www.banklesstimes.com
HomeEthereumHow To Buy Ethereum Without ID?

How To Buy Ethereum Without ID?

Last updated 19th Aug 2022
Disclosure

Start trading now with eToro

Ethereum is an excellent investment opportunity, and many want to learn how to buy it without providing an ID. However, finding platforms that provide complete anonymity with new laws and regulations can become challenging. This page details ways investors can buy Ethereum without ID. Also, we’ll discuss the benefits of each platform and how to keep your info private.

Best Platforms to Buy Ethereum Anonymously in 2022

Multiple platforms allow buyers to purchase Ethereum without identification. Below are some of the best options available:

Is It Possible to Buy Ethereum Without Verification?

Ethereum works on a decentralized blockchain with a record of all transactions. As a result, users can still be tracked if their wallet addresses are known. However, it’s possible to stay anonymous if you take the necessary precious. This involves using untraceable payment methods and decentralized exchanges.

Ways to Buy Cryptocurrency Anonymously

With regulations becoming stricter, it’s increasingly difficult to buy Ethereum without an ID. However, there are a few methods still available to buy Ethereum anonymously that we’ll mention down below:

Decentralized Exchanges:

  • Decentralized exchanges are peer-to-peer (P2P) crypto marketplaces that connect buyers and sellers. These platforms are built on the blockchain, which lets them work without needing a centralized authority to govern the marketplace. This allows investors to purchase Ethereum safely with full anonymity.

  • Moreover, decentralized exchanges require you to connect a crypto wallet for trading. So you’ll need to have coins in your wallet beforehand to participate in exchanges.

Centralized Exchanges:

  • These platforms are centralized, meaning government authorities regulate them. Therefore, most require users to complete a KYC process to buy Ethereum. However, some exchanges allow users to skip this process and purchase ETH without providing an ID. The only limitation of these platforms is that you’ll have a daily withdrawal limit.

Ethereum ATMs:

  • Ethereum ATMs work like their regular counterparts. People can purchase ETH by inserting cash into the machine and receiving coins into their wallets. There are over 34,000 Ethereum ATMs worldwide, and huge conglomerates are adopting the technology. Unfortunately, Ethereum ATMs have much higher fees than other platforms.

P2P Marketplaces:

  • Peer-2-Peer platforms were the first forms of crypto trading in the community. These sites let Ethereum investors buy and sell coins directly from each other. The most popular brands in this sector are LocalEthereums, Bisq, and Bitquick.

Person to Person Exchanges:

  • Investors can purchase Ethereum from other individuals by connecting via the internet and meeting in person. This method is riskier due to the possibility of getting scammed since there is no mediator or escrow service. Make sure to wait with the person until the transaction completes to ensure you’re not getting scammed.

Prepaid Cards:

  • Prepaid cards such as PaySafeCard are available to buy online and in local stores. This method requires you to find an Ethereum exchange that accepts prepaid cards and lets you withdraw coins without completing a KYC process (for example, you can use Binance or KuCoin without KYC but your account is going to be very limited). However, prepaid cards are inconvenient if you plan to buy large amounts of ETH because they can hold roughly $15,000 each.

Using an Exchange Without ID

There are several crypto exchanges that are the go-to places for anonymous exchanges. Below are the top 5 options:

KuCoin:

  • KuCoin is a leading brand in crypto exchanges due to its premium service. Their platforms let users create an account and buy Ethereum without providing identification. However, these accounts have an unverified status with a 5 ETH withdrawal limit.

  • Moreover, the KuCoin trading interface is expertly designed with various tools. This lets traders make more informed decisions and invest accordingly. Also, their platform has multiple investment opportunities like staking, KuCoin earn, and crypto lending.

Key Features

  • Kucoin provides multiple investment opportunities

  • The platform has several trading pairs for Ethereum

  • KuCoin has a withdrawal limit of 5 ETH for users that haven’t completed the KYC process

  • The mobile application lets users manage their portfolio from any location

  • The blog section lets investors learn about new developments in the crypto

How to Get Started?

Step 1: Create an account
Step 2: Deposit fiat currency or crypto
Step 3: Choose the relevant Ethereum trading pair
Step 4: Click the buy button
Step 5: Withdraw the coins

UniSwap:

  • Uniswap is the most popular Ethereum-based decentralized exchange. It offers safe and secure transactions between Ethereum buyers and sellers by using smart contracts. The app is user-friendly, so beginners can use the platform without issues. Also, users can participate in liquidity pools through their services to earn more coins.

