Difference between revisions of "Trading BSQ"

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(updated to BSQ swaps)
(Add offer book screenshots; refocus content on BSQ Swaps. Sources and related content.)
 
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'''Trading BSQ''' is very similar to trading any other [[payment_methods#altcoin-payment-methods | altcoin]], but instead of using an external wallet to send and receive funds, you use the [[BSQ#BSQ_Wallet | BSQ wallet]] built in to your Bisq application.
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'''BSQ''' is the native token of the Bisq [[Introduction to the DAO|DAO]], used optionally for paying [[Trading fees|trading fees]] at a discount and required for certain [[Introduction to the DAO|governance]] functions like voting and making proposals. This page explains why you might want BSQ and how to obtain it.
  
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== Why buy or sell BSQ? ==
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__TOC__
  
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For traders, using BSQ colored bitcoin to pay trading fees can be a lot cheaper than using plain BTC to pay trading fees. The [[Trading_fees|target discount rate is 50%]], fluctuates with market prices, and is [[Updating_BSQ_trading_fees|re-calibrated on a monthly basis]].
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== Why Obtain or Use BSQ? ==
  
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For contributors, BSQ is required to make proposals and cast votes. Contributors are also compensated with BSQ, which can be sold on Bisq for BTC.
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There are two main reasons users acquire and use [[BSQ]]:
  
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== How to obtain BSQ ==
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* '''For Traders:''' Using BSQ to pay trading fees provides a significant discount (target is ~50%, re-calibrated each DAO cycle (approximately monthly) - see [[Updating BSQ trading fees]]) compared to paying fees in BTC. See [[Paying trading fees with BSQ]].
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* '''For Contributors:''' BSQ is required to [[Participating in a DAO voting cycle|make proposals and vote]] in the Bisq DAO. Contributors also receive compensation for their work in BSQ, which they might then sell on the Bisq market for BTC. See [[Introduction to the DAO]].
  
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The faster, cheaper, easier, and trustless way to obtain BSQ is through [[BSQ_Swaps|BSQ swaps]], available in the Bisq application as the default method.
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== How to Obtain BSQ (Recommended Method: Swaps) ==
  
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What follows is the previous trading protocol for obtaining BSQ, which is still functional, though deprecated in favor of swaps, as it presents no advantages over the former.
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Since Bisq v1.8.0, the primary, recommended, and default method for trading between BTC and BSQ within the Bisq application is via '''[[BSQ swaps]]'''.
  
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== Get your BSQ address ==
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* '''What are Swaps?''' [[BSQ swaps]] allow BSQ and BTC to be traded '''atomically''' in a single Bitcoin transaction. This makes the process:
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    * '''Trustless:''' No counterparty risk during the exchange.
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    * '''Instantaneous:''' The swap happens as soon as the transaction confirms on the blockchain.
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    * '''Cheaper:''' Involves significantly lower [[mining fees]] compared to the old multi-transaction protocol.
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    * '''Simpler:''' Does not require setting up a specific "BSQ payment account".
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* '''How to Swap:''' Simply go to the '''Create Offer''' or '''Buy / Sell BTC''' screens in Bisq and select BSQ as the counter-currency against BTC. You can then make or take offers just like any other market. Ensure you have sufficient BTC or BSQ in your [[BSQ#BSQ_Wallet|Bisq wallet]] to cover the trade amount and any fees.
  
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In order to create a payment account for trading BSQ, you'll first need a BSQ address.
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<gallery mode="packed" heights="180px">
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File:Bisq-v1-buy-bsq-offer-book.png|Offer book showing offers where you can '''buy''' BSQ with BTC (BSQ Swaps).
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File:Bisq-v1-sell-bsq-offer-book.png|Offer book showing offers where you can '''sell''' BSQ for BTC (BSQ Swaps).
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</gallery>
  
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Go to <code>DAO</code> > <code>BSQ wallet</code> > <code>Receive</code> and click the copy icon in the right corner to copy the BSQ address to receive the BSQ payment.
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For full technical details on how the swap protocol works, see the main '''[[BSQ swaps]]''' page.
  
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[[File:Get-bsq-address.png|600px|thumb|left|Get BSQ address.]]
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== Receiving BSQ ==
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If you need to receive BSQ (e.g., for contributor compensation, or from an external source), you can find your BSQ receiving address in the built-in Bisq wallet:
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# Go to the `DAO` tab.
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# Select the `BSQ wallet` sub-tab.
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# Click the `Receive` button/tab.
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# Your current BSQ receiving address will be displayed. Click the copy icon to copy it.
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[[File:Get-bsq-address.png|600px|thumb|left|Find your BSQ receiving address under DAO > BSQ Wallet > Receive.]]
 
<div style="clear: both;"></div>
 
<div style="clear: both;"></div>
  
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== Create a payment account ==
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{{Admonition_Warn|'''Important:''' BSQ tokens are colored coins based on Bitcoin. While stored in your Bisq Bitcoin wallet file, they should generally only be sent to/from addresses within the Bisq application wallet to avoid issues. Do not send BSQ directly to a non-Bisq Bitcoin wallet or exchange address.}}
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Once you've found your BSQ address, create a BSQ payment account at <code>Account</code> > <code>Altcoin Accounts</code>.  
 
