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Bisq platform was established to maintain the original spirit of cryptocurrencies which is obviously Bitcoin. Bitcoin was developed to allow all traders an unregulated and controlled trade from any centralized authority that checks and verifies all transactions.
On the other hand, The other exchange platforms for crypto assets with a similar objective depend on the usual financial systems that demand an identity verification process but Bisq is definitely not one of them. Bisq is more than just a company, it is a Decentralized Anonymous Organization.
Decentralized Anonymous Organizations or DAOs are open-source organizations that have digitally encrypted rules and regulations that work without the requirement of any external party. As an alternative to a central authority like an HQ or board, this time of organization is operated by digitally encrypted rules and a whole community around them.
What is best about these Decentralized Anonymous Organizations is their open-source nature and they are operated and executed by the community. For trading Bitcoin, you can also use Bitcoin Loophole.
Learning the Working Strategies of Bisq
This exchange platform is not website-based and instead to trade through this platform, users need to use an application. Bisq is a desktop application that needs users to download the app on their PCs or computers. After downloading the application on your computer, what you need to do is add the bank account of the trader and select a payment method.
After this, the trader is all ready to initiate the trading. Due to its peer-to-peer (P2P) nature, there is no central server for this platform. Moreover, this platform also has no requirement of verifying anything on the platform.
Centralized exchanges are regulated by government authorities and require intermediaries to perform the exchanges and trading. These types of exchange platforms sometimes ask for photo ID proof or some other proofs like residence or utility bills etc. But on the other hand, on Bisq traders can easily start trading in no time right after verifying their respective accounts.
Let’s see the working procedure of Bisq when a trade is executed in detail.
- Firstly, the trader decides if he wants to make a trade offer or is willing to accept one, after this the Bisq platform connects them.
- After this, it is a must for both the users to deposit 0.03 BTC and additional trading fees in the wallet. This amount is a security deposit and makes sure that both the people are all ready to follow the rules. It can also be used as collateral if anything goes wrong.
- When all the procedures are done, Bisq trades can be done in 2 out of 3 multisig wallets.
After all this, an arbiter is randomly chosen to make certain that everything is going in the right way. After all three groups sign off that the transactions went perfectly, the trade is executed.
Users mostly like the platform of Bisq because it offers high-level security, a user-friendly interface, is accessible everywhere, and is decentralized hence no interruption from intermediaries. It enables traders to easily trade with each other without coordinating with third parties. Due to all these factors, Bisq has emerged as an independent cryptocurrency exchange and trading platform.
Pros and Cons of Bisq
As you can see Bisq is making waves all around the crypto industry and people are becoming fans of this exchange. There must be some factors that make Bisq an ideal platform for many.
- People are using Bisq widely as it is a decentralized exchange (DEX).
- Here, on Bisq there is no need for Know Your Customer (KYC) to start trading and so provides its users with immediate transactions.
- Its mechanism depends on the peer-to-peer network.
- Bisq offers a huge variety of crypto assets and allows its users to trade almost all popular cryptocurrencies with fiat currencies.
- Users can easily purchase Bitcoin on Bisq.
- Offers its users a wide range of payment methods to choose from.
- Most importantly, it does not come with any sort of geographical restrictions.
- If we compare the trading charges to other crypto exchange platforms, it looks a bit higher than the majority of the platforms.
- It is quite a basic application and fit for beginners, but experienced traders do not seem to like it much.
Bisq appears to be quite a useful platform for Bitcoin and other popular cryptocurrencies. Due to its decentralized nature, it has made the platform even safer and more secure. Though it is a reasonable option for experienced traders who have know-how about cryptocurrencies and their world and are comfortable working on Decentralized Exchanges.
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