  • Furthermore, no registration is required as investors only need to connect their crypto wallets. However, Ethereum exchanges have huge gas fees, making it not viable until ETH.2.0 is fully operational.

Key Features

  • UniSwap requires no registration

  • Investors can participate in liquidity pools to earn more money

  • UniSwap is the biggest decentralized exchange

  • UniSwap is compatible with most cryptocurrency wallets

  • The decentralized exchange doesn’t accept fiat payments

How to Get Started?

Step 1: Connect your wallet
Step 2: Set Ethereum as the coin you want to buy
Step 3: Input the number of Ethereum
Step 4: UniSwap will provide the gas fees
Step 5: Accept the transaction

PancakeSwap:

  • PancakeSwap is an automated P2P platform and yield farm on the Binance Smart Chain. The platform is a fork of SushiSwap that allows it to deliver cheap and faster transactions. Moreover, the interface has a minimal approach to make it easier to use the platform.

  • Furthermore, the platform lets users invest their coins by participating in the PancakeSwap lottery, yield farms, and syrup pools. Lastly, PancakeSwap requires no KYC process, allowing investors to purchase ETH without disclosing their identity.

Key Features

  • PancakeSwap is built on the Binance Smart Chain, resulting in cheap and fast transactions

  • The platform hosts a lottery where users can win large sums of money

  • PancakeSwap is a fork of the popular SushiSwap decentralized exchange

  • The platform lets users invest their money using yield farming and syrup pools

  • The exchange uses automated market making to provide low fees

How to Get Started?

Step 1: Connect your BNB wallet
Step 2: Select Ethereum
Step 3: Hit the exchange button
Step 4: Click accept

Wall of Coins:

  • Wall of Coins is a decentralized peer-to-peer cryptocurrency exchange that lets users connect to one another. The platform works differently from exchanges as customers can scan through sellers and contact each individual. Afterward, the Wall of Coins provides a list of instructions to receive the coins. Currently, the exchange is based in the US and doesn’t offer its services globally.

Key Features

  • Wall of Coins as multiple methods of receiving customer support such as email, telephone, live chat, and social media

  • Clients can purchase Ethereum anonymously by using cash

  • Wall of Coins offers various cryptocurrencies to let clients diversify their investments

  • The platform is only available in the United States

  • The fees are low with Wall of Coins and average between 1% to 2%

How to Get Started?

Step 1: Click “Buy”
Step 2: Activate your location
Step 3: Contact a local Ethereum seller
Step 4: Buy the coins

What Are the Challenges of Buying Crypto Without an ID?

When buying Ethereum without an ID, investors face a few challenges. Here are the main concerns when buying ETH anonymously:

Possibly Getting Scammed:

  • Decentralized platforms can disguise themselves as trustworthy and scam those less experienced in crypto. Therefore, before using any platform, you should take the time to research its background and the team behind it, and read reviews.

Regulations:

  • Decentralized platforms are often unregulated, meaning they are not legally required to deliver a fair service. Therefore, investors need to use their intuition to determine if a platform can be trusted with their money.

  • Moreover, laws are making ID verification for crypto exchanges mandatory while unregulated platforms are getting banned. Exchanges must abide by these new laws to prevent individuals from participating in illegal activities.

  • If you're located outside the US, for example in the UK, you should pay attention to the lists of regulated brokers before buying Ethereum. Check out our guide on how to buy Ethereum in the UK to learn more.

Increased Fees:

  • Crypto P2P exchanges and Ethereum ATMs have larger fees compared to centralized platforms. In addition, some vendors can charge more than 10% of the trade value, meaning you lose out on potential Ethereum. Therefore, the best option is to use a centralized exchange that doesn’t require completing a KYC process.

Complicated Process:

  • Beginners can find it challenging to use decentralized platforms to buy Ethereum since they don’t follow the conventional investing style. Users must create a wallet and learn about how crypto addresses work. Also, DEXs can have slippage and gas fees, which is confusing to understand without proper guidance.

Limited Liquidity:

  • The decentralized exchange has a limited supply of how much Ethereum they hold. As a result, those who plan to purchase large volumes of ETH can encounter issues of the platform not having enough supply. However, this shouldn’t be an issue if you’re buying small quantities of ETH.

