How to buy Bitcoin anonymously or using KYC?

[jossiel]

OTC's will require you some IDs still and that's why they're not going to make you anonymous.

If you do it with P2P, you'll still have some traces from the platform. Or even in real life, that person you'll be dealing with in person will have your contacts unless both of you agrees not to record any of it.

But who knows, a picture or a proof won't still make you anonymous with that while doing the deal/trade.

[macson]

If the price of BTCitcoin increases significantly or reaches $1 million, or if someone buys a large amount (Thousands) of Bitcoin at the current price from a KYC exchange, (A large transaction) how will those KYC documents be protected from anyone seeing them?

Just hope that there is no data leak or insiders can expose your personal information, since the exchange holds your identity and they can link it to the transaction.

Or is there a way to buy anonymously?

There is. But it's becoming difficult to buy Bitcoin anonymously, so most people choose to use exchanges, even if it means sacrificing their privacy.

[Dogedegen]

Or is there a way to buy anonymously?

The only true way to buy anonymously is using cash, everything else is not anonymous even if you don't use a platform that requires KYC. You can try to do even P2P trades, but if it includes banking information you are still exposing yourself to the seller so it is not really that much better. The only thing that this protects you is from KYC leaks from exchanges, but you trade one risk for another. Instead of this risk, you risk connecting your identity to Bitcoin to the seller and whoever he talks to or interacts with. You do not get a guarantee of secrecy here. In one way you could even consider this worse, because on the exchange you are just a number and usually a very small number compared to some very rich people so even in a leak you would not be personally targeted in most cases. When dealing with P2P transactions of high value, they will always have your name and that can create a personal target.

There are big OTC markets that work with cash and even with P2P. Overall you can establish yourself in there and most traders prefer to use cash, and it is often based on reputation and referrals for added security. What people who want to stay more anonymous and deal with larger amounts of money tend to do is that they send couriers to pick up the money, so they in no time expose themselves directly to the other peer.  Some of these networks operate even internationally, think of it as an offline P2P desk like exchanges sometimes have online ones.

There is. But it's becoming difficult to buy Bitcoin anonymously, so most people choose to use exchanges, even if it means sacrificing their privacy.

Actually the opposite is true, it has never been easier to buy Bitcoin anonymously than it is today. The more demand there is the more suppliers there are for OTC transactions. What you mean to say is limited to platforms, but even in the past you couldn't buy without them having your data even if they didn't ask for KYC like they do now. What happens when the exchange receives a fiat transaction from you? They know who you are and where you have a bank account, that is already half the story anyway.

[PX-Z]

There's so many ways to do it, p2p exchanges using bisq can be the very first way to do it. It's decentralized and secure p2p without any kyc needed. While you can swap exchange using different instant swap exchanges too like b1exch, ccex, and many more reputed out there.

Instant exchanges can't help unless he already have some tokens or stable currency, because that's considered cryptocurrency too so he had to buy that first with fiat and then he could use instant exchanges otherwise, he can't do direct p2p trades on them.

Yes, that's the point of using instant swap/exchanges, when you already have your coins from decentralized p2p in which you already mentioned quoting other user.

The only true way to buy anonymously is using cash, everything else is not anonymous even if you don't use a platform that requires KYC.

Anonymously? Even in p2p via cash, you can't call it anonymous. Even there is someone a p2p community near on your area and i don't think you can just easily find someone selling their coins in lower rates especially selling it on in-person via cash or bank transfer.

[tbct_mt2]

The only true way to buy anonymously is using cash, everything else is not anonymous even if you don't use a platform that requires KYC.

It seems you want to mention about no KYC platform as you likely wanted to give an example about p2p trade on no KYC exchange but if the payment method is bank transfer, there will be leaked information of your bank account, and identity to your trade partner.

