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Most people believe they can purchase bitcoin anonymously. However, this is not necessarily the case. In this post we share with you some ways to buy bitcoin that protect your identity.
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Everything you do with bitcoin is recorded on a publicly shared global ledger, called a blockchain. This means a bitcoin purchase is actually not anonymous at all. If you leave a digital trail while transacting on the bitcoin blockchain, such as buying bitcoin with an ID, it is only a matter of dedicated time and resources for anyone to de-anonymize your transactions.
For this reason, many people have been seeking a way to buy bitcoin while staying completely anonymous on the bitcoin network. Well, that is also possible. Some companies and exchanges like Bitcoin up now allow users to buy or sell bitcoin anonymously. In this post, we will be showing you a couple of ways you can buy bitcoin without an ID.
But before we go into that, you should know that nothing good comes free, and this extra anonymity also comes at a cost, too. You should be prepared to spare about 5-10% more than other conventional ways of buying bitcoin.
Why Do People Prefer to Buy Bitcoin Anonymously?
There are a couple of reasons why people would prefer to buy their bitcoin anonymously. One of these reasons is to save time. Some sites take a long time to verify user details. To save that extra time you would have spent on verification, you can opt for some sites or exchanges that allow you to buy instantly, without undergoing any verification process.
At the same time, some users feel skeptical about uploading their ID proofs on some exchanges and so won’t want to buy bitcoin that way. It is because of the risk of exchanges getting hacked in the future, which can render users’ information vulnerable. Even if the exchange platform promises good security, not all users will be willing to take the site’s word for it. So they opt for buying bitcoin without verification. This seems to be an option that provides a high degree of privacy and security.
Ways to Buy Bitcoin Anonymously
There are mainly three ways to buy bitcoin while staying anonymous. These methods include buying in person (face-to-face) from a seller, buying using a bitcoin ATM, or buying bitcoin with a credit card with no verification. These methods remain the common ways to buy bitcoin anonymously and we will be talking more about each method in the rest of this post.
#1: Buy Bitcoin Face-to-Face from a Seller
In order to stay anonymous while buying bitcoin, one good way to buy is to buy in person from a seller willing to sell. You can meet someone willing to sell in an online marketplace or forum and then arrange to meet with the person to make the transaction. This is probably the cheapest way to buy bitcoin without any verification because there is no need to pay any transaction fees.
However, this option comes with a lot of risks. This is mainly because you are meeting with a complete stranger and you never can tell what their intentions are. So, when meeting with a seller to buy face-to-face, you need to exercise extreme caution. Arrange to meet only in a busy public place and don’t come to such meeting point alone.
Also be wary of offers that seem too good to be true and make sure you use the platform’s reputation system to gauge the seller’s legitimacy.
#2: Buy Bitcoin Anonymously at Bitcoin ATMs
Buying your bitcoin using a bitcoin ATM is another way you can buy bitcoin without having to verify your identity. You simply make your purchase with cash. Just locate the nearest bitcoin ATM to you and buy from the ATM by cash currency, such as dollar, pound, euro, or another currency.
To buy from a bitcoin ATM, follow these steps:
- Find the nearest bitcoin ATM to you.
- When you find one, scan the QR code of your bitcoin wallet address. That is the same wallet you will receive the bitcoin into after your purchase. But the machine can sometimes generate a paper wallet for you.
- Next, you might be asked to scan your fingerprint. However, that depends on the configuration of the ATM machine.
- Enter the amount of bitcoin you want to purchase or specify the amount of fiat currency you want to spend.
- Insert the cash and wait for few seconds for your bitcoin to be sent to your wallet.
When using a bitcoin ATM to buy your ATM, be prepared for a fee of 5% to 10%. But that should not be a problem if it provides complete privacy.
#3: Buy Bitcoin with a Credit Card with No Verification
Although not all crypto exchanges allow users to buy and sell bitcoin anonymously on their platform, some platforms allow it at increased fees. Instead of the conventional way of buying bitcoin on exchanges where verification is necessary, these platforms allow you to buy bitcoin with your credit card without verification.
One of such platforms is Coingate. The exchange provides a wide range of payment methods, including the use of credit cards. Much more, Coingate allows you to buy bitcoin with credit card no verification. The process is simple on the platform. Below are the steps to follow:
- Go to the Coingate dedicated page for such transactions.
- Specify the amount of bitcoin you want to buy or how much you want to spend on bitcoin.
- Provide your wallet address.
- Input your credit card details.
- Wait for your bitcoin to be sent to your wallet once payment is confirmed.
Can I Buy Other Cryptocurrencies This Way?
Many people ask if they could also buy other cryptocurrencies without verification. Yes, you can buy other altcoins without verification, too. Moreover, this is applicable to any of the three options mentioned above.
Can You Get Cash from a Bitcoin ATM?
Although this is not common with all bitcoin ATMs, some bitcoin ATMs can give you cash. However, about 80% of them don’t allow you to cash out. They only allow you to buy.
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Can I Buy Cryptocurrency Anonymously with My Bank Account?
Your bank account is linked to your identity, so you may not be able to buy cryptocurrencies anonymously with it. This is the same as how you can’t buy bitcoin anonymously via bank transfer. These are methods traceable to you.
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