The general legend has been that Bitcoin is anonymous, so you are probably asking why it is important to know how to buy Bitcoin anonymously.
Well, one of the important things about cryptocurrencies that you should know as a newcomer to the space, is that most cryptocurrencies are only pseudonymous. Despite the common lore during the inception of the Blockchain that the cryptocurrencies it fosters are anonymous, the nature of the Blockchain network refutes this assertion.
Overview of Bitcoin Transactions
Every transaction that is undertaken in most Blockchain networks is recorded in a public ledger that anyone with access to the network can see. If you send someone some Bitcoin, for instance, this information remains engraved in a public ledger that anyone can access. Any determined person, as such, can learn a lot about your Bitcoin stash, your past and even keep an eye on your future transaction, all these with by just a few clicks.
So, before you think about how can you get a piece of the pie, first take a look at some of the important issues in this novel financial space.
Just as in the conventional financial market, there are a few pertinent things that you need to factor in before you can hold a stash of bitcoin. Among these are your privacy as you transact, the various wallets that keep your coins safe, and the various security issues such as cryptocurrency mixing, which help you transact without leaving a trail online.
For the purposes of this narrative, you will learn how to buy Bitcoin anonymously.
However, that aside from buying Bitcoin via a cryptocurrency mixer, most other methods highlighted here may not be completely anonymous. The methods do not necessary require you to provide ID verification but remember that you still can be tracked via your IP or the private Wi-Fi you rely on in the office or at home.
CoinMama is a newbie-friendly online platform that allows users to buy digital currencies. It is available in 190 countries for users that want to purchase anything less than $150 worth of Bitcoin using either debit or credit card.
The beauty of CoinMama is that you do not need an ID to make a purchase. Granted, you will be prompted to input an email address; but, you can always create an email address with fake credentials to use in such small purchases as you would on CoinMama.
2. Using a Cryptocurrency Mixer
Individuals that reside within the boundaries of authoritarian regimes in the Orient have a problem holding wealth in the form of cryptocurrencies. China, for instance, is in constant squabbles with cryptocurrency enthusiasts stemming mainly from its sibling rivalry with the US.
China would want to see its citizens invest in Blockchain projects developed and nurtured in China. The Chinese people, however, prefer to hold Bitcoin and other seasoned altcoins whose use cases are verified and values risen over time. For these conflicting reasons, policy is such that holding wealth in form of crypto is neither here nor there.
Individuals that find themselves in such situations can use cryptocurrency mixers to buy and direct the coins into discrete wallets addresses well above the prying eyes of the authorities.
3. Buying from Bitcoin ATMs
Most major cities of the world now have one common addition; Bitcoin ATMs. They are the first place to start when you want to buy Bitcoin anonymously. The beauty of these machines is that you can use either a debit or credit card. And, since it is possible to get a debit/or credit card that does not leave much of a financial trail, and the machines do not lay a lot of emphasis, anyone trying to dig up your transactions will be sent on a wild goose chase.
Do note, however, that while most Bitcoin ATMs are buy-and-go stations, a few insist on intensive buy processes including asking for some form of identification. If you want to undertake the process anonymously, do ensure you go to machine brands that lays less emphasis on identification.
Some areas have machines that accept cash. Such are perfect for individuals that want to buy small amounts of Bitcoin. The only downside of using cash for machine transactions is the considerably small amounts of crypto that you can buy at any one time.
Aside from using cryptocurrency mixers, Paxful is the only other forum where you can come as close to near-anonymous Bitcoin purchase as possible. Paxful is a marketplace brings together cryptocurrency vendors and buyers who can either plan on one-on-one meeting or rely on the platform’s escrow service to buy and sell Bitcoin securely.
Even though Paxful demands that you create an account using your email address, you can us an alias. Moreover, the site’s identity verification process is optional.
The best way to use Paxful if you want to stay anonymous is to identify a seller near you convince them to accept cash transactions. Since such kind of a trade leaves zero documentation of the transaction, you will remain untraceable after getting your hands on the Bitcoin you want.
While most exchanges abide by the strict monetary and fiscal policies of the countries they operate in, including undertaking rigorous KYC procedures, there still are a good number that allow users to trade without verifying identity.
The two leading exchanges that fit the bill mentioned above are:
• Bitmex – Allows residents of the US to trade limited amounts of Bitcoin without a verified identity.
• Changelly – You do not need an account to trade in this decentralized account; instead, all you need is to configure a trade, get the exchange to give you an address and you are good to go.
Bitcoin and a horde of other cryptocurrencies are not anonymous. Granted, you can complete transactions using these coins without disclosing your identity. However, these transactions are traceable. If you want to buy Bitcoin anonymously, use any of the tips highlighted here above.