Bisq 2

Feb 6, 2025

Introduction

KYC-free peer-to-peer (P2P) exchanges are essential for preserving users' privacy and financial autonomy. They enable direct transactions between individuals without the need for identity verification, which is crucial for those who value privacy. For a more in-depth understanding of the theoretical concepts, take a look at the BTC204 course:

Privacy on Bitcoin

Intermediate

4.7(140)

Understand and master the principles of privacy protection when using Bitcoin

4.7(140)

Privacy on Bitcoin

Understand and master the principles of privacy protection when using Bitcoin

What is Bisq 2?

Bisq 2 is the new version of the popular decentralized Bisq exchange, launched in 2024. Unlike its predecessor, Bisq 2 has been developed to support multiple exchange protocols, offering users greater flexibility.

Key new features:

Support for multiple privacy networks (Tor, I2P)
Multiple identities for greater privacy
REST API for trading bots
Support for multiple wallet types
Role system with compulsory deposit in BSQ

This guide focuses exclusively on "Bisq Easy", the only protocol currently available. Bisq Easy was specifically designed for new Bitcoin users. This protocol allows users to buy and sell bitcoins for fiat currencies on a decentralized peer-to-peer platform. Transactions are limited to the equivalent of 600 USD (with a minimum of 6 USD), and trade security relies on the reputation of BTC sellers. Bisq Easy has no trading fees or security deposit requirements. It is expected that Bisq Easy will replace Bisq 1 for fiat trades below 600 USD (or equivalent).

Main features:

Cross-platform desktop application
Several exchange protocols available
Decentralized P2P network
Focus on privacy (no KYC, use of Tor)
Non-custodial (you retain control of your funds)
Open source (AGPL)

Differences with Bisq 1

For buyers:

No security deposit required
No trading fees
No mining fees
Security based on vendor reputation
Lower trading limits (equivalent to USD 600)

For sellers:

No security deposit required
Building a reputation
Possibility of burning BSQ or creating BSQ bonds
Potentially higher sales premium (10-15% above market)

Important note: Once the Bisq Multisig protocol has been implemented in Bisq 2, the old version of Bisq can be phased out. However, Bisq 1 will continue to be used as a management tool for the Bisq CAD and for BSQ-BTC exchanges.

Exchange process

The creator of the offer defines the terms of the exchange
Once the traders have agreed on the terms (payment method and price), the exchange begins
The seller sends his bank details to the buyer, and the buyer sends his Bitcoin address to the seller
The buyer makes the payment in fiat currency and notifies the seller
Once payment has been received, the seller sends the bitcoins to the buyer's address
The exchange is complete when the buyer receives the bitcoins

Important rules

Before exchanging payment details, the exchange can be cancelled without justification
After details have been exchanged, failure to meet obligations may result in banishment
For bank transfers, never use the terms "Bisq" or "Bitcoin " in the reason for payment (this could lead to the funds being frozen or even cause the recipient's or payer's bank account to be blocked)
Traders must log on at least once a day to follow the process
In the event of a problem, traders can call on the services of a mediator

Installation and configuration

1. Download and Verify Bisq 2

Go to bisq.network
Download the Bisq 2 version corresponding to your operating system (scroll down the page)
Verify the authenticity of the downloaded file (strongly recommended). For a detailed guide to signature verification, see the following tutorial:

GnuPGHow to verify the integrity and authenticity of software?

2. Installation according to your system

Please follow the installation steps appropriate for your operating system. If you encounter any difficulties during installation, you can consult the detailed guide on the official Bisq wiki.

3. First start-up

Launch Bisq 2 and accept the terms of use

Create a new profile by choosing a name and avatar

You are then taken to the application's main dashboard, where you can launch Bisq Easy to buy or sell your first bitcoins

4. Setting up payment methods

Access the payment accounts section from the main menu

Add a new payment method by filling in the required information

Pre-configuring payment methods is optional, but recommended to save time when trading. You can also configure your payment methods directly during a trade by contacting your exchange partner.

5. Account security

Data backup:

Unlike Bisq 1, Bisq 2 does not currently integrate a Bitcoin wallet: transactions are therefore carried out via your own external wallets. Nevertheless, we recommend that you regularly back up your Bisq 2 data folder. To locate your data folder, consult the official Bisq wiki.

Identity management:

Bisq 2 lets you create multiple identities. Each identity can be used for different types of transaction. Your identities are stored in the data folder.

Buying and Selling Bitcoins

How to buy Bitcoins

Option 1: Take advantage of an existing offer

On the main screen, select "Bisq Easy", "Getting started" tab, then click on "Start trade wizard"

Choose "Buy Bitcoin" and select your currency

Set up your preferred payment methods (SEPA, Revolut, etc.)

At this point, either you have a list of offers corresponding to your previous criteria, or you need to go to the "Offerbook"

In the second case, you can display and filter offers using the buttons at the top right of the interface

Once you've chosen your offer, all you have to do is choose your payment method, then validate the trade summary

Option 2: Create your own offer

Select "Bisq Easy" then "Offerbook"
Choose your trading pair (e.g. BTC/EUR)
Click on "Create offer
Follow the offer creation wizard: Define the amount (fixed or range)

Select accepted payment methods

Check the summary and publish the offer

Once the exchange has been initiated :

Send your Bitcoin address or Lightning invoice to the seller

Receive the seller's bank details

Make the payment (without mentioning "Bisq" or "Bitcoin")
Notify the seller of your payment

Wait for the bitcoins to arrive

How to sell Bitcoins?

