How to Buy Bitcoin Anonymously
More and more people are deciding to buy Bitcoin anonymously due to privacy concerns and other reasons. Unfortunately, you cannot buy Bitcoin 100% anonymously anymore, only semi-anonymously. However, you can buy it privately with no KYC or registration.
This guide will cover the best platforms for buying Bitcoin anonymously, such as P2P, DEXs, and Bitcoin ATMs. Also, we’ll discuss ways to protect your privacy and include alternative methods you can buy Bitcoin.
Can you buy Bitcoin anonymously?
Yes, buying Bitcoin anonymously is still possible, but it’s getting much harder. Previous methods like Bitcoin ATMs now require registration in most cases, and setting up real-world meet-ups is becoming challenging.
Also, many exchanges and cryptocurrency brokers require compliance with KYC laws, so you must verify your identity before trading. Only a few options, like Binance and KuCoin, allow you to deposit crypto to trade. However, you’ll still need to have crypto beforehand to trade, which you need to acquire through anonymous methods; otherwise, it can get traced back to you.
Perhaps the best way to buy Bitcoin anonymously is through P2P services and using prepaid cards as a funding method. Prepaid cards do not require an identity attached and are available to buy in most retail stores and online.
Ways to buy Bitcoin anonymously?
This section is a rundown of different ways to buy Bitcoin anonymously and semi-anonymously.
Buy Bitcoin anonymously with cash from friends or at meetups
One of the best ways to buy Bitcoin anonymously is through meetups or from a friend. This way, you can set up a new BTC wallet with no transaction history and acquire coins without using a third party. The best way to connect with potential sellers is through local Reddit and Facebook groups since you can quickly see the user’s history and determine if they have a good track record.
However, buying in person can be dangerous, especially when the other party knows you intend to buy a large quantity of BTC. They can attempt to scam or rob you. Therefore, it’s best to set up the meeting in a public location during the daytime and wait until the coins have reached your wallet.
Buy Bitcoin with Bitcoin ATMs and vending machines
Bitcoin ATMs and vending machines aren’t like your typical ATM that allows customers to withdraw funds. Instead, they accept money in exchange for Bitcoin and other altcoins. Bitcoin ATMs require sending coins to a crypto wallet of your choice, or you can create a paper wallet if the option is provided. The biggest downside of Bitcoin ATMs is they have ridiculous fees ranging anywhere from 5% to 20%, and they are available in a limited number of locations.
Buy Bitcoin anonymously using peer-to-peer networks
P2P platforms let you buy crypto without giving up your identity or going through KYC. This service also lets you buy Bitcoin using cryptocurrency and prepaid cards. These are the overall top providers:
SimpleSwap is a decentralized peer-to-peer exchange that lets you buy Bitcoin anonymously with altcoins. The service is straightforward as you input the coins you want to acquire and send crypto as payment. SimpleSwap will transfer the Bitcoin within 1-2 hours, depending on BTC’s network load.
Bisq does not require identity verification and is fully decentralized. The service has an excellent reputation and is open-source. In fact, the team openly discusses strategies on Keybase and Github. However, you will have to download the Bisq app on your device to access trading.
HODL HODL does not hold any Bitcoin or fiat currency. Therefore, the platform is not subject to compliance procedures like KYC. This allows users to trade cryptocurrencies among themselves without providing ID. However, you will need to create an account to trade.
Buy Bitcoin with a broker using prepaid cards (Paysafecard)
Prepaid cards allow investors to buy Bitcoin semi-anonymously and, in some cases, anonymously. eToro is the best platform for buying Bitcoin semi-autonomously because you can fund payment methods like PayPal with a prepaid card. Also, you can use a P2P service like SimpleSwap, which accepts prepaid cards without registering.
Buy Bitcoin anonymously using exchanges
The most popular way of trading and buying Bitcoin anonymously is with a cryptocurrency exchange. There are two types of exchanges - centralized and decentralized. Binance and KuCoin are CEXs that require creating an account. However, you can avoid the KYC and deposit crypto that you will trade for Bitcoin later. The only negative is withdrawal limits and other account limitations.
Moreover, you can use a DEX (decentralized exchange), which does not require registration or KYC. You will need a compatible crypto wallet with the DEX and coins ready for trading. Below you can analyze the overall best DEXs and CEXs for buying BTC anonymously.
Buy Bitcoin anonymously using No-KYC apps
These apps do not require completing a KYC and let you trade BTC anonymously.
Buy Bitcoin anonymously on the darknet
Buying Bitcoin anonymously from the darknet is challenging because it’s difficult to find good and trustworthy sellers. Avoid using this method since it is not secure and you’ll most likely get scammed.
Alternatively, you can mine Bitcoin
Bitcoin mining is the process of your GPU solving complex cryptographic equations to validate transactions. Once a block is mined, users who helped validate and support the network receive a reward. However, it’s not recommended to mine BTC in 2022 because you need to invest a lot of time and money into mining equipment.
Are there any anonymous Bitcoin wallets?
