How to Buy Bitcoin Anonymously Without ID in 2023

Global regulators are now clamping down on anonymous cryptocurrency purchases, so avoiding KYC processes is becoming more challenging. That said, there are still ways to buy and sell Bitcoin while keeping your identity hidden.

In this guide, we explain how to buy Bitcoin anonymously in 2023. We cover various different strategies that enable you to legally access the Bitcoin markets while maintaining full privacy.

Best Places to Buy Bitcoin Without ID Reviewed

The first step is exploring where to buy Bitcoin anonymously. There are several methods and platforms to choose from, each with its own pros and cons.

This section discusses some of the best options available for buying crypto without KYC checks.

1. Best Wallet – Best Place to Buy Crypto Anonymously With Cryptocurrencies [No Trading Commissions]

We found that Best Wallet is the best option when buying Bitcoin anonymously. The process isn’t overly straightforward, as you’ll need to pay for your purchase with another cryptocurrency. Nonetheless, you’ll be able to buy Bitcoin without opening an account. This is because Best Wallet is a decentralized provider – so there are no KYC processes or verification checks.

Instead, you simply need to download the Best Wallet app to get the process started. Initially, you’ll need to deposit some cryptocurrency tokens into your unique wallet address. Currently, Best Wallet supports all tokens on the Ethereum, Polygon, and Binance Smart Chain networks. This includes some of the best altcoins, such as ETH, USDT, MATIC, and BUSD.

Once you’ve transferred the tokens, you can then use Best Wallet’s in-built swap tool. For example, suppose you deposited ETH. At the click of a button, you can swap ETH for BTC in real-time. Best Wallet utilizes external liquidity pools to ensure you get the best exchange rates possible. Moreover, Best Wallet doesn’t charge any trading commissions.

That being said, you’ll still need to cover the swap fee charges by the respective liquidity provider. In most cases, this will be a small fraction of a percentage. Crucially,  once you’ve bought Bitcoin anonymously, there’s no requirement to withdraw the tokens to another wallet. This is because Best Wallet offers a safe, private, and fully functional wallet service.

Best Wallet is a non-custodial wallet, so you retain full control of your Bitcoin tokens. Nobody else will have access to your wallet’s private keys, so you can own and store Bitcoin without needing to trust a third party. Moreover, Best Wallet comes with solid security features. This includes multi-factor authentication, meaning access to the wallet requires at least two of your devices (e.g. laptop and phone).

The Best Wallet app also supports biometric login. In the event you lose your phone, you can regain access to Best Wallet via your backup passphrase. We should note that Best Wallet has only just launched – so many features are still a work in progress. For example, Best Wallet will be launching an analytics dashboard. This will provide lots of useful data on the cryptocurrency markets and help you make informed investment decisions.

Best Wallet will also integrate TradingView within its exchange. This enables you to perform technical analysis with advanced charts and tools. Additionally, Best Wallet is launching a native cryptocurrency token – BEST. By staking BEST, you’ll benefit from zero gas fees, voting rights, and passive rewards. Best Wallet will also offer a launchpad for new cryptocurrencies. This means that you can invest in new projects without leaving the wallet app.

In the near future, Best Wallet will also facilitate fiat money payments. Although this offers a convenient way to buy Bitcoin and other cryptocurrencies, KYC documents will be required. In terms of reviews in the public domain, Best Wallet is rated 5/5 on Google Play and the App Store. However, this is only based on 70+ reviews, considering that Best Wallet has only recently launched.

2. Bitcoin ATMs – Buy Bitcoin Anonymously at a Physical ATM With Cash

The next best place to buy Bitcoin anonymously is via a cryptocurrency ATM. Here’s how it works; You visit your nearest Bitcoin ATM and select how much you want to buy. This will be stated in your local currency. Next, you’ll be asked to insert cash into the ATM, ensuring it covers the full purchase price.

