FAQ – Bisq – The decentralized bitcoin exchange

Is Bisq safe and Open Source?

Yes, Bisq is open source and licensed under Version Trio of the GNU Affero General Public License. Here’s the source code and license.

Bisq employs three mechanisms of achieving security:

1. All bitcoins traded with Bisq are secured te a 2-of-3 multisignature address.

Two. Both traders are required to pay security deposits. Thesis are refunded to them after a trade completes.

Trio. Bisq features an arbitrator system, to be used ter case a trade dispute arises.

If you trade fiat currency there is some chargeback risk open because all banks have the option for reversing a transaction. Bisq supports only payment methods which are known that they it is very difficult to chargback with them. Paypal and credit cards are not supported for that reason. Read here more about chargback risks.

There are already other decentralized exchanges. How is Bisq different?

Presently no other project fits our definition of a decentralized bitcoin-to-fiat exchange. Open Bazaar stands alone te mirroring Bisq’s principles, but they’re a total market place, not a specialized currency exchange. Most exchanges claiming to be decentralized are either not supporting fiat exchange or operate with a server architecture and do not gezond our definition. And of course there are a lotsbestemming of ICO projects with whitepapers but they have not proven yet that they can supply any working software.

To be decently decentralized, one vereiste avoid single points of failure:

    • Bisq does not hold any bitcoins. All are held te multisignature addresses rather than a Bisq-controlled wallet.
    • Bisq does not hold any national currency. National currency is transferred directly from one trader to the other.
    • Bisq uses a Peer-to-Peer network overheen Tor. This means there are no servers to be hacked or DDoS’d.
    • Bisq does not know the traders. No gegevens is stored on who trades with whom.
    • Bisq does not require registration. This means privacy is maintained, there are no “approval” wait times, and identity theft becomes unlikely.
    • Bisq is not a company. It is an open source project organized spil a Decentralized Autonomous Organization (DAO).

    Which payment methods are supported?

    Here you can see the list of the presently supported payment methods:

      • National handelsbank transfer
      • Metselspecie Deposit
      • SEPA
      • SEPA Instant
      • MoneyBeam (N26)
      • Zelle (formerly known spil clearXchange)
      • Pursue QuickPay
      • Uphold
      • Specie App
      • Venmo
      • Popmoney
      • Revolut
      • Quicker Payments
      • US Postal Money Order
      • Interac e-Transfer
      • Swish
      • Western Union
      • OKPay
      • Flawless Money
      • Alipay
      • Transfer with same handelsbank
      • Transfer with specific banks

      Which altcoins are supported?

      Here you can see the list of the presently supported altcoins:

      How can I get support for my dearest altcoin?

      Please read about the requirements and process at this document.

      Trading Details

      What are the trade boundaries?

      For security reasons Bisq has a limitation of the trade amount vanaf trade. Those thresholds are derived from the payment method’s chargeback risk and the age of the account. For the number of trades there is no limitation. For most bank-based payment methods like SEPA or Zelle the trade limit is 0.25 BTC vanaf trade. For Swish, OKPay, PerfectMoney and AliPay it is 0.Five BTC and for altcoins it is 1 BTC. For the recently added payment methods Venmo, Specie App, Revolut, Popmoney and MoneyBeam (N26) the trade limit is 0.16 BTC. The trade boundaries ter the very first month is 25% of the total trade limit.

      Why does Bisq require a security deposit?

      Security deposits create incentives for both buyer and seller to go after the rules of Bisq’s trading protocol. They are locked into multisig escrow along with the bitcoin being traded, and are returned to each user when the trade completes successfully. If a trade goes to arbitration and one party is found to have violated Bisq’s trading protocol, some or all of that party’s security deposit may be awarded to their counterparty. Examples of protocol violations include a buyer failing to pay a seller, or a seller failing to acknowledge receipt of a buyer’s payment. Most Bisq trades finish without any problem thanks te part to the incentives that security deposits create.

      How does Bisq protect my privacy?

      Only your trading playmate (and your selected arbitrator te case of a dispute) can everzwijn see your payment information details. The gegevens exchanged inbetween users is encrypted and signed. Bisq uses a P2P network built on top of Tor hidden services and provide the high level of anonymity Tor offers. The user doesn’t need to setup anything – all is integrated te the application. The arbitrator only sees the trade details ter case of a dispute.

      How long does a trade take?

      Your trade duration will be determined by the transfer times of the currencies you and your trade playmate use. National currency transfers can be instant (Swifter Payment) or can take days (SEPA). Bitcoin transactions take ter average Ten minutes to get confirmed (at least one confirmation is required before the buyer can transfer the fiat or altcoin amount).