Yes, there are several great cryptocurrency wallet providers offering anonymous Bitcoin wallets. A few great options are:
Also, you can create a Bitcoin paper wallet, which you can use to accept coins offline and anonymously.
What payment methods can you use to buy Bitcoin anonymously?
This part of the guide covers which payment method you can use when buying Bitcoin anonymously.
Can you buy Bitcoin anonymously using prepaid cards?
Yes, some P2P services accept prepaid cards, which do not require having your identity attached. You can buy Bitcoin with a prepaid card on SimpleSwap.
Can you buy Bitcoin anonymously using PayPal?
PayPal requires users to verify their identity to access its services. Therefore, you cannot buy Bitcoin anonymously with PayPal.
Can you buy Bitcoin anonymously using a Credit or Debit Card?
No, debit and credit card providers require creating an account and going through a verification process.
Can you buy Bitcoin anonymously using a Bank account or SEPA transfer?
To open a bank, you’ll need to provide your passport or a form of ID, and all transactions contain details about the sender. Therefore, you can’t buy Bitcoin anonymously using a Bank account.
Can you buy Bitcoin anonymously using cash?
Cash is perhaps the best way of buying Bitcoin anonymously since it can’t be traced back to you. However, cash is ideal for buying small quantities of BTC, not large amounts.
Can you buy Bitcoin anonymously using gift cards?
Yes, gift cards are accepted by many P2P platforms like HODL HODL, Bisq, and LocalCoinSwap.
How to buy Bitcoin (almost) anonymously?
Many beginners may find the process of buying Bitcoin anonymously complicated at first. Therefore, we’ve created this step-by-step guide to help our readers. This is how to buy Bitcoin semi-anonymously on eToro.
Open eToro and complete the sign-up steps.
Register with Neteller and deposit using a prepaid card.
Open eToro’s deposit section and transfer funds from Neteller.
Search for Bitcoin in the cryptocurrency section and click its icon.
Input how much fiat currency to exchange for Bitcoin and complete the trade.
Buy Bitcoin Anonymously Fees Comparison
This table shows the fees you’d pay for buying $1,000 worth of Bitcoin with fiat currency.
When does buying Bitcoin anonymously make sense?
Buying Bitcoin anonymously makes sense when you want to keep your investments hidden or if you do not trust your government with crypto regulations. A good example is China where cryptocurrencies are banned. Here are a few pros and cons of buying Bitcoin anonymously.
How to protect your privacy when buying Bitcoin?
Privacy is likely the main reason you are looking to buy Bitcoin anonymously. Here are a few things you can do to protect your privacy.
Use multiple wallets
Use a mixer service, which combines payments from multiple users into a single transaction.
Use a VPN to hide your IP address
Do not verify your identity with any platform
If you are required to create an account, do not use your personal email or phone number.
How to sell Bitcoin anonymously?
Selling Bitcoin anonymously is best done in person during a meetup. However, you can sell your Bitcoin on eToro; here’s how:
Sign in to eToro and navigate to the cryptocurrency tab.
At the top of the trading page, select the option to sell.
Type in how much you would like to sell and finish the trade.
What to consider when buying Bitcoin anonymously?
These are the main factors to consider when buying Bitcoin anonymously:
Use only trustworthy platforms with a great track record.
Before using a crypto platform, ensure they accept anonymous payment methods.
Anonymous buying methods usually have higher fees, so determine if anonymity is worth the price.
Consider where you will store your Bitcoin privately.
How Anonymous is Bitcoin?
Satoshi Nakamoto created Bitcoin after the financial crash in 2008. It was not intended as an anonymous payment method or investment asset but as a transparent, open-source currency. While Bitcoin has some anonymity, for example, Bitcoin wallet addresses cannot be connected to an individual unless they disclose the wallet is theirs, it lacks privacy capabilities like Monero (XMR). All transactions are kept on the blockchain, so somebody can trace all Bitcoin movements made from that and associated wallets.
Is it possible to buy other cryptocurrencies anonymously?
Yes, you can buy various coins anonymously using the methods we’ve disclosed in this guide. Some of the top coins you can buy anonymously are:
Monero (XMR) - Hidden transactions
Zcash (ZEC) - Masks sensitive user data
Decred (DCR) - Transfers are not linked to real-world identities
Oasis Network (ROSE) - Keeps data private through confidential smart contracts
Secret (SCRT) - Encrypts transaction details
Alternative ways to invest in Bitcoin
Here are some other ways you can invest in Bitcoin.
Buy Bitcoin with a broker
Cryptocurrency brokers are great for buying Bitcoin since they are regulated and trusted platforms. They allow investors to trade coins without conveying ownership since brokers issue CFDs.
While you can stake cryptocurrencies to earn interest, Bitcoin uses a proof-of-work consensus mechanism, so it cannot be staked.
Buy Bitcoin with a centralized exchange
The top choice for investing in Bitcoin is with a centralized exchange since they offer many useful services. Exchanges allow users to instantly buy BTC, spot trade, and leverage trade. However, most CEXs require completing KYC to trade, so they are not ideal for buying Bitcoin anonymously.