Holding Bitcoin is a matter of financial independence and sovereignty. Bitcoin provides a unique possibility to store and maintain your funds without monitoring or dependence on any third parties authorities such as banks.
Despite the current volatility in prices and constant changes, it offers the best way of keeping a part of your savings secure.
If you want to keep your Bitcoin independent of your name or any government-issued IDs, you would need to make use of a platform that lets you purchase Bitcoin anonymously.
Many of the conventional Bitcoin exchanges have and are implementing KYC policies that expect you to submit identification documents. Some of them will require minimum verification such as a phone number and an e-mail.
However these details you provide turn into vulnerabilities. If your documents are being saved at an exchange, they can be hacked, leaked or demanded by governments.
If privacy is a mighty concern for you while transacting in cryptocurrencies, maybe you’ve wondered how to buy bitcoin anonymously.
If so, then you are certainly in the right place. In this guide, I will be showing you ways to help you buy Bitcoin anonymously.
As bitcoin has come to be more mainstream, the various gateways into cryptocurrencies have become much more regulated.
If you are acquiring bitcoins with fiat currencies, then your most probable gateways are one of the fiat-to-crypto exchanges such as Bitstamp, Coinbase or Gemini. The issue for anyone concerned about their privacy is that these exchanges all ask you your ID to buy bitcoin.
For any buyer in the advanced system, privacy might be the biggest concern while handing over their ID to an exchange. Cryptocurrencies offered a solution to people in developing countries where their national fiat currency may be subject to a considerable amount of inflation.
Also, there are more than a billion people in the world, mostly in developing countries, who don’t possess any form of ID. Hence, the world of Digital currencies is completely cut off to them.
Update :
Most of the cryptocurrency exchanges are turning from anonymous mode to fully KYC system. As a result, it’s very difficult to find exchanges that offers anonymous purchase of bitcoin and other cryptocurrencies.
The 247Exchange listed in this article is shut down the service and no more accessible.
A solution for how to buy bitcoin anonymously, without using an ID, could prove a valuable solution to many citizens of developing countries.
Why are You Asked to verify your Identity?
This is due to the anti-money laundering and counter-terrorism financing (AML/CTF Act) which requires financial services to perform their due diligence on customers. These are broadly known as “know your customer” (KYC) obligations.
The legitimate providers who aim to build a successful business will usually try to operate in line with these requirements. However, there are still ways to buy bitcoin anonymously in the world, as well as other cryptocurrencies.
The legitimate reasons to make anonymous transactions
Bitcoin isn’t truly anonymous. The blockchain gives a complete transaction history, which lets a diligent person find out:
- How much bitcoin is held at an address
- When bitcoin was received or transferred to or from an address
- The addresses that you are sending bitcoin to, and accepting bitcoin from
So once your Identity can be connected to an address, someone can find out how much bitcoin you have.
Moreover, if someone can attach an identity to the addresses that you’re transacting with, they can find out how much bitcoin was transferred, when it was moved and who was sending and receiving it.
Why would someone want to hide that? Frankly, it’s none of your business.
Someone who’s involved in illegal activities would be interested in remaining anonymous, but there are also many legitimate reasons to cover your tracks.
Most importantly it can be a matter of safety. Bitcoin is valuable, and being known as someone who owns a lot of bitcoin might make someone a target. Unlike any other asset, an unlimited amount of bitcoin can be stolen all at once.
There’s no limit to how much can be stolen all at once, and no authority to halt a suspicious transfer. Sometimes anonymity might be a safe and smart choice.
Other than that, individuals might prefer to keep their finances private for different reasons. Maybe they don’t want their family to come asking for money. Perhaps they don’t trust the government or the banks.
Peer-to-Peer platforms
P2P markets are a great option when it comes to buying bitcoins without verification. The benefit of such platforms is that all transaction details remain private and is kept between you and the seller.
Some popular P2P marketplaces for you to to check out:
1. Localbitcoins
Localbitcoins is one of the prominent P2P markets you can purchase bitcoins anonymously. At Localbitcoins, customers can exchange fiat money with bitcoins.
You have to check the website to see offers from numerous sellers, along with the payment process they prefer to use.
When a trade is begun, Localbitcoins secures the sellers’ bitcoins in an escrow account. The coins will be issued to your Localbitcoins wallet only when you seller approves of having received your payment.
If you need anonymity, a cash deposit will work fine. Face-to-face meetups are okay, but you could easily get scammed.
Follow these steps to buy bitcoins at Localbitcoins.
Step 1: Register and create an account with localbitcoins.com.
Step 2: Browse through different offers on the advertisement page. Filter the results and select a payment method of your choice. It can either be cash by mail or cash deposit at a bank.
Step 3: If you come across any advertisement you like, click on it to see the terms of trade, then present the trade request. Make sure to read the seller’s terms of trade.
In most cases, the seller presents a phone number. You can reach out to them to set the meetup or discuss the payment address.
When the seller accepts your payment, they will issue the bitcoins from Localbitcoins Escrow account into to your Localbitcoins wallet.
For each trade you open, Localbitcoins will give you a unique code. You will use this specific code to verify that the seller has released the bitcoins. If you ask your seller for the code, and their code is a mismatch with yours, the seller has not released the bitcoins.
In case you make the payment to the seller, but they fail to hold down their part of the deal, Localbitcoins itself will release the bitcoins to your account. This safety measure guarantees that you do not get scammed.
Pros:
- You trade with an actual person.
