Getting around KYC

[Frankolala]

Not sure why you think going face-to-face to trade Bitcoin for actual cash is safe. I mean they could be someone from SEC or FBI waiting for you to do the P2P trade and boom, you are gone.
Just trade it online and if you are from the US, or UK, you should get a crypto debit card that allows you to do payments with Crypto in your regular/daily life. That's what I use and find logical to do instead of cashing it out.

The only risk that I see there, is if bitcoin is not legalized or is banned in that country. This is when you might get caught of breaking the law when trading with FBI or SEC. Apart from this,I don't think it is a problem. All one needs to do is a play safe by using those ways in which @ o_e_l_e_o said.

I have been using Binance Exchange peer-to-peer feature for a very long time now and there's no need for anyone to know the location for the zip code of seller, all you have to do is provide your bank details where you will receive your payment and Binance will release your crypto asset to the buyer after you have confirmed that you received the fund.

I guess OP wants a decentralized exchange where you will remain anonymous for the best privacy. If you use Binance it is a centralized exchange and you are not safe because they gat your information.

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[adzino]

A friend was telling me about: "The mycelium app
has a marketplace section where you type your zip code and you can meet up with local buyer/sellers of BTC to
do a cash transaction in person. Back in the day localbitcoins.com was perfect for this, but after the gov't put
pressure on them, they are no longer usable. Another venue you can use to find local cash/buyers and sellers
LocalCryptos.com. This way you avoid leaving a paper trail."

I live in America. Can any of you recommend  a site that has this type of function as the ones my friend
described above, and what were your experiences? I do worry about possibly you making a transfer and the
buyer, for example doesn't fulfill their agreement? Its not as if you could reverse the transfer. I realize I may
be a little paranoid, but this process is new to me!

I hope to hear from you reasonably soon!!!

I doubt there would be any service legally providing (the Americans) what you want. Any institution that provides such financia services must collect information from the users or they will be fined and sued. Its becoming more and more strict now. The only way you can do this right now is by looking for someone near you through the internet or forums wanting to buy bitcoin and pay in cash (fishy...). I wouldn't recommend this though. You don't know who you might meet.

[Cryptomultiplier]

If there was a way that trust could be earned without having to do a KYC verification on any app, it would be scary, because in this case of decentralization, money is interchanged between people who may never see themselves or have known themselves from Adam.

I wonder how it would even look like waiting on someone I know to trade my BTC with. It defeats the idea of what decentralization stands for.

If you OP, are not new to online services and apps, you should know what it feels like or have friends who should have expressed how it feels like having your Facebook or twitter or Instagram or any other social accounts hacked.
Unless you have ulterior motives with your coins, then seeking physical persons to trade with or trying out other means to bypass KYC is a big NO.

[Z-tight]

I have been using Binance Exchange peer-to-peer feature for a very long time now and there's no need for anyone to know the location for the zip code of seller, all you have to do is provide your bank details where you will receive your payment and Binance will release your crypto asset to the buyer after you have confirmed that you received the fund.

Before using Binance for "fake" p2p, they must have farmed your data and personal information, this data can be requested by the government, Binance can be breached and there will be a data leak, this way you personal data will be selling in the dark web; so Binance is not a better option, centralized exchanges are data farms and isn't recommended for people that want to trade and still have their privacy.

Usually many platforms require users to do KYC. Why is this important, because this is one of the rules in force, The Government and regulatory agencies have increasingly tightened regulations to combat illegal activity and maintain KYC compliance but if you are looking for a simple and uncomplicated Platform it is also available and you can find it in the link sent by brother @TravelMug. But, My question is if one thing or another happens in the transaction process, are we ready?

