Bisq 2 Review [Beta]: No Fees, No KYC

Description

Bisq, a popular platform for peer-to-peer Bitcoin exchange without Know Your Customer (KYC) requirements, has introduced Bisq 2. This new iteration aims to simplify the acquisition of Bitcoin, particularly for new users who do not own Bitcoin yet or those seeking to make smaller purchases. Bisq 2 will offer multiple trading protocols, with Bisq Easy being the first available.

How Bisq Easy Works

Bisq Easy is a non KYC exchange designed specifically for new users by allowing them to buy Bitcoin in small quantities (up to 0.01 BTC) without the need for a security deposit. This stands in contrast to Bisq 1, where both buyers and sellers typically place a security deposit as a form of Bitcoin escrow to mitigate the risk of fraudulent transactions.

However, Bisq Easy comes with a trade-off in terms of security. To facilitate a smoother onboarding experience for new users who may not yet hold any Bitcoin, Bisq Easy places greater emphasis on seller reputation as its primary security measure. This differs from the security deposit system employed in Bisq 1, which offers a more robust guarantee against fraudulent activity. In essence, Bisq Easy prioritizes ease of use for smaller transactions by placing trust in established sellers on the platform. Moreover, Bisq 2 supports the Lightning Network and Liquid Network.

While Bisq 1 required users to stay online after creating an offer, Bisq 2 offers more flexibility. In Bisq 2, you can go offline after placing an offer, and it will still be available to other users. However, it’s important to note that once a buyer accepts your offer and the trade process begins, both parties will need to come online periodically to complete their required actions, such as sending payment or confirming receipt.

While Bisq 1 and Bisq 2 are separate applications and not directly compatible with each other, there is a mechanism to leverage your established reputation on Bisq 1 if you plan to sell on Bisq 2. Specifically, you can import your account age and signed status from Bisq 1 to Bisq 2. This can potentially enhance your credibility as a seller on the new platform.

Bisq 2 Fees (Bisq Easy Fees)

For users looking to make small, initial Bitcoin purchases and who prioritize convenience, Bisq Easy offers a clear advantage. There are no trading fees associated with Bisq Easy, and unlike Bisq 1, buyers avoid miner fees as well. The platform will get revenue from the trading fees from Bisq 1.

Is Bisq 2 Safe?

This is a new protocol designed for small trades up to 0.01 BTC and new users who don’t hold any Bitcoin yet. It prioritizes ease of use, so it does not require a security deposit. For this reason, Bisq Easy relies more heavily on seller reputation to ensure safe transactions. When selecting a seller on Bisq Easy, particularly those with limited or no reputation, there’s a potentially higher risk of encountering fraudulent activity.

Bisq 2 uses a combination of moderators and mediators to address user disputes. In the event of a scam, the seller’s profile could face a ban from Bisq, resulting in the loss of their established reputation. Since reputation is a valuable asset for sellers on Bisq, this system incentivizes honest behavior throughout the trade process.

If security is your top concern, you’ll want to choose a Bisq 1 protocol that uses security deposits. If you’re making a small purchase and prioritize convenience, Bisq Easy may be an option, but be aware of the increased reliance on seller reputation.

Bisq 1 vs Bisq 2 (Bisq Easy)

Here is the breakdown of the main differences between the two trading platforms:

Should You Use Bisq 2 to Buy and Sell Bitcoin?: Our Verdict

Bisq Easy, currently in Beta, primarily targets individuals new to the world of Bitcoin, aiming to provide a straightforward onboarding process for those seeking their first experience with no-KYC Bitcoin and support for the Lightning Network. Conversely, for power users well-versed in Bitcoin, no KYC procedures, and peer-to-peer trading, who typically engage in transactions exceeding 0.01 BTC, Bisq 1 would likely be a more suitable option. It offers features and functionalities better suited to their advanced trading needs.

Additionally, given the initial limitations, such as the absence of a mobile application and the expected lower liquidity at the outset, power users may find Bisq 1 to be a more robust platform for their trading activities. However, Bisq 1 limits you to one trading identity per node, while Bisq 2 lets you manage multiple identities on a single node.