As lawmakers in the US and around the world gradually introduce tighter regulations on cryptocurrency trading, it’s becoming more difficult to buy crypto without ID.
However, if you don’t have suitable proof of ID or if you simply value your privacy, there are still some sites where you can buy cryptocurrency without completing a verification process.
Keep reading to find out how.
Disclaimer: This page is not financial advice or an endorsem*nt of digital assets, providers or services. Digital assets are volatile and risky, and past performance is no guarantee of future results. Potential regulations or policies can affect their availability and services provided. Talk with a financial professional before making a decision. Finder or the author may own cryptocurrency discussed on this page.
Buy bitcoin without ID verification on these exchanges
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Some exchanges have different thresholds for verification requirements. For example:
- LocalBitcoins lets you buy Bitcoin without verifying ID, but only up to 1,000 euros or equivalent per year. It does not let you sell Bitcoin without verifying identity.
- Paxful does not require ID verification for account creation, but requires verification for accounts that reach the equivalent of US$1,500 in trade volume or wallet activity.
- Kucoin offers crypto-to-crypto trading, but neither requires ID for trading and both offer withdrawals limits of 2 BTC per 24 hours without verification.
Three ways to buy bitcoin anonymously
If you want to buy bitcoin without ID verification, there are only a few options to choose from:
Peer-to-peer (P2P) marketplaces
- Buy bitcoin without ID, cut out the middleman to deal directly with the seller, negotiate for the deal you want
- You may need to settle for a higher price, and it could take time to find the right seller
These platforms, such as LocalBitcoins and Paxful, allow you to interact directly with other users who want to sell their bitcoin. Many sellers don’t require you to provide any ID before you buy, so you can arrange to meet up in person and pay cash to a local seller. Online trades are also available, but many of the payment methods used for these trades may be linked to your identity.
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- Allow you to purchase bitcoin without providing proof of ID
- Prepaid cards aren’t widely accepted, time-consuming way to buy bitcoin, watch out for high fees
Another option is to load a prepaid card with cash and then use it to trade on a platform that doesn’t require proof of ID. These cards are similar to a Visa gift card you can buy at a supermarket or convenience store without verifying your identity.
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- Relatively simple to use, competitive fees
- More and more exchanges require proof of ID, virtually impossible to buy bitcoin with fiat currency without providing proof of ID
On the vast majority of cryptocurrency exchanges, using fiat currency to buy bitcoin without ID is impossible. However, there are several platforms where you can exchange one cryptocurrency for another without needing to verify your ID.
Some of these sites offer “shifting” services that essentially let you trade altcoins with yourself. In fact, some crypto wallets allow you to complete the exchange of coins within your wallet, saving you the hassle of transferring your coins to a third-party exchange.
There are also some crypto exchanges that allow you to trade altcoins without verifying your ID. However, you may need to provide your email address or phone number to sign up for an account. There are also some decentralized exchanges that don’t require any ID verification.
However, remember that if you want to trade with complete anonymity, you’ll first need to find a way to anonymously obtain cryptocurrency using fiat currency before you can start exchanging from one cryptocurrency to another.
Compare all cryptocurrency exchanges and marketplaces.
Why is it difficult to buy bitcoin without ID?
There’s a widespread misconception that cryptocurrencies are simple to purchase anonymously, but this simply isn’t true for a couple of reasons:
Increased regulation
Regulators around the world are gradually introducing legislation that governs digital currency exchanges and the buying and selling of cryptocurrencies. While the US is still a fairly unregulated country when it comes to cryptocurrency, US-based exchanges often require ID verification so that they’re able to operate globally.
Bitcoin is pseudonymous, not anonymous
Because it’s possible for bitcoin users to send and receive BTC to one another without providing proof of ID, the currency is sometimes described as being anonymous. However, a more accurate way to refer to bitcoin is as a pseudonymous currency.
One commonly repeated comparison likens transacting with bitcoin to an author writing under a pseudonym — if their true identity is ever discovered, anything they wrote while using the pseudonym can be linked directly to them.
Your bitcoin address is like an author’s pseudonym, and every BTC transaction you make is stored for all eternity in a public ledger known as the blockchain. So if your bitcoin address is ever linked to your identity — something cybersecurity researchers say is quite straightforward to do — all your transactions could be traced back to you.
Why might people want to buy bitcoin without ID?
In the court of public opinion, there’s a widely held belief that the main reason anyone might want to buy bitcoin anonymously is so they can pay for all manner of illicit goods and services in the hidden corners of the dark web.
But while there’s definitely some truth to this idea — after all, anyone involved in illegal activities would have good reason to want to cover their tracks — there are also plenty of legitimate reasons why someone might want to buy bitcoin or some other crypto without any ID.
