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Bisq

Bisq is a decentralized, peer-to-peer exchange for buying and selling bitcoin with national currencies or other cryptocurrencies. No account creation, no KYC, no central server — trades are coordinated over Tor and settled via 2-of-2 multisig escrow with a third-party mediator.

How It Works​

  1. Maker creates an offer (e.g., "Sell 0.1 BTC for USD via Zelle")
  2. Taker accepts the offer and deposits a security bond in BTC
  3. Both parties lock trade funds in a 2-of-2 multisig address
  4. Fiat payment is sent outside Bisq (bank transfer, Cash by Mail, etc.)
  5. Once payment is confirmed, both parties sign to release bitcoin from escrow
  6. If a dispute arises, a bonded mediator reviews evidence and awards funds

Trade Limits & Security Bonds​

  • Low trade limits for new accounts; limits increase with successful trade history
  • Security bonds discourage malicious behavior — forfeit if you break protocol
  • Mediators are bonded professionals who can only sign with one of the two keys

Payment Methods​

  • F2F (face-to-face / cash)
  • National bank transfers (SEPA, Zelle, FPS, etc.)
  • Money orders, Cash by Mail
  • Altcoin swaps (Monero, etc.)

Running Bisq​

  • Desktop application — Java-based, runs on Linux, macOS, Windows
  • Own node — connects to your local Bitcoin node for block verification
  • Tor by default — all communication is onion-routed
  • No email, no phone number, no name required

Risks​

  • Trade duration — fiat settlement can take days vs. minutes on a centralized exchange
  • Mediator reliance — disputes require trusting a third party, though they cannot steal funds
  • Low liquidity — less volume than major CEXs; limit orders may sit unfilled

Comparison​

ExchangeKYCCustodyP2PDecentralized
BisqNoSelfYesYes
HodlHodlMinimalSelfYesNo (hosted)
RoboSatsNoSelfYesNo (Tor-only)
Kraken/CoinbaseYesCustodialNoNo

Resources​