- Secure and quick if you follow to their terms.
- Offers several payment methods.
- No limits set
Cons:
- Face-to-face trades can be lead to scams.
- Local meetup is not likely for people from different geographical locations.
- Transactions can be high sometimes.
2. Paxful
Paxful is one of the exchanges that has been around since 2015. If you are facing trouble getting bitcoins in your country, then maybe you could try out Paxful. They welcome in people across the globe.
Since it is a peer-to-peer exchange, traders can easily exchange digital currencies without going through severe verification steps. Paxful is a platform that unites both bitcoin buyers and sellers.
For those who value their anonymity, cash deposit and prepaid vouchers are the best options since you do not have to upload your ID.
Step 1: To buy bitcoins, you have to register an account with Paxful. Initiate your account by validating a link that is sent to your e-mail.
Step 2: Browse through the offers page to go through the different listings. Choose cash deposit or prepaid vouchers as the method of payment. If you do not want to submit your ID.
Once you see an appealing ad, click on the ‘Buy’ icon next to it to see the terms of trade, and even have a conversation with the seller.
Once you carry out the payment, the bitcoins will be issued from the Escrow account to your Paxful wallet.
Pros:
- No limits or verification on the amount you can buy.
- Easy to buy bitcoins.
- Ongoing support.
- Shows the seller’s status
Cons:
- For buyers, the exchange rate for most trades is high.
- Seller may attempt to scam you.
Another method for buying Bitcoins anonymously is via credit card/debit card.
Buy bitcoins anonymously with credit cards/debit cards
Buying bitcoins anonymously using a credit/debit card is a tough task. It is because of the rising dishonest cases that involve plastic money. Hence, exchanges have to ask the user for KYC/AML details to dodge getting caught up in this mix-up.
Exchanges that ask for no ID will most probably have a set limit on how much bitcoins you can purchase with your credit card or debit card.
To buy bitcoins without having to verify your ID, using credit cards, try out these two Exchanges. Also, take note that credit cards and debit cards aren’t the only payment options that are accepted. Cash deposits and along with prepaid vouchers are an alternative.
3. 247Exchange
247Exchange is a platform where users can buy bitcoins without verifying ID by using credit cards or debit cards. But, they have a purchase limit for new users.
New accounts have a daily/monthly limit of $100. To raise your limits, you have to buy bitcoins worth of at least $15; this would raise your daily limit to $150. Your monthly limit could go up to $300.
If you buy $100 worth of bitcoins, your daily limit will surge to $250 while the monthly limit will rise to $500. Basically, the longer you can use your credit card with 247Exchange, the greater your purchase limit.
On 247Exchange will have to verification if you wish to raise your purchase limit beyond $3,000 per day and $30,000 per month.
Buying with credit card is not the only option given to you, you also have the choice to pay via cash deposit along with prepaid vouchers.
To buy bitcoins, register an accounton247Exchange. You need an e-mail address to get started. From there, select your location, the payment method you prefer, and then make your trade.
Pros:
- Buy bitcoins with any credit card/debit card.
- It supports cash deposit and prepaid vouchers/cards.
- Fast and easy.
- Solid support.
Cons:
- The transaction limit for unverified users.
4. Buying at Bitcoin ATMs
Another smart way to buy bitcoins anonymously is by using Bitcoin ATMs.
There is, however a downside to this method. Which is that there are certain limits on how much bitcoins you can buy anonymously. Also, this option is not open to everyone.
However, getting Bitcoin from a dedicated cryptocurrency ATM is not the best financial choice. Bitcoin ATMs often use APIs immediately linked to cryptocurrency exchanges to purchase coins, and naturally, the ATM operator will charge a service fee on the transaction too.
They are useful for buying cryptocurrency anonymously but select your Bitcoin ATM carefully as some will ask you to create an account and share your Identity.
For those that don’t, you can throw some cash in, and get cryptocurrency out on a paper wallet. You can then transfer this Bitcoin to your wallet of choice via a mixer service to further disguise its origin and keep your identity safe.
With most bitcoin operators, you don’t need to verify your Identity for low limits. Limits and verifications may vary depending on the type of machine and the operator you choose.
Currently, there are over 3,000 ATMs scattered across the globe. There could be one near your city. If that is the case, you can follow the following steps to buy bitcoins without an ID.
How to go about it:
- Locate a Bitcoin ATM near to you using some of the trustworthy sites available online.
- Walk up to an ATM. on the UI interface, choose your language, and scroll to the “Buy Bitcoins” option. Then, enter the amount of BTC you want to buy.
- Then, enter either your phone number or an E-mail address ( Note that his step will vary depending on the type of machine). A verification code will be transmitted to this number or e-mail.
- Again, based on the type of machine, you can provide your current bitcoin address, or you may have to create a new one. If you choose to use your actual bitcoin address, you have the option of scanning its QR code.
- Next, enter fiat cash into the system, and check out of the transaction to get the bitcoins. Some machines do not create bitcoin addresses.
This means you will have to have a bitcoin wallet address before you buy with particular machines. If you do not have a clue on how to set a bitcoin wallet, this guide will come in handy.
Conclusion
Buying bitcoins without submitting your personal information today is a difficult task. As a majority of Exchanges that trade cryptocurrencies that make it possible to purchase virtual currencies ask for KYC/AML details.
However, if you are not happy giving your information to third party websites, there are still other options that you can explore. Which includes buying the bitcoins from the sites we have listed above or mining bitcoins using mining pools.
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