The selling process on Bisq 2 follows a similar logic to that of buying, with the same main steps but in reverse order. You can either create your own offer to sell, or respond to an existing offer to buy. Here's a breakdown of the various options and stages in the process:

Option 1: Create an offer to sell

Select "Bisq Easy" then "Offerbook"
Click on "Create offer" and choose "Sell Bitcoin"
Configure your offer :
Select currency (EUR, USD, etc.)
Choose the accepted payment methods
Set the amount (between 6 and 600 USD equivalent)
Set your price (fixed or % of market)
Check details and publish the offer

Option 2: Take up an existing offer

Browse offers in the "Offerbook" tab
Filter by currency and payment method
Select an offer that suits you
Check details and accept the offer

Sales process:

Once the exchange has been initiated :

Send your bank details to the buyer
Wait for the buyer's Bitcoin address
Check that the address is valid

After payment notification :

Check that payment has been received on your account
Confirm that the amount and details match
Send bitcoins to the address provided
Mark the transaction as completed

Finalization :

Wait for confirmation from the buyer
Leave feedback on the transaction
Build your reputation for future sales

Important note: As a seller, you need to be particularly vigilant about the risk of chargebacks. Give preference to secure payment methods, and always check that payment has been received before sending bitcoins.

Good Practices and Safety

Safety Tips

For buyers:

Start with small amounts
Check sellers' reputations (minimum score of 30,000)
Use only the suggested payment methods
Check that the seller is active before sending payment
Use only the bank details provided in the exchange chat
Never communicate outside the Bisq 2 platform
Keep proof of payment
Never send sensitive information

For sellers:

Be careful with new accounts
Avoid payment methods sensitive to chargebacks (PayPal, Venmo)
Check that the account details correspond to the buyer
Limit communication to chat Bisq 2
Open a mediation in case of doubt

Reputation building (for salespeople)

To enhance your reputation on Bisq as a seller, conduct regular transactions and maintain professional communication with buyers. Respond quickly to buyer requests to ensure a positive experience. You can also create a BSQ bond to show your commitment to the platform. These actions will build trust and attract more buyers.

Dispute Resolution

Contact your counterpart via chat
If necessary, open a dispute
Provide all requested proofs
Follow the mediator's instructions

Privacy policy :

No registration or centralized identity verification required
All connections go through the Tor network (and soon I2P)
No central server to store data
Transaction details are only readable by the parties involved

Protection against censorship :

Fully distributed P2P network
Using the Tor network (and soon I2P) to resist censorship
Open source project managed by a DAO, with no centralized legal entity

Advantages and disadvantages

Benefits of Bisq 2

Maximum privacy: No KYC, use of Tor
Decentralization: No central server
Security: Open source, non-custodial code
Intuitive interface: simpler than Bisq 1
Flexibility: Multiple exchange protocols

Bisq 2 disadvantages

Limited liquidity (for the moment) :
New protocol in start-up phase
Few sales offers available
Potentially long waiting times to find a buyer
Trading limits: Maximum of USD 600 per transaction (with Bisq easy)
Desktop only: No mobile application

Future Protocols

Although Bisq Easy is currently the only protocol available, several other protocols are under development for Bisq 2 :

Bisq Lightning: Exchange protocol based on an escrow system using multiparty computation cryptography on the Lightning network.
Bisq MuSig: Migration of the main protocol from Bisq 1 to Bisq 2, using a 2-on-2 multisig with security deposits.
BSQ Swaps: Instant atomic swaps between BSQ and BTC.
Liquid Swaps: Exchange of assets on the Liquid network (USDT, BTC-L) via atomic swaps.
Monero Swaps: Atomic exchanges between Bitcoin and Monero.
Liquid MuSig: Version of the multisig protocol using L-BTC for lower costs and greater privacy.
Submarine Swaps: Exchanges between Bitcoin on the Lightning network and Bitcoin on-chain.
Stablecoin Swaps: Atomic exchanges between Bitcoin and USD stablecoins.
Multisig Options: Creation of P2P put and call options with BTC blocking in an on-chain multisig transaction.
Multisig Open Contracts: Enables the creation of customized conditional contracts using a 2-on-3 multisig system with arbitrage.

These protocols are currently under development and will be progressively integrated into Bisq 2, offering greater flexibility to users according to their specific needs.

Useful Resources

Official website: bisq.network
Documentation: Bisq Wiki
Support: Forum Bisq
Source code : GitHub

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Author

This tutorial has been written by Pierre

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Pierre

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Passionate about Bitcoin and convinced that education is the key, I wish to share with you the little knowledge I have and thus contribute to the adoption of Bitcoin. Otherwise, I'm a big fan of Pink Floyd, I'm learning to code, and I make memes. Looking forward to meeting you at the next meet-up! I am the creator of the training course BTC 205 - Non-KYC Purchase Solution.

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