Buying Bitcoin anonymously has become increasingly difficult as countries want to track this digital gold. Almost every government requires exchanges to use Know Your Customer (KYC) verification to combat money laundering.
However, people worry that criminals might use leaked personal information for illegal activities.
As a cryptocurrency trader, we understand the significance of protecting personal data. The theft of such data can lead to serious financial losses.
That’s why, over the past two years, we have explored various methods to buy Bitcoin anonymously and chose the top 3 safest and most effective ways. Let’s discover how to buy Bitcoin anonymously.
Key Takeaways
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3 Ways to Buy Bitcoin Anonymously
Before learning about ways to buy Bitcoin anonymously, take the time to learn how to buy Bitcoin first. Below are three ways to buy Bitcoin anonymously with our step-by-step instructions.
Using P2P Marketplaces to Buy Bitcoin without Verification
Buying Bitcoin anonymously through P2P (peer-to-peer) means trading Bitcoin directly with other people. You can do this through P2P exchanges or directly with sellers at meetups.
Buying from P2P Decentralized Exchanges
Buying Bitcoin anonymously can be achieved by utilizing P2P exchanges that do not require KYC verification. Due to tightened policies, most exchanges require identity verification, but some exchanges like Paxful or LocalCoinSwap make it optional.
At these P2P exchanges, you can easily create a buy order based on your desired price and payment method or search for a seller that fits your preferences.
So how to buy Bitcoin anonymously on P2P exchanges? Follow 4 simple steps below:
Step 1: As previously mentioned, the buyer can either place a purchase order or find a suitable vendor by selecting the available criteria on the website.
Step 2: You contact the seller to discuss further about the transaction to reach a final agreement.
Step 3: You pay the amount as discussed and confirm your payment.
Step 4: The seller’s Bitcoin will be transferred from escrow to your wallet.
| Can you get scammed on these P2P exchanges?
The answer is yes. These exchanges have escrow services, but some payment methods, like gift cards, are risky. For example, the merchant might use the gift card code and then say it’s no longer valid. |
Buying in Person
You can find a seller to trade directly if you do not want to trade on P2P exchanges. To find sellers, you can either explore online platforms or attend meetups. In this setup, you hand over cash or a certain payment method you and the seller agreed on.
More ways to buy Bitcoin with cash: coinminutes.com/learn/how-to-buy-bitcoins-with-cash
One perk of dealing directly with a seller is the ability to haggle over the price. Since there’s no middleman, both parties can agree on a fair price. Moreover, these transactions are known for their speed and convenience.
However, it is crucial to be aware that several fraudulent individuals pretend to be Bitcoin sellers to deceive and take your money.
Using Bitcoin ATM to Buy Bitcoin without ID
The most anonymous way to buy Bitcoin is using a Bitcoin ATM. However, their availability is limited, and you may not find one in your area. To find out if there’s a Bitcoin ATM nearby, go to the coinatmradar.com website.
If you’re lucky enough to have a Bitcoin ATM near you, you can go there and start buying Bitcoin anonymously. There are many different types of Bitcoin ATMs, but they all have relatively similar uses.
To buy Bitcoin anonymously using a Bitcoin ATM, you need to follow a few simple steps.
Step 1: Select the ‘Buy Bitcoin’ option on the screen and enter the amount you want to purchase.
Step 2: Complete any necessary authentication steps, which typically involve sending a code to your phone number.
Step 3: Enter your Bitcoin wallet address.
Step 4: Insert money into the machine and receive your Bitcoin.
Some machines may ask you to authenticate using a phone code. If you wish to remain anonymous, you can use a virtual phone number or purchase a disposable SIM card.
However, some machines may ask for additional information such as ID or fingerprints, in which case it is best to find another Bitcoin ATM.
The price of Bitcoin updates at a relatively slow pace, so you might not buy it at the same rate as the exchanges.
Moreover, the fees associated with Bitcoin ATMs can be quite high, and you may have to pay a percentage of 10 – 20% for every transaction.
Using Bitcoin Mixer Service to Buy Bitcoin Anonymously
To ensure privacy for their transactions, many people choose to use Bitcoin mixing services to blend their crypto funds with those of many others.