After that, a receipt will be printed containing a unique wallet address and private key. In most cases, you can scan the QR code with a mobile wallet to claim the Bitcoin tokens. Some Bitcoin ATMs allow you to scan your wallet address when completing the payment, which is slightly more convenient. That being said, not all Bitcoin ATMs support an anonymous purchase experience.

On the contrary, some ask you to verify your phone number before requesting a government-issued ID. In this instance, your face will also be scanned to ensure it matches the ID you’ve submitted. KYC requirements will ultimately vary depending on the Bitcoin ATM provider. Another drawback of Bitcoin ATMs is that fees are typically high. Expect to pay 10-20% above the current Bitcoin spot price.

In addition, Bitcoin ATMs are usually positioned in major cities. So if you’re based in a remote location, this might not be a suitable option. The best starting point is to visit CoinATMRadar. After typing in your location, the platform lists the nearest Bitcoin ATMs. More than 32,400 Bitcoin ATM locations are listed in over 70 countries. Once you click on a location, CoinATMRadar lists key stats – such as fee and the ATM provider. You can then research whether or not KYC will be required.

3. Bisq – Decentralized Bitcoin Exchange With Escrow Protections

Bisq is another option to consider when attempting to buy crypto anonymously. In a nutshell, Bisq is a decentralized Bitcoin exchange that employs a peer-to-peer model. To get started, you need to download the Bisq software for Windows, Mac, or Linux. There is no requirement to open an account – so you’ll be trading in complete privacy.

Next, you’ll need to specify your local currency and preferred payment methods. Options include local banking networks, e-wallets, and Western Union. After specifying how much Bitcoin you want to buy, Bisq shows you sellers that accept your preferred payment type. If you proceed, the seller will be required to lock the Bitcoin tokens in the Bisq escrow.

The tokens remain there until the deal is completed. In the meantime, you will be required to send the money to the seller’s account. However, before proceeding with Bisq, there are several drawbacks to consider. First, the legality of Bisq facilitating anonymous fiat transactions remains to be seen. Sure, Bisq doesn’t personally handle fiat payments – but it does sit between buyers and sellers. This is why most P2P exchanges now have KYC policies.

What’s more, Bisq often struggles to attract sufficient volume. You might struggle to find a seller willing to accept your preferred purchase amount and payment type. In addition, Bisq sellers often charge considerably more than the average market price. You’ll also need to cover Bisq’s trading fees – buyers pay 1.15% of the purchase amount. Some users on Reddit also report that Bisq is a hotbed for middleman scams.

4. Hodl Hodl – Anonymous P2P Exchange With Buyers Paying Just 0.3% in Fees

Next up is Hodl Hodl – a P2P exchange that supports Bitcoin. Hodl Hodl has been in business for over seven years and it now boasts more than 100,000 registered users. When opening an account, you’ll only need to provide an email address, nickname, and a strong password. No additional personal information will be collected and there are no KYC procedures in place making it one of the leading no-KYC exchanges out there.

Once you’ve signed up, you can search for a Bitcoin listing that meets your requirements. For instance, you can select your local currency and your preferred payment methods. Popular options include local bank transfers, SWIFT, Venmo, Neteller, and PayPal. Hodl Hodl will then display suitable listings, alongside the seller’s asking price.

If you accept a deal, the seller will transfer the Bitcoin into Hodl Hodl’s escrow wallet. You’ll then be asked to transfer the funds. Once the seller confirms payment, the Bitcoin tokens are released. However, we found that many sellers on Hodl Hodl have their own KYC processes. This means you’ll need to send the seller a copy of your government-issued ID. If you refuse, the seller will cancel the deal.

Another issue is that you often need to pay a premium on Hodl Hodl. In most cases, you’ll pay well above the Bitcoin spot price. That said, Hodl Hodl charges a commission of just 0.3% to buyers, which is competitive. There’s also a considerable lack of activity on Hodl Hodl right now. We found just over 100 individual offers available across all supported currencies and payment types.

