Using a Bitcoin ATM (BTM) and purchasing an amount below the ID verification restriction is arguably the simplest way to acquire bitcoin without ID verification. While some BTMs demand ID verification for all transactions, the majority enable you to make purchases without a KYC check as long as you stay under a specified spending limit.
There are approximately 34,000 Bitcoin ATMs spread across 77 countries, according to CoinATMRadar. So there’s a good probability that a BTM will be installed in your city or a nearby city.
To purchase bitcoin at a Bitcoin ATM, you must first withdraw the cash you wish to convert into bitcoin from your bank or a fiat currency ATM. To receive your purchased coins, you’ll need need a Bitcoin wallet. Then you go to a Bitcoin ATM and enter the amount of BTC you wish to buy, along with your cash. Finally, you must allow the machine to scan the QR code on your wallet in order to retrieve your coins.
Please keep in mind that the procedure for purchasing bitcoin at a Bitcoin ATM may differ from machine to machine. You should be able to buy bitcoin without ID verification as long as you stay under the KYC restriction (unless there are clear regulations against no-KYC bitcoin purchases in your jurisdiction).
No-KYC bitcoin apps
If you don’t have access to Bitcoin ATMs in your area or prefer not to buy bitcoin in person, no-KYC Bitcoin apps are another option.
While most major worldwide crypto exchanges established KYC procedures to identify their customers, a slew of no-KYC Bitcoin-only apps popped up to offer a quick, straightforward, and private way to buy bitcoin.
Bitcoin apps such as Bitkipi, GetBittr, and Relai have set up shop in Switzerland, where regulations allow Bitcoin firms to sell up to CHF 1,000 (USD 1,088=) worth of bitcoin every day without having to undergo a KYC check on purchasers. As a result, Bitcoiners in Europe may now buy bitcoin with no ID verification in a no-KYC bitcoin app with just a few clicks.
Unfortunately, because to differing rules in different jurisdictions, no-KYC Bitcoin apps are not available everywhere.
Decentralized bitcoin exchanges
If there are no no-KYC Bitcoin apps serving customers in your area and there are no Bitcoin ATMs in your area, your best choice is to buy bitcoin on a decentralized bitcoin exchange like Bisq.
Bisq is a desktop application that connects you to buyers and sellers from all around the world who accept a variety of payment options. On the platform, you can also buy bitcoin with other digital currencies and tokens.
To purchase bitcoin on Bisq, you must first visit the website and download the necessary software. Choose your favourite national currency and establish an account after opening the app. The next step is to use bitcoin to finance your trade deposit and fee account (even if you are planning to buy bitcoin). This is to cover fees and the security deposit in the event that the deal fails (from your side). Following that, you must choose an option that meets your needs in terms of pricing, amount, and payment method. Your security deposit will be placed in a multi-signature escrow account once you’ve decided on an offer. Finally, you complete the transaction and your bitcoin will be delivered to your Bisq wallet. You can now transfer the cash to your preferred personal wallet.
While buying bitcoin on a decentralized, peer-to-peer marketplace necessitates trusting the individual with whom you’ll be trading, Bisq is undoubtedly one of the finest ways to acquire bitcoin without disclosing your identify.
Purchasing bitcoin without providing identification does not always imply anonymity.
Purchasing bitcoin without completing an identity verification step does not imply that the transaction is fully anonymous.
You can buy bitcoin anonymously if you use a local Bitcoin ATM that does not need ID verification (and does not have a camera aiming at you when you use it).
When using no-KYC apps, this is not the case. To pay for your coins, most of these apps need you to make a bank transfer. Should you ever be investigated for financial crimes, for example, that bank transaction might be linked to your bitcoin purchase.
Buying bitcoin through a decentralized, peer-to-peer marketplace is usually more private than buying bitcoin using a Bitcoin app. However, most payment options require you to give the recipient your name and some personal information. When you buy bitcoin using Revolut on Bisq, for example, the seller will see your name and IBAN.
Purchasing bitcoin without providing identification is a great approach to protect your financial privacy and avoid personal information from being leaked online due to data breaches. However, just because you don’t have an ID doesn’t imply you’re buying bitcoin anonymously.