In the recent past, financial regulators are stepping up their regulatory control and are requiring cryptocurrency exchange to verify all their users. Although most exchanges have conformed, there are others where BTC trades can be conducted without providing a mountain of verification documents.
Below are 5 cryptocurrency exchanges where Bitcoin (BTC) can be traded anonymously. We will also briefly discuss the pros and cons of anonymous BTC trading.
1. Anonymous BTC trading on BitQuick
On BitQuick, verification is optional whether you are buying or selling Bitcoins. Those who need not to leave their personal data on the exchange are required to provide an external wallet address that can store Bitcoins plus a valid email address.
Additionally, the exchange requires the trader to provide a few more details. This does not involve uploading personal or verification documents although in some instances the exchange may prompt you to do so. Note that the extra details are only required when selling.
On BitQuick, buyers buy into the already advertised sales. For the trading to be complete, the buyer deposits funds into an escrow account owned by the exchange and the funds are released to the seller’s account once the buyer confirms receipt. The exchange caps anonymous BTC trading at 400 U.S dollars.
2. Anonymous BTC trading on Localbitcoins
This platform acts as a meeting point for both BTC sellers and buyers. The sellers simply express that they need to sell Bitcoin and the buyers either purchase from the existing sell ads or indicate they want to buy.
Just as on BitQuik, Localbitcoins gives a choice between identity verification and anonymous Bitcoin trading. Trading on the platform when your account is verified, adds a layer of trust between sellers and buyers.
3. Anonymous BTC trading on Bitsquare
This is a decentralized exchange that employs multi-signatures, security deposit, and an arbitration system to secure trading on the platform. Apart from Bitcoin, the exchange allows trading altcoins. Bitsquare allows trading against popular fiat currencies.
To use the platform, one has to install its desktop software from where selling and buying orders are advertised. The private aspect of trading on the exchange is further enhanced by passing communications through the TOR browser.
Its decentralization nature has endeared the exchange to a wider audience all over the globe since the probability of a hacking incidence is greatly reduced.
4. Anonymous BTC trading on Wesellcrypto
The requirements needed to start trading on the exchange are a bit straightforward, a full name, current location, and a reason why you want to trade Bitcoin and other cryptocurrencies listed on the platform. Unfortunately, the exchange limits buying to 15 U.S dollars per 24 hours.
5. Anonymous BTC trading on WallofCoins
The platform facilitates the conversion of cash to Bitcoin and is available in most regions across the world. According to the exchange, all Bitcoins under its possession are held in a cold storage.
The exchange does not require a user to be registered or verified for them to initiate a trade on the platform. BTC trades on the exchange can take 15 minutes.
Pros of trading Bitcoin (BTC) anonymously?
While most of the exchanges require personal details so as to prevent money laundering through digital currencies, providing such information has its own disadvantages.
For example, since crypto exchanges are prone to hacks, users’ personal information is at risk of getting into the wrong hands. Also, some people want to hide their trading activities from the privy eyes of financial regulators and government agencies.
Additionally, the verification process can take days delaying the time you can trade on the exchange.
Cons of trading Bitcoin (BTC) anonymously
The single biggest disadvantage of trading Bitcoin anonymously is that you cannot have the same trading limits as those using verified accounts.
As regulators and government officials keep on pushing crypto exchanges to implement Anti Money Laundering (AML) and Know Your Customer (KYC) procedures, anonymous crypto trading will slowly be phased out.
Remember that trading anonymously on cryptocurrency exchanges does not always mean that it is for illegal purposes. Whichever way you decide to take, registered or anonymous, remember to do a thorough background check.