Crypto exchange without KYC

What is KYC really?

Know Your Customer (KYC) is a process for identifying and verifying the identity of customers.

It is a system that enables financial institutions to verify the identity of their customers, establish the authenticity of personal and business relationships, and monitor transactions at any time.

The KYC process is used by financial institutions as part of their efforts to prevent money laundering, terrorist financing and other financial crimes.

It can also help crypto exchanges comply with anti-money laundering (AML), counterterrorism financing (CTF), sanctions and other regulations, as financial institutions are required to know who their customers are.

However, there are ways to locate a crypto exchange without KYC regulations on which cryptocurrencies can be traded. Despite the fact that this is required by law, the details of the procedure depend on the company and the countries in which it does business.

Therefore, crypto exchanges may require any of the following information (less or more) before granting you access to their services or opening an account:

• Your full name
• Passport/driver's license/other government-issued photo ID
• Proof of residence
• Phone number
• Social security number
• E-mail address
• Residential address

The Exchange will verify your identity if you provide the appropriate information and a photo of your ID.

Depending on the exchange and workload, it can take from a few minutes to several business days until the verification of your data is completed and your account is activated.

What is the purpose of KYC?

More and more countries are starting to follow the KYC and AML standards that have already been introduced in the European Union and the United States. To fight money laundering, fraud and hacking, financial institutions need to know their customers

According to KYC, these databases are cross-checked with watch lists maintained by various law enforcement agencies.

Thus, the identification serves to prove that the trader complies with the law and is authorized to conduct business.

In addition, the review is a kind of insurance. In the event of a cyberhack or technical glitch, for example, the merchant can prove that they own their account and are entitled to their money.

Why should you avoid KYC?

Firstly, the obligation to present documents contradicts the basic idea of cryptocurrencies, namely to have anonymity, freedom and full control over monetary transactions.

In addition, providing data to reduce the potential for fraud poses several risks:

• Data leaks are virtually inevitable
• Your data may be disclosed to third parties and government organizations

Therefore, the urge to maintain anonymity is still strong, and it is still possible to maintain it.

First of all, let us note that privacy is one of the fundamental human rights recognized worldwide. If you follow the rules, you are not breaking the law.

Even though some users want to remain anonymous, others just want to start trading as soon as possible without spending time waiting for account activation confirmation.

This is not necessarily a sign that they are scammers. So, if you want to remain anonymous and are willing to take risks, the following information will help you make the right decision and trade safely with your cryptocurrency.

The best exchanges for anonymous purchase of cryptocurrencies

There are several crypto exchanges on the market that offer trading without KYC or AML checks, which allows for complete privacy and anonymity.

However, when choosing a crypto exchange, you should exercise extreme caution and conduct your own background check on the exchange to protect yourself from fraud.

Here we have compiled a list of no-KYC exchanges that appear trustworthy and offer a stable trading platform to date.

KuCoin

KuCoin's services were launched in September 2017 and are the preferred exchange option for Altcoins.

The exchange offers some of the highest quality crypto ventures with tremendous development potential and the ability to change the face of the industry.

It also intends to provide users with an extremely safe and convenient trading environment.

The exchange is best suited for spot trading, margin trading, derivatives, mining pools, stakes and credits. It offers trading in over 400 different indices and has a very reasonable fee structure for trading.

The exchange exclusively facilitates crypto-crypto trading pairs and has a daily trading volume of nearly $1 billion.

A robust API interface, bank-level asset security, a fast-processing trade matching engine, affiliate programs, and bonuses are some of the key features of the KuCoin platform.

ByBit

ByBit, a new peer-to-peer crypto derivatives exchange, was founded in 2018 and is based in Singapore.

The exchange specializes in perpetual swaps and has over 1.2 million registered members.

One-click coin swaps, unlimited withdrawals, complex order types, a simple platform design, and an advanced security system are among the platform's key features.

The exchange has an average daily trading volume of more than $500 million, indicating the platform's market depth and ability to execute orders quickly.

Pionex

Pionex is much more of a service platform than a trading platform and is primarily designed for Bitcoin investors.

Apart from not requiring ID verification to start using the site, they also offer trading bots to help you manage and grow your portfolio.

Although ID and KYC verification is not required, the site is still developing a multi-level security mechanism to better comply with global requirements.

You can buy Bitcoin quickly and easily with Pionex and you don't have to provide all your identity details.

The website bundles current market information, a trading platform and trading robots in one place.

Since certain exchanges require a seemingly infinite number of procedures to establish your identity, sites like Pionex will always be relevant.

Pionex knows all the obstacles in the crypto market and does a great job in providing access to this market with as little effort as possible.

Dex-Trade

In just five years, this stock exchange has risen to 49th or 50th place on the list of the most important stock exchanges in the world.

Founded in 2017, Dex-Trade is registered in North American Belize and has been performing well in the crypto market lately.

The exchange currently has over 300,000 registered users and is available in nearly 180 countries, with the exception of the United States, Crimea, Cuba, Iran, Iraq, North Korea, Sudan and Syria.

The Dex Trade interface is connected via an API to trade at lightning speed and often with predefined strategies. Over 330 cryptocurrencies are accepted, including Bitcoin, Ethereum, Binance USD and many others.

It offers spot trading, demo trading, staking, tournaments and games that you can use to make lucrative trades.

Setting up an account with Dex Trade takes less than 40 seconds and with protection mechanisms such as 2-factor authentication, security is enhanced.

SimpleSwap

SimpleSwap is a cryptocurrency exchange that allows you to trade various cryptocurrencies. It has collaborated with renowned exchanges such as Binance, Bittrex, HitBTC, Huobi, Kraken and several others to simplify the process of buying and selling cryptocurrencies.