5. LocalCoinSwap – No KYC Requirements but Very Few Sellers Willing to Accept Unverified Buyers

You might also consider LocalCoinSwap when exploring how to buy Bitcoin without ID. This is another P2P exchange that does not have a mandatory KYC process in place. However, we found that the vast majority of sellers on LocalCoinSwap will not sell to unverified users.

This is because of issues with their respective payment provider, such as a bank account. Moreover, even if you do find a suitable seller, you’ll likely find that exchange rates are unfavorable. Nonetheless, LocalCoinSwap supports over 300 payment methods across many different currencies.

Moreover, in addition to Bitcoin, it also accepts some of the best utility tokens. This includes Ethereum, USD Coin, and Tether. We also like that LocalCoinSwap doesn’t charge any trading fees when accepting a listing that’s already been posted. However, if you post a custom requirement you’ll pay 1% of the purchase amount. Finally, LocalCoinSwap has a TrustPilot rating of 4.4/5, but this is only across 128 reviews.

Why Buy Bitcoin Without Verification?

Now let’s explore why some people prefer to buy Bitcoin without KYC requirements.

Privacy

Some people prefer to transact in complete privacy. This extends to online transactions, such as buying and selling Bitcoin. The ethos is simple – some people don’t feel comfortable handing over personal information.

For example, consider an everyday transaction in your local supermarket. You pay for your purchase with cash and the transaction is complete. However, if the supermarket then asked for your full name, home address, and a government-issued ID, this would likely make you feel uncomfortable.

After all, why should you provide this information just to complete a simple transaction? The same thesis extends to Bitcoin. In the vast majority of cases, Bitcoin exchanges have a cumbersome KYC process. This means providing lots of personal data, contact details, government-issued ID, and proof of address.

Many platforms also ask for a selfie of you holding your passport or driver’s license next to your face. So, by finding a way to buy Bitcoin anonymously, you can avoid these intrusive measures.

Increased Purchasing Speeds

Depending on which platform you use, KYC procedures can be time-consuming. This is especially the case when manual verification processes are required.

In this instance, the exchange would need to manually review your government-issued ID and proof of address, and compare it to the details you originally provided. Depending on how many applications the exchange needs to go through, you could end up waiting several days.

This is another reason why some people prefer to buy crypto without verification. By skipping the KYC process, you can transact a lot faster.

Broader Accessibility 

Some people prefer to buy Bitcoin anonymously because of increased accessibility. For example, according to the World Bank, more than 850 million people in the world do not have an official government-issued ID. That’s 850 million people who can’t buy Bitcoin through traditional channels. After all, those without ID won’t be able to complete a KYC verification check.

In addition, some people are based in countries that have a complete ban on Bitcoin. According to Fortune, Bitcoin is banned in nine jurisdictions, including Ch

ina, Algeria, Bangladesh, Morocco, Tunisia, Iraq, Oman, Egypt, and Qatar. This means that people in these countries will not be able to use a traditional exchange to buy Bitcoin. Instead, they’ll need to find a way to buy Bitcoin anonymously.

Avoid Third-Party Risks   

The vast majority of Bitcoin exchanges are centralized. This means that you need to trust a third party in more ways than one. For example, there’s always the risk of your personal information getting into the wrong hands. Not only would this include your data but also the government-issued ID you provided during the KYC process.

• By buying Bitcoin anonymously, you won’t need to worry about data leaks and identity fraud.
• What’s more, traditional exchanges are also prone to remote hacks.
• Therefore, keeping Bitcoin on a centralized exchange means your tokens could be at risk of theft.
• You also need to trust that the exchange will honor your withdrawal, should you wish to transfer Bitcoin to a private wallet.

In contrast, when you buy Bitcoin anonymously on a decentralized platform like Best Wallet, you always retain full control of your tokens. In fact, not even Best Wallet has access to your private keys, as it offers a self-custody service. This means that your Bitcoin can never be frozen.

