How To Buy And Sell Bitcoin Anonymously

How To Buy And Sell Bitcoin Anonymously

Bitcoin is becoming more and more popular in the mainstream; however, there is a huge misconception that Bitcoin is totally anonymous. Bitcoin is not anonymous, but pseudonymous. It means that anyone can open a Bitcoin address to make transactions in Bitcoin. However, these transactions are recorded on the public ledger and everyone can observe your transaction history or the balance of your address. Many people worry about this privacy issue and try to learn how to buy and sell Bitcoin anonymously. 

Here, you can find 3 methods if you also wonder how to buy and sell Bitcoin anonymously. 

Method #1: Buy and Sell Bitcoin in Person

It sounds a little bit dangerous at first, but you can find a buyer from an online community on Facebook or Telegram and make the transaction in person. You will be surprised by the number of people willing to purchase in person. The reason for the high number is that people do not want to share their personal information with a crypto exchange and the method is cost-efficient. 

What you do is basically meet the person at a predetermined location and sell or buy Bitcoin after money exchange. The system has a lot of risks like getting scammed. Therefore, this method might work better if you know your partner and have trust in them. 

Method #2: Peer-to-Peer Exchange

By the definition, a P2P exchange is a marketplace with the purpose of connecting buyers and sellers worldwide. The most popular P2P marketplaces are LocalBitcoins.com, LocalCryptos.com, and Paxful. These platforms offer a credit rating system and the partner can rate each other after the transaction. As you can see, the system is much more transparent than the first two. Additionally, they provide different payment solutions, such as Paypal, other cryptocurrencies, and wire transfers. 

The drawback of that system is that all these services are not free and P2P exchanges can charge high transaction fees. If you plan to make frequent transactions and look for a less expensive method on how to buy and sell Bitcoin anonymously, the last one is more suitable for you. 

Method #3: Two-way Bitcoin ATM

Like the ATMs that we used to transfer government currency, Bitcoin ATMs make it possible to buy and sell Bitcoin anonymously. Once you find a two-way Bitcoin ATM on a Bitcoin ATM live map, you can make the transaction via your digital wallet address. 

The problem with this method is that KYC is required by more and more Bitcoin ATMs and it undermines the idea of anonymity. Especially due to the battle between Bitcoin and governments, Bitcoin ATMs started to demand some KYC documents to provide the service. Thıs, it becomes harder and harder to find a totally anonymous Bitcoin ATM nowadays.

SEE ALSO: What Can Be The Future Of Blockchain Technology?

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