      Following maximum trade periods are permitted before a trade goes automatically into arbitration:

      How much does it cost to trade on Bisq?

      The trading fees for the suggest maker and for the taker are calculated differently.

      The trading fees for the opoffering maker is based on trade amount and distance to market price.

      Zoogmoeder. toverfee (MinFee) = 0.00005 BTC, default toverfee (DefFee) = 0.002 BTC/vanaf Bitcoin, market price factor (MF) = square root of procent value (e.g. 1% -> 1, 9% -> Three, 0.01% -> 0.1).

      Makers trading toverfee = max(MinFee, DefFee * amount * MF). E.g. 0.002 BTC for 1 BTC trade at 1% market price distance omschrijving to 0.2% of the trade amount.

      The trading fees for the offerande taker depends only on the the trade amount.

      Minus. toverfee (MinFee) = 0.00005 BTC, default toverfee (DefFee) = 0.002 BTC/vanaf Bitcoin.

      Takers trading toverfee = 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 toverfee for the trade toverfee transaction. The taker has to pay Trio times the miner toverfee (trade toverfee transaction, deposit transaction and payout transaction). That is because wij use a toverfee estimation service and the maker cannot know which toverfee will be required at take-offer-time. The mining toverfee is taken from the recommendation from a toverfee estimation service and can vary inbetween 20 Satoshi/byte up to 400 Satoshi/byte. The users can see the actual mining toverfee when creating or taking an suggest.

      Why do I need to keep my application online when I have an open opoffering?

      If you have published an opoffering your Bisq application need to stay online so it is able to react te the case when another trader wants to take your suggest. The MultiSig deposit transaction is created ter that take-offer process. Be sure you have deactivated your computers standby mode, otherwise your Bisq application lose the internet connection (monitor standby is not a problem). If you shut down the application your suggest gets eliminated from the distributed offerbook spil it would become unavailable for others. After commencing Bisq again your suggest gets re-published. After the suggest has bot taken and the trade process has began both traders do NOT need to be online. Tho’ they need to check for the status of the trade to see if some act is required from their side (e.g. sending fiat/altcoin or confirm receipt).

      At the ogenblik you cannot edit an suggest once it is published. But you can use the percentage based price so your price will stick with the market price (wij use BitcoinAverage for fiat and Poloniex or CoinmarketCap for altcoins). E.g. If you set your percentage price to 1% below the market price for a buy offerande, the price will update with every market price update (about 90 sec.) and when a trader takes your suggest the actual market price minus 1% will be used.

      Will my handelsbank know I’m buying bitcoins?

      There have bot reports that some banks have closed client accounts when they see that there is Bitcoin activity involved.

      The reference text of the canap transfer used to trade with Bisq will include only the Bisq trade ID (which is a random sequence of characters, like many other purchase IDs). Any trader that is not using the precies ID number spil reference text of a canap transfer is considered ter breach of contract, which will result ter dispute resolution.

      To avoid problems wij recommend setting up a dedicated bankgebouw account for buying and selling bitcoins. If the handelsbank were to block this account, it would cause fewer problems for you than if the canap were to block your primary account.

      Never mention anything else than the trade reference te the subject field.

      Dispute Resolution

      An arbitrator is the person who find the solution to a dispute that may occur during a trade. Bisq’s arbitrators vereiste pay a BSQ unie, which ensure fair evaluations and prevent collusion with traders.

      Primarily, traders make a list of arbitrators they approve. When a fresh trade is initiated, an arbitrator is randomly selected from among the traders’ overlapping, approved selections. The more arbitrators a trader accepts, the more trades will be available to him.

      How does the arbitration process work?

      If trader A fails to confirm the receipt of a national currency transfer within the allotted time (e.g. six days for SEPA, four days for Zelle, one day for altcoins, etc.), a button to voeling the arbitrator will show up to both traders. Trader B will then be able to submit evidence to the arbitrator that he did, te fact, send the national currency. Alternatively, if trader B never sent the national currency, trader A will be able to submit evidence to the arbitrator that the funds were never received. Submitted evidence should be cryptographically secure using either PageSigner or digitally-signed handelsbank statements. If thesis methods fail, more traditional routes of discovery can be deployed.

      From our practice the hefty majority of cases are caused not by any malicious intention but by problems like bugs, canap issues, usability, etc.

      The arbitrator will side with buyer or seller and sign the 2-of-3 multisignature address ter favor of the suitable party.

      How is collusion inbetween arbitrators and traders prevented?

