Despite the plethora of cryptocurrency exchanges available in the market today the percentage of the ones that are still anonymous and private is unfortunately shrinking.
With stringent rules and government interventions, almost all exchanges that once allowed anonymity to their users have succumbed to KYC norms, collecting ID and personal documents to allow access to their services especially when fiat currency is involved in the trade.
Few popular exchanges still allow non-KYC users to trade on their platform but with heavy restrictions on the limit of trades.
Thankfully there are still a few services available that are decentralized and allow users to trade privately without the need for KYC or any other ID verification.
If you wish to buy or sell bitcoin anonymously then these exchanges are some of the best options in the market right now.
Bisq
Bisq is a Decentralised Autonomous Organisation that is run entirely by the community. It is in fact one of the first DAO exchanges to offer a P2P marketplace for cryptocurrencies and fiat.
It is 100% open source and one of the few organizations to fully embrace the principle on which bitcoin and cryptocurrency were built, decentralization, transparency, and anonymity.
To use the service you will need to download the application and install it on your computer. The platform is easy to use and perfect for beginners. For enhanced privacy, it uses the Tor network to connect to the blockchain.
While Bisq is open to the global community most offers are limited to USD and Euro fiat pairs.
Fees:
- BTC: 1% (0.12% - maker and 0.88% - taker).
- BSQ: 0.5% (0.06% - maker and 0.44% - taker).
Pros:
- 100% Open Source
- Easy to Use
- Secure
- Multiple currency support: BTC, BSQ, ETH, XMR, LTC, etc.
Cons:
- Rather low liquidity with most fiat offers limited to USD and Euro
- Not for experienced traders
HodlHodl
HodlHodl is a non-custodial P2P bitcoin exchange that directly connects users globally who wish to buy/sell bitcoin.
HodlHodl does not hold your funds and uses multi-sig escrow to lock the funds reducing the chances of scams and also reducing trade time. The platform also incorporates a reputation system where the users are reviewed for their trades.
The platform deals mainly with BTC and no other cryptocurrency is supported.
In addition to BTC trades, HodlHodl also offers lending which allows you to lend/borrow BTC from users directly at the desired rate.
Fees: 0.6% per trade (0.3% maker - 0.3% taker)
Pros:
- Open Source
- Easy to Use
- Secure
Cons:
- Only supports BTC
- Rather low liquidity with most fiat offers limited to USD, Euro, and Pound
LocalCryptos
A P2P non-custodial crypto marketplace, LocalCryptos connects crypto buyers and sellers from around the globe.
A completely private and anonymous platform, LocalCryptos just needs an email address to get started. It also provides login options using external wallets such as MetaMask for a smoother experience.
It features a simple yet intuitive platform that makes trading that much simpler.
In terms of security, it incorporates, a reputation system, escrow accounts, 2FA, end-to-end encryption, and dispute resolution.
In addition to Bitcoin, the platform supports, ETH, LTC, DASH, and BCH.
Fees: 1% per trade (0.25% maker - 0.75% taker)
Pros:
- Intuitive & modern platform
- Secure
Cons:
- Not open source
- Some sellers may ask for KYC - avoid them
AgoraDesk
AgoraDesk is a P2P marketplace for Bitcoin and Monero that connects global users directly with each other.
It is a completely private platform where you don't even need an email address to get started.
It is an easy-to-use platform where users can search for offers in their desired currency and start a trade with any of the available options.
AgoraDesk uses Tor for enhanced security and even has a no JavaScript version of the platform.
Fees: 1% fee for every completed trade from users who create the advertisement
Pros:
- Private
- Secure
- No fee for Takers
Cons:
- Only supports BTC and XMR
RoboSats
RoboSats, is a Tor-only non-custodial bitcoin exchange that embraces some of the best privacy standards for its users.
The platform generates a cool unique single-use avatar with a unique token every time you enter the platform and communicate with other users.
Once inside the platform, you can look at the available offers and choose the one you want to trade with. RoboSats uses Lightning bond invoices and escrow to prevent any fraudulent activity.
Fees: 0.2% (Maker - 0.025% and Taker - 0.175%)
Pros:
- Super Private and Anonymous
- Secure
- Low Fees
Cons:
- Low liquidity - only support for USD and Euro
- Need lightening Network
- Small Transaction amounts
BitcoinVoucherBot
One-of-kind Bitcoin Exchange that operates fully on Telegram using Bots, Bitcoin Voucher Bots allows users to buy BTC with Euro. Since the entire process takes place over Telegram, no information is collected about the users, including cookies, or IP addresses.
Transacting in BitcoinVoucherBot is as easy as texting and can entire process is managed by bots.
BitcoinVoucher Bot can be used to purchase Vouchers that you can redeem in Bitcoin instantly (On-chain, Lightning, Liquid), Coin Swaps, EUR/BTC Swaps, and Accumulation plans.
You can buy/sell BTC vouchers for Euro using SEPA bank transfer. The limit is 900/Euro per day for non-KYC users.
Fees: 2.5% for direct BTC/Euro Swap
Pros:
- Private
- Easy to Use
- Minimal Fee
Cons:
- The only Fiat currency supported is Euro
- Limited amount per transaction
- High Fees
Conclusion
As the option to buy bitcoin anonymously is getting limited with time, rest assured as there are and always will be services that allow for decentralized and anonymous trading.
But unlike traditional exchanges which operate using a liquidity pool, P2P exchanges directly connect buyers and sellers and it does come with some inherent security risks in the form of scams or fraudulent users. So,
- It is always prudent to execute a trade with a reputed seller with good reviews,
- Never share your personal details with anyone, except the absolutely necessary details required to receive/send the payments.
Also, most anonymous decentralized exchanges available today deal with mainly USD and Euro which may be an issue for users who wish to transact in any other fiat currency. So, before choosing a platform do make sure that there are offers for your fiat currency.
This is a companion discussion topic for the original entry at https://insights.blockonomics.co/how-to-buy-bitcoin-anonymously-using-fiat-2022/