Cryptocurrencies like Bitcoin were created as a way for people to engage in financial transactions without excessively relying on banks and governments. However, as more people started purchasing crypto, more governments started regulating them to avoid scams, frauds, and other illegal transactions. Today, individuals can only purchase crypto if they have a valid ID for customer identification purposes. Since regulation has tightened, many exchanges have had to improve their compliance standards. Can you Buy Crypto without ID?
Many crypto exchanges require you to provide identification and some even need you to verify your identity with a photo. Whereas others will let you create an account but after investing in a digital currency, they will block you from your account until you provide them with proper verification. As a result, your money gets stuck in the account and you can’t access it anymore. This can be a problem for individuals who don’t have a driver’s license or other forms of government-issued identification. This can also be a problem if you don’t want your information being stored by big crypto exchanges like Coinbase and Binance.
Can You Buy Crypto Without Verifying Your Identity?
The short answer is yes. There are two ways that you can buy crypto and bitcoin without confirming your identity. One way of doing this is by using a Bitcoin ATM and the other way of doing this is by using a decentralized exchange.
Bitcoin ATMs are one of the easiest ways to buy Bitcoin and other cryptocurrencies without an ID. All you need is cash, and you can buy crypto instantly. The main drawback with this option is that not all cities and locations have Bitcoin ATMs. If you are located in Northern California, you can use Black Swan’s ATMs to purchase 40+ different cryptocurrencies without ID to a certain limit. Below is a breakdown of the verification requirements if you plan to use Black Swan’s ATM services:
$5 – 900 SMS Verification
$901 – 2,999 SMS + PIN + ID Scan + Photo of ID
$3000 – 20,000 SMS + PIN + ID Scan + Photo of ID + Blockscore (SSN)
Here is what we mean by the following data.
There are certain limits and verifications even within bitcoin ATMs. However, ATMs are not as extreme as online exchanges which is why you can purchase crypto with cash, and no ID is needed.
Customers of Black Swan can purchase up to $900 dollars worth of bitcoin and other cryptocurrencies with just a valid phone number, and that’s all. No need to upload an ID or verify your identity.
However, if you are looking to buy crypto that is worth more than $900 then we do require some level of verification.
With the high adoption of crypto today, regulation and KYC have made it difficult to allow anonymous transactions to occur however, you can purchase up to a certain amount at a Bitcoin ATM with minimal information.
Another way to buy cryptocurrency without identification is by using a decentralized exchange. Users can trade cryptocurrencies in a non-custodial setting on a decentralized exchange (DEX), which is a peer-to-peer marketplace. DEXs use blockchain-based smart contracts to replace traditional intermediaries, such as banks, brokers, payment processors, and other organizations, to enable the exchange of assets.
DEXs provide total transparency into the flow of money and the systems that support trade. They also lessen counterparty risk and can lessen systemic centralization problems in the bitcoin ecosystem. Unfortunately, even with decentralized exchanges within the United States, regulation has become quite tight causing the exchanges to be either banned from the U.S or provide customer information to the IRS.
Pros of Buying Bitcoin Without ID
Financial Information Stays Private
Your financial information is kept confidential when you purchase Bitcoin without an ID. This is because you aren’t giving out any personal data to an exchange. Instead, all you need to do is buy your crypto with cash. If you want to remain anonymous or are concerned about the security of your personal information, private transactions can be helpful.
Don’t Need to Go Through the Verification Process
To purchase crypto in a standard transaction, you must go through a verification procedure. This can take a lot of time and be frustrating, especially if you’re not familiar with the procedure. However, you can purchase cryptocurrencies without a photo ID and avoid going through this procedure. This implies that you can receive your Bitcoin considerably more quickly and easily.
Makes Crypto More Accessible
Millions of individuals don’t have bank accounts, debit cards, or credit cards. Also known as the Unbanked, buying bitcoin for these individuals without an ID can be the only way to gain access to cryptocurrency. Unfortunately, online exchanges require bank statements and on top of that, don’t accept cash as a payment method. This leaves out the Unbanke community from investing in crypto. By using a Bitcoin ATM, you can get around this problem and get some crypto without an ID.
Overall, buying crypto without ID can be a quick and easy way to get your hands on some cryptocurrency. However, it’s important to remember that this method is difficult to approach. Make sure that you’re taking all the necessary precautions before making any purchase. To get started, visit Black Swan’s website
to find the nearest Bitcoin ATM location or exchange that doesn’t require ID.
Disclaimer: The information and content manifested on the Black Swan Bitcoin blog are for educational purposes only. Nothing published by Black Swan Bitcoin constitutes as investment recommendation, nor should any data or content published by Black Swan Bitcoin be relied upon for any investment activities.