In p2p exchanges there is also a method of resolving disputes, everything is open and the parties will be involved in it. E.G in Bisq all the funds in the trade are kept in a 2-of-2 multi-sig wallet controlled by trading peers, and there is also a time-locked transaction set, this will send all the funds to another address that is controlled by Bisq, but this will happen many days after, if disputes isn't still resolved. So it is either trading peers reach a resolution, or the matter moves over to a mediator for settlement, if a middle ground cannot be reached, the arbitrator would have the final say, but that is when the time-locked transaction has been published and the funds is now with Bisq.

[o_e_l_e_o]

I have been using Binance Exchange peer-to-peer feature for a very long time now

Binance peer to peer is not peer to peer at all. It is peer to Binance. It is completely centralized, and owned and operated by Binance. As such, you have absolutely zero security since you hand your coins over to Binance like you do with any other centralized exchange, and you have absolutely zero privacy, since Binance track and record every trade and transaction that you make. It is the worst possible choice for peer to peer trading.

If the transaction of bitcoins was mainly physical, we will record a very high number of theft.

What about the literally billions of physical trades which happen every single day around the world without issue? Why is trading bitcoin any more risky than buying some piece of electronics or taking money out of an ATM?

It is not a bad idea to meet someone face-to-face for a secure transaction, but how can you establish trust at the first stage?

You don't need to. Use a platform like Bisq which has a built in escrow.

I wonder how it would even look like waiting on someone I know to trade my BTC with. It defeats the idea of what decentralization stands for.

What nonsense is this? Trading peer to peer is the very essence of decentralization and avoiding centralized third parties.

If you OP, are not new to online services and apps, you should know what it feels like or have friends who should have expressed how it feels like having your Facebook or twitter or Instagram or any other social accounts hacked.

What has any of that got to do with trading peer to peer?

[Dr.Bitcoin_Strange]

You can't trust an absolute stranger to carry out a P2P Bitcoin transaction to the extent that you have to meet them face-to-face. That's because scammers or fraudsters operate in different ways; you don't know how trustworthy the person you are going to meet is; you don't even know if the person is a thief or a rubber who is just using cryptocurrency transactions as bait or a plot to forcefully steal from clients when they come face-to-face to carry out transactions.

The right way to do it is unless you fully know the person and also have the trust in the person; otherwise, carry out your transactions online with the person, which will limit the possibility of the person truly knowing your identity.
In the crypto space, your privacy should be your priority.

The two platforms @Nwada001 recommends are good.

[Z390]

If you know what's good for you OP, you will never go out and meet stranger for any Bitcoin transactions, do you know why I like Bitcoin more? You can't know how much of Bitcoin I have, unless I tell you myself, so going out to meet someone makes you a target automatically,  if those you go out and meet are good people then it's good for you, but if those people are the bad ones you are going to get robbed or even get yourself killed.

Sorry to say, if Mycelium wallet is really doing this they are the poorest crypto business organization that ever existed in this space, I expected them to know much better as a company that's into crypto wallets, they should know how important privacy should be in crypto space.

[goldkingcoiner]

but I'm also a big fan of cash trades since they leave no paper trail for the government/banks/exchanges to use to spy on you

Me too. But I think one of the upsides is also the fact you can charge 3-5% higher than the market price, just due to the fact that F2F is the preferred fashion of most anonymous method to buy Bitcoin/other cryptocurrency with cold hard cash. Its also a bit cumbersome, scary and awkward. But the extra money you can demand is more than enough of a fee for your troubles.

I think if you live in a first world country then you do not have to worry about being robbed for a small/moderate amount of coin. But one should never let down their guard. Constant vigilance and preparedness is always smart.

One should never be naive when it comes to money/valuables.

[avikz]

Localcryptos have also closed down their services. Another two options are Bisq and Binance P2P. I don't think they offer cash transactions though. But please note that these kind of transactions are quite risky.

There is another website called Noones which is a copied version of paxful. It's very new so not recommended either. The only feasible way I found is through Bitrefil. Where I am purchasing Amazon vouchers or redeemable codes from other eCommerce websites. That won't give you cash but at least you can utilise your cryptos.

