Too dumb to undrstand

[o_e_l_e_o]

Some no mark fake volume exchange could be doing anything with what you send them.

Absolutely, but I'd suggest that Coinbase selling data to third parties doesn't exactly fill me with confidence either. Just like the two-bit exchanges, we have no idea what these third parties did with the data they obtained or how well the secured it.

but there is also a negative of using it because not all of decentralized exchange are legit and many of them have hacked before.

The vast majority of "decentralized" exchanges which were hacked were not actually decentralized at all, but simply used the term as a flashy advertising slogan. The whole point of a decentralized exchange is that you keep control of your own coins and there is no central server or wallet which can be hacked.

but I guess that's better than using an unsecured decentralized exchange and risk your funds of possibly lossing everything.

I'm curious why people keep repeating this. My guess would be you have never actually used a proper decentralized exchange and understand how it works. You don't deposit your coins to the exchange, and so the risk of loss from your account being compromised or the exchange being hacked is significantly lower than with a centralized exchange.

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[Taskford]

Hey guys/gals, maybe I'm too dumb to understand how BC really works, but I just signed-up on a BC site and before I can purchase a few coins, I was asked for all my REAL information, including last 4 of my SS#, address, and even a bank account to link my BC account to! So I'm scratching my head, "how can this be anonymous" they know everything about me and if I buy anything using that BC account, I just opened, it'll be just as transparent as buying w/ cc lol. Again please forgive my ignorance, but can someone briefly explain how can any transaction from a BC account be anonymous, if they collect every piece of information about you before allowing you to open an account! Thanks!

You could choose another site to use seems like you are registering to a site with a KYC required to use their service there are so many other providers that you could use without having a KYC.
And it is great that newbies are asking out to know more it is better than being so high and mighty even if you don't know a thing.
It is great to see that there are some who are still eager to know something about what they are about to do and not just blindly signing up.

Really hard to think about those things especially if they are new on the platform but what I can suggest to those new is they should do a proper research before engaging their selves on unknown platform. And I'm also impressed with those newbies who came here ask about the certain platform since for doing that they could learn and they became good observer on next time around.

We should try to be vigilant always especially with our private information.

[khaled0111]

You could choose another site to use seems like you are registering to a site with a KYC required to use their service there are so many other providers that you could use without having a KYC.

can you state few of those exchanges that do not require identity verification before buying crypto with fiat?
Most if not all regulated exchanges will ask you to verify your identity when you make a fiat deposit/withdraw.
Even decentralized exchanges like bisq aren't completely anonyous when it comes to fiat trades. You will have to provide some personal information such as your name and bank account.

[o_e_l_e_o]

can you state few of those exchanges that do not require identity verification before buying crypto with fiat?

I use/have used BISQ, LocalCryptos, and Hodl Hodl.

Even decentralized exchanges like bisq aren't completely anonyous when it comes to fiat trades. You will have to provide some personal information such as your name and bank account.

There is an enormous difference between a single individual you are trading with seeing your name and an exchange with an unknown number of employees, unknown security set up, and who shares data with an unknown number of third parties, receiving copies of your passport or ID, selfies, name, address, social security number, and so on.

Still, if even revealing a name is more than you like, then you can buy anonymously with cash in person, cash through the mail, cash paid in to someone else's bank account, anonymous money orders, etc.

[conhela]

Hey guys/gals, maybe I'm too dumb to understand how BC really works, but I just signed-up on a BC site and before I can purchase a few coins, I was asked for all my REAL information, including last 4 of my SS#, address, and even a bank account to link my BC account to! So I'm scratching my head, "how can this be anonymous" they know everything about me and if I buy anything using that BC account, I just opened, it'll be just as transparent as buying w/ cc lol. Again please forgive my ignorance, but can someone briefly explain how can any transaction from a BC account be anonymous, if they collect every piece of information about you before allowing you to open an account! Thanks!

Yeah, keep in mind there are multiple kinds of wallets you can create. There are Exchange wallets, hard wallets and soft wallets.

Exchange wallets as you saw ask all kinds of questions about who you are, this is because in order to operate in any given country they need to comply with said country's legal framework.
Upsides: you get to trade against your FIAT of choice
Downsides: no access to private keys, the coins you hold here are not "truly" yours, and they can always just run with your money.

Hardware wallets are things like Trezor which are devices that hold the private keys of your wallets for you, they're easy to conceal and keep safe (like, in a safe) and all information within is encrypted with your password so it's hard to break into them without your passwords.
Upsides: increased security, you can always recover your wallet if you enter y our private key on any other wallet provider.
Downsides: you can't really trade against fiat unless you know someone who is selling, that you trust, that you can send your coins to.

Software wallets can be broken in two: full nodes and client wallets, full nodes are unpractical at best, recommended for people who run mining operations or large amounts of any given currency because they need to be connected to the internet and up to date before you're able to send your money away from them.
Upsides: increased security, shares the above one upsides, but has more potential ways to secure your funds.
Downsides: requires a more expensive set up, also same as above.

Now client wallets are things like Electrum or Jaxxx or others wallet providers that connect to a given node to get the blockchain information, these can be encrypted like the previous two but is not necessary.
Upsides: increased security compared to exchanges as you can export your private keys or mnemonic phrases to back up in case you lose your device.
Downsides: same as trezor hardware wallets, can't really sell to FIAT unless you know and trust someone who accept payments in crypto directly.

This is very generalized information, I personally make use of the 1st and 4th wallet above (exchange and client wallet), whenever my exchange wallet gets too fat (anywhere north of $1.5k) I transfer over to my client wallet, unless I'm actively trading I never keep more than that amount on any exchange at a time.

Hope this all helps!

[Anonylz]

This is why I tried to tell my sister to just buy byc from me lol that way she won't be sending her information to anyone. Even cashing out BTC actually will still make you not anonymous.
You will have to submit data to any 3rd party you will use for recieving fiat.

The only anon transaction is when you send BTC to another BTC address if that's what you look for.

That's a brilliant idea from your part, if the op can have someone trusted to buy from would be his best option, or he can look at the few dex we have around and decide, unfortunately buying btc from cex is a pain now, everyone must go through kyc in other to access them otherwise you can't do anything about it.

[o_e_l_e_o]

-snip-

A couple of things I would add to your post.

There are Exchange wallets, hard wallets and soft wallets.

I wouldn't call exchanges "wallets", but rather "accounts", since as you rightly point out, you have no control and no ownership over your coins or your keys.

Downsides: you can't really trade against fiat unless you know someone who is selling, that you trust, that you can send your coins to.

I trade more-or-less exclusively directly from my hardware wallet by using decentralized and peer-to-peer exchanges. It takes a little bit of time to become familiar with, but I definitely wouldn't say you "can't really" do it.

full nodes are unpractical at best, recommended for people who run mining operations or large amounts of any given currency because they need to be connected to the internet and up to date before you're able to send your money away from them.

Full nodes are more important than that. In fact, running your own node and validating transactions yourself is the only way to trustlessly use bitcoin. Every other lightweight wallet, SPV wallet, software wallet, mobile wallet, etc., is trusting someone else's full node to relay the correct information.

Now client wallets are things like Electrum or Jaxxx or others wallet providers that connect to a given node to get the blockchain information, these can be encrypted like the previous two but is not necessary.

Why is this not necessary? You should absolutely be using the built in encryption mechanisms on your software wallets. It protects you from both physical access to your computer as well as malware.