A vast majority of investors nowadays demand privacy in trading Bitcoin. This article will provide a detailed guideline of how to buy Bitcoin anonymously.
The rationales behind the need for anonymous Bitcoin buying
There are a dozen reasons that a Bitcoin investor can mention when choosing to buy Bitcoin anonymously. However, most of them will agree on the main followings.
- Bitcoin is not private crypto, but pseudo-anonymous. Therefore, Bitcoin transactions are traceable. Those deals are recorded in a public ledger forever and can be accessed by every node in the blockchain. This facilitates the hackers to easily link the user’s public addresses to their identity and track the value of the assets they are holding.
- It may waste time. The identity verification process for buying may cost crypto holders several days to go through. Time is gold in the investment and some people can not wait, as they could lose a lot of money if missing the good chances.
- Legal issues become a big barrier. Bitcoin has attracted the huge attention of governments in recent years. Many nations are working on building crypto-related laws, and some have banned or restricted the use of this crypto. This makes the public trade of Bitcoin more difficult to implement.
Buying Bitcoin anonymously can solve all of these issues by allowing traders to conduct transactions that can not be traced by any cybercrime or government agent, with a lot faster time than waiting for the verification process. Crypto holders can learn more about different methods to buy Bitcoin in anonymity in the rest of the article.
1. Using Bitcoin ATMs
Many crypto investors may hear about Bitcoin ATM. Working similarly as normal ATM, Bitcoin ATM is the physical kiosk that allows users to make transactions directly in there. Even though some ATMs may require identification, this method is still considered as one solution to buy Bitcoin anonymously because it offers some ways to conduct private transactions.
Crypto buyers can come to the nearest ATM and buy Bitcoin with cash. If the user chooses not to reveal the wallet address, the ATM will issue a paper wallet. Crypto holder can then import this amount of Bitcoin to any other wallets that they would like to store their coins.
Investors are also able to find the ATMs that only require a prepaid credit card, which can be bought in many supermarkets or convenience stores. There are also some ATMs that allow verifying through SMS and a burner phone can solve it.
2. Joining peer-to-peer (P2P) platforms
Buying Bitcoin anonymously via P2P exchange is a method in which buyers and sellers can trade Bitcoin directly with each other without the interference of the third parties. There is no fixed payment method in the P2P platforms but depending on the agreement of both parties and varied by cases.
The easiest way to buy Bitcoin anonymously is by buying it with cash in-person. That could be great if an investor knows some friends or a community group that shares an interest in using Bitcoin. They just need to contact within their network or post trading advertisement in the forum of community and wait until someone accepts the deal. Then both parties can meet directly and make the transaction by cash. This is the most trusted source that a crypto holder can use to buy Bitcoin anonymously.
If having none, investors still can find other crypto holders to trade. Paxful is a useful tool to help. It plays the connection role to help buyers and sellers find each other. To start trading, users just need to register with an email. ID verification is not mandatory. By doing so, crypto investors can hide identification and buy Bitcoin anonymously as they wish. However, anonymity may limit the number of Bitcoin sellers who are willing to accept the transaction. Other websites offer similar features are Holdhold or LocalCoinSwap. These sites offer various payment options to choose, such as bank account transfer, debit/credit cards, online transfer, and gift cards.
3. Trading in fiat-to-crypto exchanges
As its name suggests, this method allows investors to buy Bitcoin in the exchange of the government-backed currencies. However, unlike P2P platforms, buyers and sellers will exchange fiat money for Bitcoins by cash deposit, with the involvement of third parties. This type can also be called a centralized exchange. One downside of this type of exchange is that a high fee will be charged.
Bitquick is one of the famous exchanges to buy and sell Bitcoin. The website interface is intuitive and easy to use, even for crypto newbies. It is also a mobile-friendly design that can be used in the mobile interface. However, the exchange has not offered any app version on iOS or Android platforms. Bitquick allows only one payment method which is cash and it accepts five fiat currencies at the moment.
This exchange has a very high level of anonymity in trading. There is no need for ID verification in order to buy Bitcoin in Bitquick. In fact, crypto investors don’t even need an account to do so. Wallet address and email are enough for users to start trading. In some specific cases, it may require SMS verification, but not always.
4. Trading in crypto-to-crypto exchanges
It is also a form of buying Bitcoin online but instead of using fiat currencies, traders can exchange other altcoins to get Bitcoin in return. Most crypto-to-crypto exchanges are built based on decentralization. The decentralized exchanges allow peer-to-peer cryptocurrency trading without relying on third parties, similar to P2P. However, the decentralized and P2P are different types of exchange and co-existed in the crypto world
Changelly supports over 150 cryptocurrencies in total. It has two main features that are selling those cryptocurrencies and allowing to exchange one crypto to another. It means that crypto holders can use any other type of coins, such as Ethereum, Dash, Zcash, etc., and convert to Bitcoin.
Changelly allows crypto holders to trade instantly without registering or verifying identity. This is a big plus for privacy-seeking investors who want to buy Bitcoin anonymously. Additionally, with Changelly, the fee for all transactions is guaranteed at 0.5%. However, in fact, users will have to experience a considerably higher fee when trading in fiat currencies, such as buying Bitcoin with a credit card. This shows that crypto holders may be more beneficial when using Changelly for crypto-to-crypto exchanges.
5. Using privacy wallets
The final method to buy Bitcoin anonymously is using a privacy wallet. Most crypto wallet nowadays is not only used to store cryptocurrencies but also allowing users to buy and sell digital money. Even though it can not become a full-function exchange which can match buyer and seller together, privacy wallet offers a very high level of anonymity for crypto transactions.
Incognito Wallet is a highly recommended option to send and buy crypto anonymously. This wallet is well-known by integrating Zero-knowledge Proof technology by which crypto holders do not necessarily verify their identity to complete the transaction. Therefore, Incognito Wallet’s users can buy Bitcoin anonymously without the concern of revealing the identity. This also helps their transactions untraceable in the blockchain network.
Incognito Wallet is very easy to use, no matter how old or new the users are. Just with a single tap, the seller can switch the wallet into “Incognito Mode” where Bitcoin will be converted to privacy Bitcoin at the rate 1:1. In addition, instead of directly connecting to the public blockchain, the wallet works through a trustless portal and conducts transactions completely in anonymity. The buyers will receive the privacy Bitcoin in their wallet that helps hide all of the information like transaction details, buyer’s identity, and their account balance away from the third parties. Those privacy coins can easily be switched back to the original version.
With this important feature, it would be no exaggeration to say that Incognito Wallet is a wise choice of crypto investors who are seeking for a solution to buy Bitcoin anonymously, and even other altcoins.