without a central authority.
7. Privacy
Your data is stored locally on your device and never sent to a central server. Each Bisq node operates over the Tor network by default to maximize privacy.
8. Open Source
The platform’s code is open-source, and the project’s development strategy is transparently discussed on Keybase and GitHub.
9. Global
Bisq is available worldwide and supports various fiat currencies, including the Brazilian real, US dollar, euro, and more.
Now that you’re familiar with the features of this decentralized platform, let’s see how it works in practice!
How to use Bisq
Using Bisq is straightforward, but there are a few steps to complete before you can start trading on the platform.
First, you need to have a small amount of Bitcoin to cover security deposits and fees. Bisq recommends having at least 0.001 BTC in your wallet.
For security purposes, both the buyer and the seller must deposit Bitcoin into a 2-of-2 multisig wallet.
Once the trade is completed, the security deposit is returned to both the buyer and the seller. The minimum security deposit is 15% of the trade amount, and the maximum is 50%, with a minimum deposit set at 0.001 BTC.
On this page, the platform itself indicates how to secure this 0.001 BTC safely.
After securing your initial BTC, it’s time to download the application to your computer.
When you visit the Bisq website from your computer, it automatically detects your operating system (macOs, Windows, etc.) and displays the appropriate download option.
Once installed, you’ll receive your private keys when opening the program. Be sure to write them down and store them in a safe place.
The next step is to create a payment account, which will allow you to start trading on Bisq.
How to create your payment account and send BTC on Bisq
Bisq provides a detailed tutorial on how to create your payment account on the platform:
Once your payment account is set up, the next step is to transfer your guarantee bitcoins to your Bisq wallet.
To do this, go to “Funds” > “Receive Funds”:
You should see your wallet address under the text “Fund your wallet”. Simply copy this address and send your BTC directly to your Bisq wallet.
After funding your wallet, you’re ready to start trading privately on Bisq by selecting the ideal trading partner from the trading homepage.
Are Bisq’s Trading Fees Expensive?
Because Bisq is a decentralized, non-KYC platform, its fees can be slightly higher compared to other exchanges.
The total trading fee for BTC is 1.3% (0.15% for the maker and 1.15% for the taker).
Is it worth buying Bitcoin on Bisq?
Yes, Bisq is a great option for those who prioritize decentralization and privacy in their transactions.
However, the decision to buy Bitcoin on Bisq ultimately depends on individual preferences. While the platform provides enhanced privacy and decentralization, it also comes with higher fees and requires security deposits, making it less accessible for beginners.
So, it all comes down to your priorities. Some Bitcoiners are willing to pay a higher fee for complete transaction privacy, while others may not find it as important.
Advantages and Disadvantages of Bisq
So, is Bisq really the right platform for buying Bitcoin?
Not sure yet? Don’t worry! To help you decide, here’s a table outlining all the advantages and disadvantages of this decentralized exchange:
| Advantages | Disadvantages |
| ✅ Decentralized | ❌ Limited liquidity |
| ✅ Privacy-focused | ❌ Learning curve |
| ✅ Security features | ❌ Dispute resolution may take time |
| ✅ Various payment methods | ❌ You need BTC to start using Bisq |
| ✅ No KYC | ❌ Requires a BTC security deposit |
| ✅ Lower fees than some P2P options | ❌ Higher BTC prices compared to centralized exchanges |
Conclusion
As we’ve discussed, there are many ways to buy Bitcoin, and Bisq offers one of the most private methods available today. However, it may not be the most user-friendly option for beginners seeking a simple and quick way to purchase BTC.
The requirement to have Bitcoin beforehand and the need to understand multisig wallets can make Bisq less accessible to newer users.
Since Bisq is a P2P and decentralized platform, custody and key management are entirely the user’s responsibility. Each method of buying and selling Bitcoin has its own trade-offs, so it’s important to consider your own preferences.
If you value privacy and security and don’t mind taking a few extra steps, Bisq could be a great platform for you.
I hope you enjoyed this article! See you next time, and feel free to share it with a friend—it helps us a lot!
FAQs about the platform
How is Bisq different from other exchanges?
As discussed throughout this article, Bisq is a P2P trading network, not a centralized website or app. It’s a program that runs on your own PC, connecting you to others using the Bisq software to facilitate trades.
Is Bisq safe and reliable?
Yes, Bisq is a secure platform. All Bitcoin is traded through a 2-of-2 multisig address, requiring both parties to pay security deposits that are returned once the trade is successfully completed.
How much BTC can I buy and sell on Bisq?
It depends! Trading limits vary based on the chosen payment method.
Check here for all the available payment methods.
How long does a transaction take at Bisq?
At Bisq, the deposit transaction needs to be confirmed once before the buyer can send the payment. Bitcoin transactions usually take about 10 minutes to confirm, so with quick traders and an efficient payment method, a trade can be completed in just a few minutes.
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Founder of Area Bitcoin, one of the largest Bitcoin education projects in the world, she is a marketer, passionate about technology, and a full-time hands-on professional. She has participated in major Bitcoin conferences such as Adopting Bitcoin, Satsconf, Surfin Bitcoin, and Bitcoin Conference.
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