The point is that they don't have to be nearly as invasive as they are. I opened a bank account specifically for buying cryptocurrencies and the bank didn't ask for anything like what the exchanges expect. The exchanges request more information than they need. If the old, stuffy banking institution can comply with KYC without asking where I work and what I plan to do with my money then so can the exchanges.

You're storing your Bitcoin on the exchange? I don't believe any exchange is secure or reliable enough for that. The whole point of Bitcoin was to get away from having to trust any third parties. That's why I also can't wait for decentralized exchanges to rival the centralized exchanges. I doubt Satoshi meant for Bitcoin users to be turning in selfies and passport info when envisioned Bitcoin.

I opened an account on Poloniex, but they request your social security number, which is something I would prefer not to hand out. I've left my account unverified as a result.

I have checked out Bisq since it was recommended here, and I think if a system like this were able to gain a lot of traction, that might be the remedy to what I consider to be a real problem for the Bitcoin community.

crazy-pilot, if I understand your comment correctly, the reason DEX is not more successful is because they can't handle a large enough number of transactions per second? Isn't that a problem throughout Bitcoin though? I thought that is what the Lightning network was trying to solve.

If DEX gains wider adoption, don't you think issues with the interface etc. would be worked out over time? I have read that decentralized exchanges are fighting for the soul of Bitcoin, and I agree. I hope they gain more widespread adoption.

Let speculators keep the centralized exchanges...

Thank you, I will check that. If they will allow me to purchase even a small amount of Bitcoin with fiat then it will help me out!

That's very helpful, thank you!

Everything I've read has made mining sound like a waste of time and money for the average person. I have always considered it something I might try if I ever have enough money.

I will check out the DEX you mention. Unfortunately, LocalBitcoins only has sellers that are outside my price range.

Thanks again!

I think if you are right about that then the whole point of Bitcoin is defeated.

Thank you setifien19 for that article. This looks like the answer to me, and the article is very helpful. There's always a catch though isn't there? Bisq requires a small amount of Bitcoin for the security deposit! Lol.

Thank you for your help! I opened an account on Binance and learned that I cannot convert fiat to crypto there. That is probably what is causing the most issues, is that I need to make my initial purchase using fiat, and KYC and fiat seem to go hand in hand.

Do you know if there is a DEX that accepts fiat?

Thanks again!

I am dismayed at the zeal the exchanges have for KYC/AML, and I have read on this forum that decentralized exchanges may be the answer. Are there currently any decentralized exchanges, and if so, what is the best one?

Now that I have begun the process of attempting to purchase my first Bitcion, I wonder if there is not a sense of irony in the Bitcoin community about the level of trust the exchanges expect from their customers.I think the real issues that people have with KYC/AML and the exchanges is the unreasonable level of info/trust they expect. I opened a dedicated bank account to route my funds through and their expectations in opening an account did not seem nearly as unreasonable as any exchange I have looked at so far. They didn't ask for things such as where I work, how I plan to use my funds, a picture of myself, passport info etc.

The ridiculous invasion of privacy that the exchanges are engaged in is clearly of their own design. In one reply to this post it is stated that each organization creates its own KYC/AML program, and that is obvious given that the traditional bank asked for less info than than the exchanges. If the bank can comply with these regulations while asking for a minimum of information, so can the exchanges. I am not trying to stay 100% anonymous. I just don't trust any third party with the info the exchanges are asking for. It seems to me the end result of Bitcoin is that third parties are expecting more trust and information than before Bitcoin.

It seems to me that the promise and purpose of Bitcoin is dying or dead...

I am new to Bitcoin, but it seems to me like I may have missed the boat, not just financially, but "philosophically" as well. One of the things I really like about Bitcoin is how its design is meant to eliminate third parties and the need to place trust in them. However, now that I have begun the process of attempting to purchase my first Bitcion, I wonder if there is not a sense of irony in the Bitcoin community about the level of trust the exchanges expect from their customers. I opened a dedicated bank account to route my funds through and their expectations in opening an account did not seem nearly as unreasonable as any exchange I have looked at so far. They didn't ask for things such as where I work, how I plan to use my funds, a picture of myself, passport info etc. I am not trying to stay 100% anonymous. I just don't trust any third party as much as what these exchanges expect. It seems to me the end result is that third parties are expecting more trust and information than before Bitcoin. I would be interested to hear from veterans about how they feel about this, as the "cypherpunk" heritage of Bitcoin is very appealing to me, but seems to be faded at this point.