In this article, we are going to comprehensively talk about each option, how you can buy bitcoin anonymously, as well as other factors you need to keep in mind.
The adoption of cryptocurrencies is rising. Apart from the price records and growing interest in blockchain technology, the several benefits of the original cryptocurrency are increasingly getting attention. One of the motivations behind bitcoin is the necessity for protecting buyer privacy from unlawful and lawful sources. If you want to buy bitcoin without verification, the process is not very user-friendly, and it requires quite a lot of effort.
Where to Buy Bitcoin Anonymously?
Let’s talk about the available options to buy bitcoin without id.
1. Peer-to-Peer Bitcoin Exchanges
Peer-to-peer (P2P) websites can provide a higher level of anonymity as they connect you to other bitcoin sellers directly. In most cases, they do not request verification depending on the state of affairs. This is at the discretion of the buyer or seller. You have the option to complete transactions either on the site or determined by availability in person.
Our experience is that sellers usually operate according to “buy bitcoin no verification” policy. However, the level of anonymity possible is determined by the seller. You’ll see more sellers ready to transact anonymously if you decide to go with a face-to-face transaction. This involves unveiling your physical appearance to the seller (and your contact number). But if you have a throwaway sim card thereby the purchase is nearly anonymous.
P2P Exchanges List
- LocalBitcoins is a marketplace for trading bitcoins locally to cash. Here you can find local bitcoin exchangers in your country or start your bitcoin exchange online.
- Another platform worth to check is LocalCryptos. Unlike other P2P marketplaces, LocalCryptos keeps you in charge. They don’t invade your privacy, and they don’t touch your funds. It is non-custodial P2P marketplace.
- HodlHodl is P2P cryptocurrency exchange that allows users to trade directly with each other and it doesn’t hold user funds. Because it does not hold any money it is not subject to complex compliance procedures, meaning that it does not require KYC/AML verification.
- Paxful is another bitcoin marketplace to buy bitcoin anonymously and sell bitcoins from other users. You can purchase bitcoins with various payment methods here. Some of the sellers will require your ID for the first purchase or some other personal information, but you can also find sellers where no verification is needed.
- The Mycelium wallet contains a section called Local Trader. It is built-in billboard where you can trade bitcoins. You can view the buy and sell orders of other users near you. Users can then rate each other after transactions to build a reputation system to protect future users of the marketplace. All communication on the application is encrypted with Tor.
- Bisq (formerly known as Bitsquare) is another peer-to-peer marketplace that uses Tor network in order to achieve its decentralized and anonymous status. In order to start trading, users must download the official software. Users come into an agreement at their own pace, and the Bisq team only step in when there is an issue. In most cases, it is not necessary to give ID verification for purchases. Each and every trade involves a buyer, seller, and a randomly chosen arbitrator (another member on the network). The cash to be traded is kept in a wallet that only frees the funds if two of the three parties agree to it. If there is any deceitful conduct, the offending party will lose their security deposit. The downside as of this moment is the low volume of open trades. It is worthy of a try if anonymity is needed.
2. Bitcoin ATMs
Find a bitcoin ATM near you by checking this map if you want to easily buy bitcoin anonymously.
For those who recall how complicated the process of buying bitcoin was when it first emerged, bitcoin Automated Teller Machines were like a breath of fresh air. They’re quite easy in operation. You insert money into the machine and enter a bitcoin address. The machine measures the exchange rate and transfers bitcoin to the address.
On top of that, they’re highly anonymous in principle in any case. Since they accept physical notes, they can be a lot less stringent about ID than online exchange could be. However, there are many considerations determined by the situation when purchasing from the ATMs. Similar to other means to buy bitcoin, the less you purchase, the more anonymous you are. The most prominent ATM provider in European countries, General Bytes, lets you purchase up to €2000 daily without verification.
Our experience with bitcoin ATMs is that sometimes you need to provide a phone number. Especially, when you want to sell bitcoins, so you get notified when the transaction is confirmed. Make sure you provide a burner phone number to remain anonymous. Find other options to buy buy bitcoins with cash.
3. Online Bitcoin Exchanges
Honestly, most online exchanges require verification where you need to upload your ID and similar. Based on where you live, you can sometimes buy bitcoin anonymously the standard way on some online exchanges. However, this is in most cases subject to the amount you want to buy. What it means is that you can buy bitcoin on the platform, but do not expect to buy beyond a few hundred’s worths of bitcoins per day without verification. The small amount is often the most significant weak point when purchasing anonymously on exchanges.
4. Mining and Cloud Mining
For the technically minded user, mining bitcoin can also be a choice. Considering the competitive nature of mining, inexperienced miners is likely to make a loss on their endeavors. But thinking about the fees on lots of transactions anyway it could become cheaper than other available options (especially if you need a huge amount at some point). When it comes to anonymity, the key factor is the mining pool you work with. Some have very safe privacy practices; therefore I highly recommend you investigate before joining.
Cloud mining is an indirect way to buy bitcoin anonymously. BTC cloud mining offers a unique option for mining with a low cost of entry. You can buy the mining power of the hardware placed in remote data centers. This is opposite to traditional models of mining that involve maintenance and configuration of highly specialized hardware. Some cloud mining providers like Genesis Mining do not require any kind of verification when purchasing cloud mining. However, it looks like this is going to change soon as some big players already implemented KYC procedures.
Why Is Anonymity Important?
Unidentified money transfer seems to be unnecessary for some people. But the truth is, there are countless valid reasons for it.
It can be a personal reason, for example, not wanting acquaintances or friends to know the amount you invest. There are security reasons, for example, there has been a massive flow of buying bitcoin in Venezuela in the past resulting from the failure of the government to regulate currency exchange rates.
The founding design of bitcoin was for decentralized societies to have the ability to transact without intervention, and that has lived up to this moment. Anonymity in bitcoin purchases is per se lawful in a lot of places.
- You should be using Tor or VPN when doing transactions online. VPN subscription will keep your identity hidden (for example, on exchanges). We are using Pure VPN with privacy shield.
- Buying bitcoins with a gift card is a great way to stay anonymous as you can buy them in any local shop, keeping your identity safe.
- Another option to get bitcoins is to get an anonymous bitcoin loan.
- To buy bitcoin with credit card without verification is almost impossible. Here are a few (not the best) ideas to buy bitcoin with credit card anonymously.
- After buying, see our tips for using bitcoin anonymously.