Ways of Buying Crypto Without KYC

Now let’s discuss the different methods that allow you to buy Bitcoin anonymously. We’ll explore how each method works and what drawbacks to consider before proceeding.

Decentralized Exchanges   

We found that the safest way to buy Bitcoin anonymously is to use a decentralized exchange. This is because you don’t need to trust a third party when transacting. Instead, the best decentralized exchanges operate without a single point of failure. This is because they utilized smart contracts when facilitating trades.

• For example, suppose you’re using Ethereum to buy Bitcoin anonymously.
• After connecting your wallet to the decentralized exchange and confirming the trade, a smart contract will deduct the Ethereum tokens automatically.
• The smart contract will then transfer Bitcoin to the same wallet.
• At no point does the decentralized exchange hold your cryptocurrency tokens.
• Therefore, you remove the risks associated with centralized hacks and bankruptcies.

In addition, decentralized exchanges rarely have an account opening process. All transactions go through the wallet you connect to the exchange. This means that you won’t be required to provide personal information or KYC documents.

However, there is a caveat – decentralized exchanges cannot accept fiat currency methods, such as a debit/credit card. Although some platforms have integrated with third-party processors, a KYC process will still be required. This will be undertaken by the processor rather than the exchange. Nonetheless, you won’t be buying Bitcoin anonymously.

As such, you’ll need to fund your Bitcoin purchase with another cryptocurrency, such as Ethereum or Litecoin. In doing so, you’ll remain anonymous at all times.

P2P Exchanges    

If you’re looking to buy Bitcoin anonymously with fiat money, you might want to explore peer-to-peer (P2P) exchanges. This method allows you to connect directly with sellers. You will initially be asked for your preferred currency and payment method. The latter often includes local bank transfers and e-wallets.

• The P2P exchange will then list which sellers meet your requirements.
  The results are usually listed by the best exchange rate being offered.
• Once you find a suitable seller, you need to accept the deal and transfer the funds to their stated account.
• The Bitcoin tokens will remain in the P2P exchange’s escrow wallet until the deal is done.
• If there are any issues, you have the safety net of the escrow.

Although some P2P exchanges offer a way to buy Bitcoin with no KYC, there are several drawbacks to consider. First and foremost, many P2P exchanges have recently implemented KYC requirements for all registered users. This is in response to increased pressures from regulators.

After all, P2P exchanges are still businesses that require access to banking facilities. Therefore, they must comply with all relevant anti-money laundering and counter-terrorist financing laws. Paxful – one of the largest P2P exchanges, has had mandatory KYC for most countries since 2020. The now-defunct LocalBitcoins.com also followed a similar KYC verification path before its recent closure.

While we also found P2P exchanges without mandatory KYC, many sellers will not deal with unverified users. In fact, sellers will often ask for ID from buyers to cover their own backs. Another drawback is that P2P sellers often charge unfavorable exchange rates.

In the example image above, we searched for Bitcoin sellers in Australia on the LocalCoinSwap website. As you can see, the majority of listings are at least 10% above the market price.

We also found that P2P exchanges attract a very small number of active sellers. For example, while Hodl Hodl claims more than 100,000 registered users, we came across just over 100 listings in total. This is across its entire ecosystem.

Bitcoin ATMs 

The next method to consider is Bitcoin ATMs. Like the previous two methods, this option also comes with benefits and drawbacks.

Let’s start by explaining how the process works. You’ll first need to find your nearest Bitcoin ATM – CoinATMRadar is a good source. When you’ve located the ATM, you’ll need to select how much Bitcoin you want to purchase, based on your local currency. You can then insert the cash notes into the machine.

In terms of how you receive the Bitcoin tokens, there are generally two methods. This will depend on the Bitcoin ATM provider. Some Bitcoin ATMs require you to provide your wallet address when completing the transaction. The ATM will automatically transfer the Bitcoin to this address once the purchase is completed.

