There’s no doubt that it’s easy to buy Bitcoin today, with a wide variety of exchanges to choose from. But since this industry is still relatively new, it’s natural to worry about your privacy when entering the market.
So this begs the question: Can you buy Bitcoin without ID verification with your credit card, or is this impossible?
Bitcoin and privacy
The important thing to remember here is that privacy is a huge part of the cryptocurrency industry and stands as one of the cornerstones of Bitcoin’s design. Blockchains are incredibly secure and allow you to add transactions to the network without revealing your real name. Blockchains also use hashing to increase user security by encrypting information to prevent transaction crimes and store private data.
But Bitcoin’s focus on security and privacy has given it the false reputation of being completely anonymous. In fact, Bitcoin transactions can be tracked, which is often done by law enforcement when investigating crypto-related crimes.
On top of this, the Bitcoin blockchain ledger is completely public, meaning anyone can see it, along with the transactions you’ve made. Although your name and contact information will not appear in this ledger, your wallet address will.
In addition, many exchanges require you to provide and verify your identity before you can use your account. Therefore, the exchange provider you use will know exactly who you are.
So, can this be avoided? Although you cannot prevent your transaction from appearing on the blockchain record, you can buy Bitcoin with your credit card without verifying your identity.
How to buy Bitcoin anonymously with a credit card
If you want to buy Bitcoin without ID verification, you still need a cryptocurrency wallet. So before you make your purchase, make sure you’ve set up a hardware or software crypto wallet compatible with Bitcoin. Examples of good Bitcoin-friendly wallets are Exodus, Mycelium and Ledger Nano X.
Now there are a number of different ways you can buy Bitcoin anonymously.
1. Peer-to-peer (P2P) marketplaces
Peer-to-peer (P2P) marketplaces allow you to buy Bitcoin from an individual seller rather than from an exchange or other large organization. These platforms eliminate the middleman, so you can buy BTC directly without ID verification. Some peer-to-peer marketplaces even allow you to pay the seller in person with cash.
Take Paxful, for example. This peer-to-peer marketplace allows you to buy Bitcoin from individual sellers using a wide variety of different payment methods, such as Payoneer, PayPal and, of course, your credit card. You can also do this without incurring any additional costs, as Paxful does not issue a fee to buyers. However, merchants are charged a 1% fee for each transaction.
Another popular peer-to-peer platform, LocalBitcoins, is also great for buying Bitcoin without ID verification. This platform allows you to buy Bitcoin with your credit card, as well as PayPal, Western Union and several other payment processors.
However, on peer-to-peer marketplaces, you may have to settle for a higher purchase price than you would on a regular exchange, so keep this in mind if you’re trying to stick to a budget.
2. Software wallets
While many software wallets require ID verification, this is not always the case. For example, some wallets allow you to buy Bitcoin anonymously to keep your identity secret.
Take the Lobstr wallet, for example. This software crypto wallet allows you to buy Bitcoin without providing ID verification. While Lobstr is primarily designed for storing Stellar, or XLM, it supports a wide range of additional cryptocurrencies and allows the purchase of Bitcoin. This wallet also uses a PIN and two-factor authentication to increase your security levels.
3. Exchanges
Verification processes vary with each cryptocurrency exchange out there. Some have made ID verification mandatory, while others have left it optional. So if you want to buy Bitcoin while skipping identity verification, the latter type of exchange may work for you.
KuCoin is an example of a crypto exchange that leaves ID verification up to the user. Benefits are offered for ID verification, but you’ll still be able to shop without them. KuCoin supports trading of hundreds of cryptocurrencies, including Bitcoin.
It’s also worth noting that you can buy Bitcoin without ID verification using Bitcoin ATMs, but most of these machines only accept cash payments.
Buy Bitcoin anonymously
Using the methods and platforms listed above, you can buy Bitcoin without verifying your identity. This allows you to maintain your privacy when buying cryptocurrency, which is a big plus if you value your online identity.
