Hi all, I'm new to crypto as recently I have free time on the internet and see an ads about it. Google brings me here, and medium, some crypto websites too. I want to own some coin and try to invest. The only way to buy crypto is credit card. I'm confused that why I must provide my identity, passport number and image of it, and photo of my face. I read and know that crypto is anonymous, why I must kyc to buy coin?

First of all be careful to only use reputable sites.

As to why you need to go through KYC - since bitcoin and other cryptos started to attract serious money, they came more to the attention of governments around the world. KYC is partly to protect users and partly to comply with legal safeguards against terrorism and money-laundering. Exchanges and gateways that don't comply with the laws of the country in which they are based are liable to prosecution.

You must also remember that blockchains are transparent. It is only anonymous so long as there is no connection to a fiat gateway.

KYC is an increasingly contentious subject. There is plenty about it online, have a read of this for example.

KYC is obligatory in LBC, and in-person transactions has been removed sometime ago. I would suggest OP to use LocalCryptos instead.

Credit card is not the only way to buy crypto-currency. You can even use this forum to buy bitcoin or other crypto-currency because most trusted users help others to escrow any deals. So, if you find out anyone who is willing to sell bitcoin or any crypto, just do escrow with any escrowers and make the deal without any tensions of scamming. Without escrow don't make any deal in this forum if you don't know him personally. Kyc is only need in the CEX ( centralized exchange ) to buy crypto with credit cards.

Here is the list of escrow services: https://bitcointalk.org/index.php?topic=2439910.msg24991775#msg24991775

I had indeed considered that, but my objective was to make OP see that there are (many) alternatives to buying Bitcoin without a credit card. I was not evaluating his personal case, but giving some information for OP and anyone that may have the same question in the future and finds this tread.

Welcome to the bitcoin forum, you are in the right place to get knowledge about bitcoin and other cryptocurrency and without reducing my respect for other users, then I will only give a few additional suggestions for you and hopefully there are benefits.

If you live in a country that already has a bitcoin ATM, then you will easily buy it at an ATM using cash, but you will only get bitcoin and not for other cryptocurrencies.

For countries that dont have a bitcoin ATM, I think there are several ways to buy or sell bitcoin, such as:

• Conduct transactions with other users (Use escrow services to increase security)
• Choose an exchange that does not require you to send the KYC form if you object to KYC. But lately KYC is one of the conditions for exchange if they want to continue to operate in countries that apply KYC rules for cryptocurrency users.
• You can buy on an exchange that uses KYC but you must consider that it is a safe exchange.
• The rest, you can also get buying and selling services from trusted users in the forum as done by one of our local users. [ZAKY-CELL] Jual Beli Bitcoin - Voucher Indodax - Official P2P Binance - Escrow by AakZaky

Completing KYC at an exchange doesn't reduce your risk of being scammed in any way. In fact, completing KYC puts you at a higher risk of being scammed since you are sending all your personal information to a complete stranger, who can then do whatever they like with it, including commit identity theft, fraud, or sell your details to others. Keeping your personal information, KYC documents, email address, etc., private is a good way to protect yourself from some scams, and taking due care and due diligence will protect you from the others.

As mentioned above, LocalCryptos, Bisq, or Hodl Hodl are the best non-KYC peer-to-peer exchanges at the moment, which allow you trade safely and protect your personal information and privacy.

Yes its happen many time here on this forum KYC never give any protection to any one from scam its just formality from few exchanges and sites just because of International laws and judiciary restrictions.

Thank you for your suggestions friends. I read all. You clarify me many things. I think I will use https://localcryptos.com/  to buy 1eth first. Crypto is a larger world than I thought.
You said about Bitcoin Atm. I didn't know it yet. It sounds interesting. I'm going to explore it now.

I never tried out localcryptos or other platforms to buy crypto off with fiat, but I've used lots of different ATMs. Make sure your closest ATM does not have KYC (or maybe it has a certain limit you can deposit without KYC - check their terms & conditions or call their number to find out) and also make sure it's open now that most businesses are closed.

If you can find one nearby, I suggest you to try it out at least once. Feels much safer imo and you don't have to work with banks to get your cryptos, so as long as there's no KYC.. risks are little.