How to Buy Bitcoin Anonymously

How to Buy Bitcoin Anonymously
5 (100%) 6 votes

Bitcoin and other cryptocurrencies appeared and were popularized as the means of incognito payments. Yet, the pressure on exchanges about collecting the information about the users gets tougher and tougher. There are two reasons for that. First of all, governments strive to impose more regulations on cryptocurrency exchanges and control them for illegal transactions. Secondly, scams from the side of users (such as fraudulent chargebacks) put more pressure on exchanges, which, in turn, impose more and more safety measures. Yet, you are still able to purchase bitcoin without disclosing the information about you. Our article will show you how to buy bitcoin anonymously and list the best places to get bitcoin without ID.

 

How to Buy Bitcoin Anonymously: Possible Payment Methods

When it comes to the question of how to buy bitcoin anonymously, there are actually only a couple of possible payment methods. The first and easiest way to purchase bitcoins anonymously is doing so with cash. Only in such a case, the complete anonymity can be guaranteed (you can read about the privacy of different payment methods here).

Yet, there are also other ways of purchasing bitcoins anonymously, though the level of privacy would be much lower. Some cryptocurrency exchanges (like CoinMama) offer the customers to purchase bitcoins with a credit card and no verification. After all, there is also a way to deposit cash via escrow services for bitcoin (once the seller is found and the price and amount are agreed on), although the level of anonymity is also lower than when purchasing bitcoins locally with cash. At the end, we will reveal a few more possible ways of purchasing bitcoins anonymously.

 

How to Buy Bitcoin Anonymously infographics

 

How to Buy Bitcoin Anonymously With Cash via Peer-to-Peer Networks

how to buy bitcoin with cash

 

If you want to find out how to buy bitcoin anonymously, it may, perhaps, be obvious that doing so with cash would be the safest bet. Purchasing bitcoins via peer-to-peer networks with cash tends to be fairly simple and implies fewer risks than when purchasing them via those networks with PayPal, credit cards, or other payment methods. Many sellers typically refuse to sell bitcoins via peer-to-peer networks with PayPal or credit card payment methods, because they fear of fraudulent chargebacks. Instead, they typically agree to sell bitcoins for cash.

The most popular marketplace where you can easily find sellers of bitcoins for cash is LocalBitcoins, a Finland-based startup that specializes in matching sellers and buyers of bitcoins locally. Once you enter that website, you will notice a search box for buyers of bitcoins, where they can specify the amount, currency, country, and what type of offers (payment methods) they are seeking. Below it, the website displays the latest offers of bitcoin sellers.

If you scroll a bit lower, you will notice the field of sellers (upper) and buyers (lower) of bitcoins for cash around you. There, you will see a location of every seller/buyer, distance (how far it is from your actual location), price, and amount. This makes it very simple to find sellers of bitcoins around you, though it will take some time to meet them up and complete the deal. But overall, purchasing bitcoins with cash in real life tends to be the most anonymous way of buying bitcoins.

Indeed, there are other peer-to-peer networks where you can buy bitcoins for cash. Yet, LocalBitcoins tends to be the largest and, perhaps, the most secure peer-to-peer exchange. At the present time, there are buyers and sellers from more than 15,000 cities and 248 countries in the world. The only aspect you should take into account is that LocalBitcoins requires you to sign up for it and provide your email address. Yet, that condition can easily be surmounted by creating an alias email address exactly for this purpose, so no your personal data will be disclosed.

 

How to Buy Bitcoin Anonymously Using Bitcoin ATMs

how to use bitcoin atms

 

You can also use bitcoin ATMs in order to purchase bitcoins anonymously. Even though this method is less popular due to the fact that there are not so many such ATMs yet and they are not available in many cities, this method of purchasing anonymously is frequently used by many users. So, if you have a bitcoin ATM in your city (and especially somewhere around your location), you should take advantage of this method.

It works pretty simple, the way it does with usual ATMs. Yet, instead of inserting the card and getting the funds, you deposit the fiat currency and purchase bitcoins, whereas the latter will be deposited to your wallet. Once you have deposited the fiat currency, the ATM will ask to scan your public address in order to deposit your bitcoins there. If you don’t have a public address, you may click on the “don’t have a public address” button. Then, the ATM (if it supports this feature) will generate a paper wallet for you.

A large number of ATMs don’t require fingerprint or facial identification, thus allowing you to ensure your anonymity. Yet, you should make sure that the ATM does not require the identity verification before you will actually try to purchase bitcoins. If everything will be done correctly, your privacy will not be violated.

 

How to Buy Bitcoin Anonymously Using Peer-to-Peer Networks

Above, it was pointed out that the easiest way is purchasing bitcoins with cash via peer-to-peer networks. Yet, peer-to-peer networks (and especially LocalBitcoins) also offer the counterparties to pay with different payment methods, including Western Union, PayPal, Neteller, Webmoney, QIWI, advcash, national bank transfers and specific bank transfers.

Even though those payment methods minimize the risk of violating your anonymity, you should be aware of the fact that paying with such payment methods may pose a risk to your anonymity anyway. Therefore, the safest way of purchasing bitcoins anonymously is one of the two methods described above, whereas you, thus, purchase bitcoins with cash in either way.

How to Buy Bitcoin Anonymously By Using a Prepaid Card

Another way to purchase bitcoins while retaining your anonymity is buying a prepaid card in a convenience store or supermarket. Then, that prepaid card can be used for purchasing bitcoins on the exchanges that don’t require identity verification. For example, you should think about doing so at Virwox or Coinmama. In particular, transactions on Coinmama that are lower than $150 don’t require any identity verification from your side. For Virwox, the limits are set even higher, so you can purchase even more bitcoins per one transaction.

Other Ways of Purchasing Bitcoins Without Identity Verification

There are other ways of purchasing bitcoins that allow you not to share your ID or other personal data. Yet, they can’t be called anonymous, as your personality, if it will be needed, can be identified. So, if you can’t use the above counted methods due to some circumstances, here you have got the other ways of how to buy bitcoin anonymously.

BitQuick. This service helps users to purchase bitcoins with cash via American banks. Actually, BitQuick tends to be an escrow service. Once the buyer and seller find each other and agree on the price and amount, BitQuick reserves bitcoins of the seller while the buyer transfers the money into the seller’s account. Once the seller confirms that he/she has received the money, BitQuick transfers those bitcoins.

Wall of Coins. Above, we have stressed that LocalBitcoins is the largest known peer-to-peer crypto exchange. Yet, you may also consider signing up for Wall of Coins, a peer-to-peer cryptocurrency exchange that is available in the Philippines, the United States, Poland, Latvia, Argentina, Germany, and Canada. You won’t be asked to provide your ID, but you will have to provide your mobile phone number (not for the purpose of verification). Here, you can buy and sell bitcoins for cash or use other payment methods.

Changelly and ShapeShift exchanges. Still pondering how to buy bitcoin anonymously? These two exchanges offer very competitive exchange rates (especially Changelly) and allow you to purchase bitcoins without verifying your identity. Yet, you can’t buy them for fiat currencies. You will need to have other cryptocurrencies (known as altcoins). If you have them, then buying bitcoins anonymously will be extremely easy and done within seconds.

Mycelium. The app of this company allows the buyers and sellers to find each other and meet up in order to buy/sell bitcoins for cash. It functions in a pretty similar way to LocalBitcoins. There are no verifications or ID requirements. Though, you must make sure that the seller confirms that he/she has received the cash in the app in front of you.

Leave a Reply

Your email address will not be published. Required fields are marked *