One of the best things about cryptocurrency is that it allows for anonymous transactions, and Bitcoin blockchain is not an exception. While the majority of platforms require going through the KYC procedure, there are a few places allowing you to buy Bitcoin without verification.
Today we discuss how to buy Bitcoin anonymously.
Reasons to buy Bitcoin Anonymously
There are many reasons why people want to buy Bitcoin without ID verification, including:
- Document and ID checks take a lot of time (sometimes up to 2-3 days), and it’s not convenient when the user needs the cryptocurrency urgently.
- The buyer’s security concerns are a common occasion: if your personal data is stolen, the intruders will be able to track your Bitcoin wallet, all transactions taking place, and be aware of your financial situation.
- If you don’t have your personal documents at hand for some reason but need BTC urgently, the anonymous purchase will also be a way out.
Why you need to buy BTC anonymously is only your business – reasons vary from person to person. So, without further ado, let’s enumerate the available ways.
1. Buy BTC with Cash
Of course, you can buy Bitcoin without identity verification from your neighbor or some BTC trader you know personally. If you know someone who works in the cryptocurrency industry or is a cryptocurrency miner, you should be able to buy Bitcoins directly from them as they will have to periodically liquidate some of their fiat coins to cover living expenses. But what is the chance you have such people among your friends? I’d say, it’s close to zero if you are not working in a crypto-related company.
Luckily, there are various P2P sites that allow you to find sellers in your area and meet with them in person. One of them is LocalBitcoins (we will discuss it later). By the way, when it comes to anonymous transactions, experts recommend buying newly mined coins because they are particularly valuable (which is why they are known to bring a premium to over-the-counter markets) and have no history.
Buying Bitcoins face-to-face, of course, is connected with high risks, especially in terms of confidentiality. If you’d prefer no one to know about your business – neither the miner from whom you buy your cryptocurrency nor the CCTV cameras that monitor how you enter notes into the BATM at 7/11, you’ll be better served online. While this makes it impossible to make cash transactions, other places can be a good place to get privacy.
2. Buy Bitcoin with a credit or prepaid card
In the U.S. and some other countries, you can simply go to a convenience store and buy a prepaid debit card that can be recharged in cash without any banking formalities. You should then use the same card to buy a BTC at any exchange where it is traded for a fiat, such as Coinbase or Kraken.
This may not be the most convenient option, but if there are no Bitcoin PBXs or LocalBitcoins users in the area, a prepaid card is the best choice.
3. Payment Gateway Providers: Paypal, Skrill, etc.
If you don’t have a credit card at hand but use various online payment systems, such as PayPal, Skrill, WebMoney, etc, you can also use a few platforms that allow buying Bitcoin anonymously and without verification Such platforms include:
- PaxFul (conditions vary from user to user – read them);
Where to buy BTC with Skrill money transfer?
4.Exchanges & Markets that require no I.D. verification
Perhaps the most anonymous way to purchase Bitcoin is to use decentralized exchanges. However, most people in cryptography are not yet familiar with them. Such exchanges are a new concept, and many regard them as the trading platforms of the future.
Although the vast majority of decentralized exchanges require verification, some of them allow for anonymous purchasing of Bitcoin, if you deal with a minor sum of money.
Most services impose restrictions on the withdrawal of cryptocurrencies per day and per month if you don’t verify your personality! Each platform has its own conditions, and you should check them before making any transactions.
A few platforms force customers to share minimal personal credentials, for example, mobile phone numbers. Although it does not guarantee you total anonymity, it might be a way out when you don’t want to share any other personal data, be that your name or address.
5. Bitcoin ATMs to buy Bitcoin Anonymously
As the number of crypto-ATMs has increased recently, buying Bitcoin through them is the most obvious solution for anyone who wants to bypass identity verification requirements. You can buy Bitcoin via an ATM in cash or with a card (in this case, as in the previous ones, a prepaid debit card is used to maintain anonymity). Bitcoins are then transferred to the specified wallet.
The problem with this method is that these devices usually have a limit of $750, after which you need to go through verification. However, if you do not exceed this amount, the purchase will be completely anonymous. The price of Bitcoin in ATMs is usually 5-10% higher than the average market price. Before buying a large amount of cryptocurrency, it is recommended to check the exchange rate of the company where you are going to buy BTC at the ATM.
Another difficulty is that such terminals are not yet very widespread. Currently, about 75% of crypto-ATMs are located in the U.S. and only a few in major European cities. To find out where the nearest Bitcoin ATM is, you can use a special application.
Please note that some ATMs have cameras installed that will capture the user’s face at the time of the transaction. Also, some terminals request confirmation of identity.
Currently, LocalBitcoins is the most popular peer-to-peer platform for Bitcoin trading. It provides the opportunity to meet the seller in person who will agree to send you a BTC in exchange for local currency. LocalBitcoins has sellers in more than 10,000 cities around the world, so there’s a good chance of finding someone nearby.
All you need to do to get started is register by entering your email address and username. Be sure to review the seller’s feedback before agreeing to the deal. Those who have positive reviews can be dealt with in peace. People who have few or no reviews at all should be treated with caution. There have been cases where customers have been trapped by undercover police officers (this has happened in countries where trafficking in cryptocurrency is illegal or requires a license).
7. Crypto-to-crypto exchange & Bitcoin Mixers
How else to perform anonymous transactions? Buy anonymous cryptocurrency and exchange it for BTC. From the standpoint of privacy, the crypto community values such coins Dash, Monero and Zcash among them. The creators of these projects promise increased anonymity and impossibility to track down the owner of the funds compared to Bitcoin.
- Dash cryptocurrency was released in early 2014 under the original name of Darkcoin. It is based on the PrivateSend principle, which mixes transactions as mixer services.
- Monero also appeared in 2014. CryptoNote is used in transactions with the cryptocurrency – the “confusing” code of the executed financial transaction. In addition, the currency allows users to set the number of mixes for their transaction.
- Zcash entered the market at the end of 2016. The project creators call it the first fully anonymous cryptocurrency. The cryptographic protocol hides the amount of payment and its origin. The only information available in the Zcash blockchain is the transaction time.
Alternatively, you can use Bitcoin mixing. During the process of mixing, the link between BTC addresses is broken by the creation of temporary addresses, or by swapping coins with other addresses of the same value. This way, it’s hard to trace the transactions. BitBlender and Samurai Whirlpool are used for BTC mixing.
How to stay anonymous while buying Bitcoin?
There are several classic ways to maintain anonymity:
- Use Bitcoin mixing service, the resources that mix all the money transactions, and then randomly return the invested money to different addresses, with time delays, etc. The amount is credited to the user’s account minus a random commission. Theoretically, combining Bitcoins into a large transaction pool allows you to hide the transaction chain.
- Use different addresses for incoming and outgoing transactions.
- Try Tor and Brave browser for hiding your IP and getting access to closed services.
- Try to avoid transactions with large amounts of money, which can clearly identify their owner, as well as storing such amounts in one place.
Now you know how to buy Bitcoin instantly: no verification is required in the vast majority of cases. However, you should always remember that everything has its price, as well as anonymity. If you buy BTC without verification, be ready to pay 5-15% more than usual.