The fascinating cash of the 21st century and one that has already revolutionized money forever, entering as a decentralized choice to use for trade. — Photo by Alex Battaglia on Unsplash A fundamental attraction of cryptocurrencies such as Bitcoin is the promise they provide or seem to provide. Over time, it has become harder and harder to buy certain types of cryptocurrency without revealing some personal details — since most exchanges have been handcuffed by increased laws & surveillance. If you want to buy privacy-oriented cryptocurrency, look no further, as this guide will show some safe and legal ways to do so.
Anonymity in Cryptocurrency Transactions.
The anonymity aspect of cryptocurrency transactions is important to many people. If you worry about surveillance, or feel protective of your private information in general, being able to buy cryptocurrency without an ID can provide a source of privacy for security. However, please bear in mind that being more anonymous does not equate to being fully invisible as you might still follow only some of the recommendations when wiping data.
Through Peer-to-Peer (P2P) Exchanges.
Peer-to-peer exchanges are markets where buyers and sellers connect to buy bitcoin directly from one another or without the intervention of an intermediary. They usually afford more privacy than centralized exchanges.
Another well-known P2P platform is LocalBitcoins. LocalBitcoins users can directly negotiate terms with sellers, and this could include methods of payment that they would receive without needing to verify their identity. A nerd, freelancer who loves trading digital currency for cash in-person account_mul BlockedUnblockFollowFollowing You might trade CryptocurrencyWhy buy weird capital gain tax shitty fees or a super sketchy night at the top! However, exercise prudence and meet in public for physical transactions.
Just like Localbitcoins, Paxful is another P2P platform that allows you to make any purchase method for your coins without the fear of compromising sensitive information. Counterfeiting risk is also at a lower rate if always bought from high reputation and transactions.
Buying Crypto with Cash.
Buying crypto with cash is one of the simplest and most-descriptive ways to retain your anonymity. That can be done via the P2P exchanges I mentioned earlier… or by using Bitcoin ATMs. Bitcoin ATMs enable the purchasing of Bitcoin with cash and sometimes even anonymously, depending on where you are in the world; most don’t require any type of ID from users.
Using a Bitcoin ATM, you generally insert cash into the machine and specify to which address before sending the bought currency. It is recommended to use a wallet that you specifically created and has no link between your real life activity for anonymity. However, pay attention to the fees and limits of Bitcoin ATMs are often rather high.
Utilizing Privacy Coins.
It is a type of cryptocurrency in which privacy features are the main focus, and it contrasts with conventional cryptocurrencies, such as Bitcoin. Privacy coins are those which work to shield who used the token and how they spent it, with examples including Monero (XMR), Zcash (ZEC) and Dash. Note: These coins deploy various cryptographic approaches to obfuscate transactions, which make it nearly impossible for one to track the transaction back till individuals.
Notably, they are famed for their high level of privacy, and Monero is a good example. Monero transactions are fully anonymous, with no identifiable information appearing on the blockchain compared to Bitcoin, in which all addresses and their associated balances can be seen by anyone who knows how to query that themselves. You can be more undetectable through buying monero or some other private coin.
Of Mixing Services (Coin Mixers or Tumblers).
Coin mixing services, better known as tumblers or in some cases fungibility rotators are another option for people that want to make anonymous transactions with their coins. How these services function is by amalgamating your coins with the ones of other people and then distributing them which ends up making it incredibly tough to trace where each coin originated from. For the latter it is then much harder to trace these coins back a step further.
Coin mixing is definitely a boon for your privacy but at the same time you must select one of good companies to avoid losing your funds. Wasabi Wallet and Samourai Wallet Whirlpool are among the most well-known mixing services for these coins. But keep in mind that mixing services are somewhat related to illegal stuff and they can be red flagged by authorities or /and exchanges.
Using Decentralized Exchanges (DEXs).
Simply said, Decentralized exchanges (DEXs) are like peer-to-peer networks which carry out the trades without any central binding source and form of identity verification for it is not necessary as on a Centralized exchange. Users can trade cryptocurrencies directly from their wallets on DEXs such as Uniswap, PancakeSwap, and Bisque without having to suffer through any KYC procedures.
DEX requires you to have a cryptocurrency wallet where the tokens that you want to trade are supported. DEXs are considered safer from hacks than centralized exchanges because they do not hold user funds. But do always check that you are using the proper URL – phishing is always a threat.
The other way to purchase cryptocurrencies secretly is by using the gift card. With certain platforms, you can also exchange gift cards for Bitcoin (and other cryptos) without needing to provide any information about yourself. For example, Paxful enables people to purchase Bitcoin with gift cards from top stores like Amazon, Walmart and or iTunes etc.
Usually, you will be looking to buy the cryptocurrency using a gift card but first only look for someone that is ready to take your unique type of the gift card. After you have set all terms, give them the gift card code and they will send cryptocurrency to your wallet in return. This method has the advantage of a partial degree of anonymity, as gift cards can be purchased with cash or received as gifts.
Using VPNs and Tor to Hide your IP.
If you really want to remain anonymous when purchasing crypto, then there is no way around it: Virtual Private Network (VPN) or Tor browser are a must. A VPN encrypts your connection and switches out your real IP address, which makes it harder for outside parties to track what you are doing on the internet.
But with the option like The Tor Network can be trusted because it bounces your Internet behavior all around the globe via numerous servers making an upstream connection unable to trace. Do I need to use a VPN with Tor?A sense, Yes, this provides an extra layer of security if you do access P2P exchanges or DEXs and other crypto services.
For VPNs always, be sure to select a provider that does not log user activity and is located in a suitable privacy jurisdiction. Free VPNs ought to be avoided, as they generally compromise your security and may log your information.
New Wallet, Email Addresses.
For added layers of anonymity create new cryptocurrency wallets and e-mail addresses only for your anonymous transactions. Take a wallet that does not require anything personal and make sure to reuse wallets connected with your identity.
For Email address — You must use a service like ProtonMail / Tutanota to get an audio encryption and completely no personal detail needed for creating email ids. This email address should never be used for anything other than your crypto transactions in order to keep this anonymous.
Look out for potential Risks.
There are always risks to take into account when using unconfirmed methods and the same goes for buying cryptocurrency, anonymously. Above all, buying and selling cryptocurrency without going through a regulated exchange could alert the regulators or worse in countries with very strict anti-money laundering (AML) rules as well as know your customer (KYC) laws.
More so, when you are dealing with faceless sellers especially on the P2P platform. A word of caution: make sure to research sellers reputations and transaction history before conducting any trade! At last, it can even create legal issues (because that will depend on the laws of your country so do not use mixing services and privacy coins).
Conclusion.
Unfortunately, buying anonymous cryptocurrency is not made for the average Joe and it takes huge amounts of caution measures. Utilize peer-to-peer exchanges, Bitcoin ATMs (BTM), Privacy coins along with new DeFi they are developing like mixing services and decentralized exchange. Use the above tools with VPNs, Tor and dedicated wallets to add an extra layer of anonymity.
Still, if you want to learn more about the legal landscape in your jurisdiction, keep reading. Crypto frauds are common, but if you take care of where to share the details, it can all be avoided easily and still enjoy profits from crypto.