Alternatively, some Bitcoin ATMs print a receipt with a QR code. This represents the private keys related to your Bitcoin. You’d then need to scan the QR code from a private wallet on your mobile phone.

When Bitcoin ATMs were first launched, they offered a way to buy cryptocurrencies anonymously. However, with increased reports of Bitcoin ATMs being used by criminals to launder money, many providers now have KYC processes in place. This means you might be asked to scan your government-issued ID before the transaction is approved.

Even if the Bitcoin ATM provider doesn’t have a KYC policy, you’ll likely be limited to very small purchase amounts. Therefore, make sure you research the provider’s KYC stance before visiting the Bitcoin ATM.  Moreover, some countries are clamping down on Bitcoin ATMs due to increased money laundering risks. For example, the UK’s FCA closed down 26 Bitcoin ATMs last year for operating illegally.

Another drawback of using Bitcoin ATMs is that fees are often very high. As we mentioned earlier, the median Bitcoin ATM fee is 16%, as per CoinATMRadar. This means that you’d need Bitcoin to increase by 16% just to break even.

How to Stay Safe When Buying Bitcoin Without KYC

Read on to discover some tips on how to stay safe when buying Bitcoin anonymously.

Research the Bitcoin Provider Extensively 

The first step is to do some due diligence on the provider you’re planning to buy Bitcoin from.

For example, if you’re using a P2P exchange, research its reputation in the public domain. Check out forums like Reddit and review websites like TrustPilot. This should give you an overview of how current and past customers view the platform.

If you’re using a decentralized exchange, check out what security features it offers. More importantly, ensure the exchange has had its smart contract processes audited by a reputable third party.

You should also evaluate the legality of the platform you’re planning to use. For example, if the platform directly accepts fiat payments and it doesn’t have a KYC process – it’s likely operating illegally.

Use a VPN 

If you’re looking for complete anonymity, consider using a virtual private network (VPN). This is especially the case if you’re based in a country that doesn’t allow Bitcoin trading.

The VPN will hinder your true location and make it appear as if you’re based elsewhere. Moreover, VPNs prevent internet service providers from tracking your online activity.

Escrow Services  and Seller Reputation 

If you’re using a P2P exchange to buy Bitcoin anonymously, it’s crucial that the platform has an escrow service. This requires the seller to transfer the Bitcoin tokens to the exchange once a deal is accepted.

Once the tokens are in escrow, you can safely transfer the funds. Without an escrow, you’re trusting that the seller honors the deal. If they don’t, you’ll have nowhere to turn.

In addition, you should also research the seller’s reputation. On most P2P exchanges, buyers and sellers can leave feedback and ratings about their purchases. If a seller has previously caused issues, you’ll be able to see this before proceeding.

Secure Wallet 

It’s also important to have a secure wallet when buying Bitcoin anonymously. For a start, you’ll want to avoid keeping your Bitcoin tokens in a centralized wallet. This is because the provider could implement KYC requirements at any time. Until you fulfill this request, you might not be able to access your Bitcoin.

Instead, it’s best to consider a self-custody wallet with solid security features. This means that you’re the only person to have access to the wallet’s private keys. As such, nobody can restrict your Bitcoin transactions. Best Wallet is a good option here. Not only does Best Wallet offer self-custody storage, but two-factor authentication, fingerprint ID, and other security measures.

Assess Exchange Rates  

One of the biggest mistakes that beginners make when buying Bitcoin from a P2P exchange is not checking the exchange rate offered by the seller.

• For example, suppose that you’re looking to buy Bitcoin anonymously with US dollars.
• Bitcoin is priced at $27,500 on global spot exchanges.
• On your chosen P2P exchange, the best rate available is $28,200.
• This means that you’re paying 2.5% above the current spot price.