[Kryptowerk]

@OP: I haven't used that service myself (p2p) but I know people that have done so very successfully. I think it depends on where you live, how big the exchange-amount is, and if you can find a secure location and maybe someone to come along with you.

Perhaps you may want to check this website: https://kycnot.me/

[...]
https://kycnot.me/about#why-this

So you might want to explore that site and hopefully you can find a trusted individual that you can buy crypto.
[...]

Great resource. Glad to see Bisq as #1 in regards of DEX.
Would have been my first recommendation.


AgoraDesk was recommended to me several times, probably worth for you to check it out, too.

[bittraffic]

I am using mycelium app but I can't find that marketplace OP said. There is lo link going  to that marketplace either.

But I'm sure he knows its scary also to meet face to face with someone who agrees to see you to sell his BTC. Those guys may see it as an opportunity to rob you. They definitely won't be coming if you are just buying a fraction of BTC so he will assume you got a bag of money if you buy at least more than 1BTC. Its the kind of money they see worth killing.

[The Cryptovator]

Engaging in a meeting with someone to sell your Bitcoin for cash carries significant risks. There have been numerous cases of such transactions leading to criminal activities in my country. In these instances, buyers arrange a meeting with the seller, take possession of the Bitcoin, and then disappear without making the payment. These buyers are often well-prepared to blackmail the seller, who is usually alone during the transaction, resulting in the loss of their coins. Considering these dangers, I strongly advise against taking such risks.

Moreover, if you are located in the USA, evading taxes becomes difficult as most peer-to-peer (p2p) exchanges require Know Your Customer (KYC) verification, with only a few exceptions. Although I am not aware of any legitimate p2p exchanges without KYC, you can explore the exchange section on forums to find reputable buyers or sellers. However, for security reasons, it is crucial to utilize an escrow service from the forum, even though it may involve paying a small fee. This added layer of protection can help ensure a secure transaction.

[bussybuddy]

It is incomprehensible to you to think that bitcoin direct transactions are really safe. Because such transactions often have many potential risks, including fraud or becoming entangled in criminal activities, So it is better to use debit cards or online platforms. It's easy to convert crypto to fiat at the point of sale, just like a regular purchase. So it's a safer alternative to managing and using your cryptocurrency in daily life.

[Ultegra134]

Localcryptos have also closed down their services. Another two options are Bisq and Binance P2P. I don't think they offer cash transactions though. But please note that these kind of transactions are quite risky.

There is another website called Noones which is a copied version of paxful. It's very new so not recommended either. The only feasible way I found is through Bitrefil. Where I am purchasing Amazon vouchers or redeemable codes from other eCommerce websites. That won't give you cash but at least you can utilise your cryptos.

No, they don't. I also posted a similar thread a while ago, trying to find out if there are any alternatives to avoiding the usual way of going through banking services in order to exchange for fiat. Unfortunately, the only options I see as possible are P2P transactions in person, which doesn't sound like a very safe option and, if used, are only advised for small amounts of money, and cryptocurrency ATMs, which usually charge high fees and some of which even require KYC.

Thus, unfortunately, going through exchanges is almost a must, and personally, when the time comes, I will withdraw small portions, and for the rest, I might consider an ATM or a P2P transaction.

[Z-tight]

Moreover, if you are located in the USA, evading taxes becomes difficult as most peer-to-peer (p2p) exchanges require Know Your Customer (KYC) verification, with only a few exceptions. Although I am not aware of any legitimate p2p exchanges without KYC,

If an exchange requires KYC, then it is not a p2p exchange, so what you should say is that exchanges that require KYC aren't p2p exchanges, and there are very legitimate p2p exchanges like Bisq, AgoraDesk and the rest of them you can get here: https://kycnot.me/.

If you know what's good for you OP, you will never go out and meet stranger for any Bitcoin transactions, do you know why I like Bitcoin more? You can't know how much of Bitcoin I have, unless I tell you myself, so going out to meet someone makes you a target automatically,  if those you go out and meet are good people then it's good for you, but if those people are the bad ones you are going to get robbed or even get yourself killed.