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Click <code>Add New Account</code>, pick <code>BSQ</code> in the dropdown, and paste your BSQ address.
 
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== Buy or sell  BSQ ==
 
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To trade BSQ you can either make an offer or take an existing offer just as you would with any other payment method.
 
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== Buying small amounts ==
 
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With mining fees going up, it can be hard to cost-effectively buy a small amount of BSQ (either for trading or DAO participation).
 
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To buy such smaller accounts (currently defined as ≤50 BSQ), you may consider using the [https://bisq.chat `Get your first BTC` room on matrix]. This is effectively an over-the-counter (OTC) market without the typical Bisq security mechanisms such as [[security_deposit|security deposits]] and [[dispute resolution]].  
 
  
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Rules for these trades:
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== Deprecated Trading Method ==
  
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* Maximum trade amount is currently '''50 BSQ''', but may change in the future depending on BSQ price and mining fees. Minimum is '''10BSQ''', to avoid the dust limit of 5.46BSQ and excessive trading costs.
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Previously, BSQ was traded using a manual process similar to other [[Payment methods#Altcoin payment methods|altcoins]], requiring users to create a specific BSQ altcoin payment account. This method was deprecated in favor of [[BSQ swaps]] (introduced in v1.8.0) because swaps are faster, cheaper, more secure (atomic), and easier to use. The old method offers no advantages and should no longer be used.
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* Sellers are encouraged to post '''BSQ bonds''' in the DAO. Sellers who have posted a bond in the DAO should indicate they have in a GitHub issue in the growth repository (see [https://github.com/bisq-network/growth/issues/243 this example]).
 
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* Bonded sellers should not trade over their bonded amount. Unbonded sellers can't make more than one trade at the same time.
 
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* Buyers and sellers set their own terms for the trade. Buyers should send their payment first. BTC, Lightning, Liquid or any other cryptocurrency (or even fiat) payment methods preferable to traders can be used. Sellers quote their price and preferred payment methods.
 
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* Buyer and seller settle the trade via direct messages and report back on the #buy-bsq channel when the trade is successful.
 
  
 
[[Category:Guides]]
 
[[Category:Guides]]
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[[Category:DAO]]
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[[Category:BSQ]]

Latest revision as of 16:17, 23 April 2025

BSQ is the native token of the Bisq DAO, used optionally for paying trading fees at a discount and required for certain governance functions like voting and making proposals. This page explains why you might want BSQ and how to obtain it.

Why Obtain or Use BSQ?

There are two main reasons users acquire and use BSQ:

How to Obtain BSQ (Recommended Method: Swaps)

Since Bisq v1.8.0, the primary, recommended, and default method for trading between BTC and BSQ within the Bisq application is via BSQ swaps.

  • What are Swaps? BSQ swaps allow BSQ and BTC to be traded atomically in a single Bitcoin transaction. This makes the process:
   * Trustless: No counterparty risk during the exchange.
   * Instantaneous: The swap happens as soon as the transaction confirms on the blockchain.
   * Cheaper: Involves significantly lower mining fees compared to the old multi-transaction protocol.
   * Simpler: Does not require setting up a specific "BSQ payment account".
  • How to Swap: Simply go to the Create Offer or Buy / Sell BTC screens in Bisq and select BSQ as the counter-currency against BTC. You can then make or take offers just like any other market. Ensure you have sufficient BTC or BSQ in your Bisq wallet to cover the trade amount and any fees.

  • Offer book showing offers where you can buy BSQ with BTC (BSQ Swaps).

  • Offer book showing offers where you can sell BSQ for BTC (BSQ Swaps).

For full technical details on how the swap protocol works, see the main BSQ swaps page.

Receiving BSQ

If you need to receive BSQ (e.g., for contributor compensation, or from an external source), you can find your BSQ receiving address in the built-in Bisq wallet:

  1. Go to the `DAO` tab.
  2. Select the `BSQ wallet` sub-tab.
  3. Click the `Receive` button/tab.
  4. Your current BSQ receiving address will be displayed. Click the copy icon to copy it.
Find your BSQ receiving address under DAO > BSQ Wallet > Receive.
Warn
 Important: BSQ tokens are colored coins based on Bitcoin. While stored in your Bisq Bitcoin wallet file, they should generally only be sent to/from addresses within the Bisq application wallet to avoid issues. Do not send BSQ directly to a non-Bisq Bitcoin wallet or exchange address.

Deprecated Trading Method

Previously, BSQ was traded using a manual process similar to other altcoins, requiring users to create a specific BSQ altcoin payment account. This method was deprecated in favor of BSQ swaps (introduced in v1.8.0) because swaps are faster, cheaper, more secure (atomic), and easier to use. The old method offers no advantages and should no longer be used.

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