Dodge the Panopticon and Grab Bitcoin With Bisq Easy!
Bisq Easy is a great way for newbies to buy bitcoin without KYC!
How does Bisq Easy work and when should you use it?
Bisq Easy Solves the "You Have to Have Bitcoin to Buy Bitcoin" Problem
A major hurdle for using the original Bisq P2P exchange is that to secure a trade, both buyers and sellers needed to deposit a BTC bond to an escrow.
You needed have bitcoin to buy bitcoin!
If you're unfamiliar with the original Bisq, check out this X thread I wrote in 2023.
Bisq Easy is a feature of "Bisq 2", a revamp of the original Bisq software that you downloaded locally on your desktop.
Besides Bisq Easy, the Bisq team is also planning other features for Bisq 2, such as Lightning and Liquid swaps, and eventually merge Bisq 1 and Bisq 2.
Small Amounts Only
Bisq Easy makes it easier for newbies to buy their first BTC because as a buyer you don't have to deposit funds to an escrow like on Bisq 1.
Instead, you have to trust the seller to hold his end of the bargain.
Yes.. don't trust, but verify.
But that's why trading amounts on Bisq Easy are set to a maximum of $600 worth of fiat currency.
A good rule of thumb on Bisq Easy is to optimize on small amounts.
Sellers Are Financially Incentivized to Act Honestly
Sellers also have their reputation at stake, and possibly their businesses: many sellers are arbitrage traders who sell BTC on Bisq at a premium and buy it cheaper elsewhere.
The reputation system on Bisq Easy is the relative ranking of Bisq users amongst the active users on the network.
Reputation can be increased by burning or bonding Bisq's BSQ governance token (colored coin on Bitcoin).
BSQ is not created out of thin air like many altcoins: its purpose is to track and value open-source contributions to Bisq and organize governance.
Account age can also be imported from Bisq 1 to increase reputation.
Successful trades don't build up sellers' reputation.
Bonding BSQ seems to provide enough financial incentives for sellers not to attempt cheating, but maybe successful trades could be taken into account in the future too?
Buyers don't need to build reputation on Bisq Easy because they always send the fiat payment first.
Trades up to $25 don't require sellers to have any reputation.
This makes it easier for new sellers to come in, increase their reputation and achieve higher trading limits.
It also increases liquidity for small trade amounts.
How It Works
When you have successfully downloaded Bisq on your desktop and run it, it connects to a privacy network such as Tor.
As with any programs you download on your computer, it is a good practice to first verify the authenticity of the file.
When creating a profile, it's recommended to use an ambiguous profile name, such as "CryptoToeLicker420" etc.
On Bisq 2, you can also manage multiple identities.
Bisq 2 presents a dashboard where you can enter the Bisq Easy mode.
It's a wizard-like workflow with integrated chat features to make the buying process as easy as possible for newcomers.
You can browse offers by your desired fiat currency in a chat-like interface.
If you want, you can also see a list of all offers on the right side of the screen.
10-20% Premium!
Since sellers are bonding the BSQ token, and thus locking capital to build their reputation, the premium the buyers pay on Bisq Easy can be around 10-20%.
However, the sellers front the transaction costs and are expected to provide some hand-holding for newbie buyers.
Buying bitcoin without attaching your personal identity to the purchase generally incurs around a 5% premium to the spot price.
If the volumes on Bisq Easy increase, then naturally the premiums would also get more competitive over time.
The fiat payment happens outside Bisq and is coordinated between the trade partners.
It's good to remember that buying BTC on Bisq is not fully "non-KYC" because your fiat payment can be linked to your identity.
It's important not to write "Bisq" or "Bitcoin" in the reason for payment field unless you want the feds or the IRS guys dry-humping your leg!
It's generally safer to buy BTC on a P2P exchange than sell it, because there is a small chance that the fiat being used to buy BTC has connections to criminal activity.
If you're too concerned about that, check out your local in-person BTC for cash P2P trading groups!
Once you've accepted a trade offer, you will see the trade details in your "Open Trades" tab.
When you're buying, you can fill in any Bitcoin address or create a new wallet: Bisq doesn't give you a wallet, but helps you finding one.
Once the trade is done, all data related to the trade is gone.
Bisq doesn't store trading data on centralized servers.
Also, all data related to trades is encrypted and only known to the trading partners.
In case something goes wrong with the trade, Bisq has mediators to settle disputes.
As a buyer, you can also create your own offers, but it might take a while until somebody takes your order.
On the original Bisq, you had to keep your computer open in order for your offer to stay valid.
But on Bisq 2, you can also go offline.
To finalize the trade, both traders have to eventually come online.
Similar to Bisq 1, Bisq 2 is also coded in Java, which means it might still be somewhat resource intensive for your computer.
You Can Still Use Bisq 1!
Bisq 1 is still fully functional and maintained and installs clean alongside Bisq 2.. no drama there.
There's been ongoing work on a HTML interface to run Bisq 2 on personal node projects like Umbrel or Start9 @start9.
Bisq is an open-source project, and there are no conceptual or technical hurdles to implement Bisq 2 as a mobile Android app.
Bisq currently has a mobile app for Android and iOS, but it's only to receive trade notifications.
Directed Towards First-Time Buyers
To conclude, Bisq Easy is a great way for a Bitcoin newbie to stack first sats without giving out too much personal information.
Because of its more relaxed security features compared to Bisq 1, it's not however good if you want to buy larger amounts.
Once you already have bitcoin, you can also use the Bisq 1 multi-sig escrow and not only trust the seller's reputation.
When dealing with small on-chain amounts, it's also good to remember that in a high on-chain fee environment small UTXOs might become unspendable.
You can read more about UTXO consolidation here: #664880
Project Links
Additional Resources
Video introduction by the Bisq team:
Video tutorial by Ian Major @IanM:
Stacker News AMA with a Bisq contributor @solomon1923 : #469058
Tutorial by @runningbitcoin: #663856