How Can You Buy Bitcoin Anonymously

Buying bitcoin isn't a revolutionary act. Nor should it be. And however the method statists, apparatchiks and politicians bang on, you’d assume the mere act of acquiring digital currency was akin to receiving the keys to a pandora’s box in that lurks every illicit artifact known to man. One day, these dinosaurs will begrudgingly concede that buying bitcoin is no more seditious than buying a soda with a $20 bill. But till then, you’ll need to preserve your privacy once acquiring cryptocurrency.

Buy Your Bitcoin, Keep Your Privacy

The reasons why you might need to stay bitcoin ownership to yourself don’t need rehashing. Put simply, though, it’s no one’s damn business what you would like to do with your money or how you wish to store your wealth. In the future, governmental scrutiny of bitcoin ownership will look as archaic and benighted as state intrusion into the religious or sexual preferences of its citizens. By the time that day comes, bitcoin may be worth a lot more than it's today. The steps you take to preserve your privacy in the present, therefore, may prove significantly precious in the future. Just think about 2011 bitcoiners who had no need to conceal their ownership at the time, only to find themselves sitting ducks once those bitcoins increased 3,000x by 2017.

How to buy Bitcoin AnonymouslyAnonymously buying bitcoin in little amounts is relatively easy, though obtaining your hands on larger quantities without having to jump through hoops will be tougher. Just as it’s common practice to use fake personal details when signing into public wifi, the same may be done when buying bitcoin through ATMs and terminals such as the newly repurposed Coinstar machines. Doing so would require a burner phone or a secondary SIM card that isn’t tied to your real world identity. Alternatively, look for “receive SMS online” to find links to services that will provide you with a one-time number.

Buying Bitcoin in person

In addition to BATMs, which might be used to buy a few hundred bucks’ worth of crypto at a time, P2P sites like Localbitcoins.com enable you to find sellers in your area and meet them in person. Better still, if you have acquaintances who add the cryptocurrency business or mine crypto, you should be able to purchase bitcoin directly from them, since they’ll be obliged to periodically liquidate some of their coins for fiat to cover living expenses. Newly mined coins are significantly precious (which is why they’ve been known to fetch a premium on otc markets) because they have no history associated with them.

How to buy Bitcoin Anonymously

Purchasing bitcoin face-to-face (or face-to-ATM) brings its own risks, of course, particularly from a privacy perspective. If you'd prefer it that nobody knew of your business – not the miner you’re buying crypto from, nor the surveillance cameras watching you feed banknotes into the BATM in the 7/11 – you’d be better served transacting online. While this removes the ability to transact in money, there are privacy gains to be created elsewhere.

Anonymously buying Bitcoin online

Finding a bitcoin marketplace that won’t KYC the hell out of you isn’t simple, however there's one platform that stands out from all the boot-licking exchanges willing to do the government’s bidding. Its name is Bisq, and what it lacks in liquidity and spot prices, it makes up for in privacy. The range of payment methods the P2P marketplace accepts is extensive: face-to-face is even an option, if you’re fortunate enough to live within range of a seller. Typically speaking, you’ll need to create payment using an e-wallet or bank transfer. Whereas this entails certain compromises from a privacy perspective, it’s easy to disguise the nature of the dealing using a generic banking reference such as “Car” or “Video editing.”

How to purchase Bitcoin AnonymouslyJust as Localbitcoins.com will connect you with sellers willing to meet face-to-face, it'll link you online during a manner similar to Bisq. Once again, if paying by bank transfer, you can put whatever you like on the pay-in reference, as most sellers do, as putting “bitcoin” on a bank reference is asking for account suspension. (This will change one day, but by the time it does, banks will no longer be relevant and will be begging bitcoiners for business.) It’s easy to set up a Localbitcoins account using a private email account, like Protonmail, and a fake social media account and burner number if you’re particularly cautious. Hodl Hodl is another P2P market where verification is optional instead of enforced. The number of available offers is low, but Hodl Hodl has a wider range of cryptocurrencies including XMR and EOS.

Buy Privately Then Stay Private

Anonymity measures shouldn’t end the moment you’ve bought bitcoin. It’s an current mindset that calls for using privacy-centric wallets such as Wasabi, avoiding sending funds to exchanges that enforce KYC, and also avoiding address reuse. But those are all topics we’ll cover in one of our next “How To” guides. Like bitcoin itself, privacy is likely to become an increasingly precious commodity in the years to come. The steps you take currently to preserve yours will pay future dividends.