A trading cryptocurrency guide must provide reviews of all of the top crypto exchanges out there, so that you can find the best cryptocurrency exchange site for you. This review of Bisq consists of four parts: general information, fees, deposit methods and security.
Bisq is a so called “decentralized exchange”. Decentralized exchanges are becoming increasingly more popular. They are definitely gaining market shares against their centralized counterparts.
How should you know if Bisq is then the best cryptocurrency exchange site for you? Well, continue reading.
Decentralized exchanges do not require a third party to store your funds. Instead, you are always directly in control of your coins and you transact directly with a buyer/seller. Decentralized exchanges normally does not require you to give out personal information either. This makes it possible to create an account and right away be able to start trading. The servers of decentralized exchanges are normally spread out leading to a lower risk of server downtime. However, decentralized exchanges as opposed to regular top crypto exchanges normally have an order book with lower liquidity than the regular top crypto exchanges.
Bisq does not explicitly prohibit US-investors from trading on its exchange. In any event, all US-investors should still perform their own analysis of whether their home state imposes any legal problems for trading at any exchange that would otherwise be the best cryptocurrency exchange site for them.
Bisq Trading fees
The fees at any exchange are very important to consider. For Bisq, the fees are quite complex to calculate, and are determined as follows:
The trading fees for the offer maker and for the taker are calculated differently. The trading fees for the offer maker is based on trade amount and distance to market price.
Min. fee (MinFee) = 0.00005 BTC, default fee (DefFee) = 0.002 BTC/per Bitcoin, market price factor (MF) = square root of percent value (e.g. 1% -> 1, 9% -> 3, 0.01% -> 0.1).
Makers trading fee = max(MinFee, DefFee * amount * MF). E.g. 0.002 BTC for 1 BTC trade at 1% market price distance equivalent to 0.2% of the trade amount.
The trading fees for the offer taker depends only on the the trade amount.
Min. fee (MinFee) = 0.00005 BTC, default fee (DefFee) = 0.002 BTC/per Bitcoin.
Takers trading fee = max(MinFee, DefFee * amount). E.g. 0.002 BTC for 1 BTC trade. That is 0.2% of the trade amount.
The maker has to pay the miner fee for the trade fee transaction. The taker has to pay 3 times the miner fee (trade fee transaction, deposit transaction and payout transaction). That is because Bisq uses a fee estimation service and the maker cannot know which fee will be required at take-offer-time. The mining fee comes from the recommendation of a fee estimation service and can vary between 20 Satoshi/byte up to 400 Satoshi/byte. The users can, however, see the actual mining fee when creating or taking an offer.
Bisq Withdrawal fees
We have not been able to find any information on Bisq’s withdrawal fees.
Bisq offers wire transfer as a deposit method, but credit cards are not a permitted deposit method. This might of course be disadvantageous if you would prefer to use your credit card for any reason. However, as Bisq accepts deposit of fiat currencies at all, it distinguishes itself from many exchanges that only allows deposits in cryptocurrencies.
The servers of decentralized exchanges normally spread out across the globe. This is different from centralized exchanges that normally have their servers more concentrated. This spread-out of servers leads to a lower risk of server downtime and also means that decentralized exchanges are virtually immune to attacks. This is because if you take out one of the servers, it makes little to no difference for the network of servers in its entirety. However, if you manage to get into a server at a centralized exchange, you can do a lot more harm.
Also, if you make a trade at a decentralized exchange, the exchange itself never touches your assets. Accordingly, even if a hacker would somehow be able to hack the exchange (in spite of the above), the hacker can not access your assets. If you make a trade at a centralized exchange, however, you normally hold assets at that exchange until you withdraw them to your private wallet. A hacker can therefore hack a centralized exchange and steal your funds held at such exchange.
Finally, as mentioned above, this is a decentralized exchange. Decentralized exchanges are still a minority on the cryptocurrency exchange market, with the centralized exchanges still dominating the field (mostly due to better liquidity). In any event, if you’re looking for a decentralized exchange, you could also check out the following quite popular ones:
- Counterparty DEX
- Fcoin Exchange
- Switcheo Network