For example:
- If you’re worried about crypto exchanges being targeted by hackers and your personal information (including your driver’s license/passport details) being stolen.
- If you own a lot of cryptocurrency and don’t want to be targeted by thieves.
- If you don’t trust the government.
- If you don’t have any ID (an estimated one billion people around the world don’t have proof of identity).
Finally, there’s also the simple fact that the ID verification process on some platforms can be frustratingly slow, particularly during times of increased demand. If you want to purchase crypto as fast as possible to take advantage of an anticipated price change before it occurs, buying without ID verification might be a quicker option.
More ways to protect your privacy
If privacy is important to you, there are several steps you can take to protect your identity when sending and receiving cryptocurrency. These include:
- Using a new address for each transaction. Using a new address for each crypto transaction is a simple way to prevent separate transactions from being linked back to you as the common owner. Hierarchical deterministic (HD) wallets like the Ledger Nano S allow you to generate a new address every time you receive bitcoin.
- Using multiple wallets. Another option to increase your anonymity when transacting with crypto is to open and maintain multiple wallets.
- Using a mixing service. Bitcoin mixing services rely on a data anonymization method known as CoinJoin, which basically jumbles payments from multiple users together into a single transaction. This is designed to make it much more difficult for prying eyes to determine who sent money to whom.
- Hiding your IP address. Your IP address is a unique address for your computer that reveals where you’re connecting to the Internet. To prevent it from being linked to your cryptocurrency wallet address of transactions, you can consider ways to hide your IP, such as using a VPN service or encrypting and rerouting your Internet traffic through a service like Tor.
- Using a dedicated privacy coin. Coins like Monero and Bytecoin have built-in privacy features designed to provide anonymous transactions.
- Taking simple privacy precautions. Be mindful of your footprint when using the crypto buying methods listed higher up this page. For example, avoid giving someone your phone number when paying cash for bitcoin on a local exchange.
Pros and cons of buying bitcoin without ID
Pros
- You can keep your financial information private.
- You don’t need to go through a time-consuming ID verification process.
- Makes cryptocurrency accessible to the estimated one billion people around the world who don’t have proof of ID.
Cons
- Can often be more complicated and inconvenient than simply buying with ID on a conventional crypto exchange.
- You may need to settle for a higher price.
- You can usually only buy a small amount of bitcoin before being asked to provide ID.
- Many cryptocurrencies aren’t actually anonymous, so your transaction could potentially be linked to your identity.
- There’s always the risk that your desire to remain anonymous attracts suspicion and unwanted attention.
Bottom line
Whatever your reason for wanting to buy crypto without ID, there are several options available. However, each of those methods comes with a varying level of risk and its own pros and cons, and you’ll usually need to pay an additional premium to get the privacy you want. Make sure you research all of your options before deciding on the safest approach.
Compare exchanges that don’t require ID
FAQs
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If you don’t want to provide your ID to the seller, you can cancel the trade and search for a seller who explicitly states that they don’t require proof of ID.
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If you’re arranging to meet up with a BTC seller you found through an online marketplace or forum, exercise extreme caution. Arrange to meet in a busy public place, consider bringing a friend or two with you and never set up a meeting with someone if you aren’t completely comfortable. 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.
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No, for a couple of reasons:
- Most crypto exchanges and trading platforms require proof of ID for credit card purchases
- Even if you find a platform that allows you to buy crypto without ID, you’ll still be paying for your transaction with a credit card that’s linked to your identity.
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No. Like your credit card, your bank account is linked to your identity, so buying crypto via bank transfer or any other method linked to your account will always be traceable back to you.
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Probably not. Most bitcoin ATMs will require you to identify yourself, usually by fingerprint scanning or SMS verification.
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While ShapeShift is well known as “the exchange without accounts,” its CEO announced in a September 2018 blog post that the platform would be introducing ShapeShift membership. As part of the tiered membership scheme, users will need to provide “basic personal information.” Membership is initially optional but will become mandatory at a later date.
Disclaimer: Cryptocurrencies are speculative, complex and involve significant risks – they are highly volatile and sensitive to secondary activity. Performance is unpredictable and past performance is no guarantee of future performance. Consider your own circ*mstances, and obtain your own advice, before relying on this information. You should also verify the nature of any product or service (including its legal status and relevant regulatory requirements) and consult the relevant Regulators' websites before making any decision. Finder, or the author, may have holdings in the cryptocurrencies discussed.
Disclosure: As of October 2018 the author holds ADA, ICX, IOTA, POWR and XLM.