If you go out to trade F2F with someone, you shouldn't tell them how much BTC's you have, it is no business of theirs and has no business in the trade you want to carry out. If going out to trade BTC F2F makes you a target to be robbed or killed, then you are a target everyday, because you go out everyday for various reasons, any harm that can happen in your BTC trade can also happen on every other day. Meet the other peer in a very open area, go well prepared and follow other basic safety methods you use in your everyday life for your everyday dealings, and you'll be fine.

[mendace]

A friend was telling me about: "The mycelium app
has a marketplace section where you type your zip code and you can meet up with local buyer/sellers of BTC to
do a cash transaction in person. Back in the day localbitcoins.com was perfect for this, but after the gov't put
pressure on them, they are no longer usable. Another venue you can use to find local cash/buyers and sellers
LocalCryptos.com. This way you avoid leaving a paper trail."

I live in America. Can any of you recommend  a site that has this type of function as the ones my friend
described above, and what were your experiences? I do worry about possibly you making a transfer and the
buyer, for example doesn't fulfill their agreement? Its not as if you could reverse the transfer. I realize I may
be a little paranoid, but this process is new to me!

I hope to hear from you reasonably soon!!!

OP it is not recommended to do peer to peer exchanges in person there are many factors you need to be careful of take into consideration that someone will surely be a scammer and could attack to take possession of your Bitcoins.  There are many software that work well and that do not need kyc for example Bisq or robosats or here in Europe Pocket App is also going strong which lets you buy Bitcoins by bank transfer.  While if your intention is to swap for Fiat then Bisq is fine.  I also want to tell you about Peach and how I had my bitcoinbeer.events inserted into the app to be a place of physical exchange between two people but with the security of having a community nearby to guarantee your safety.

[o_e_l_e_o]

Another two options are Bisq and Binance P2P. I don't think they offer cash transactions though. But please note that these kind of transactions are quite risky.

Binance is centralized trash and not really peer to peer at all, as already discussed. Bisq does indeed offer cash trades. Using Bisq is much safer than a centralized exchange provided you take standard precautions and use their in built escrow.

[ancafe]

Binance is centralized trash and not really peer to peer at all, as already discussed. Bisq does indeed offer cash trades. Using Bisq is much safer than a centralized exchange provided you take standard precautions and use their in built escrow.

That's right and I was familiar with Binance before my country decided to no longer provide operational licenses for this centralized trading, there are many drawbacks that people should think about when dealing with centralized exchanges, KYC and other security issues standardize why we should avoid centralized exchanges. Even the owner himself has said not to store assets on Binance and the risk will be borne by each, then what other considerations should be made besides avoiding centralized exchanges.

I agree it is more appropriate to use Bisq than binance and standard precautions can be taken using the built-in escrow service, so the level of security is more reliable and also less worrying. Essentially what the OP wants is about security and actually ourselves being able to do that regardless of which exchange to use.

[Nrcewker]

The best alternative of localbitcoins.com is paxful. It has similar features and payment methods, and now this is used widely for the P2P deals. I remember localbitcoins had that payment option to pay through cash in order to buy the coins, but personally speaking it’s not at all safe. As who knows what may happen during the meet, and yes you should completely avoid to meet the strangers anywhere physically and especially when there is financial thing involved in it. Go to Paxful and try the alternate ways. I am sure that you will find something useful through which you can buy.

[Kakmakr]

You can find out if there are "Bitcoin" meetups in your area and then you build a trust relationship with some of those people and start trading with them. I have bought a lot of coins in that way and I never had any problems.

Yes, it is not the safest way to do that, but you use social skills to protect yourself. Example : Tell the buyer that you are buying small amounts to buy food every day, so they will think that you are not a hoarder. People will not go out of their way to follow you, if you buy a few hundred dollars worth of coins every week.