Difference between revisions of "Informal Market for Small BTC Trades"

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To help new Bisq users who don't already have enough bitcoin to use Bisq, there is an '''informal market for small BTC trades'''.
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#REDIRECT [[Getting_your_first_BTC]]
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Trades take place on the <code>#buy-bitcoin</code> channel in the Bisq Keybase team.
 
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This article covers benefits, risks, and rules to be aware of when using this informal BTC marketplace.
 
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{{Admonition_Warn|This marketplace takes the form of a Keybase chat channel, so trades are NOT secured by any of the security mechanisms of Bisq software (e.g. multi-signature escrows, mediation, arbitration, DAO, etc).
 
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Therefore be aware that such trading is inherently risky. See [[#Risks|risks]] below.}}
 
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__TOC__
 
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== Background ==
 
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For new users, Bisq requires ~0.002 BTC for traders to make their first trade:
 
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* 0.001 BTC security deposit
 
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* 0.001 BTC miner fees and trade fees
 
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It can be difficult for new bitcoiners to acquire this bitcoin, so this requirement is often a barrier for new Bisq users. The <code>#buy-bitcoin</code> channel offers one possible way to get this initial bitcoin without having signing up for a centralized exchange.
 
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Other solutions are listed [[Funding_your_wallet#How_to_Obtain_Your_First_Bitcoin|here]].
 
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== How to access the Keybase channel ==
 
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In order to join the <code>#buy-bitcoin</code> channel, you must first [https://keybase.io/team/bisq join the Bisq team on Keybase] (create a Keybase account first if you don't already have one).
 
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Once you're in the team, browse the list of channels and join the one labeled <code>#buy-bitcoin</code>.
 
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[[File:Join-keybase-channel.png|400px|thumb|left|How to browse channels within a Keybase team.]]
 
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<div style="clear: both;"></div>
 
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== Risks ==
 
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Risks of using the <code>#buy-bitcoin</code> channel:
 
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* Not entirely anonymous - Keybase is a centralized service that probably logs IP address and other usage metrics that may reveal your identity
 
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* Must trust traders - Keybase trades are not secured by deposits as they are on Bisq
 
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* No dispute resolution - Keybase trades depend solely on user reputation, so there's no recourse if something goes wrong
 
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'''Make sure you understand these risks before trading on <code>#buy-bitcoin</code>.'''
 
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== Trading rules ==
 
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To maximize the chances that trades go smoothly, the following rules apply to trades in the <code>#buy-bitcoin</code> channel:
 
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* Maximum trade size is 0.002 BTC. BTC buyers can buy a maximum of 0.002 BTC in one transaction. BTC sellers can sell a maximum of 0.002 BTC in one transaction.
 
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* Traders can negotiate their prices. Sellers of BTC will likely charge a premium of 15% over the market price for their bitcoin to cover mining fees, time, and profit. Expect different sellers to charge different amounts.
 
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* BTC buyers should post on the <code>#buy-bitcoin</code> channel the amount they are looking to buy, the payment method they are looking to use, and which currency they wish to make payment in: for example, "I am looking to buy 0.007 BTC with GBP using Revolut. Is anyone online willing to take this offer?"
 
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* Trades between interested parties can be negotiated and settled in direct messages.
 
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* Only [[Payment methods|payment methods]] used in Bisq are allowed. Preference should be given to those with immediate payment: e.g. Revolut, TransferWise, SEPA Instant, Zelle, Faster Payments etc.
 
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* Any trader can be kicked out of the channel at the discretion of the channel owner
 
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* '''There are no refunds, no mediation, no arbitration, and no dispute resolution of any kind available.''' Beware!
 
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* DAO compensation requests or reimbursement requests related to such trades are not allowed.
 
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The <code>#buy-bitcoin</code> channel is moderated to preclude foul play and bad actors.
 
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== Advice ==
 
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Consider evaluating the reputation of sellers in the <code>#buy-bitcoin</code> channel by checking out the links (Github, Twitter, Reddit etc) listed on their Keybase profile. Just note that profiles that ''appear'' strong are not guarantees that trades will go successfully.
 
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* A user without verified links on their profile should be considered a red flag.
 
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* A user with verified links, but with profiles that were only recently set up, should also be considered a red flag.
 
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BTC buyers take on more risk than BTC sellers, since they could be sending funds to an untrustworthy user.
 
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Although BTC sellers take on less risk, relatively speaking, they should strive to use payment methods with the lowest possible chargeback risk.
 

Latest revision as of 20:46, 20 January 2022