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How To Buy Bitcoin Without ID Verification

Last updated 16th Aug 2022
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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.

These include:

  • Peer-to-peer (P2P) marketplaces

  • Bitcoin ATMs

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

Pros

Enables users to buy Bitcoin without providing an ID
Users can direct with sellers directly to negotiate prices

Cons

Prices will generally be higher than on cryptocurrency exchanges due to a mark up by the seller
Possibly time-consuming to find an appropriate vendor
Limited to $1000-$1500 purchases per year without ID

Bitcoin ATMs:

  • 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

Pros

Avoid the time-consuming ID verification process
Users can contact sellers directly to negotiate prices

Cons

Prices will generally be higher than on cryptocurrency exchanges due to mark up by ATM company
Buying and selling amounts may be limited compared to exchanges

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

Pros

Avoid time-consuming verification processes: It is well known that some exchanges take up to 5 days to complete KYC verification.
Ideal for individuals who want to keep their financial activities private: No ID purchases allow for a wide range of privacy.
Purchasing crypto without ID makes it possible for many people who lack official identification documents to buy crypto: This is critical for close to a billion people who lack identification documents.

Cons

Higher fees: This is evident when using crypto ATMs and P2P decentralized exchanges. Charges may be as high as 10% of the total transaction amount. On P2P platforms, users who offer cash or bank deposits are likely to charge more on top of the transaction fees charged by the platform.
Possibility of getting scammed: Scams are possible, especially with face-to-face crypto purchases in the absence of escrow services. Cash buyers risk losing their cash after handing it over to the vendor with no substantial surety of receiving the Bitcoin. Ensure to have a mediator or a dispute resolution mechanism before proceeding with the exchange.
Regulations: Laws that are making KYC verification mandatory are proliferating in countries globally. Exchanges have to abide by these laws in a bid to enforce anti-money laundering regulations.
Complicated processes: Beginners find it complicated, especially when getting altcoins to use for swapping for Bitcoin. Other exchanges will limit the amount you can spend. Buyers will have to make multiple purchases.

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:

Mixing/tumbler Service:

  • 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.

Multiple Wallets:

  • 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.

Final Thoughts

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.

These services are generally more time-consuming than using a cryptocurrency exchange or brokerage and they tend to have more expensive prices for the digital assets.

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.

FAQs

Can you verify Coinbase without ID?
What are the limits for buying Bitcoin without an ID?
Can you buy Bitcoin from someone else in person?
What are ways to keep safe during person-to-person purchases of Bitcoin?
How can I find vendors who sell Bitcoin face-to-face?
Does the use of credit or debit cards make buying Bitcoin anonymous?
What are the best ways to buy Bitcoin without ID verification?
Which are the best online platforms to purchase Bitcoins anonymously?
How can I verify Coinbase without ID?
Khashayar Abbasi

Khashayar Abbasi

Khashayar discovered Bitcoin back in 2014 and has since spent countless hours researching the different use cases of cryptocurrencies. He has a bachelor's degree in International Relations and has been a writer in the financial services industry for nearly half a decade. In his spare time, Khashayar enjoys photography, cycling, and ice skating.