Is Bitcoin Anonymous?
Many believe that Bitcoin is itself anonymous. However, it is perhaps the biggest myth. No, BTC is not anonymous at all.
However, it is true that the largest cryptocurrency in terms of market cap is still more private than others such as credit cards. When compared to cash, Bitcoin is less anonymous.
To understand why Bitcoin is not anonymous, you have to know how BTC works. All transactions of bitcoins are stored in the blockchains, which is nothing but a public ledger. In each of these transactions, the stored data includes details such as amount of BTC paid, senders’ Bitcoin addresses, recipient’s BTC address, and so on.
Can anyone Trace Bitcoins?
Yes, anyone can view data associated with every transaction. This is because the blockchain is public data, available for scrutiny to all. Therefore, any person can check the traceable history of the coin. However, the details of the linked person/entity with the transaction can’t be traced. That’s the reason why this cryptocurrency is known as pseudo-anonymous or pseudonymous.
If you want to use BTCs anonymously, you’ve to take certain precautions so that your true identity associated with the Bitcoin transactions and addresses are not revealed.
What are the Different Methods to Buy Bitcoin (BTC) Anonymously?
There are 3 methods through which you can buy BTCs anonymously:
Paxful helps traders to buy Bitcoins in an anonymous manner. In fact, it is the easiest way through which you can buy the largest crypto in cash and in person. Paxful has been found helpful to purchase BTCs from your own local geographical location. The best part is that you can open an account with Paxful even with an alias email address. The company has an ID verification process but it’s optional in nature.
Try using cash for completing your payment to buy Bitcoins. This will ensure that you remain untraceable. The cash payment method doesn’t require any documentation. However, from real-life experience, it can be said that the Bitcoin sellers on Paxful don’t like to perform business with anonymous buyers. That’s why it is recommended that you make the payment for BTC with cash. This will make documentation less of an issue.
#2 Bitcoin ATMs (BATMs)
Search for the Bitcoin ATM that is situated nearest to you and buy BTC with cash. You can buy Bitcoin with cash from Bitcoin ATMs (also called BATMs). You can do this from your local area. In fact, these specialized ATMs allow users to make purchases only with cash. The BATM charges are a bit on the higher side, generally varying from 5% to 10%.
As there is no verification checked, Bitcoin ATMs provide buyers with complete privacy and anonymity. Some of the BATMS may also ask for verification as there are a wide array of manufacturers. However, most BATM manufacturers don’t ask for any kind of verification.
#3 Prepaid Card
You can buy Bitcoin anonymously with prepaid credit cards. You can get these cards from any convenience store or supermarket. If you use this card for making payments for buying BTCs on LocalBitcoins or Paxful, it’ll not require you to produce any identification through sellers.
How to Buy Bitcoin Without Verification or Photo ID?
There are certain places from where you can purchase Bitcoins without having to verify your identity. However, these places don’t accept any cash. These places are:
This Bitcoin broker is located in the Isle of Man and was founded back in 2014. You can buy BTCs worth up to EUR 1,000 with no photo id or verification document. In fact, the fees are also very competitive. This service is available in many countries across the world. However, in the United States, CoinCorner’s service is not available. Their mobile app is user-friendly and the users can buy BTCs with the help of their mobile phone.
It is an escrow account that facilitates Bitcoin transactions with the help of cash deposits at multiple banks across the United States. No verification id or document is required in the transaction process. However, you’ve to provide your phone number, which you can buy by using any anonymous email through Skype.
This P2P Bitcoin exchange is available globally. It helps people to trade Bitcoins directly with each other. No KYC and ID verification process is involved here as the HodlHodl site doesn’t hold funds for the users. The possibility of theft of BTC assets gets minimized as HodlHodl locks user funds in multi-sig escrow. In fact, this process also reduces the time of trading.
It is open-source, peer-to-peer software, allowing users to buy/sell cryptos when the payment is done in national currencies. Similar to HodlHodl, Bisq also doesn’t hold any BTCs. That’s why no registration details or photo ids are required by the site. Cryptos are held in multi-signature addresses. No fiat currency (US Dollar, Euros, etc.) is held by Bisq. rather they are directly transferred from one cryptocurrency trader to another.
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