Identity verification has become common practice on most cryptocurrency trading platforms. However, some people may seek alternatives for privacy or other reasons. This guide will show you how to buy cryptocurrencies without going through the verification process.
Understanding the risks
Before you move on to buying cryptocurrencies without verification, it’s worth understanding the risks associated with this approach. Using platforms that do not require verification can expose you to fraud, a range of fraudulent practices, and security issues. Make sure you are aware of these risks before you decide to buy cryptocurrencies this way.
Decentralized cryptocurrency exchanges (DEX)
Decentralized cryptocurrencyexchanges (DEXs) are platforms that allow you to trade cryptocurrencies without registration or identity verification. Here are some popular DEXs:
- Uniswap – Uniswap is one of the most well-known DEXs based on the Ethereum network. It works as an automated exchange protocol that allows users to trade ERC-20 tokens without registration or verification.
- PancakeSwap – PancakeSwap is a DEX that runs on the Binance Smart Chain (BSC) network. It is a platform that allows users to exchange BEP-20 tokens without identity verification.
- SushiSwap – SushiSwap is another Ethereum and Binance Smart Chain-based protocol that allows ERC-20 and BEP-20 tokens to be traded without registration or verification.
Cryptocurrency wallets with built-in exchange functions
Some cryptocurrency wal lets offer built-in exchange functions that allow you to trade without verification. Below are the most popular options:
- MetaMask – MetaMask is a browser extension and cryptocurrency wallet for Ethereum and ERC-20 tokens. It allows access to DEX, such as Uniswap.
- Trust Wallet – Trust Wallet is a cryptocurrency wallet for mobile devices that supports multiple networks such as Ethereum and Binance Smart Chain. It has a built-in exchange function that allows you to trade tokens without identity verification.
- Atomic Wallet – Atomic Wallet is a multi-platform cryptocurrency wallet that supports more than 300 cryptocurrencies and tokens. It allows anonymous exchange transactions directly from the wallet, bypassing verification.
Buying cryptocurrencies using bitmachines
Bitomats are special ATMs that allow you to buy and sell cryptocurrencies using cash or debit cards. Not all bitomats require verification, which makes them a good option for people who want to remain anonymous.
Direct Trade (Peer-to-Peer)
Direct trading involves buying cryptocurrencies directly from other users, bypassing intermediaries such as exchanges. There are several P2P trading platforms that allow anonymous transactions:
- LocalBitcoins – LocalBitcoins is a platform that allows anonymous P2P transactions in Bitcoin. Users can post buy and sell offers and communicate with other market participants without identity verification.
- Paxful – Paxful is another P2P trading platform where you can buy cryptocurrencies anonymously. The platform offers various payment methods, such as PayPal, gift cards and Western Union.
What are the advantages and disadvantages of buying cryptocurrencies anonymously?
Buying cryptocurrencies anonymously can have both advantages and disadvantages. Here are some of them:
Advantages of buying cryptocurrencies anonymously
- Privacy: Anonymous cryptocurrency transactions allow users to protect their privacy. Those who value anonymity can avoid revealing their identity and financial information.
- Protection from hackers: Anonymity can increase users’ security by protecting them from hacker attacks and identity theft. If hackers do not have access to personal information, it is harder for them to take control of a cryptocurrency wallet or use financial information for unauthorized purposes.
- Avoiding censorship: Buying cryptocurrencies anonymously avoids restrictions and financial censorship by governments or other entities. In some countries where cryptocurrencies are banned or restricted, anonymous access may be the only option for those wishing to use this type of asset.
- Autonomy: Anonymity can help increase financial autonomy. When users use financial services that don’t require identity verification, they don’t have to rely on or be controlled by external institutions.
Disadvantages of buying cryptocurrencies anonymously
- Lack of legal protection: Anonymous cryptocurrency transactions often lack legal protection, which can lead to situations where users have no means of recovering their funds if there are problems with the transaction or the platform.
- Risk of fraud: Due to the lack of controls and identity verification on anonymous platforms, there is an increased risk of fraud and fraudulent transactions.
- Difficult accessibility: Anonymous platforms and methods of purchasing cryptocurrencies can be more difficult to access than those requiring identity verification. Sometimes this can mean that there is less choice of cryptocurrencies and more limited payment methods.
Summary
Buying cryptocurrencies without verification is possible, but it carries certain risks. Before deciding to buy cryptocurrencies without verification, it is worth understanding the risks and being aware of the options available. Decentralized exchanges, wallets with built-in exchange functions, bitmats and direct trading (P2P) are just some of the solutions available to buy cryptocurrencies without identity verification.
