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Bisq Review - is it scam or safe?

Bisq Review - Is bisq.network scam or  good cryptocurrency exchange??

RATING: 3 / 1 REVIEWS ForexBrokerz Bisq

RECOMMENDED BITCOIN BROKERS


Trading Accounts

 

Account types Minimum deposit Leverage Fee
Standard
Undisclosed
Not available
Minimum of 0.0002 BTC,
Default 0.002 BTC

 

Bisq, which was previously known as Bitsquare is a decentralized, peer-to-peer cryptocurrency exchange. While they allow fiat currency transfers, we see them as a more idealistic competitor to services like bitcoin.de, than a mainstream tool for buying bitcoin, like Coinbase

 

The company, security of funds

Bisq is not a company, but a “Decentralized Autonomous Organization” (DAO)". The project was started in 2014, by Manfred Karrer, as a means of keeping the original spirit of Bitcoin alive, even through the exchanges on which it is traded. 

 

The entire trading process at Bisq is not as simple as the one your are probably used to. Most exchanges operate on centralized servers. In essence all other the account balances are kept by the company and when you trade, let’s say Bitcoin, no transaction is made on the actual Bitcoin blockchain. The transfer only occurs in the company’s internal systems, which keep all of the coins and store the database, stating the amount of coins held in each account. While this allows the facilitation of fairly advanced trading software, some people don’t like the control which they give to the company running the exchange. 

 

Bisq is a totally different project which, connects buyers and sellers of Bitcoin (and other assets). The trading service is running on blockchain technology, supported by the community. This has several implications, but most importantly hacks are basically impossible and your personal information is not accessible by the owners.

 

Additionally, the company (which isn’t actually a company) does not control your coins. When connecting to the network you can input several payment methods – your cryptocurrency wallets and/or bank account and/or e-weallet (more on the payment methods below). It is key to note that this information is only shared with your direct trading counterparties.

 

When trading at Bisq, you can either place an order on the trading book or “hit’ one which is placed by another user. After your are matched, the crypto-currencies involved are sent to a multisignature address, form which they will find their ways to the respective wallets. An arbitration mechanism is in place, in case a conflict occurs and a security deposit is collected from both sides (the latter is refunded, after both sides confirm the transfer). 

 

On the other hand, every change on the decentralized Bisq network has to be recorded on its own blockchain. This makes the project very inconvenient for active traders, as a small fee is even charged when placing an order (even before it’s filled).

 

While being a lot more complicated than traditional exchanges, like Kraken, Bisq is very highly praised by customers. The loyal fan-base may not be huge, but definitely appreciates the service provide by the platform.

 

 

Trading conditions

 

Trading instruments (cryptocurrencies)

Currently there are 127 cryptocurrencies trading at Bisq. That being said, the trading volume on most of them is not impressive.

 

Minimum initial deposit

There is no minimum deposit at Bisq, as the platform does not require deposits. That being said, there is a limitation on the maximum trading size, which is set at 1 BTC, a pretty high level for most people, especially given current prices. That being said, forex brokers (which we mostly cover) usually announce a pre-determined minimum, below which they will not open a real-money account. For example, FXCM requires $50.

 

Leverage

Bisq does obviously not allow margin trading, as it is simply a method of connecting users. The leverage ratios available at most crypto-excanges rarely go beyond 1:20, as the space is very volatile. Even the forex brokers, which offer Bitcoin trading, like IG, do not provide high gearing.

 

 

Fees

The fees at Bisq are a complicated topic. If you don’t believe us, here is an actual quote from their FAQ section:

 

Trading fees are based on trade amount and distance to market price. Min. fee (MinFee) = 0.0002 BTC, default fee (DefFee) = 0.002 BTC, amount factor (AF) = 1/BTC, market price factor (MF) = square root of percent value (e.g. 1% -> 1, 9% -> 3, 0.01% -> 0.1). Trading fee = max(MinFee, DefFee * amount * AF * MF). E.g. 0.002 BTC for 1 BTC trade at 1% market price distance.

