How to buy cryptocurrency without verifying your identity
BigONE has recently received numerous inquiries from users in various countries asking us how to buy cryptocurrency without verifying our identity. According to BigONE’s knowledge, the fact that citizens of individual countries do not have identity certificates and cannot complete identity verification will impact their cryptocurrencies’ daily transactions.
In fact, under normal circumstances, investors can buy Bitcoin without providing proof of identity, but the cost of doing so will be high and inconvenient. If investors think about purchasing Bitcoin or another cryptocurrency, mainstream centralized cryptocurrency exchanges will require them to pass identity verification, also known as KYC. If investors want to buy and sell cryptocurrencies without restrictions, they need to provide personal information and identification documents for authentication.
The purpose of the centralized exchange is to reduce risks. KYC certification can help investors and exchanges effectively prevent fraud and money laundering. However, not all cryptocurrency enthusiasts can accept KYC. Investors who want to buy cryptocurrencies anonymously can do so in two ways. But if they intend to sell cryptocurrencies for profit on centralized exchanges, they will still be subjected to KYC certification restrictions.
Take purchasing Bitcoin as an example; investors can complete the transaction via [Decentralized Exchange] and [Bitcoin ATM]. Although both options allow investors to purchase Bitcoin without providing proof of identity, they operate very differently from the standard process. They have disadvantages when compared to purchasing through a centralized exchange.
Decentralized exchange
There is no mediator to facilitate transactions on decentralized exchanges, which connect buyers and sellers for peer-to-peer transactions. Buyers and sellers can request orders on the decentralized exchange, just like they can on centralized exchanges.
There are two ways for investors to purchase Bitcoin in a centralized exchange. First, create an order with the quantity, price, and payment method you want to use. Second, you can look through the current seller display list, including the seller’s price, quantity, and payment methods.
When investors believe that the seller’s sales information meets their needs, they can place an order and pay the seller using the method specified by the seller. Send the cryptocurrency to your wallet once the seller has received the payment. The decentralized exchange has security functions such as custody services, margin, and arbitration to ensure that no one is deceived and that investors can trade rest assured. This type of exchange is ideal for buying and selling cryptocurrency without revealing your identity. However, BigONE believes that there are several potential issues:
● The transaction is not as simple as purchasing through a centralized exchange. Investors must categorize sellers to find a seller who offers reasonable prices, quantities, and payment methods.
● Prices vary a lot. Buying through a decentralized exchange may be more expensive in some cases. Because the buyer has not been KYC certified, the seller may raise the price.
● Unlike buying and selling on a centralized exchange, investors must first register an encrypted wallet and protect the wallet’s security before using a decentralized exchange to buy or sell cryptocurrency.
Bitcoin ATM
As the name implies, a Bitcoin ATM is an automatic teller machine that can buy and sell Bitcoin. Although some Bitcoin ATMs only accept Bitcoin transactions, some accept other cryptocurrencies as well. Coin ATM Radar can help you find a Bitcoin ATM near you. It keeps track of the locations of these ATMs all over the world. The exact process of using ATMs to buy and sell Bitcoin varies depending on the system UI, but the general procedure is as follows:
● To make a purchase from a Bitcoin ATM, you must enter your encrypted wallet address. If you insert cash into the ATM, it will send you cryptocurrency.
● To sell using a Bitcoin ATM, please obtain the ATM’s wallet address. Typically, a QR code scanning service is offered. To scan the code, use your mobile phone to open an encrypted wallet, send your encrypted currency to this address, and the ATM will pay the user in cash.
Bitcoin ATM services are now popular in many countries and regions worldwide, but you can only use this method if you live in an area where an ATM is available. It is not as convenient as purchasing cryptocurrency online because users must visit an ATM to buy and sell.
Furthermore, Bitcoin ATMs have disadvantages. Its transaction fees are exorbitant. During transactions, it is common for users to be charged 10% or more in transaction fees. As a result, while using a Bitcoin ATM can protect privacy from being compromised, it comes at a high cost.
About BigONE
BigONE is a global cryptocurrency exchange that provides a platform for trading various cryptocurrencies. It was founded in 2017 and registered in the Netherlands. The group operates in Russia, Brazil, Vietnam, Seychelles, Singapore, Japan, and Indonesia, providing marketing, investment, and blockchain technology research & development.