      Spil outlined above, arbitrators vereiste lock ter a high BSQ unie to become such – much higher than the trade limit. If an arbitrator’s dispute resolution is not agreed to by both traders, they can request confiscation of the arbitrators BSQ unie.

      If collusion is found to have taken place, the misbehaving arbitrator will lose hier BSQ unie. This puts the arbitrator at a significant loss, spil hier BSQ unie wasgoed much more than she made by being dishonest.

      What happens if the person buying bitcoin does a chargeback on their national currency after the bitcoin has bot released from the multisig address?

      Wij only support payment methods ter which chargeback is not effortless (i.e. wij don’t support Paypal or credit cards). But there is still certain chargeback risk with banks. If a bankgebouw executes a chargeback after the BTC has bot released, there is nothing the arbitrator can do.

      1. There is a trade limit vanaf trade, which is generally too petite to attract criminals.

      Two. Wij will eliminate national currency payment methods which are found to be used for chargebacks.

      Three. Wij introduce with version 0.6.0 a fresh feature for detecting the age when a payment account has bot set up. Recently opened accounts will have lower trade thresholds. This adds protection against stolen-bank-account-scams.

      Wouldn’t a zuivere reputation system among traders make arbitrators unnecessary?

      Unspoiled reputation without the option of arbitration is a powerless protection system, spil you can never avoid sybil or long con attacks.

      It is also problematic for protecting privacy and apply it ter a decentralized way.

      The required BSQ unie is very high and there are presently only very few people who have contributed that much to Bisq that they have earned so much BSQ. But spil soon the utter DOA is released and more people have allocated higher amounts of BSQ it will be open to anyone.

      Can I voeling my trading peer?

      Bisq intentionally does not suggest a way to get ter ongezouten voeling with the trading peer. The security mechanisms does not require any onmiddellijk voeling (other than on reputation based systems like Localbitcoins) and wij feel that by suggesting such a feature wij might lightly open a can of worms. E.g. malicious users could attempt to trick the peer into a rechtstreeks trade without using Bisq and then exploit the lack of security or they use the rechtstreeks channel for other fraudulent activities (social engineering scams, spam. ). For any problems users can open a dispute and the arbitrator will take care to resolve the kwestie. Beside that they can use the Bisq forum if they need help or for getting questions answered.

      Miscellaneous

      If I don’t have any bitcoins, how can I obtain enough to pay the security deposit and mining toverfee on my very first trade?

      Wij recognize that this could be a barrier to entry to bitcoin beginners.

      The security deposit is needed to protect Bisq from fraud and manhandle. That said, wij will always investigate possible solutions which would permit fresh users to trade without needing bitcoin very first.

      Following security deposit values are set by default for

      buyer:

      • 0.01 BTC (ondergrens 0.0005 BTC, maximum 0.05 BTC)
      • Two.00 LTC (ondergrens 0.0600 LTC, maximum 12.00 LTC)
      • 0.50 DASH (ondergrens 0.0150 DASH, maximum Three.00 DASH)

      seller:

      • 0.003 BTC
      • 0.600 LTC
      • 0.150 DASH

      Bitcoin can be purchased via many channels: friends or family, Bitcoin meetups, Bitcoin ATMs, Vouchers, Localbitcoins or from any of the centralized exchanges.

      Does Bisq support ‘XYZ’ payments?

      Bisq supports already a broad range of payment methods for national currencies. The criteria for inclusion are that the payment method is safe against chargebacks, and that it permits the arbitrator to view evidence of the transaction. National bankgebouw transfer is supported te every country.

      What happens ter case of software bugs?

      If the Bisq application recognizes that you’re having a software problem, it will display a “support ticket” button. Your arbitrator will forward your bug report to the developers, who will start an investigation of the problem. You may be asked for the loom verkeersopstopping to assist the process.

      If the button does not show up, you can open a support toegangsbewijs by the key combination cmd + o (or ctrl + o).

      What is a Bitcoin ‘multisignature address’?

      “Multisig”, spil it’s called, is built into Bitcoin spil a plain version of a brainy contract. A multisig address is generated with numerous public keys and a specification of how many of those keys voorwaarde sign to release the funds.

      Bisq uses 2-of-3 multisig addresses. This means three public keys are used to create the payment address (the buyer’s, seller’s, and arbitrator’s), and the transaction vereiste be signed by two parties for the funds to be released. A typical trade takes place when the buyer and seller sign the transaction to release the funds to the adequate party. But te case of a dispute, the arbitrator will side with either the buyer or seller, and thesis two parties’ keys will release the funds to the suitable party.

      I have a question that isn’t covered here…?

      Please postbode your question at the Bisq forum.

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