 

To put it more simply if you buy Bitcoin at a market-relevant price, you will pay something under 0.002 BTC, depending on the size of your order. As a comparison the forex brokers, which allow crypto-trading almost always include the entire trading costs in the spread. This is only one of the many differences between the two services. For a full list, check out this post.

 

Trading platform

 

The trading platform available at Bisq is not that sophisticated. That being said, the platform is a stand alone desktop application, which isn’t burdensome for the hardware. Here is a preview of the charting and tape (transaction history):

 

 

This is simply not impressive, by any means. Other than the basic charting, you can also see the relatively low volume on Bisq. To further reiterate the point, this is the BTC/EUR book:

 

 

While the platform as a whole is fairly self-explanatory, it isn’t something which will impress seasoned traders, who are used to solutions, like MetaTrader4(MT4).

 

Methods of payment

 

The payment methods supported by Bisq include a variety of Bank Transfers, Zele (ClearXchange), OK Pay, Perfect Money, AliPay and even US Postal Money Orders. 

 

Conclusion

 

Bisq (formerly known as BitSquare) is a decentralized, peer-to-peer crypto-currency exchange. While this sounds good from the idealistic perspective of not allowing potentially dishonest exchanges to access your Bitcoin, it carries a few flaws with it. The speed of transactions is very slow, when compared to the more mainstream platforms, which can be easily explained by the way Bisq works. In tern, this leads to relatively low volumes and even order-placement activity. One can argue this is simply a product aimed at people willing to exchange cash for cryptocurrencies (without trading actively). The counter argument for that will be, that in order to realize the full benefits of this project, one would have to already be familiar with the world of crypto. While we like the idea behind this exchange, we would like to see what improvements can be made to it, before recommending it. Here are the pros and cons of Bisq:

 

Pros Cons
Decentralized peer-to-peer network Slow transaction speed
A lot of payment options available Low trading volumes
A lot of altcoins available Platform not designed for active trading
Arbitration mechanism in place  
Desktop platform  
Positive user review  

 

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Traders` reviews for Bisq

Spread

Pros

Cons

 

 

Slippage

Pros

Cons

 

 

Requotes

Pros

Cons

 

 

Price feed

Pros

Cons

 

 

Platform

Pros

Cons

 

 

Deposit/Withdraw

Pros

Cons

 

 

Customer service

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Summary

Pros

Cons

 

 

Slow & too limiting trade protocols

I've been with Bisq for 3 weeks now because I believe in decentralization, especially in light of all the anti-privacy government measures infiltrating crypto everywhere else. But Bisq limits trades for too long. During your first month (?) you can only make tiny orders--during which time, of course, you're likely losing valuable opportunities (price climbing quickly). And if you don't want to link your bank account, many of the other payment methods are just inconvenient (have to open accounts with other services or services may not be near to you). That leaves the extremely slow method of money orders. Lastly, there isn't enough trading going on on Bisq to offer enough options. You're limited to a few offers and a few prices. These problems only add another layer of disincentives for more people to get involved in a very volatile market. Worse, it's made me reconsider doing business with centralized exchanges. At least I can buy a decent chunk of bitcoin quickly when the price is somewhere I'm comfortable with instead of being limited to tiny specks of bitcoin on Bisq.

Great idea, Bisq, but too many limitations.

Paladin 05/10/2019

Buggy

Conection problems everywhere, arbitrators not working well

Royce grazie 11/01/2018

Going to cash

I'm just wondering if you are selling coins for cash and you provide your bank account and routing number does anyone know about this transaction going to cash such as the IRS?

Apis 01/13/2018

Funding the trade with the currency you don't have

To buy 0.05 BTC, have to 'fund the trade'. It means (depends on seller's settings)
Security deposit 0.01 BTC (20% of trade amount)
Trading fee 0.0002 BTC (0.40% of trade amount)
Mining fees 0.002886 BTC (5.77% of trade amount)
The sum is like 0.013752 BTC

The deposit (even if the 0.01 BTC will be refunded) is almost 30%.
But this isn't the problem at all. The problem is I have to send BTC.
But I haven't got any, I am actually trying to buy some!

KF5Z6C2XQ 12/13/2017
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