Threenvest > Decentralized exchange reviews

BitSquare Review 2024

Our veredict

BitSquare, now known as Bisq, is a decentralized, peer-to-peer cryptocurrency exchange that allows users to trade Bitcoin and other cryptocurrencies without relying on a centralized authority. Founded in 2014 by Manfred Karrer, Bisq emphasizes privacy, security, and decentralization. The platform operates as a Decentralized Autonomous Organization (DAO), meaning it is governed by a set of rules encoded in software rather than a central entity. This setup ensures that users retain control of their funds and personal information, aligning with the original principles of Bitcoin.

One of the key strengths of Bisq is its commitment to privacy and security. Users do not need to provide any identification documents to trade, as Bisq does not require registration. Trades are facilitated through a desktop application, and the platform employs a multi-signature escrow system to ensure secure transactions. However, this decentralized nature also introduces some complexities. Trading on Bisq can be slower and more expensive than on centralized exchanges due to higher fees and the involvement of arbitrators to resolve disputes. Despite these challenges, Bisq remains a valuable option for those prioritizing privacy and control over their crypto assets.

Pros

No KYC Required: Bisq allows users to trade without the need for identity verification, ensuring privacy and anonymity.
Global Accessibility: Bisq has no geographic restrictions, allowing users from any country to trade freely without regional limitations.
Decentralized Control: The platform operates on a peer-to-peer network, giving users full control over their funds and eliminating central authority interference.

Cons

Threenvest Score

Network

Bitcoin

Fees

0.10% (Taker), 0.05% (Maker)

Why can you trust Threenvest?

At Threenvest, we are unwaveringly committed to providing you with unbiased ratings and information. Our editorial team operates independently, free from any advertising influence. We use meticulous, data-driven methodologies to evaluate financial products and companies, ensuring that all assessments are conducted on a level playing field.

To better understand our editorial guidelines and the investment methodology that supports our ratings, you can explore the information in our editorial policy.

Why choose BitSquare?

Choosing Bisq as your cryptocurrency exchange offers a unique blend of privacy, security, and decentralized control. Unlike centralized exchanges, Bisq operates as a peer-to-peer network, meaning there is no central authority controlling your funds. This approach ensures that users retain complete control over their assets and personal information, aligning with the original ethos of Bitcoin. The platform supports a wide range of cryptocurrencies and fiat currencies, providing extensive flexibility for traders. Bisq’s decentralized nature also means there are no geographic restrictions, allowing users from all over the world to trade freely without the need for extensive verification processes.

One of the standout features of Bisq is its robust security measures. The platform employs a multi-signature escrow system, ensuring that funds are securely held during transactions and only released when both parties fulfill their obligations. Additionally, Bisq’s reliance on arbitrators to resolve disputes adds an extra layer of security and trust. These arbitrators are not employed by Bisq but are regular users who have made significant security deposits, ensuring their commitment to fair practices. This decentralized dispute resolution mechanism helps maintain the integrity of the trading process while minimizing the risk of fraud and misconduct.

However, potential users should be aware of some drawbacks. Trading on Bisq can be slower and more expensive compared to centralized exchanges. The involvement of arbitrators and the higher transaction fees, including mining fees for Bitcoin transactions, can add to the overall cost. Additionally, the platform’s decentralized nature and reliance on peer-to-peer interactions can make the user experience less intuitive, especially for beginners. Despite these challenges, Bisq remains a compelling choice for those who prioritize privacy, security, and control over their trading experience, making it a valuable option for serious cryptocurrency traders.

Xavier Tarrasó

EIP and Cryptocurrency Investor

As an experienced trader, I highly recommend Bisq for those who prioritize privacy and security in their cryptocurrency trading. Bisq operates as a decentralized, peer-to-peer exchange, ensuring that users retain full control over their funds and personal information without needing to undergo extensive verification processes. This unique approach aligns with the original principles of Bitcoin, providing a truly decentralized trading experience.

How do we review crypto exchanges?

At Threenvest, we conduct a thorough review process to evaluate and rank the world’s leading crypto exchanges. Our goal is to offer an unbiased assessment, providing you with the information you need to make informed decisions on which ones best suit your needs. We strictly adhere to the guidelines of our editorial policy.

We collect data directly from exchanges through detailed questionnaires and conduct first-hand testing and observations during crypto exchange demonstrations. Questionnaire responses, combined with demonstrations and hands-on research from our experts, feed into our proprietary evaluation process that scores each provider’s performance on more than 15 factors. The end result produces star ratings ranging from poor (one star) to excellent (five stars).

For more details on the categories considered when rating brokers and our process, read our full methodology.

Risk Disclaimer

Investing in cryptocurrencies is very risky, you should only invest the money you are willing to lose. Also you should not expect to be protected if something goes wrong.

Neither Threenvest, nor the author, are recommending you to invest with this article.

Alejandro Borja Fuentes

Economist | Cryptocurrency exchange analyst

The author of the review

Alejandro Borja is an accomplished economist with a distinguished career spanning various facets of the financial industry. His academic journey began with a degree in Economics, laying the foundation for his deep understanding of financial markets.

Over the years, Alejandro has honed his skills by working with some of the largest financial media outlets, analyzing and reporting on economic trends and investment opportunities. His expertise in financial analysis has made him a respected voice in the economic community.