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- 1 Blockchain has enabled people to buy and sell things anonymously. However, the system may not last for long due to security issues.
- 2 Still, some platforms facilitate the anonymous purchasing of Bitcoin. Investors should use them before they’re discontinued.
Cryptocurrency has emerged as a new paradigm of anonymity. It enables people to make transactions without involving any third party. With peer-to-peer encryption, blockchain ensures that information cannot be intercepted by anyone. Although there are numerous instances of asset loss due to hacking and black-hat practices.
At least that is what blockchain theoretically achieves. Crypto isn’t foolproof, but it still paves the way for anonymous transactions. On the other hand, it gives leeway to many adverse possibilities. The network can be used by terrorists and money launderers for notorious purposes. Thus, the governments are on the verge of taking control of crypto.
In the next few years, most countries will have regulations on crypto. They will also have Central Bank Digital Currency (CBDC) to replace the existing cryptos. Therefore, the government banning anonymous purchasing of digital assets shouldn’t surprise anyone. Luckily, that hasn’t happened so far and crypto users can still buy Bitcoin anonymously.
Let’s explore some ways of buying BTC without revealing one’s identity.
Ways of Buying Bitcoin Anonymously
Using the following methods, buyers can get hold of bitcoins easily.
Bitcoin ATMs
In the past few years, a sizable number of Bitcoin ATMs have cropped up globally. These ATMs dispense BTC without taking any personal details. The users just need to tell how many coins they want and submit the cash. In the receipt, they get the private key along with a unique wallet address.
Users can easily scan the QR code with a mobile wallet to receive the assets. Some ATMs allow users to scan their wallet addresses making the payment even easier. However, crypto enthusiasts must know that not all Bitcoin dispensing machines allow anonymous purchases.
Some of them may ask you to first verify your identity. Mostly, they ask for phone numbers or govt-approved ID. The Bitcoin ATM provider will decide the requirements. Another thing that users should remember is that Bitcoin ATMs charge high processing fees. Users must be ready to spend 10% to 20% more than the spot price.
Decentralized Exchanges
Decentralized exchanges have emerged as the safest and cheapest way to buy any cryptocurrency. By design, they exclude third parties and operate seamlessly without errors. They utilize smart contracts for facilitating trades and automating the whole thing. Most DEXs don’t even have account opening procedures.
As a result, they don’t also force the customers to go through the KYC procedure. Many exchanges allow customers to skip KYC with some tradeoffs. In most cases, the transaction limit is lowered. On the contrary, verified customers enjoy all the benefits of the platform to their fullest.
P2P Exchanges
Peer-to-peer exchanges aren’t very different from decentralized exchanges. They bring the buyer and seller together and provide the security of escrow too. However, they have recently started implementing KYC procedures for compliance with AML and anti-terror funding laws.
Users can still find some exchanges that allow them to buy cryptos without any verification. Some of them are LocalCoinSwap, Hodl Hodl, Bisq, and Best Wallet.
But finding the places to buy Bitcoin anonymously isn’t enough. The users also need to make sure that they go through the process safely. Hence, here are some things that they need to keep in mind.
Things to Keep in Mind While Buying BTC Anonymously
Users must keep in mind that even decentralized platforms have been compromised. Thereby, it’s wise to stay vigilant all the time especially when you’re doing something anonymously.
Do a thorough research
First of all, users need to be sure about the platform making this purchase mode available. It must be a reliable platform with a sufficient number of positive testimonials.
Consider Using VPN
By using a VPN, the user can keep their location hidden. It would also make their online activity untraceable for everyone.
Escrow Services
Escrow ensures that the other party honors the deal once it is agreed upon. Users must buy crypto from a platform that offers this service.
Wallet Security
The service provider must provide a robust wallet for the users to stash their cryptos safely. It must come with 2-factor authentication, a self-custodial wallet, and other safety measures.
Exchange Rates
Users must also check the exchange rate of the crypto they’re going to buy. Otherwise, they might end up paying extra to the platform.
Final Thoughts
Anonymous buying of BTC or any other crypto may not remain an option for long. Hence, it is wise to use these options while they are functional. While doing that, crypto users may hope that the government finds a way to keep decentralization intact. Well, only the future can tell if the anonymous purchasing of crypto will remain functional in the coming years.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
