How To Buy Bitcoin Without ID Verification
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Bitcoin (BTC) is the most popular cryptocurrency in the world in terms of market capitalization, ranking above other well-known cryptos such as Ethereum and Cardano.
In this guide, we look at how to buy Bitcoin without ID along with the pros and cons of each method. Read on to find out more.
Best Platforms to Buy Bitcoin Anonymously in 2022
There are plenty of platforms to choose from when it comes to buying cryptocurrencies such as Bitcoin.
We’ve handpicked the most user-friendly platforms below to help you get started right away:
Is It Possible to Buy Bitcoin Without Verification?
Most of the platforms used to buy cryptocurrencies will require users to provide ID during the registration process. This is for KYC/AML regulation purposes.
However, there are exceptions and these will be discussed in the section below.
Ways to Buy Cryptocurrency Anonymously
There are many reasons why someone may want to buy Bitcoin without ID, including not wanting to provide sensitive documents over the internet and perhaps because some may not have appropriate forms of ID in the first place.
Luckily, there are a number of platforms that allow users to make Bitcoin purchases without ID verification.
Peer-to-peer (P2P) marketplaces
P2P marketplaces are platforms that enable you to trade directly with other users using a number of different payment methods.
Here, you can search for Bitcoin sellers and filter the results to the payment method that you prefer.
Occasionally, you may find a seller who is willing to accept cash payments in exchange for Bitcoin. All you would need to do is arrange to meet up and make the trade.
Of course, meeting up with strangers is always a risky endeavor. Ensure that you meet in a busy, public place to mitigate the risks involved.
Popular platforms include LocalBitcoins and Paxful and the steps involved are generally the same. These have been outlined below:
Step 1: Register for an account
Step 2: Enter the amount of BTC you would like to purchase
Step 3: See the sellers in your country
Step 4: Confirm the transaction
Step 5: Provide a Bitcoin wallet address
Step 6: The BTC assets should appear in your wallet
In recent years, thousands of Bitcoin ATMs (automated teller machines) have popped up around the world in shops and other public places.
In fact, according to Coin ATM Radar, there are now over 30,000 ATMs to choose from and this number is growing every year.
Through these machines, you can sell and buy Bitcoin using cash without providing an ID.
Here’s how it’s done:
Step 1: Locate the nearest ATM
Step 2: Enter the amount of Bitcoin
Step 3: Verify the price and other circumstances
Step 4: Scan the barcode
Step 5: Pay using cash
Step 6: The BTC will be in your wallet
What Are the Challenges of Buying Crypto Without an ID?
As tighter regulation is gradually introduced, the ways through which you can buy digital assets without ID are becoming increasingly limited.
This is due to concerns around money laundering and other illegal activities being conducted through these means.
Of course, this isn’t the case for everyone and there are legitimate reasons as well, such as simply valuing your privacy and perhaps not having access to appropriate Identification.
You see, it is possible to buy Bitcoin without ID, but there are many restrictions and obstacles to overcome.
For example, on LocalBitcoins and Paxful, you are limited to around $1000 - $1500 total purchases of Bitcoin per year before having to verify your ID.
A similar sort of restriction applies to Bitcoin ATMs and these vary by operator.
All in all, the challenges of buying Bitcoin without ID relate to the associated limits, available locations, and fees.
Pros & Cons
Alternative Ways to Stay Private When Buying Bitcoin?
Apart from buying Bitcoin without ID, there are other ways to stay private when using cryptocurrencies and surfing the internet. These include:
There are services out there such as Blender that improve the privacy of transactions by breaking the link between source and recipient addresses. If you don’t want other people to know how much Bitcoin you have, this is something to consider.
Virtual Private Network (VPN):
All devices that are connected to the internet have an IP address that is identifiable. To make it more difficult for hackers to gain access to your personal files, including Bitcoin wallets, you may want to use a VPN when using the internet.
To increase the security and privacy of your digital transactions, it is worth using multiple wallets to store your coins. Through this, you can avoid putting all your eggs in one basket, and you can add an extra layer of obfuscation to your digital holdings.
In conclusion, you can use P2P marketplaces such as LocalBitcoins and Paxful to buy Bitcoin without ID, as well as Bitcoin ATMs if there is one near you.
As well as this, you will be limited to the amount of Bitcoin you can buy per year without having to provide ID. This is due to regulation and so it’s worth checking the terms and conditions for each service to see what the specific limits are.
After you have made a purchase, consider storing the coins in multiple different wallets to reduce the chances of you losing all your funds in the event of hacking.