It operates by taking a user’s Bitcoin and mixing it with the Bitcoin of other users in a pool, before sending it back to the user. This allows you to buy or receive Bitcoin while remaining completely anonymous.
However, due to its anonymity, many criminals use it to launder money and hide their tracks. As a result, many exchanges refuse to accept Bitcoins that have passed through a Bitcoin Mixer.
Where to Buy Bitcoin Anonymously
Now you know how to buy Bitcoin anonymously. So where can you trust to do this? Here are a few suggestions from CoinMinutes.
Bisq
Website: bisq.network
Bitcoin transaction fees: Buyer pays 1.15% of the transaction amount. The minimum fee is 0.00005 BTC.
For those seeking anonymity in Bitcoin transactions, then Bisq is a great option. The Bisq exchange stands out as a well-developed, decentralized P2P platform, taking the form of an application rather than a website.
Upon setup, it automatically creates a self-custody wallet and a randomized user profile for you. So you can purchase Bitcoin without revealing your identity, avoiding invasive privacy concerns through peer-to-peer trading.
Bisq has dynamic trading limit policies that are based on various factors, such as payment methods, trading history, and account security measures. New accounts can only exchange up to 0.1 BTC, but this limit may vary depending on the user’s preferences. You can read more about Bisq’s transaction limits.
RoboSats
Website: learn.robosats.com
Bitcoin transaction fees: Buyer pays 0.175% of the transaction amount.
Buying Bitcoin without ID by RoboSats is another great option that you need to consider. It operates as a decentralized Bitcoin exchange, connecting users directly without intermediaries.
RoboSats replaces traditional forms with a robot avatar, eliminating the need to fill out personal information like email, phone number, or even username.
To begin trading on RoboSats, it is necessary to have a Lightning Wallet and a TOR browser. This can be a bit overwhelming for new users. However, RoboSats provides step-by-step instructions to help you start Bitcoin trading on their platform.
When you accept an order from a seller, a small fidelity bond (typically 3% of the trade amount by default) is locked, ensuring the seller’s confidence in your trustworthiness.
Hodl Hodl
Website: hodlhodl.com
Bitcoin transaction fees: Buyer pays 0.5% of the transaction amount. Referrals registered with a referral code only pay 0.45%.
Another P2P exchange you can trust to buy Bitcoin anonymously is Hodl Hodl. It provides a peer-to-peer platform with an extensive range of payment options, including the unique feature of purchasing Bitcoin with a Tesla.
On Hodl Hodl, transactions take place directly between buyers and sellers, eliminating the need for intermediaries.
When a trade contract is initiated on Hodl Hodl, the platform generates a unique multisig escrow Bitcoin address. The seller transfers Bitcoin directly to this address from their wallet, locking it in escrow. Subsequently, the buyer sends fiat currency to the seller.
Upon confirmation of payment, the seller releases the locked Bitcoin from escrow using their payment password, and the buyer receives the Bitcoin directly into their wallet.
Paxful
Website: paxful.com
Bitcoin transaction fees: No fees for purchasing Bitcoin.
Purchasing Bitcoin anonymously is easy to archive by using Paxful. This P2P exchange connects buyers and sellers, providing many payment options.
Paxful offers an escrow service for Bitcoin transactions. When a buyer and seller agree on a deal, the Bitcoins are automatically moved to escrow from the seller’s wallet. After that, the buyer pays and confirms payment, and the Bitcoin will be transferred to the buyer’s wallet.
Additionally, acquiring cryptocurrency on Paxful comes with zero fees, rendering it an appealing choice for numerous users.
However, many sellers require you to verify your email and phone number to be able to transact with them. You remain completely anonymous by using virtual or disposable phone numbers for verification.
LocalCoinSwap
Website: localcoinswap.com
Bitcoin transaction fees: No fees for purchasing Bitcoin.
If you’re looking to buy Bitcoin without sharing your ID, you could check out LocalCoinSwap. It’s a peer-to-peer exchange where you don’t need to verify your identity.
LocalCoinSwap supports more than 300 payment methods in different currencies.