Using a Cryptocurrency Wallet:

  • Beginners may find it challenging to create a new crypto wallet due to the various options. MetaMask and Exodus are great wallets that have a decent level of security. However, hard wallets are preferred if you hold a significant value of ETH, but they are more tricky to set up.

  • Also, new investors may not understand the importance of the seed phrase and don’t write it on a piece of paper. Even worse, some beginners take a picture of the seed phrase, which leaves their money highly vulnerable to hackers.

What Are the Benefits of Buying Crypto Without an ID?

Purchasing cryptocurrency anonymously has several benefits for investors. We’ve outlined the main advantages of buying Ethereum without an ID.

No Official ID Won’t Be a Problem:

  • Those who don’t have official government-issued IDs can invest in cryptocurrency. This gives opportunities to the millions of people that are not fortunate enough to acquire official identification.

Save Time:

  • The KYC process can take days, depending on the system an exchange uses. In some cases, your document can get denied, and most platforms don’t explain why. This is a frustrating process that can take days or weeks to complete. However, decentralized platforms skip this requirement, saving time and letting users buy ETH quickly.

Keep Investments Private:

  • Some individuals want to keep their financial activities private for personal reasons. No ID purchases mean users won’t leave a digital trace of their identity.

Not Relying on Others:

  • Buying ETH directly from DEXs lets you control your funds while not relying on other platforms. Although most centralized exchanges deliver a great service, some users may find it difficult to trust them.

Benefits & Challenges of Buying Crypto Without an ID

Pros

No Official ID Won’t Be a Problem
Save Time
Keep Investments Private
Not Relying on Others

Cons

Possibly Getting Scammed
Regulations
Increased Fees
Complicated Process
Limited Liquidity
Using a Cryptocurrency Wallet

Why Buy Ethereum Without an ID?

There are a few factors as to why users want to buy Ethereum without an ID. Here are the main reasons why you’d want to purchase ETH anonymously:

Privacy:

  • Some people want to be private about the investments they make.

Avoid Being Targeted:

  • Being anonymous means nobody can target your accounts, scam, or hack your wallet.

Keep Data Safe:

  • Nowadays, companies take your personal data and use them for profit. Centralized exchanges can run target ads or sell your data to the highest bidder. Therefore, using methods to buy Ethereum without an ID can prevent your data from being exploited.

Control:

  • Purchasing Ethereum through DEXs gives you control of your coins since you can freely transfer, buy, and sell coins. However, centralized exchanges can freeze your assets at any time, even if you are not participating in illegal activities.

Security:

  • Buying Ethereum anonymously often means you’ll leave them on a hot or cold wallet. These have much better security than exchanges and give you full control of your assets. On the other hand, with centralized exchanges, you rely on them to keep your money safe.

Alternative Ways to Stay Private When Buying Ethereum

Investors have alternative options to keep their purchases private. Some of the main methods are:

VPNs:

  • IPs showcase real addresses, which can be devastating in the wrong hands. Therefore, you can use a VPN service to mask your IP address to stay safe while buying Ethereum.

Brave Browser:

  • This is a brilliant crypto project created by the founder of Firefox. The browser is privacy-driven and doesn’t track users’ data.

Multiple Wallets:

  • Investors can set up many crypto wallets to make it harder for targeted attacks on their main account.

Stay Private:

  • After buying Ethereum, don’t disclose this information to anyone. Seed phrases can be stolen with a snap of a photo and transferred coins are impossible to retrieve.

Final Thoughts

Ethereum enthusiasts have many methods of buying coins anonymously, from Ethereum ATMs to decentralized exchanges. With the vast selection of platforms, you should pick the option that offers the most benefits to you. For example, DEXs can provide users with liquidity pools, yield farming, and staking to boost their portfolio value.

Moreover, before buying Ethereum, always ensure the platform is trusted to prevent yourself from getting scammed. Investors can verify decentralized exchanges by reading online reviews and looking at the whitepaper.

FAQs

What is the best way to buy Ethereum without an ID?
What does KYC mean?
Do I have to be 18 to buy Ethereum without an ID?
How do I stay safe when buying Ethereum anonymously?
Are decentralized platforms regulated?

Dominikas Pupkevicius

Dominikas is a content and research writer with over 6 years of experience. He is passionate about blockchain technology and believes cryptocurrency is the future of humanity. Dominikas lives in the countryside with his 3 dogs and enjoys long walks.