We came across plenty of P2P sellers charging more than 10% above the actual rate – so it’s crucial to verify this before proceeding.

Read the Terms of the Seller 

If you’re buying Bitcoin through a P2P exchange, you should also check the terms of your chosen seller. We found that while some P2P exchanges support anonymous accounts, many sellers have their own KYC requirements.

For example, you might find that the seller requires a copy of your government-issued ID. If you accept the deal but fail to provide it, the seller will cancel the deal. They might also leave a negative rating and review. This can harm your reputation on the platform.

Therefore, it’s wise to check the seller’s terms before accepting any deals.

How to Buy Crypto Without ID – Tutorial

We concluded that decentralized exchanges offer the safest way to buy Bitcoin without ID.

Here’s a more detailed explanation of how to buy Bitcoin anonymously with Best Wallet.

Step 1: Download Best Wallet

The first step is to download the Best Wallet app. It’s free to download and compatible with iOS and Android.

Once you’ve opened the Best Wallet app, you’ll need to set it up. First, enter your email address. This is the only piece of personal information you’ll need to provide. Best Wallet will then send a confirmation email – click the link provided.

After that, you’ll be asked to set up two-factor authentication. While this isn’t mandatory, it will ensure your Bitcoin tokens remain safe at all times. Best Wallet also requires you to choose a PIN. You can also set up fingerprint ID for an additional layer of security.

Finally, you’ll also be asked to enter an alias. This enables you to receive Bitcoin tokens without needing to use a long and complex wallet address.

Step 2: Transfer Cryptocurrency to Your Wallet

Best Wallet supports fiat currency deposits via a third-party processor. Although Best Wallet doesn’t have a KYC policy, the payment processor does. This is a legal requirement when dealing with fiat money.

As such, the only way to buy Bitcoin anonymously is to deposit cryptocurrency into Best Wallet. You can deposit any token that operates on the Ethereum or Binance Smart Chain networks. Once you’ve selected a cryptocurrency – click it. Then, copy your unique wallet address or use the alias you chose in the previous step.

You can then transfer the cryptocurrency tokens. Depending on the token, it should take 1-3 minutes for Best Wallet to update your balance.

Step 3: Convert Cryptocurrency to Bitcoin Anonymously 

The final step is to convert the cryptocurrency you deposited into Bitcoin.

On the main Best Wallet dashboard, click on ‘Convert’. Underneath the ‘Swap’ tag, choose the cryptocurrency you want to exchange. Then, click ‘Bitcoin’ from the drop-down list below.

You’ll then need to type in the number of tokens you want to swap. After confirming the order, Best Wallet will source the best exchange rate possible from its liquidity providers. Within seconds, you should find Bitcoin in your wallet balance.

Conclusion

This guide has explained various methods that enable you to buy Bitcoin without ID. We found that the safest option is to use a decentralized exchange like Best Wallet. There is no requirement to register an account and you’ll remain anonymous at all times.

You can buy Bitcoin anonymously with plenty of cryptocurrencies, including Ethereum and Tether. What’s more, Best Wallet extends as a self-custody wallet, so you retain full control over your Bitcoin tokens.

References 

• https://www.lexisnexis.com/en-gb/glossary/kyc-check
• https://www.bloomberg.com/quote/XBT:CUR
• https://blogs.worldbank.org/digital-development/850-million-people-globally-dont-have-id-why-matters-and-what-we-can-do-about
• https://fortune.com/2022/01/04/crypto-banned-china-other-countries/
• https://www.finra.org/rules-guidance/key-topics/aml
• https://www.imf.org/external/np/leg/amlcft/eng/\
• https://www.bloomberg.com/news/articles/2019-07-11/bitcoin-atms-show-gap-in-eu-s-money-laundering-rules-police-say
• https://www.fca.org.uk/news/press-releases/financial-conduct-authority-continues-crackdown-unregistered-crypto-atms-uk

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