Just like Paxful, LocalBitcoinSwap also requires you to verify your email and phone number to be able to exchange on this platform.
Samourai Wallet’s Whirlpool
Website: samouraiwallet.com/whirlpool
Bitcoin transaction fees: from 0.00005 to 0.0175 BTC depending on the pool plus miner fees.
If you don’t want to go through P2P exchanges to buy Bitcoin anonymously, use Samourai Wallet’s Whirlpool.
With Whirlpool, you can obscure the origins of your Bitcoins using a technique called CoinJoin. This process combines your coins with those of other users into a single transaction, making it incredibly difficult for anyone to trace your Bitcoin back to you.
What sets Whirlpool apart is its focus on speed and simplicity. Unlike traditional mixing methods that can be slow and cumbersome, Whirlpool uses multiple small and rapid CoinJoin cycles, ensuring your transactions are completed swiftly and efficiently.
One of the best things about Whirlpool is its flat fee structure. You will pay a fixed fee depending on the pool you choose plus miner fees for each UTXO you create after Tx0.
CoinFlip
Website: coinflip.tech
Bitcoin transaction fees: Buyer pays 6.99% – 9.9% of the transaction depending on the amount of Bitcoin you buy.
As mentioned above, buying Bitcoin anonymously at Bitcoin ATMs is the best way. CoinFlip is a leading Bitcoin ATM operator in the United States, with over 3,000 Bitcoin ATMs installed across the country.
CoinFlip’s network expansion has been rapid, and they continuously work on adding new locations to their network. Their ATMs are typically found in convenient locations like gas stations, convenience stores, and malls, making it easier for people to access cryptocurrencies.
CoinFlip has limitations such as you can only trade up to $960 if you only authenticate with your phone number, name, and date of birth.
However, the fee at CoinFlip is 6.99% – 9.9% lower than most Bitcoin ATMs.
Risks of Buying Bitcoin Anonymously
- Regulatory uncertainty: The absence of regulations in anonymous transactions makes it harder to guard against scams and fraud.
- Complex process: Purchasing Bitcoin anonymously can be confusing, especially for those lacking technical expertise.
- Higher costs: Anonymous transactions often incur higher fees compared to regular exchanges due to the additional steps involved.
- Dispute resolution difficulties: Without a clear transaction record, resolving disputes, obtaining support, or recovering lost funds in case of issues can be challenging.
- Liquidity concerns: Finding buyers or sellers for anonymous transactions may be tougher, potentially leading to liquidity problems.
How to Buy Bitcoin Anonymously in the Safest Way
To enhance safety while buying Bitcoin anonymously, here are some tips for you:
- Use a Virtual Private Network (VPN): To maintain complete anonymity, consider using a VPN, especially if you’re in a country that restricts Bitcoin trading. A VPN masks your true location and prevents internet service providers from tracking your online activity.
- Escrow Services and Seller Reputation: When using a peer-to-peer exchange, ensure it offers an escrow service. This protects your funds until the transaction is complete. Additionally, research the seller’s reputation by checking feedback and ratings from previous buyers.
- Do not transact with gift cards: Gift cards are a very convenient form of payment because they do not have to go through any intermediaries, making you completely anonymous. However, this is the most susceptible to fraud because the seller can say that your gift card cannot be used when they have already used it.
- Secure Wallet: Choose a secure wallet for storing your Bitcoin. Avoid centralized wallets to prevent potential KYC requirements. Instead, opt for self-custody wallets where you control the private keys, ensuring full control over your assets.
The Bottom Line
Buying Bitcoin anonymously has become increasingly challenging due to stringent regulations and the prevalence of Know Your Customer (KYC) protocols.
Despite these hurdles, there are still effective and safe methods available for those who prioritize privacy. Utilizing P2P exchanges, Bitcoin ATMs, and Bitcoin Mixers can provide various levels of anonymity, each with its advantages and risks.
It’s essential to stay informed and vigilant, using secure methods and taking necessary precautions to protect personal data and financial assets. By following the best practices outlined in this guide, you can navigate the complexities of buying Bitcoin anonymously while minimizing potential risks.
