July 13, 2018

Can You Buy Bitcoin Anonymously Without Verification?

There are really two questions in this one subject: Can you buy Bitcoin anonymously, and should you?

Let’s take them in order.

First, yes, you can buy Bitcoins anonymously. There are a few different ways to do this, some of which are even legal, but the easiest way is by making an offline purchase with cash. Sometimes this means hitting up one of the bitcoin ATMs that have begun sprouting up around cities, other times it means buying a key in cold storage.

Either way, buying bitcoin this way surrenders all the personal information of buying a fruit smoothie. Once you’ve traded fungible cash for the private key of a bitcoin, you have made as anonymous a purchase as possible. 

Which brings us to our second point: A bitcoin is not a fruit smoothie. You absolutely should not buy one anonymously. Here at XCoins we've set up a quick and painless verification process, and here’s why:

Cryptocurrency has become big business these days. Between bitcoins and altcoins, this market is worth billions. Invested well, your wallet can be worth tens, or even hundreds, of thousands of dollars. This means that you’re making some pretty substantial transactions through it.

But what if the “you” in this scenario isn’t really, you know… you.

Just like in every other high-value market, fraud and theft are unfortunately alive and well in the cryptocurrency space. Verification helps legitimate websites make sure that those criminals can’t find an opening to attack your assets. Just a few of the things of the things we use verification for include:

  • It helps us stop someone from buying a bunch of expensive bitcoins using a stolen card number. When you wake up in the morning to discover you purchased $10,000 worth of cryptocurrency in the night, we want you to be excited, not confused.
  • It helps us to prevent money laundering, ransomware and other criminal activities. Nobody wants to be part of the system that lets hackers take over someone’s thermostat, and verification helps us ensure the security of the platform so we can continue to offer a high level of service.
  • It helps us to keep your bitcoins safe. Think how scared they’d be if someone stole them off to some lonely server overseas! We want to make sure that the only person who can log in and trade as you is you.

What’s more, verification also helps us stay right with the law. Without getting too technical, anti-terrorism and money laundering statutes require us to conduct a certain degree of verification. It’s called Know Your Customer (or KYC for short), and it basically means that the government wants us to make sure we’re not inadvertently helping to build the next Silk Road or enabling ransomware attacks. (We like making sure of that too.) 

All of this circles around to the heart and soul of Bitcoin verification: security matters. 

Yes, cryptocurrency has layers of tech that secure each coin and its transaction history, but these are still potentially vulnerable systems. As soon as your crypto-wallet thinks that it’s talking to you, the floodgates can open right up. Any private keys you stored online become fair game, and any purchases made in your name will get charged to you.

When it really is you, that's great. We want to build the most seamless and convenient trading system possible, and frankly, we think we’ve done a pretty good job. By ensuring that you’re actually the one making those trades in your name, verification lets us do that.

Want to learn more about how we do business here at XCoins? You can sign up for free!

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