Even though Bitcoin have a reputation for being secure and anonymous, but they are not always! It might come as a big shock for those looking to buy or send Bitcoin anonymously that every transaction is put on a ledger. Many exchanges have an authentication process that can allow Bitcoin to be traced to the person. Most of the popular crypto exchanges like BitMEX, Coinbase, and Binance will ask for KYC to allow you to open an account with them. You will be asked a number of documents such as your passport, driver’s license, recent photograph, official email address, phone number, and you’re your home address. When these exchanges have so much personal information about you, being anonymous is out of the question.
However, there are certain workarounds to buying Bitcoin anonymously. There are many different ways, apart from Bitcoin exchanges from where you can buy Bitcoin anonymously. Here are some of them –
If you have a Bitcoin ATM near your place, you can purchase Bitcoin anonymously using cash. There are dedicated Bitcoin ATMs in over 80 countries. You just need to insert cash into the ATM, and it will transfer coins into your Bitcoin ATM. The purchases through these ATMs are completely anonymous as the exchange does not record any of your personal information when transferring the funds to your Bitcoin wallet.
Person to Person Purchase
Person to person purchase of Bitcoin is the most anonymous method to obtain Bitcoin. Here, the buyer and the seller meet each other physically to exchange Bitcoin for cash. Most of the time, these people are not known to each other. There are different platforms that can allow you to learn about other sellers and buyers you can meet locally. Many people use an intermediatory or a trusted person to facilitate the Bitcoin transaction. It will help protect your identity.
Buy Anonymously Online
There are a few exchanges that allow you to purchase Bitcoin without the need to verify yourself on the platform. One such example is Bisq. It is a peer-to-peer platform allowing buying and selling cryptocurrencies in real currencies and without registration. However, it does not offer spot prices or liquidity that other platforms offer. One other option is Hodl Hodl, but you might need to share your personal information to make transactions.
Privacy is important when it comes to buying Bitcoin. Without anonymity, your personal information can easily be tracked, and it might be a matter of concern when it comes to online privacy. We live in an era where sharing personal information on social media platforms is the norm. But what people might forget is that sharing intimate moments online may come at a cost. Many people have fallen trap to cyber-attacks and identity theft due to it.
Purchasing or selling Bitcoin is a personal matter, and its details should not be disclosed, such as how many Bitcoin you bought, from where you purchased it, or when you bought the Bitcoin. Many governments are not pro-cryptocurrencies, and people who purchase cryptocurrencies in a large quantity; you might attract attraction from the government. Thus, being anonymous can provide you protection and peace of mind knowing that the transactions cannot be traced back to you.