What’s Bisq and How It Works
Bisq is a decentralized peer-to-peer exchange that allows you to buy and sell bitcoin using open-source desktop software without KYC requirements. 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 does not require KYC verification. Unlike centralized exchanges that demand personal data, Bisq allows you to trade without 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.
For more details, check out The Full Bisq Review.
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 user experience by simplifying the trading process. Unlike the original Bisq, which requires a security deposit and manual trade execution, Bisq 2 eliminates the security deposit requirement and automates more aspects of trading.
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. While Bisq 2 maintains the decentralized ethos of the original Bisq, its streamlined approach makes it easier for beginners to use.
For more details, check out The Full Bisq 2 Review.
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, which reduces complexity but may introduce new risks if users are not careful.
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
| Feature | Bisq | Bisq 2 |
|——————-|——|——–|
| Decentralized | ✅ | ✅ |
| KYC Required | ❌ | ❌ |
| Trading Fees | ✅ | ❌ |
| Security Deposit | ✅ | ❌ |
| Privacy via Tor | ✅ | ✅ |
| User Experience | Complex | Simple |
| Supported OS | Windows, macOS, Linux | Windows, macOS, Linux |
| Bitcoin Required to Trade | ✅ | ❌ |
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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, and control over your trades, the original Bisq is still the better option. 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 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.
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.
