Bitcoin is once again the popular kid in the lot after breaking its way above $40,000 in early December. Such an ascent came unexpectedly, with the price of BTC starting the year at $16,000.
With yet another meteoric rise, Bitcoin has proved its resiliency, and traders from all over the world are now rushing to get their hands on the token.
This article will discuss core questions that the market is curious to know nowadays, including the best platforms to buy Bitcoin anonymously, the entire process of acquiring one without verifying one’s identity, and other key facts about BTC.
Best Platforms to Buy Bitcoin Anonymously
Recognizing the potential for a blowup, Traders Union published its guide on how to buy Bitcoin anonymously in November. The guide is currently sought-after by traders wanting to get their hands on BTC while concealing their details.
First, it is important to note that blockchain, where Bitcoin is based, is characterized by anonymity. Users are identifiable only by their public keys which can now be concealed using pseudonymous addresses.
Buying Bitcoin is normally done using centralized exchanges which require customer identification as part of their Know-Your-Customer processes. Still, customer details on transactions remain private for the best interest of the client.
Traders Union experts scraped through the internet to identify the best platforms to purchase BTC anonymously in 2023. Experts identified Paxful, PrimeXBT, Binance, Cronos, Cex, io, Paybis, BitQuick, and Bisq as the best platforms to use for this purpose.
Paxful is a peer-to-peer marketplace known for its no-fee commission schemes for buyers and a 1% fee for sellers while PrimeXBT is an exchange charging one of the lowest fees in the market at 0.01%.
Binance, the largest crypto exchange by trading volume, also made the list due to its low maker and taker fees and stellar record of reliability. Meanwhile, Cronos and Cex.io charge higher commissions compared to their counterparts, currently at 2.99% via credit card transactions, but offer higher limits of up to $30,000 for verified accounts.
Lastly, Paybis, BitQuick, and Bisq are also identified as some of the best platforms to buy Bitcoin anonymously, offering flexibility in payment methods.
How to Buy Bitcoin Without Revealing an Identity
The list of options on how to buy Bitcoin without revealing one’s identity is never-ending. The most popular are purchasing using Bitcoin ATMs, direct person-to-person transactions, deploying wallet addresses to receive BTC, and using a DEX.
Bitcoin ATMs work the same way as traditional ATMs where users can deposit cash to their online wallet accounts to buy BTC or any cryptocurrency of choice – read more.
For those wanting a safer way to execute a purchase, Traders Union says person-to-person transactions as a way to do this. On the other hand, the risk is higher in this scheme especially if one is transacting with a stranger.
Both schemes have loopholes and experts noted that deploying wallet addresses is a better way to do it. Wallet addresses do not require personal identification attached to them, making the transaction fully anonymous.
Moreover, using decentralized exchanges such as Uniswap and PancakeSwap when buying BTC without verifying identity is a growing trend these days.
What is Bitcoin?
Virtually everyone on the planet has encountered the term “Bitcoin” or come across discussions about it at some point.
But what exactly is it? Bitcoin is an inaugural digital payment network launched in 2009 that operates without centralized control.
Its main function revolves around eliminating the necessity for financial institutions to process legitimate payment transactions. The absence of intermediaries like banks and governments allows Bitcoin to facilitate real-time payment transfers anonymously with minimal fees.
Despite the lack of traditional regulators, Bitcoin transactions maintain legitimacy through cryptographic coding and entry into a decentralized digital ledger known as the blockchain. The validation process occurs through the Proof of Work mechanism, where validators—commonly referred to as miners—solve intricate mathematical problems to create and authenticate a block.
Bitcoin relies on the Proof of Work consensus mechanism to validate its transactions, making it the most recognized user of the PoW system to date.
To ensure the credibility of transfers within the Bitcoin blockchain, computers engage in a competitive race to solve a mathematical problem, validating transactions stored on a block. The first computer to successfully solve the problem is rewarded with one BTC, the official currency of the Bitcoin network.
Bitcoin as a Digital Payment Method
Bitcoin operates within the digital payment ecosystem, functioning similarly to traditional fiat currencies.
However, unlike heavily regulated forms of exchange, Bitcoin allows for anonymous internet transactions without the unnecessary oversight of banks that often accompany high transaction costs.
Currently, there are more than 15,000 merchants globally accepting BTC as a form of payment. Major businesses such as Microsoft, Wikipedia, and AT&T actively embrace Bitcoin on their platforms, expressing robust endorsement for the technology.
This implies that you can use the cryptocurrency in making tangible purchases ranging from information and gadgets and various services.
Disclaimer: The content of this partner post is provided by Traders Union. The statements, views and opinions expressed in this column are solely those of the content provider and do not necessarily represent those of NewsBTC. NewsBTC does not guarantee the accuracy or timeliness of information available in such content. Do your research and invest at your own risk.
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