Buying Bitcoin without revealing your identity. Is there a better way to do it?
This is a pretty good question for traders who wish to have anonymity in their transactions. People are curious how this can happen considering that majority of exchanges require full disclosure on identity. Please note that buying bitcoin with no ID is normally required by law to do full KYC (Know Your Customer). This is to prevent cyber crime and money laundering, although some people say that the government is just trying to regulate economic freedom.
With all these being said, it is important that you are aware where to buy Bitcoin without Ids. And remember, most exchange require Bitcoin wallet. If you aren’t familiar with Bitcoin Wallet, check out our blog here to learn more.
Even if you select a Full KYC exchange, it is necessary that you do some research to take precautions against identity theft or be taken advantage of abusive exchange operators.
Now, if you are really serious on keeping your identity a secret, here are some options that you can choose from.
CoinMama lets you buy bitcoins with a credit or debit card instantly. No need for verification for your first $150 worth of bitcoin purchases. It is one of the only credit card brokers that allow purchases for any amount of bitcoin without ID verification. You will be required to upload a selfie of you holding your credit card in the process.
A peer to peer market place which is similar to Ebay that requires buyers and sellers create offers and must agree on a price and terms of a trade before a transaction can be made. It is possible to buy bitcoin with no ID on LocalBitcoins by means of buying bitcoins with cold cash, cash deposit or meeting a person and trading cash.
Choosing cash purchases on Localbitcoins is a good way to anonymously buy bitcoin. Look for a well-reputed seller near you and arrange a meet-up in a public place. The seller will trade your cash by instructing Localbitcoins to release your cryptocurrency from escrow. You must note that if you choose to pay via bank transfer, your name will be visible on the bank seller’s statement. Your identity on Localbitcoins will not show.
Buymesomebitcoins, a trusted site to buy bitcoins with no ID verification using Visa or Mastercard is registered in the United Kingdom and has gathered positive reviews from users.
Anonymity in buying bitcoins bears additional cost. Expect to pay 30 percent on commission if you wish to keep your identity a secret. This is a safe and secure way to do business for long-term serious traders on Bitcoins (costly too!).
If you submit an ID, fees in buying bitcoins may be lowered . The discounts are called Verification rewards by Buymesomebitcoins. Options vary, such as an ID Verification Reward and a Card Ownership verification reward. You’re probably wondering how Buymesomebitcoins get around the KYC ruling imposed on exchanges. The site is a P2P marketplace represented by various companies in different countries, thus entitling the same for purchasing bitcoins without ID as the localbitcoins buyers benefit from.
This is similar to a regular Automated Teller Machine (ATM). The difference is that instead of releasing local currency from the machine, Bitcoin ATMs deliver bitcoins to your wallet upon deposit of cash. Most Bitcoin ATMs require no verifications making it hassle-free. The downside however is that they generally sell bitcoins at a mark-up of 5-10%. Some traders are willing to spend such amount for the privacy that Bitcoin ATMS offer. Remember to check the ATM’s price against a Bitcoin price index to carefully monitor your transactions.
Shifting sites is a cheaper alternative when buying bitcoins without revealing your identity. Through a process called Altcoin Shifting, it is possible to have complete anonymity to an ID-verified purchase of bitcoin assuming you got the bitcoin on a full KYC exchange.
The procedure is simple:
A trader buys bitcoins on a major exchange. The ID is verified while the coins are tied to their name.
The bitcoins are withdrawn from the major exchange and transferred to a cryptocurrency-only trading site like Binance, Yobit or Shapeshift.
The user trades their bitcoins for any other crypto asset and withdraws the new altcoin to their own wallet.
Only the second exchange knows where the new coins came from. The first exchange sees the coins being sent to the second exchange’s address. Since the trading occurs off the blockchain, it is difficult to trace what transpired.
Any crypto-only exchange can be used to switch the user’s altcoins back into bitcoin without any trace.
The process can be repeated using a vast list of alternative trading sites, each time further making the coins anonymous.
Livecoin is a popular exchange in the Russian crypto market. Users can deposit and withdraw through Capitalist, Qiwi, Advcash, Payeer or PerfectMoney. Livecoin gets over twelve million monthly visits making it one of the most popular option for buying bitcoin anonymously. In terms of fees, traders only have to pay 10 percent. This is lower compared to other methods that promises the same thing.
Paxful is another P2P platform where sellers and buyers make trades directly. The nature of the exchange allows users to keep their real names and identity relatively undetected. The advantage of using Paxful is having a wide array of payment methods available for users. You can use deposit types such as iTunes, Amazon Gift cards, Paypal, Skrill, NetTeller, Webmoney, Western Union, Money Gram, cash in person, bank deposit, Bitcoin ATM among others. Paxful is currently one of the best sites to buy bitcoin without an ID because of these options for depositing money.
The exchange provides a global map of bitcoin ATMs. CoinATMradar allows you to use cash to buy in person at an actual machine. This is one of the most underrated means of purchasing with no verification ID as it allows users to stay anonymous with all the ATMs available in all continents. Their website has evolved from a small hobby one page website with no purpose to make information regarding bitcoin ATM locations more available into one of the largest resources with respect to all information about bitcoin ATMs and other services to exchange bitcoin for cash and vice versa.
Formerly known as Bitsquare, Bisq is a fully open source desktop P2P software that allows users to buy and sell bitcoins and altcoins in exchange for national currencies, or altcoins. Bisq exchange is designed to be easy, secure, decentralized, instantly accessible to users.
It is best and suitable for traders who do not want to forfeit control or privacy to a central authority in order to trade with other individuals. Bisq makes it possible to trade over 60 cryptocurrencies and even buying bitcoins using bank transfer, escrow and trusted third party traders. No identification is required to trade, but just like with Localbitcoins, your name will be visible on the seller’s bank statement.
Protect yourself from identity theft
One way to keep your documents safe is to always put a watermark on them. This will prevent perpetrators to use your identity in other unauthorized transactions.
With all the technological advancements surrounding us, it would still be possible to encounter web-server hacking every now and then. For this reason, it would be wise to carefully study and look into the safest sites for your bitcoins. Once you found the site that you feel safe and secure, make it a point to review your documents before submitting them to make sure you are not giving away too much personal information.