Bisq vs Bisq 2

What’s Bisq and How It Works

Bisq (sometimes known as Bisq 1) is a decentralized peer-to-peer exchange that allows you to buy and sell bitcoin using open-source desktop software without KYC requirements. Therefore, Bisq is accessible via a software that runs locally on your computer.

The exchange runs on a distributed network of nodes, meaning that there is no central server that could be hacked or taken down by a single entity. This makes Bisq more resistant to censorship and seizure, while providing you with greater privacy and security.

Benefits of Bisq

One of the biggest advantages of Bisq is its decentralized nature. Unlike centralized exchanges that require a middleman, Bisq operates as a true peer-to-peer network, eliminating single points of failure and control. This structure enhances privacy, security, and user control over funds.

Bisq is code, not a company. It is an open-source project organized as a decentralized autonomous organization (DAO) built on top of Bitcoin.

Another key advantage is Bisq’s security model. It uses multi-signature transactions to ensure that funds are not held by any single party. You always hold the private keys to your bitcoin, meaning you have complete control over your funds.

Additionally, Bisq is a non KYC exchange. Unlike centralized exchanges that demand personal data, Bisq allows you to trade without verification or revealing your identity. This is a significant advantage for privacy-conscious users.

Furthermore, Bisq utilizes the Tor network to protect your online privacy and anonymity. Tor routes internet traffic through multiple nodes, making it difficult for anyone to track or trace your transactions.

Although you can trade on Bisq with an unsigned account, there are some drawbacks. Unsigned Accounts have lower trade limits. These accounts are considered unverified, and the lower limits are a precaution to mitigate potential risks.

In contrast, Signed Accounts offer higher trade limits. Once an account is signed, the trade limits are significantly increased, providing more flexibility for you.

What’s Bisq 2 and How It Works

Bisq 2 (also known as Bisq Easy) is the newly launched version of Bisq that aims to improve the user experience by simplifying the trading process, allowing you to trade without needing Bitcoin to start. This makes it ideal for people who want to buy Bitcoin for the first time. Unlike the original Bisq, which requires a security deposit and manual trade execution, Bisq 2 eliminates the security deposit and automates much of the trading process, making it simpler and more accessible for beginners.

One of the key changes in Bisq 2 is that it removes fees entirely, making it an attractive option for users who want to trade without incurring additional costs. However, individual trade sizes on Bisq Easy are limited to the equivalent of 600 USD, which helps manage risk for new traders. While Bisq 2 maintains the decentralized ethos of the original Bisq, its streamlined approach makes it easier for beginners to use.

Security

Both Bisq and Bisq 2 prioritize security, but they have different models:

• Bisq uses a multisignature escrow system to secure trades. Each transaction requires approval from both trading parties and a third key held by Bisq for dispute resolution.
• Bisq 2 simplifies security by eliminating the need for a security deposit, reducing complexity while still maintaining security through the reputation of BTC sellers. However, this model may introduce new risks if users are not cautious, as the absence of a deposit means there’s less financial incentive for sellers to follow through with the trade.

Additionally, Bisq runs over the Tor network, enhancing privacy and resistance to surveillance. Bisq 2 follows a similar approach but streamlines the trade execution process.

Fees

A major difference between Bisq and Bisq 2 is the fee structure:

• Bisq charges trading fees:
  • Maker fee: 0.1%
  • Taker fee: 0.7%
  • Fees are lower when paid in BSQ (the native Bisq token).
• Bisq 2 eliminates fees altogether, making it a cost-effective alternative for users who want to trade without incurring additional charges.

Supported Countries

Both Bisq and Bisq 2 are available worldwide. Because they are decentralized, they do not rely on any government jurisdiction or banking system to operate. However, the availability of fiat payment methods depends on local banking regulations.

Comparison Table: Bisq vs Bisq 2

Bisq 2 vs Bisq: Which Exchange Should You Use?

Both Bisq and Bisq are open source, non-KYC exchanges. If you value absolute security, privacy, high trade volumne, and control over your trades, the original Bisq is still the better option. Launched in 2016, it offers a trustless escrow system, decentralized arbitration, and multisignature transactions that ensure no single party can control your funds.

However, if you are looking for a simpler and fee-free alternative, Bisq 2, launched in 2024, may be the right choice. It removes the need for a security deposit and automates more of the trading process, making it more accessible for newcomers. With Bisq 2, you don’t need to already own Bitcoin to start trading—you can buy your very first Bitcoin directly on the platform. In contrast, the original Bisq requires you to have Bitcoin for the security deposit.

Both platforms have lower trade volume, but Bisq 2 has even lower volume, so you may not be able to trade instantly. Bisq 2 also has trade limits, while unsigned accounts on Bisq 1 have lower limits, but signed accounts have higher trading limits.

Ultimately, if security and privacy are paramount, stick with the original Bisq. If ease of use and zero fees matter more to you, Bisq 2 is worth considering. Remember, Bisq 2 has very low trade volume.