Buying crypto anonymously helps protect you against breaches of privacy and personal data. Privacy coins keep your transactions secure. In this article, we explain in detail how to buy cryptocurrencies anonymously on the best sites and how to stay completely anonymous.
Is Bitcoin an Anonymous Currency?
Bitcoin is not an anonymous currency but a pseudonymous cryptocurrency. This is down to how transactions work. All Bitcoin transactions are recorded on a public blockchain, and anyone can follow each user’s transaction history. To store Bitcoins in wallets, each user’s address is the information required. These addresses cannot be linked to a person or entity. It is because of these untraceable addresses that Bitcoins are called pseudonymous.
To go further, also read our guides “Where to Buy Polkadot Crypto” and “Buying Crypto Without Verification“.
Which Payment Methods Can You Use to Buy Crypto Anonymously?
A cryptocurrency can offer its users anonymity through payment methods such as bank card or PayPal. But anonymity is broken if you pay in cash.
Privacy coins can be bought with various payment methods, but each platform offers its users two payment methods. The most commonly used are:
- Bank card (debit/credit)
- PayPal
- Bank transfer
- Neteller
- Skrill
- UnionPay
- Bitcoin exchange
Can You Still Invest in Bitcoin Anonymously?
Some countries are cracking down on platforms that do not carry out identity checks on their users (KYC). As a result, buying Bitcoin completely anonymously is becoming increasingly difficult. Even sites already known for anonymity are running into problems.
Below, we present the different methods for buying BTC anonymously.
Anonymity Comes at a Price
Buying Bitcoin completely anonymously comes with fees above the market price and a high level of risk.
As explained earlier, Bitcoin is a pseudonymous currency because of how its blockchain works. Bitcoins stored in wallets are easy to trace, as they are linked to their owners’ addresses.
If you do not provide your identity when making a purchase, you can more or less say that you bought bitcoin anonymously. We say more or less because we always leave traces online.
How to Buy Bitcoin Anonymously and in a Decentralized Way
There are several ways to stay anonymous when buying Bitcoin. Person-to-person purchases or peer-to-peer (P2P) exchanges provide assured anonymity, but with high risk. There are also decentralized platforms where you can buy Bitcoins and exchange them for altcoins.
Here are some decentralized sites for making your purchases:
Cash: The Most Effective Method for Buying Anonymously
Although paying cash remains the most effective way to buy anonymously, some governments are about to eliminate it. Paying with fiat remains the simple method with no identity check. The transaction is made over the counter between buyer and seller.
Person to Person:
Some sites put sellers and buyers in direct contact without asking for identity verification. But be careful and always stay alert to scams, even though each seller on these sites has a reputation score.
Prepaid Cards:
You can also buy bitcoin anonymously with prepaid cards. These cards can be bought at tobacconists or even ordered online. Some of these cards do not require identity verification. However, the fees for using them are generally high.
LocalBitcoins and Hodl Hodl: Go-To Sites for Buying Bitcoin Anonymously
This is a site that puts Bitcoin buyers and sellers in direct contact. The platform does not sell Bitcoins itself; it only acts as an intermediary. You can buy your Bitcoins without verifying your identity. Payment is made by cash money order, PayPal or Western Union, and your bitcoins are then deposited into your wallet. Always watch out for scammers.
Paxful:
This site is an intermediary between Bitcoin buyers and sellers. It offers its customers an optional confidentiality clause. Payment is made via Western Union, PayPal, Skrill, Revolut or Remitly. The maximum amount accepted is limited, so do some research before you start. Signing up on this site does not require your personal data.
Bisq: A Decentralized Exchange Platform
This is free software that allows peer-to-peer exchange between Bitcoin buyers and sellers for fiat. Bisq is installed on your computer and does not require your identity. However, payments must go through banks to transfer currencies.
Bitquick:
This site makes it easy to trade anonymously without identity verification, with payment in cash. The downside is that there is a limit on the amount that can be exchanged.
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These are Bitcoin ATMs where you can buy bitcoins directly with cash. In France, there are only two.
Other Sites to Buy Crypto Anonymously
Anonymous purchases can be made on decentralized exchanges (DEXs). The best known are Uniswap, ShapeShift, Bisq, Changelly, Bity and Happycoins.