You can try to do even P2P trades, but if it includes banking information you are still exposing yourself to the seller so it is not really that much better. The only thing that this protects you is from KYC leaks from exchanges, but you trade one risk for another. Instead of this risk, you risk connecting your identity to Bitcoin to the seller and whoever he talks to or interacts with. You do not get a guarantee of secrecy here. In one way you could even consider this worse, because on the exchange you are just a number and usually a very small number compared to some very rich people so even in a leak you would not be personally targeted in most cases. When dealing with P2P transactions of high value, they will always have your name and that can create a personal target.

I agree and this risk also includes a fact that the P2P trading platform has their chat box for you and your trade partner to post information of the trade into it. So you, your trade partner and the p2p trading platform have information about your identity and bank account. Such information can be leaked somehow by your trade partner and the p2p trading platform from a data breach or their platform moderator's data sell to dark market.

[jcojci]

Only exchanges platforms know the KYC for every member they have unless there is a leak happening on their site and makes the hacker steal the documents. But exchanges platform will protect the documents and always secure their system from the hackers.

Buying a large amount of Bitcoin anonymously is risky because you must make sure everything is safe for you especially choosing the platforms. You can use centralized exchanges to buy but you must follow the rules so you will not have a problem.

If your sources of fund is not coming from illegal transaction, you don't have to confuse choosing the platforms. You can choose centralized exchanges to buy and send Bitcoin to your own wallets which will be safe or you can choose decentralized exchanges.

But maybe you can choose offline way where you meet the seller face to face and doing transaction by cash. But you should finds trust sellers so you will not get in the scams.

[X-ray]

If the price of BTCitcoin increases significantly or reaches $1 million, or if someone buys a large amount (Thousands) of Bitcoin at the current price from a KYC exchange, (A large transaction) how will those KYC documents be protected from anyone seeing them?

OP, nobody are buying thousands of bitcoin using exchange directly into retailers market these days, most of them did a transaction through OTC to avoid huge slippage as well.

As for the KYC matter, CEX have the responsibility to keep the KYC safe unless they use third party KYC service, when you submit KYC, I think pretty much the company are seeing your KYC except the public.

I haven't dived deep into how they keep the KYC secure though.

[Catenaccio]

Only exchanges platforms know the KYC for every member they have unless there is a leak happening on their site and makes the hacker steal the documents. But exchanges platform will protect the documents and always secure their system from the hackers.

Always, no.

Because many exchanges are scam, or died after some time of operations. You never know how they handled user documents after a scam exit or an exchange death.
Even an exchange is lively operated, hacks can happen, and exchange staffs might do something illegally and not accepted morally by stealing user documents from the company database, and sell it somewhere.

With exchanges, many hacks happened so far and won't stop disappearing in the future, so please don't trust like Exchanges will ALWAYS secure user documents.
https://www.cryptowisser.com/exchange-graveyard/

[Outhue]

The possibility of having such problem is when you are trying to buy 50Bitcoin on a small crypto exchange that requires for your KYC information, because people buy 100 Bitcoin on Binance and Coinbase, I think it's nothing big when you use a bigger crypto exchange but still I don't completely like the whole idea, because someone working for Coinbase or Binance knows yours home address, it's easier to become a target this way,  it's not known to Binance that you have 50 Bitcoin but all the workers under Binance, there is nothing restricting crypto exchange workers to viewing customers information and that's a big problem.

[Ucy]

You could simply use non-kyc exchanges, such as decentralized or instant exchanges, but you should be aware that dirty/stolen coins are tracked and could be confiscated on even the non-custodial zero kyc exchanges, otherwise you are likely to have zero issue with them.

If you want to be extra careful, you should use certain tools, preferably opensourced, that act as  channels to connect to non-kyc exchanges while protecting your privacy. This still does not prevent dirty/stolen coins from being confisticated

[aoluain]

If you want to buy bitcoin with no-KYC, my best recommendations would be Bisq and Peach. I have never used Peach, but I have heard the best, and it's probably less complicated to understand than Bisq. Peach is centralized, but peer-to-peer with escrow, Bisq is decentralized but more complicated (i.e., uses a DAO for disputes.)

