Informal Market for Small BTC Trades
Keybase #buy-bitcoin Using Keybase as a way to buy Bitcoin is based on a proposal to increase accessibility to Bisq for new traders with no funds for security deposit, trading and mining fees.
You can see the Git Hub proposal here: https://github.com/bisq-network/proposals/issues/283
The #buy-bitcoin channel in Bisq support is effectively an over the counter (OTC) way of users purchasing small amounts of Bitcoin (BTC). The agreement to buy / sell BTC is made between the two traders and the trade occurs outside the Bisq Network. Therefore it is important to know that trades are NOT covered by the Bisq DAO, or other great security protections that Bisq has such as multi-signature wallets, mediation, arbitration and the DAO.
Buying BTC using Keybase comes at a much higher risk than buying BTC on Bisq. Therefore Keybase #buy-bitcoin should only be used by buyers and sellers that are both aware of the risks and trading amounts of 0.007 BTC or lower.
This article covers what to be aware of and what rules to follow when using this payment method for buying and selling bitcoin on Keybase. When trading using #buy-bitcoin it is essential that you understand the trade rules:
Contents
Background - why #buy-bitcoin exsists
For new users of the platform Bisq requires approximately 0.007 BTC for traders to make their first trade.
This is made up of:
- 0.006 BTC Security deposit
- 0.001 BTC Miner and Trade fees
New users of Bisq that have no Bitcoin often ask in Bisq channels how they can acquire their first Bitcoin to start trading.
- Buy-bitcoin has been set up to help new Bitcoiner's get their first Bitcoin so they can start to use Bisq.
Other recommended ways to get your first Bitcoin if you do not want to use #buy-bitcoin are:
- Find a friend that has some BTC you can purchase from them.
- Find a Bitcoin ATM lcoal to you that you can exchange your fiat for BTC.
- Purchase a small amount from a centralized exchange (this will require you to give ID information to the exchange).
Most Bisq users are keen to keep their BTC purchases private and therefore are not keen on centralized exchanges and the requirements of KYC (know your customer).
More and more countries have introduced regulation for Bitcoin exchnages and even ATMs to require users to complete KYC. It is becoming increasingly difficult for people to purchase Bitcoin without KYC.
- Buy-bitcoin is a way to make a BTC purchase with out KYC.
Benefits to new traders with no BTC
The benefits #buy-bitcoin provides to new traders with no BTC is the following:
- Semi Private.
- Semi Anonymous.
- No KYC required.
- A quick and easy way to get their first BTC in a person to person (P2P) manner.
- Chance to get early access to the Bisq community.
- Opportunity to start their BTC journey getting familiar with Keybase.
Keybase is a fantastic resource for Bisq users. Bisq wants traders first experiences of Bisq to be positive and Keybase helps to achieve this.
Risks to users trading using #buy-bitcoin BTC
The risks to user using #buy-bitcoin to purchase Bitcoin are the following:
- Only semi Private.
- Only semi Anonymous.
- Relies on trust and reputation of the traders. This is much different from Bisq. Bisq does not require trust as the software means your can trade securely with strangers on the internet.
- Reputation damage for traders if trades go wrong.
- No mediation if things go wrong for traders.
Traders should ensure they are aware of the the risks when using #buy-bitcoin to purchase Bitcoin.
Creating a Keybase account
To access #buy-bitcoin on Bisq you will first need to create a Keybase account and join the Bisq Keybase team.
You can access Keybase on multiple devices. Once you have joined the Bisq Keybase team you will need to join the #buy-bitcoin channel.
Keybase is pretty easy to use once you have the hand of it. For helpful information about the Keybase features see the Keybase Book for a guide to using Keybase.
