Can you purchase bitcoins anonymously with a bank card? – MUO – MakeUseOf

There’s no denying that buying bitcoin is easy today, with a huge range of exchanges to choose from. However, since this industry is relatively new, it is natural to be concerned about your privacy when entering the market.

So this begs the question: can you buy bitcoin with your credit card without verifying your identity, or is it impossible?

Bitcoin and privacy

bitcoin in front of silver chain

It’s important to remember that privacy is a huge part of the cryptocurrency industry and is one of the cornerstones of Bitcoin’s design. Blockchains are incredibly secure and allow you to add transactions to the network without showing your real name. Blockchains also use hashing to increase user security by encrypting information to prevent transactional crime and store private data.

But Bitcoin’s focus on security and privacy has earned it a false reputation for being completely anonymous. In fact, Bitcoin transactions can be tracked, which is often done by law enforcement agencies when investigating crypto-related crimes.

In addition, the Bitcoin blockchain ledger is completely public, which means anyone can see it along with the transactions you have made. While your name and contact information won’t appear on this ledger, your wallet address will.

Additionally, many exchanges require you to provide and verify your identity before you can use your account. Therefore, the exchange provider you use knows exactly who you are.

So can this be avoided? While 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

Bitcoin is put in the pocket

If you want to buy Bitcoin without ID verification, you still need a cryptocurrency wallet. So before you buy, make sure you have set up a hardware or software crypto wallet compatible with bitcoin. Examples of good bitcoin-friendly wallets include Exodus, Mycelium, and the Ledger Nano X.

Now, there are a variety 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 a single seller, rather than an exchange or other large organization. These platforms eliminate the middle man and allow you to buy BTC directly without ID verification. Some peer-to-peer marketplaces even allow you to personally pay the seller cash.

Take Paxful, for example. This peer-to-peer marketplace allows you to buy bitcoin from individual sellers using a variety of different payment methods such as Payoneer, PayPal, and of course your credit card. You can also do this without incurring any additional fees as Paxful doesn’t charge buyers. However, sellers 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 using your credit card, as well as PayPal, Western Union, and several other payment processors.

However, you may have to settle for a higher purchase price on peer-to-peer marketplaces than on a typical exchange. So keep that in mind when 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 private.

Take the Lobstr wallet for example. This software crypto wallet allows you to buy bitcoin without going through ID verification. While Lobstr is primarily designed to store Stellar or XLM, it supports a wide range of additional cryptocurrencies and allows Bitcoin to be purchased. This wallet also uses a PIN and two-factor authentication to increase your level of security.

3. Exchange

Verification processes vary with every 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 identity verification to the user. Perks are offered for ID verification, but you can also trade without it. KuCoin supports trading of hundreds of cryptocurrencies including Bitcoin.

It’s also worth noting that you can buy bitcoin at bitcoin ATMs without ID verification, but most of these machines only accept cash payments.

Buy bitcoin anonymously

The methods and platforms listed above allow you to buy bitcoin without verifying who you are. This allows you to maintain your privacy when buying cryptocurrency, which is a huge plus if you value your online identity.


Share post on

Sonic BTC is reader-supported. When you buy through links on our site, we may earn an affiliate commission.

Stellar

Prime DeFi Funding Rounds in LatAm – 2022 – LatamList

Interest in crypto and DeFi has exploded in Latin America over the past year....

By Roger Gofman
13 Finest Cryptos Beneath $1 to Purchase in 2022 – Cryptonews Stellar

13 Finest Cryptos Beneath $1 to Purchase in 2022 – Cryptonews

Disclaimer: The Industry Talk section features insights by crypto industry players and is not...

By Roger Gofman
Is Chiliz Coin a superb funding?  – www.crowdwisdom.dwell Stellar

Is Chiliz Coin a superb funding? – www.crowdwisdom.dwell

Is Chiliz Coin a good investment: Read our analysis on whether Chiliz is a...

By Roger Gofman
Massive Eyes Coin: A Combination of Dogecoin and Stellar DeFi Options – Coinpedia Fintech Information Stellar

Massive Eyes Coin: A Combination of Dogecoin and Stellar DeFi Options – Coinpedia Fintech Information

TThousands of cryptocurrency projects are active today, but few prioritize the well-being of users...

