Bitsquare Exchange Review
Bitsquare is a cryptocurrency exchange that is different from most others. It allows users to exchange cryptocurrencies and fiat in a decentralized environment which means that the exchange itself does not handle funds nor can it be hacked. Bitsquare is an application that can be downloaded and ran by anyone.
Being a peer-to-peer app, Bitsquare is hosted by nodes which are the users themselves. This p2p network encrypts private data sent over the wire using Tor.
Bisquare relies on a multisignature and security deposit system to ensure that users have control of their funds and that both parties act honestly. When users exchange currencies, both pay and advanced security deposit and the seller’s funds (BTC) are sent to a 2-out-of-3 multisignature address controlled by the seller, buyer and a moderator. Once the buyer makes is cryptocurrency/fiat payment, the BTC are released to said buyer.
If something goes wrong in the trade, the aforementioned moderator will check the facts and send the BTC to the buyer or seller depending on which one is right. The party that was being dishonest will lose their security deposit which will be given to the BitSquare moderator.
In addition to the security deposit, which is returned if the exchange goes as planned, Bitsquare charges a fee to cover the BTC network fees and to avoid spam orders.
applies a trading and a tx fee that is put in place to avoid spam orders and market manipulation and to pay for transaction fees.
How to Access Bitsquare
In order to use the Bitsquare decentralized exchange, you have to download their app. Click here to go to the Bitsquare exchange and click “Download”, choose the correct O.S and version and install the setup. Once you run Bitsquare, you’ll need to accept the user agreement and a BTC wallet will be created for you. You can click the account button in the left upper corner and then go to wallet seed in order to have a copy of your Bitsquare seed. You can also click “Backup” to backup your wallet file. And you can encrypt the wallet file in “Password”.
How to deposit/withdraw
In order to use the Bitsquare decentralized exchange, you need to deposit funds to your account. To do so, click “Funds” in the upper menu. You’ll be shown a Bitcoin address to which you can send the funds to. Even if you want to buy BTC, you need to deposit BTC to pay the security deposit and fee. You can also generate a new address in the bottom of the page.
Altcoins and other currencies can’t be deposited because these payment methods occur outside of Bitsquare. For example, if you want to buy Bitcoin with USD, you’ll need to send USD from your account directly to the person who you’re buying BTC from. The same goes for altcoins, you’ll need to transfer them from you address separately.
How to use the Bitsquare exchange
Once you’re ready to buy or sell BTC, you can check the current markets in the “Market” section, where the order book is available, along with the spreads and trades. To exchange Bitcoin, you can click “Buy BTC” or “Sell BTC” according to what you want to do. Once there, you can filter by currency and/or payment method and take an order. You can also click “Create a new offer to Buy BTC with x”
When taking an order, you’ll need to set the specify the amount of BTC you’re buyin/selling and click “Next step”, the funds will then go to the multisig escrow and the trade will begin. Once it’s complete, you can signal that you have received or wait for the seller to signal that he has received your fund. Once that happens, the exchange will be complete.
When creating an order, the process is the same, but you’ll need to set more details like the price, the minimum and maximum amount to sale and % premium or discount.
Bitsquare allows users to buy or sell Bitcoin for multiple currencies, fiat and crypto. It’s not possible to buy or sell an altcoin or fiat currency without going through Bitcoin, however. In the Bitsquare market you can find currencies like the USD, EUR, GBP, CNY and many others. There are also many altcoins like ETH, XRP, XMR, ETC. Click here to see all markets.
Support & help
If you have questions about Bitsquare, you can check out their FAQ section on the website and their blog. However, since Bitsquare is a decentralized application it does not provide any support service. If the bug is not detected, you ca also go to the trade that is causing the problem under “Portfolio/Open trades” and type the key combination “ctrl+ o”
In the case of a dispute, however, users can count with the help of arbitrators who manage multisig accounts with the buyer and seller. If Bitsquare has some sort of bug, you can also submit a support ticket if said bug is detected by the app.
Pros & cons
- No server downtime
- Safe from hacks and thefts
- Possible to make an income as an arbitrator/moderator
- Hard to use
- Requires user to download the App
- No support