You can buy, trade and exchange cryptocurrencies without having to register on the platform as there is no KYC process to go through.

You can also buy and sell cryptocurrencies anonymously for up to €500 without identifying yourself.

SimpleSwap allows you to buy cryptocurrencies with a credit/debit card, Apple Pay or Google Pay. It supports multiple fiat pairings and allows you to buy and sell over 400 cryptocurrencies.

SimpleSwap can be used to exchange cryptocurrencies with each other as well as to transact cryptocurrencies with fiat currencies.

SimpleSwap's user interface is easy to use and available in online and mobile applications.

Bisq

Bisq is also known as BitSquare and is a peer-to-peer marketplace for cryptocurrencies such as Bitcoin and Ethereum.

It is the only fully decentralized exchange in the world that does not require any personal information such as name or email address, or any KYC or AML requirements.

Although it is one of the most sophisticated exchanges on the list, it still has modest volume and can be difficult for beginners.

Users appreciate Bisq's security as they value anonymity and do not hold fiat or BTC on their servers or accounts.

Many users prefer Bisq because it is an open-source exchange that has no KYC requirements, accepts over 15 different payment methods, and offers downloadable software.

This means that no one outside of the users themselves has access to or control over their money, even though it is stored on this exchange.

PrimeXBT

If you are looking for a crypto exchange that does not require KYC, this is a wonderful alternative.

It is ideal for margin trading and allows you to trade cryptocurrencies, stock indices, commodities with greater leverage and currencies.

PrimeXBT was established in Seychelles in 2018 and has become one of the leading exchanges within a couple of years.

You will be surprised to learn that their average daily trading volume is more than $1.5 billion.

They have several advantages, one of which is that they offer the greatest leverage across all asset classes available for trading.

PrimeXBT allows you to trade 9 different crypto trading pairs in 5 different cryptos including BTC, ETH, EOS, Litecoin and Ripple.

It offers a user-friendly and flexible interface and supports sophisticated indicators, chart types and order types.

PrimeXBT is a Bitcoin-based margin trading platform that allows you to trade more than 30 assets and currencies with a single account.

DFX.Swiss

DFX.swiss is a Swiss company that seeks to combine the best of the decentralized blockchain world with the traditional financial system. With the DFX smartphone app (for IOS/Android) you get 24/7 access to:

• fast purchases/sales of cryptocurrencies via SEPA bank transfer
• conveniently generate interest from liquidity mining or staking trade many popular cryptocurrencies on the integrated DEX such as Defichain, Bitcoin, Ethereum, Doge, Litecoin and many more.
• trading in decentralized assets such as commodities, shares or ETFs
• No KYC required up to EUR 900 transaction volume (purchase and sale)
• Creation of recurring investments with simple standing order

What is the greatest added value of DFX.swiss? You control the key to your wallet, no one else does!

Here you can go directly to DFX.swiss Neobroker and via our link you can save an additional 0.5% in fees on every purchase: Neobroker

The advantages and disadvantages of crypto exchanges without KYC

Although KYC processes are designed to prevent financial fraud, there are real reasons why you may not want to go through this process.

The privacy

Anonymity is one of the main advantages of cryptocurrencies. At least that was Satoshi Nakamoto's idea for Bitcoin.

However, since it was revealed that the use of cryptocurrencies is linked to illegal activities such as buying illegal substances and weapons on the dark web, regulators have made it clear that they will not tolerate it.

When you buy Bitcoin from a KYC crypto exchange, you link your personal identity to a set of crypto addresses.

This information can then be used to:

• Track your transactions outside of exchanges.
• Trying to collect taxes on cryptocurrencies from you.
• Make an attempt to steal your external wallet.

Even if crypto enthusiasts don't have a problem with KYC, there is still a trust issue.

Sensitive consumer data stored on exchange servers has been exposed far too many times to list here.

Even a major exchange like Binance was hacked in 2019, with over 10,000 personal photos held for ransom.

Accessibility

Depending on where you live, KYC can be a barrier to accessing the crypto market.

Countries such as China, Egypt, Morocco, and Algeria have all banned the use of cryptocurrencies.

There is also a lot of regulatory controversy surrounding cryptocurrencies in the United States, with New York having some of the strictest rules.

This, in turn, contradicts the goals of cryptocurrency, which is to be borderless and accessible to everyone, especially in the event of a state collapse or widespread inflation.

In such cases, selected cryptocurrencies act perfectly as an insurance policy or a store of value that can be accessed by the owner from anywhere in the world.

Disadvantages of crypto exchanges without KYC

As valid as the above arguments are, you need to be aware that ultimate anonymity also has its drawbacks:

Security

Because crypto exchanges without KYC are often smaller companies, they can compromise on security measures, making it easier for hackers to attack them.

In the event of a hack, your cryptocurrencies are not protected in the same way as FDIC-insured money.

Some centralized exchanges have insurance plans worth hundreds of millions of dollars, such as Coinbase and Gemini.

Reputation

A lack of KYC discourages investors who have a lot to lose and prevents cryptocurrencies from being more widely adopted.

Crypto exchanges without KYC also have a hard time gaining the trust of other financial institutions, which will make them less successful than regulated crypto exchanges in the long run.

Conclusion

We looked at the many platforms where you can buy cryptocurrencies anonymously, and also presented some alternative options.

We hope that you have a clearer understanding towards regulated and non-regulated crypto exchanges and that you know the differences.

We would like to reiterate that these ways of acquiring cryptocurrencies through these types of exchanges are mentioned for educational purposes only, and we do not endorse any of the mentioned methods.