If you want to get privacy coins directly and later exchange them for Bitcoins, you can buy on a centralized platform such as eToro.
How to Exchange Your Cryptocurrencies Anonymously in November
Say you have bought your bitcoin and now want to exchange it for another crypto asset.
There are several ways to make this exchange while staying anonymous. Some platforms let you create an account without identity verification, and you can trade up to a certain limit. However, these platforms do not always offer the option to buy cryptocurrencies with fiat.
There are also exchange platforms that do not require you to create an account; you only need a wallet to store your coins directly.
Finally, decentralized exchange platforms such as Uniswap let you trade without going through a trusted third party.
What Are the Risks of Buying Bitcoin Outside a Regulated Site?
The big risk of buying Bitcoins on unregulated sites is exposing yourself to scammers.
Peer-to-peer exchanges have a major drawback: no procedure forces each party to fulfill its obligations, so the risk of being scammed is quite high. The reputation system is often distorted by fake positive reviews.
Regulated sites such as eToro, although they do not guarantee your anonymity, offer security and reliability. Centralized platforms are regulated and help you avoid legal problems.
We advise you to always buy on regulated sites such as eToro, even if this means not buying anonymously.
The Price of Buying Bitcoin Anonymously
Buying Bitcoin normally requires KYC (Know Your Customer), so looking for an alternative comes at a price higher than the market price. As noted above, there are specialized sites for staying anonymous. That is why we recommend choosing based on the transaction fees charged and the anonymity the site offers.
Where to Buy Crypto Anonymously Without Fees
If you want to go through altcoins to buy cryptocurrency anonymously and you are looking for a centralized platform, we suggest eToro, a secure and reliable platform with prices that beat the market. Note that, since these are privacy coins, fees are generally higher, so you can choose a coin that matches your expectations in terms of fees.
Which Wallet to Use When Buying Crypto Anonymously?
After a purchase, cryptocurrencies need to be stored in wallets such as the Ledger Nano S. As all transactions are stored on a blockchain, the source of a transaction can be traced, which breaks anonymity.
However, there are several techniques for making your coins more private, including:
- Bitcoin mixers: you send your Bitcoins to make them anonymous. This system is not recommended because of the high risk of scams.
- Wasabi and Samourai wallets, which handle transactions between users in a decentralized way.
- Dash’s masternode system, using the PrivateSend feature
- The zk-SNARK feature on Zcash for transactions between shielded addresses
- Ring signatures on Monero, with transaction privacy by default.
Where to Buy Crypto Anonymously in Person
The safest way to buy Bitcoin in person without verification is a person-to-person purchase. If you want to buy bitcoins anonymously from a stranger, always be careful, as you are exposed to scammers. Fortunately, exchange sites show a reputation score for each seller. Look for reliable sellers and deal with them.
Advantages of Buying Crypto Anonymously
Here are the advantages of buying Bitcoin anonymously:
If you buy on peer-to-peer exchange platforms:
- relatively low fees given the limited services provided.
- a range of possible payment methods, chosen to suit both parties while keeping fees down.
- assured anonymity: the platform will not verify your identity.
If you buy bitcoin from ATMs:
- Ease of use: just follow the instructions.
- Anonymity: using bitcoin ATMs does not require ID, and you can pay in cash.
Disadvantages of Buying Crypto Anonymously
The disadvantages of buying peer to peer:
- It carries more risk because exchanges take place only between users. However, escrow services offered by the platforms help secure bitcoin transactions.
- The stock of cryptocurrency available is limited.
If you buy bitcoin from ATMs:
- Limited cryptocurrency availability
- Higher fees
- Limited maximum amount
Buying Crypto Anonymously – Key Takeaways
Bitcoin is a secure cryptocurrency that can offer you anonymity if you wish, through various methods. By investing in this currency anonymously, you can be sure your privacy is protected. And you can also profit from your investment depending on the broker you choose.
The right way to get bitcoins anonymously is to pay in cash, go through altcoins, or buy from individuals. You can also use bitcoin mixers.
Conclusion – What Is the Best Platform to Buy Crypto Anonymously?
Many techniques are available to preserve your anonymity. Choosing the best platform, whether centralized or decentralized, is the key issue for your investment. For a centralized exchange platform, we advise you to visit Raise FX for your purchases of altcoins convertible into Bitcoin.
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