To "erase" the most of your KYC, you can sell the bitcoin back to the centralized exchange you bought it, and re-buy it from one of those two.

I can vouch for Peach Bitcon, I have used it many times for buying and selling mostly through a
digital bank. There are limitations to using Peach to side step the KYC and that is a limit of trades
to the amount of €1000 in 24 hours.

I can also suggest HodlHodl for non KYC buying and selling Bitcoin.

As suggested previously there is also the option of swapping altcoins for Bitcoin via DEX.fo!

[PrivacyG]

There are ways you can avoid Know Your Customer.  Bisq has been an all time favorite for me as you have complete control over things.  There are also platforms that do not ask for any thing from you.  I am currently advertising one of them.

When you are submitting your ID to a centralized exchange, there is no guarantee.  In fact.  The only guarantee you get is that one of these exchanges WILL get hacked and customers WILL be affected by it.

[Z_MBFM]

If the price of BTCitcoin increases significantly or reaches $1 million, or if someone buys a large amount (Thousands) of Bitcoin at the current price from a KYC exchange, (A large transaction) how will those KYC documents be protected from anyone seeing them?

Or is there a way to buy anonymously?

Bitcoin is a decentralized coin but you can maintain this decentralization as long as you mine Bitcoin but when you buy Bitcoin with your fiat money then you have to take the help of a platform where you have to do KYC verification. However after buying Bitcoin you can hold them in a decentralized wallet which will give you enough security and give you freedom but the record of how much Bitcoin you bought will remain in that centralized platform where you bought Bitcoin using your bank account or bank card. We are trapped in a system and there doesn't seem to be a solution to this

[Rengga Jati]

You don't  need to keep the BTC on exchange but they have every record of transactions and your identity details at hand.

This is the downside of using CEX. To make a transaction, you must undergo KYC verification using your ID data. Not only that, but you also have to take a photo with your ID card, and even face verification. Even those who want to make large transactions must undergo further identity verification, including providing salary summary data or bank statements. It's crazy how some CEXs are set up like that.

Just imagine, they have our detailed data, even our faces, recorded. Even if they promise our identity will be secure, is it really completely and forever?

But what can we do? Sometimes we have no choice. If we want to make a deposit, unless it's through P2P, the risk is very high if we don't know and trust the platform or the person.

[Finestream]

Buying bitcoin anonymously can still be possible through decentralized platforms and physical methods, but they offer much higher transaction fees compared to centralized exchanges.

With p2p marketplaces which connect you to individual sellers, and it can be more reliable through using a bisq, a fully decentralized desktop application that requires no personal information.

Bitcoin ATMs may also be considered the most private ways to acquire it but its not as safer as p2p transactions. And of course, decentralized exchanges that only require a self-custody wallet connection.

[Dogedegen]

Anonymously? Even in p2p via cash, you can't call it anonymous. Even there is someone a p2p community near on your area and i don't think you can just easily find someone selling their coins in lower rates especially selling it on in-person via cash or bank transfer.

It is anonymous, the other side does not know if you are the buyer or a courier or some other employee. They do not know your identity, they know only a face which without more information is nothing. This can not be compared at all to a situation that involves KYC or your real information, even if there is no face attached. It is easier to find a face if you have somebody's real name and other information such as location than it is to get a real name attached to a face that you have seen once. Also you need to know that sellers do not know who is going to come to the meeting, it may be a criminal or dangerous person. They would endanger themselves by doing any kind of setup or spying, and a reputable selling is never going to do something childish. There issues never happen for legitimate buyers when they are dealing with reputable sellers, don't read too much Coindesk and other bad sources. They report only transactions that went bad which don't represent even 0.1% of all P2P transactions involving cash, probably much less than that and that is mostly due to dealing with shady individuals.

The only true way to buy anonymously is using cash, everything else is not anonymous even if you don't use a platform that requires KYC.

