One of the founding principles which Bitcoin was built upon is Anonymity. Yes, we know the Bitcoin network isn’t fully private. That’s a fact. Indeed, all our activity is stored on the Bitcoin network permanently. So, there isn’t much privacy for us to speak of. But, the Bitcoin network doesn’t know our names, addresses, or social security numbers. In other words, we’re still anonymous while transacting our $BTC.
Sadly, many governments do not like what Bitcoin is doing for us. They want to know exactly what we’re doing on-chain. To do this, their solution would be to regulate exchanges where we get our $BTC. One tactic they employ is to require exchanges to implement KYC.
What Is KYC?
In a nutshell, KYC is a process for an organization to verify your identity. In short, it stands for “Know Your Customer” or “Know Your Client”. This verification comes in many forms, which we will go through later. Basically, an organization that uses KYC will ask you for information that can ascertain your identity. It has the “right” to do so, or it will limit or refuse to provide services to you.
Now, let’s say you’re a crypto trader looking to set up an account with a Centralized Exchange (CEX). Typically, CEXs will ask you for your:
- Personal ID information. These include your ID card, passport, and driver’s license.
- Proof of address. These include credit card bills, utility bills, or letters.
- Physical information. These include pictures of your face or fingerprint data.
Why do we need to provide such information? Well, governments claim that this prevents criminal behavior, money laundering, or even worse, financing terrorism. But we know that’s not exactly true. Governments want to keep track of your money and where you’re spending and investing. It wants to keep you under control.
And that’s one reason why many crypto investors abhor the idea of KYC. Aside from that, the organizations frequently lose user’s data to hackers. That’s another good reason not to submit your data for KYC.
So, if you’re an investor who dislikes KYC, stick around! We’re going to look at how to buy Bitcoin with no KYC below.
Buy Bitcoin with no KYC with Centralized Exchanges (CEXs)
One of the best ways to buy Bitcoin with no KYC would be from CEXs. Now, this may come as a surprise to you. Aren’t CEXs the ones that are asking for KYC all the time? Well, most CEXs still allow you to deposit, trade and withdraw your crypto without KYC. But, you can only do so with limits. Now, let’s check out two of our favorite CEXs below.
CEX #1 – Kucoin
Kucoin is a good CEX to buy Bitcoin with no KYC. In general, it’s a great CEX for altcoin gems. It supports a ton of cryptos from large caps to micro caps coins. It’s also a trustworthy CEX since it has a good trust score of 8/10 from CoinGecko.
So for Kucoin, you can trade, deposit, and withdraw Bitcoin with no KYC. As of time of writing, the limits are:
- With no KYC: Daily Withdrawal Limit of USD$20,000/- or 0.653 $BTC per day.
- With KYC (3 levels): Up to USD$1,000,000/- or 32.68 $BTC per day.
Now, we like Kucoin because it’s been working pretty well for us. But you can’t discount other CEXs too.
CEX #2 – MEXC
MEXC is another great CEX to buy Bitcoin with no KYC. Similar to Kucoin, MEXC is a splendid CEX for trading altcoins. Today, it supports a staggering 1,587 coins and 2,138 trading pairs. It also holds a solid 8/10 trust score from CoinGecko.
For MEXC’s trading limits, you can refer to the below:
- With no KYC: Daily Withdrawal Limit of 30 $BTC per day.
- With KYC: Withdrawal limit of 200 $BTC per day.
So, it seems MEXC is a better choice here since it has a higher withdrawal limit. But, there’s another CEX that totally doesn’t cater to KYC at all. Let’s check it out.
CEX #3 – TradeOgre
The last CEX we will cover that allows you to buy Bitcoin with no KYC is TradeOgre. TradeOgre is a small CEX compared to the previous two. Its focus is on privacy coins like Monero. Hence, it makes sense that it does not accept or need any form of KYC.
Indeed, that’s great news for you if you want to withdraw Bitcoin to your wallet. That’s because TradeOgre has no withdrawal limits. However, it does not accept fiat deposits. In addition, it only has a 4/10 trust score from CoinGecko. With that, we recommend you exercise caution and risk management when using this CEX.
Buy Bitcoin with no KYC with P2P Platforms
P2P stands for “Peer-to-Peer”. For crypto, P2P means that the sellers and buyers connect directly. Platforms that facilitate these do not interfere with the transactions at all. We bring you through two of these below.
P2P Platform #1 – HodlHodl
A good P2P platform to buy Bitcoin with no KYC is HodlHodl. On top of Bitcoin, HodlHodl supports another 100+ currencies. It is quite reputable with over 50,000 deals closed and 100,000 registered users today.
To buy Bitcoin on HodlHodl, you’ll have to set up an account first. Once that’s done, you’ll have to connect with a seller. On its website, specify the currency, payment method, and amount of Bitcoin you want to buy. Then HodlHodl will generate a list of offers that would suit you.
Now, you have to note that trading on P2P platforms has its own downsides. You could encounter cheats and scammers who do not keep to the end of their agreement. Hence, it’s always important to ensure that your seller is trustworthy. One way would be to choose sellers with many trades with a high transaction completion rate.
P2P Platform #2 – Bisq
The next P2P platform to buy Bitcoin with no KYC is Bisq. Bisq differs from HodlHodl in a number of ways. For starters, it uses a web application instead of a website for P2P trades. Also, it requires users to set up a fiat account before trading. It does not require users to sign up for an account though.
Indeed, Bisq has a functional, decentralized P2P platform. With that, Bisq will not collect your data through KYC or any other means. It has a few drawbacks though. For one, it only allows trades for Bitcoin. And you’ll need to go through its set-up process to get started. Of course, these reasons shouldn’t deter you, if you really want to avoid KYC.
In this article, we’ve brought you a total of five places that allow you to avoid KYC when trading Bitcoin. Each of these has its own pros and cons. For CEXs, you can enjoy a good user experience and ample liquidity. But, CEXs can change withdrawal limits or enforce more KYC as they deem fit. For P2P platforms, you’re fully assured of your privacy. On the other hand, liquidity is poor and sellers could be acting in bad faith.
Our recommendation? Why not start trying them both? You can find out which suits your needs best.
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