Here’s How To Anonymously Buy Crypto & Bitcoin
It has become much easier to buy crypto over the years. Today, you can buy digital assets through PayPal, and many traditional consumer companies even allow their customers to trade in cryptocurrencies (although many of them were reluctant to do so when the commodity phase was just starting out).
But even now, most brokerage firms have some safeguards in place. Most of them limit you to the most established cryptos, such as bitcoin and ethereum, while others offer access to crypto-themed exchange-traded funds.
However, even if you can buy crypto through your brokerage, those accounts do not offer the same level of privacy to their customers, which had a major impact on the initial success of bitcoin. When it comes to crypto, some investors prefer to operate under the radar and accumulate assets without being tracked.
This guide will explain the steps you can take to buy crypto anonymously or without verification.
Create a privacy-focused wallet
Some wallets offer stronger privacy features than others, but you’ll need to narrow down your choices if privacy is important. For example, Wasabi is an open-source, non-restrictive desktop wallet for Bitcoin storage designed to improve on-chain privacy (including CoinJoin-style collaborative operations) while keeping you in control of your keys.
Keep in mind that “private” does not necessarily mean “anonymous,” and privacy aspects may depend on the current infrastructure of the wallet and the options of the intermediary.
If privacy is your top priority, avoid wallets held inside centralized exchange/brokerage accounts, as those platforms often link activity with identity. Also note that using any security wallet with a central platform (for buying/selling or withdrawing money) can link your identity to wallet addresses for deposit/withdrawal.
You might consider using assets like Monero (XMR) and Zcash (ZEC), which are designed for anonymity. Monero is a non-custodial cryptocurrency that uses private addresses to hide transaction histories, while Zcash offers “secure” transactions that don’t require users to get KYC verification or reveal personal information on a public blockchain. These options allow you to maintain strong privacy when making crypto transactions and storing assets, as long as you use a compatible, open-source wallet..
Exchange crypto in public places
Crypto buyers can avoid leaving the digital trail by exchanging crypto in public places. While this transaction is yet to appear in blockchainit makes you anonymous. You will not have to enter your ID or provide any personal information when doing these types of crypto transactions as long as you are using a privacy focused wallet.
Peer-to-peer (P2P) platforms like Bisq and RoboSats make it easy to find people in your area who want to trade crypto. Then you will have to meet the other person in a public place, such as a library or a cafe. For larger jobs, it’s best not to show up alone while taking other steps to ensure your safety.
Crypto-enthusiasts doing insider deals in person must provide their wallet address to the seller. Although there are social media groups that connect people who want to do person-to-person, P2P crypto transactions, this route is very rare.
Bitcoin ATMs
Bitcoin ATMs are a great resource for accumulating bitcoin anonymously, but this option is only suitable for people who live near those machines. There are an estimated 39,653 bitcoin ATMs in the world, but 88.6% of them are located in North America, according to the report. ATM cash radar.
You can buy or sell cryptocurrencies through these ATMs, but you may have limited options beyond bitcoin. If you want to buy crypto, you have to insert cash or card; on the other hand, you will get cash if you sell bitcoin with these machines.
Importantly, you don’t need a crypto wallet upfront to use a bitcoin ATM, and that’s where the anonymity comes in. If you don’t have a wallet, the bitcoin ATM will automatically create a digital wallet for you. Some bitcoin ATMs do not require any ID to create that crypto wallet or to do the transaction. When you use this machine, you’ll also get a private key to the wallet it creates, allowing you to accumulate crypto under the radar.
You can also create a digital wallet in advance and enter that information when you use a bitcoin ATM to make your transactions. However, if you happen to use your ID at a bitcoin ATM, your wallet is no longer visible. Another downside is that bitcoin ATMs have relatively high fees, with some charging up to 10% of the transaction amount.
Prepaid crypto debit cards
Prepaid crypto debit cards are like regular debit cards, but they revolve around crypto. These financial products allow you to make crypto transactions without providing any personal information. You can load into crypto with these cards and use them to make purchases.
KemyCard, for example, is one of the top crypto debit cards to consider. The card makes it easy to buy crypto and use it to make purchases, and is accepted worldwide. You don’t have to provide any personal information to activate the Kemy Card, so you can work anonymously when buying and selling crypto.
There are some associated fees and restrictions, however. Besides the $2 monthly maintenance fee, KemyCard charges 5% on top-up fees, the debit card is only good for three years and has a transaction limit of up to $100,000 per month.
Should you buy crypto anonymously?
Buying crypto anonymously makes it more difficult for the government to track financial transactions. Offline transactions also reduce the risk of cyber attacks resulting in the loss of bitcoin. While some crypto platforms have strong bitcoin insurance policies, others are not secure enough to be breached.
However, remember that making anonymous crypto transactions will affect the currency. You will have fewer people to trade with, and private crypto transactions can bring in higher fees. Although centralized platforms like Coinbase and Robinhood do not offer any privacy and are prone to cyberattacks, they can be very expensive in the long run.
For most people, it’s better to sign up for a crypto platform that collects information about users and even verifies your ID when you buy — no different than buying stocks with a regular broker account. However, if your country bans crypto or you want to make sure that no one can track your wealth, anonymous transactions may be a better option for you.
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