It seems you want to mention about no KYC platform as you likely wanted to give an example about p2p trade on no KYC exchange but if the payment method is bank transfer, there will be leaked information of your bank account, and identity to your trade partner.

Yes I mention that in the second part, that is why cash is always the most superior method including in P2P trades.

You could simply use non-kyc exchanges, such as decentralized or instant exchanges, but you should be aware that dirty/stolen coins are tracked and could be confiscated on even the non-custodial zero kyc exchanges, otherwise you are likely to have zero issue with them.

This answer is false, these exchanges do not support fiat. The user is not asking how to buy Bitcoin using other cryptocurrencies which is very easy, he is most likely asking how to buy it anonymously for fiat.

[Russlenat]

Buying anonymously offers privacy, but it also comes with risk including significantly increased costs and fees, higher fraud risks, lower liquidity and convenience, technical complexity, potential regulatory issues, and long-term traceability.

However, if anonymous buying will only put your bitcoin investment at high risk and future consequences may arise, then what's the point of starting it? My point here, if you decide to take risk with bitcoin, do not stick with anonymous buying, but buy it directly from regulated, reputable exchanges. And to achieve maximum security, just move your bitcoin to a personal hardware wallet.

Bitcoin is never 100% anonymous, once anonymity is broken later, all past transaction will be visible.

[PX-Z]

Anonymously? Even in p2p via cash, you can't call it anonymous. Even there is someone a p2p community near on your area and i don't think you can just easily find someone selling their coins in lower rates especially selling it on in-person via cash or bank transfer.

It is anonymous, the other side does not know if you are the buyer or a courier or some other employee. They do not know your identity, they know only a face which without more information is nothing. This can not be compared at all to a situation that involves KYC or your real information, even if there is no face attached. It is easier to find a face if you have somebody's real name and other information such as location than it is to get a real name attached to a face that you have seen once. Also you need to know that sellers do not know who is going to come to the meeting, it may be a criminal or dangerous person. They would endanger themselves by doing any kind of setup or spying, and a reputable selling is never going to do something childish. There issues never happen for legitimate buyers when they are dealing with reputable sellers, don't read too much Coindesk and other bad sources. They report only transactions that went bad which don't represent even 0.1% of all P2P transactions involving cash, probably much less than that and that is mostly due to dealing with shady individuals.

You can call it highly private transaction, but not fully anonymous. For p2p with fiat and crypto, at least either you are a seller or buyer someone will provide name and say bank account number for fiat transfer, unless there are fiat payment ways that only shows QR code, but yet in the the transaction history recorded, some apps shows names and the bank account #. So again, you cannot call it anonymous if you're sharing such info, CCTVs are all over the place too.

[Pumpsta]

However, if anonymous buying will only put your bitcoin investment at high risk and future consequences may arise, then what's the point of starting it? My point here, if you decide to take risk with bitcoin, do not stick with anonymous buying, but buy it directly from regulated, reputable exchanges. And to achieve maximum security, just move your bitcoin to a personal hardware wallet.

Yea, just buy it from a reputable exchange, just ignore all the 1000 other reasons you shouldn't Bro, the maximum security isn't worth shit if ur identity's stolen cause now your safety's in danger....

[TedMosby]

You can find and choose an exchange based on the list on https://kycnot.me/?categories=exchange.
Basically, that website curates a list of services where you can use cryptocurrency without needing to do KYC procedures.

And if you want to use it anonymously for daily transactions like transacting with non-crypto merchants, you can try the service by p2p.me.
I knew it from a thread on the Indonesian local board. The tutorial was created by Rashlyowl and presented in Bahasa Indonesia..
BTC -> USDC -> Merchants.
https://bitcointalk.org/index.php?topic=5578205.msg66538945

Also, this idea by d5000 is also worth mentioning here although it's still an idea.
Would a non-custodial Bitcoin ATM be possible?
https://bitcointalk.org/index.php?topic=5552868.0