We know that Bitcoin is not a perfectly anonymous cryptocurrency. This begs the question: Is there a way you can buy BTC without divulging your identity?
You’ve heard about it and now you ask: How do you buy Bitcoins anonymously?
Since the Bitcoin started growing popularity among everyday people, the misconception that transacting using Bitcoin is a completely anonymous one. Little did people know that in reality, Bitcoin is not anonymous at all.
To be fair, Bitcoin transactions are carried out without using personal information of users; instead, they are processed through wallet addresses and ID numbers. These addresses and ID numbers don’t come out of thin air, though. They are actually linked to a person who owns these addresses and ID numbers.
Add to that the fact that all Bitcoin transactions are recorded in a publicly available online ledger called the blockchain network. All it needs is due diligence and knowledge on how the blockchain works and they can definitely track you down from the Bitcoin transactions you made.
Because of this realization, there is a growing clamour for Bitcoin to improve its mechanisms to protect the anonymity of their users. However, for the meantime, while Bitcoin is yet to set up a completely anonymous process of buying and selling coins, there are a few ways you can do in order to add a layer of anonymity to your transactions.
In support of this demand from users, there are third-party services that offer the promise of anonymity in buying Bitcoin. In this post, we will discuss the different ways you can buy Bitcoin without revealing your identity and how to keep the transaction completely anonymous.
3 Best Ways to Buy Bitcoin Anonymously
Person to Person Purchase
If you want to buy Bitcoins without needing to reveal your identity, the most underrated way to do that is to purchase from another person who is selling it. Nothing really beats the good old Face-to-Face transaction. Since the Bitcoin community has been increasing at an unprecedented rate, it is highly probable that you meet someone who is willing to send you some of their coins. They can sell it to you directly without passing through other platforms. Some users who prefer this method of buying coins even said that you could find people who are selling coins at the exchange prices (sometimes even lower at the market price) because by doing so, they save money from taxes.
Buy through LocalBitcoins (LBC)
LocalBitcoins is a start-up company that operates like an escrow company serving as a platform that links a person who wants to sell his coins to someone who wants to buy. It has been in operation since 2012 and is based in Helsinki, Finland.
In the second method we have mentioned, we said that the best way to buy is through person-to-person purchases. Well, if you find it hard to look for someone in the streets, LocalBitcoins is the best way to look for another user who will sell their coins to you. It operates in more than 15,000 cities around the world, so the chance that you find someone in your locality is very high.
In LocalBitcoins, you can meet sellers online who will set the price and choose to execute a trade offline. You can opt to meet up with the seller and pay in cash or via wire transfer services like Paypal or bank deposits. The only downside of this platform in terms of protecting anonymity is it requires you to register using an email; however, you can always use a fake email to do this.
It has to be noted though, that you also have to be careful with who you are dealing with. Be sure to check the reputation of the seller as well as the reviews to make sure that they are not scammers and are trustworthy.
Bitcoin teller machines have started to grow in popularity in recent years. The ATM sells you Bitcoin in exchange for fiat currency through the machine itself, and it does not require any form of identification to process the transaction.
The machine will ask you to scan your public address, and it will transfer you Bitcoins equivalent to the fiat money you deposited in. It’s pretty straightforward this way. In case you don’t have a public address, there is usually an option where the ATM will auto-generate a paper wallet for you. However, this option is not available to all machines.
Next Steps: Mix the coins you bought!
Now that you have already purchased your Bitcoins from one of the methods we have detailed above. Buying Bitcoin anonymously is one thing, but keeping your identity private as you use the Bitcoin you bought is another. To keep anonymous throughout your existence in the Bitcoin world, it is important that you always mix your coins.
Bitcoin mixing is the process of severing the trail in a transaction by swapping coins between users in order to prevent third parties from linking your wallet addresses to your transactions. The best Bitcoin tumbler right now is MyCryptoMixer, and it operates without the need to provide identification and identity cards.
The growing popularity of Bitcoin has increased the demand from users for the cryptocurrency to improve its mechanism to protect users’ privacy. With this demand in place, many third-party companies have stepped in to provide a layer of privacy for the users. The methods described above are just a few of the many ways you can discreetly purchase BTC, do your research to find out more. However, buying Bitcoins anonymously and privately is only the first step; you also have to make sure that your identity is kept private as you use the coin you bought.