Difference between revisions of "Trading BSQ"

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(BSQ alt trading was deprecated.)
(Restructure page to focus on BSQ Swaps as primary method; remove deprecated old protocol details; retain 'Why Use BSQ' & 'Receiving BSQ' sections; update links & formatting.)
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== How to obtain BSQ ==
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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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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 when creating an offer to sell BTC for BSQ.
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__TOC__
  
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What follows is the previous trading protocol for obtaining BSQ, which has been deprecated in favor of swaps, as it offers no advantages over the former.
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== Why Obtain or Use BSQ? ==
  
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= Old trading protocol =
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There are two main reasons users acquire and use [[BSQ]]:
  
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* '''For Traders:''' Using BSQ to pay trading fees provides a significant discount (target is ~50%, fluctuates with market prices, and is [[Updating_BSQ_trading_fees|re-calibrated each DAO cycle (approximately monthly)]] to maintain this target) 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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'''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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== How to Obtain BSQ (Recommended Method: Swaps) ==
  
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== Why buy or sell BSQ? ==
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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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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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* '''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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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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For full technical details on how the swap protocol works, see the main '''[[BSQ swaps]]''' page.
  
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== Get your 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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In order to create a payment account for trading BSQ, you'll first need a BSQ address.
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[[File:Get-bsq-address.png|600px|thumb|left|Find your BSQ receiving address under DAO > BSQ Wallet > Receive.]]
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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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[[File:Get-bsq-address.png|600px|thumb|left|Get BSQ address.]]
 
 
<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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== Deprecated Trading Method ==
  
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Since v1.8.0, Bisq offers [[BSQ_swaps|atomic swaps for BSQ/BTC trades]], which means you can buy and sell BSQ for BTC with only a single on-chain transaction. This means mining fees are greatly reduced, and trades are virtually instant (!).
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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.
  
 
[[Category:Guides]]
 
[[Category:Guides]]
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[[Category:DAO]]
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[[Category:BSQ]]

Revision as of 03:34, 21 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.

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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