Getting your first no-KYC Bitcoin using Bisq

Recently, major Bitcoin exchanges have signaled plans to sell blockchain analysis tools to government agencies. This development raises concerns about privacy: the very platforms used to buy your bitcoin could also help authorities track your on-chain activity.

Using platforms like Coinbase or other KYC (Know Your Customer) exchanges means you’ll be required to provide sensitive personal information - typically your name, address, driver’s license, and sometimes even a selfie holding identifying details. Not only does this process tie your identity directly to your bitcoin purchases, but it also creates a tempting target for hackers. No subsequent privacy tool can erase the record that, at a certain time and date, you bought a specific amount of bitcoin linked to your verified identity.

If this security and privacy tradeoff doesn’t bother you, KYC exchanges are often easier to use and offer a beginner-friendly experience. However, once you submit your data, the exchange keeps it forever. Consider the implications before proceeding.

If privacy is important to you, there are solid alternatives available.

What is Bisq?

Bisq is a decentralized bitcoin exchange accessible through a desktop app running on the Tor network. It lets you trade directly with others - no personal information, no central authority, and no trusted third party. Bisq uses a two-party (2-of-2) multisignature escrow to secure trades and encrypts all communication between buyers and sellers.

Getting Started: Your First Trade on Bisq

Many people avoid decentralized exchanges due to perceived complexity. However, Bisq is fully peer-to-peer and never holds your funds; you stay in control at all times. Here’s a streamlined guide to your first Bisq trade:

1. Download & Install Bisq

   • Get the app for your operating system from the official Bisq site.

   • Before installing, verify the download’s authenticity using the release notes section. Guides are available for both Ubuntu and Windows to walk you through this process.

   • Launch Bisq and land on the home screen.
     

2. Set Up a Payment Method

   • Navigate to the “Account” tab and add your preferred payment option. Bisq supports nearly 30 methods worldwide, including Faster Payments, Revolut, and SEPA.
     

3. Browse Offers

   • Go to the ‘Buy BTC’ section to view available sellers. Offers display price, premium or discount compared to market value, and how much bitcoin is available.

   • When you spot a suitable offer, click “Take offer to buy BTC.”
     

4. Review Trade Details

   • Confirm all offer details on the next screen. If everything looks right, proceed by hitting “Next step.”
     

5. Fund Your Trade Wallet

   • You’ll be prompted to deposit a small amount of bitcoin (commonly around 15% of the trade value) as a security measure. The seller also makes a similar deposit.
     

6. Start the Trade

   • Confirm all entries and start the trade.
     

7. Wait for Blockchain Confirmation

   • Both parties’ security deposits are locked in escrow after just one on-chain confirmation.
     

8. Make Your Payment

   • Once the escrow is confirmed, you’ll receive the seller’s payment details.

   • Send the agreed amount through your chosen payment method.
     

9. Confirm Payment Sent

   • After sending, mark the payment as complete in Bisq.

   • The seller will acknowledge once they’ve received your funds. You can securely chat with your trade partner using the built-in encrypted messaging feature.

   • Once the seller confirms receipt, your purchased bitcoin and your security deposit are released directly into your Bisq wallet.
     

10. Trade Complete

    • Congratulations! Your first trade is finished. You can now transfer your bitcoin to an external wallet or keep it in Bisq for future trades.

Opting for a non-KYC route like Bisq helps preserve your privacy and keeps you in control of your funds. While the process may have an extra step or two, it’s straightforward - and well worth it for those who value anonymity and data security.