By Roger Gofman
Regardless of Gloomy Market Circumstances, XRP Continues to Acquire Momentum – Ripple Coin Information Stellar

Regardless of Gloomy Market Circumstances, XRP Continues to Acquire Momentum – Ripple Coin Information

With bitcoin trading around $19,000, the market is looking grim. However, Ripple's native XRP...

By Roger Gofman
These 4 cryptos can witness a breakout rally: Santiment – Watcher Guru Stellar

These 4 cryptos can witness a breakout rally: Santiment – Watcher Guru

Analytics and on-chain metrics company Santiment has forecast that 4 leading cryptos could see...

By Roger Gofman
WEF Launches Crypto Sustainability Coalition to Use Web3 Applied sciences in Combat In opposition to Local weather Change – Blockchain Bitcoin Information – Bitcoin Information Stellar

WEF Launches Crypto Sustainability Coalition to Use Web3 Applied sciences in Combat In opposition to Local weather Change – Blockchain Bitcoin Information – Bitcoin Information

The World Economic Forum (WEF) created the Crypto Sustainability Coalition, an initiative dedicated to...

By Roger Gofman
Stellar (XLM) Worth Prediction 2025-30: A 3-digit goal for XLM in 8 years? – AMBCrypto Information Stellar

Stellar (XLM) Worth Prediction 2025-30: A 3-digit goal for XLM in 8 years? – AMBCrypto Information

Disclaimer: The datasets shared in the following article have been compiled from a set...

By Roger Gofman

Latest Posts

Dot sample [DOT] could possibly be on a brief bullish dash thanks to those developments – AMBCrypto Information Polkadot

Dot sample [DOT] could possibly be on a brief bullish dash thanks to those developments – AMBCrypto Information

Dot pattern [DOT] and Cardano [ADA] Blockchains are known for their intense developer activity...

By Roger Gofman
Stellar

Prime DeFi Funding Rounds in LatAm – 2022 – LatamList

Interest in crypto and DeFi has exploded in Latin America over the past year....

By Roger Gofman
CryptoSlate Wrapped Day by day: Binance Targets Cyber ​​Monetary Crimes;  CEL tanks after Alex Mashinsky resigns from Celsius – CryptoSlate Binance

CryptoSlate Wrapped Day by day: Binance Targets Cyber ​​Monetary Crimes; CEL tanks after Alex Mashinsky resigns from Celsius – CryptoSlate

Some of the biggest news in the cryptosphere for September 27 include Binance's new...

By Roger Gofman
Ethereum

ÐΞVcon-0 Recap

Day 1 - Monday 24th Nov - ÐΞV: Mission and Processes The first day...

By Roger Gofman
ITS HAPPENING AGAIN (Historical past Repeating)!! Ethereum Worth Prediction, Bitcoin Information In the present day (BTC & ETH) Videos

ITS HAPPENING AGAIN (Historical past Repeating)!! Ethereum Worth Prediction, Bitcoin Information In the present day (BTC & ETH)

ITS HAPPENING AGAIN (History Repeating)!! Ethereum Price Prediction, Bitcoin News Today (BTC & ETH)...

By Roger Gofman
Rocketize Token, Child DogeCoin and Shiba Predator: These meme cash will show you how to keep away from the unfavorable results of the bear market – NewsWatch Dogecoin

Rocketize Token, Child DogeCoin and Shiba Predator: These meme cash will show you how to keep away from the unfavorable results of the bear market – NewsWatch

It is possible to see an upward trend in transaction volume with the new...

By Roger Gofman
Cardano (ADA) is listed by the Swiss Crypto Asset Administration Service – U.At this time Cardano

Cardano (ADA) is listed by the Swiss Crypto Asset Administration Service – U.At this time

Alex Dovbnya A Swiss crypto wealth management app has added support for the Cardano...

By Roger Gofman
Astar Community’s Web3 Advert Showcases 329 Prime Manufacturers in Japan – FinanceFeeds Polkadot

Astar Community’s Web3 Advert Showcases 329 Prime Manufacturers in Japan – FinanceFeeds

Blockchain innovation hub Astar Network is making strides in driving Web3 adoption around the...

By Roger Gofman