The term “cryptocurrency” is actively used, but very few people thought about the origin of this term: “crypto” means “hidden” (Greek “kryptos”), so it is quite possible to buy bitcoin anonymously isn’t it? If that’s true or the digital gold coin will soon come out of the shadows and join the global financial system is the question. All consequences in the form of registration and identification can be inconvenient for many BTC holders.
Table of content:
- Is it possible to buy BTC without any ID?
- Bitcoin terminals as the way No.1
- Try P2P platforms for anonymous purchase
- Use a prepaid card to buy BTC
- DEX as a new method to hide transactions
BTC anonymity: Myth or Reality?
Is the cryptocurrency hidden enough that fighters with illegal payments give up when facing it? It turns out it isn’t. Bitcoin is functioning on the basis of the blockchain, which is already a kind of database. Why? Because all previous transactions are recorded here! The blockchain itself reveals the very idea of anonymity.
An owner of the cryptocurrency can create addresses without reference to his or her personality, but before that, virtual funds were already marked somewhere, for example, someone made a purchase and provided the data of the passport, wrote numbers of bank cards, exchanging bitcoins for cash, etc. Such coins as Monero and Dash were originally created in order to hide not only the financial story but even senders. Nevertheless when paying for a guarantee you need to issue your payment ID or attach the personal information.
Do not forget about the KYC (Know your customer) system, which involves identifying the counterparty before the financial transaction. It especially relates to those who register on exchanges and withdraw bitcoins or any other currency on the card. Cash has not been canceled yet, but the whole world is still in no hurry to pay with virtual currencies. This is where the unlucky dealers are caught in the act of trading in illegal substances or providing criminal services.
Where there is demand, a proposition is born. Do you think that with the cryptocoins invention, special offices have no chance to reveal the transactions? A lot of start-ups connected with detective work in the blockchain had been registered and successfully implemented. Not without reason there is a saying that nothing stays buried forever and any secret becomes obvious. But, anyway, there are several ways out of this situation and it's quite possible to buy bitcoin anonymously.
Bitcoin Terminals (ATM)
Anyone can use this device, and the fact that their number is only increasing, encourages. But this situation is observed in the US. Europe is in no hurry to acquire an ATM network, and only in large cities one can see such a machine. No verification of the identity is required.
Come to the device, give it some cash and get bitcoins. To operate the terminal is not more complicated than the usual ATM.
After verification using SMS messages, you get to the section where you will be asked to do a scan of your BTC wallet public address QR code.
You go into your bitcoin wallet using the application on your smartphone. Bring the code image to the reader on the terminal.
According to the rules, you can buy from 1 to 800 dollars anonymously. And it's all. Large amounts are serviced after verification.
Load the bill in the slot and choose, print a check to you or a machine should send this document to an email.
After printing the receipt carefully check the information, how much cryptocurrency and where has been transferred, visit your account and control the income.
If you do not have the possibility of personal contact with someone who wants to sell their bitcoins and get cash - they can be friends, family members, colleagues, etc., and then look for such a "real" person on the trading platform for cryptocurrency. The largest of them are sellers from different places all over the world. It is likely that there will also be your countrymen or residents of nearby settlements.
P2P registration is required, but you only have to write down your user name and email. Residents on the site have a rating and reviews. Study these data before agreeing to a deal. The more positive responses are, the more reliable the person is. But don’t be 100% sure because there were cases when policemen used “friendly” accounts. In countries where the trade in cryptocurrency is prohibited or requires a license, this is especially fraught with problems.
Prepaid debit card
A prepaid card is a good opportunity to keep non-cash funds with you without documents, visits to the bank and other formalities. Such a card in the US can be bought at any store. In fact, it is anonymous. Many crypto-exchange markets willingly accept it from those who want to buy bitcoins or other types of coins.
Decentralized Exchange (DEX)
The most anonymous way to buy bitcoins is a decentralized exchange that provides this opportunity. The work of the exchange is based on the blockchain technology and smart contracts, its source code is open, and all transactions are conducted without intermediaries. Despite the existence of services, not everyone has yet had time to try their advantages and get to know them better. The exchanges are very promising up to the role of powerful trading platforms in the future.
What stops ordinary users? Technical difficulties and lack of awareness are the main obstacles to the development of DEX exchanges. At present, everything is done to simplify the usage of such resources and make them attractive for those who want to exchange fiat funds for cryptocurrency, i.e. buy bitcoin anonymously, and vice versa. A large Binance exchange is working on the DEX version. AirSwap and Bisq services are new on the market, but they are actively winning the people’s interest.