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How to buy bitcoin without ID in Australia
Step-by-step instructions on how to buy bitcoin and other cryptos anonymously.
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Buying cryptocurrency without ID has become increasingly difficult, but not impossible.
If you don't have suitable proof of ID or if you simply value your privacy, there are still some ways you can buy cryptocurrency without completing a verification process.
Disclaimer: This information should not be interpreted as an endorsement of cryptocurrency or any specific
provider, service or offering. It is not a recommendation to trade.
Buy bitcoin without ID verification on these exchanges
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Using an exchange without ID
Some exchanges have different thresholds for verification requirements. For example:
- LocalBitcoins lets you buy Bitcoin without verifying ID, but only up to 1,000 euros or equivalent per year. It does not let you sell Bitcoin without verifying identity.
- Paxful does not require ID verification for account creation, but requires verification for accounts that reach the equivalent of US$1,500 in trade volume or wallet activity.
- Binance and Kucoin only offer crypto-to-crypto trading, but neither requires ID for trading and both offer withdrawals limits of 2 BTC per 24 hours without verification.
What's in this guide?
Quick guide to buying bitcoin without ID
- Register for an account on a P2P bitcoin marketplace.
- Search the list of open offers for sellers that accept in-person cash payments.
- Find a seller close to you.
- Check the seller’s reputation on the platform.
- Agree on a price.
- Arrange a time to meet somewhere public.
- Complete your transaction.
Three ways to buy cryptocurrency anonymously
If you want to buy cryptocurrency without ID verification, there are only a few options to choose from:
Peer-to-peer (P2P) marketplaces
- Buy crypto without ID, cut out the middleman to deal direct with the seller, negotiate for the deal you want
- You may need to settle for a higher price, could take time to find the right seller
These platforms, such as LocalBitcoins and Paxful, allow you to interact directly with other users who want to sell their crypto. Many sellers don’t require you to provide any ID before you buy, so you can arrange to meet up in person and pay cash to a local seller. Online trades are also available, but many of the payment methods used for these trades may be linked to your identity.
Prepaid cards
- Allow you to purchase crypto without providing proof of ID
- Prepaid cards aren’t widely accepted, time-consuming way to buy crypto, watch out for high fees
Another option is to load a prepaid card with cash and then use it to trade on a platform that doesn’t require proof of ID. These cards are similar to a Visa gift card you can buy at a supermarket or convenience store without verifying your identity.
Cryptocurrency exchanges and shifting services
- Relatively simple to use, competitive fees
- More and more exchanges require proof of ID, virtually impossible to buy crypto with fiat currency without providing proof of ID
On the vast majority of cryptocurrency exchanges, using fiat currency to buy cryptocurrency without ID is impossible. However, there are several platforms where you can exchange one cryptocurrency for another without needing to verify your ID.
Some of these sites offer “shifting” services that essentially let you trade altcoins with yourself. In fact, some crypto wallets allow you to complete the exchange of coins within your wallet, saving you the hassle of transferring your coins to a third-party exchange.
There are also some crypto exchanges that allow you to trade altcoins without verifying your ID. However, you may need to provide your email address or phone number to sign up for an account. For example, Binance users can deposit, trade and withdraw cryptocurrencies without supplying proof of ID, although this means accepting a much lower withdrawal limit than would otherwise be available should you go through the ID verification process. There are also some decentralised exchanges that don’t require any ID verification.
However, remember that if you want to trade with complete anonymity, you’ll first need to find a way to anonymously obtain crypto using fiat currency before you can start exchanging from one crypto to another.
Why is it difficult to buy crypto without ID?
There’s a widespread misconception that cryptocurrencies are simple to purchase anonymously, but this simply isn’t true for a couple of reasons:
Increased regulation
Regulators in Australia and around the world are gradually introducing legislation that governs digital currency exchanges and the buying and selling of cryptocurrencies. These laws regularly include a requirement for exchange operators to identify their customers in line with Anti-Money Laundering and Counter-Terrorism Financing (AML/CTF) regulations.
For example, since April 2018, digital currency exchanges in Australia have been required to:
- Register and enrol their business with the Australian Transaction Reports and Analysis Centre (AUSTRAC).
- Adopt and maintain AML/CTF programs
- Report suspicious matters and transactions over $10,000 to AUSTRAC
- Keep records relating to customer identification, transactions, and their AML/CTF program
As a result of this sort of legislation in Australia and several other countries, many exchanges will now require you to provide proof of ID before you can start trading.
Bitcoin is pseudonymous, not anonymous
Because it’s possible for bitcoin users to send and receive BTC to one another without providing proof of ID, the currency is sometimes described as being anonymous. However, a more accurate way to refer to bitcoin is as a pseudonymous currency.
One commonly repeated comparison likens transacting with bitcoin to an author writing under a pseudonym – if their true identity is ever discovered, anything they wrote while using the pseudonym can be linked directly to them.
Your bitcoin address is like an author’s pseudonym, and every BTC transaction you make is stored for all eternity in a public ledger known as the blockchain. So if your bitcoin address is ever linked to your identity – something cybersecurity researchers say is quite straightforward to do – all your transactions could be traced back to you.
Why might people want to buy crypto without ID?
In the court of public opinion, there’s a widely held belief that the main reason anyone might want to buy cryptocurrency anonymously is so they can pay for all manner of illicit goods and services in the hidden corners of the dark web.
But while there’s definitely some truth in this idea – after all, anyone involved in illegal activities would have good reason to want to cover their tracks – there are also plenty of legitimate reasons why someone might want to buy bitcoin or some other crypto without any ID.
For example:
- If you’re worried about crypto exchanges being targeted by hackers and your personal information (including your driver’s licence/passport details) being stolen
- If you own a lot of crypto and don’t want to be targeted by thieves
- If you don’t trust the government (this may be less of a concern in Australia, but can be a real issue for people living under authoritarian regimes)
- If you don’t have any ID (an estimated one billion people around the world don’t have proof of identity)
Finally, there’s also the simple fact that the ID verification process on some platforms can be frustratingly slow, particularly during times of increased demand. If you want to purchase crypto as fast as possible to take advantage of an anticipated price change before it occurs, buying without ID verification might be a quicker option.
More ways to protect your privacy
If privacy is important to you, there are several steps you can take to protect your identity when sending and receiving cryptocurrency. These include:
- Using a new address for each transaction. Using a new address for each crypto transaction is a simple way to prevent separate transactions being linked back to you as the common owner. Hierarchical deterministic (HD) wallets like the Ledger Nano S allow you to generate a new address every time you receive bitcoin.
- Using multiple wallets. Another option to increase your anonymity when transacting with crypto is to open and maintain multiple wallets.
- Using a mixing service. Bitcoin mixing services rely on a data anonymisation method known as CoinJoin, which basically jumbles payments from multiple users together into a single transaction. This is designed to make it much more difficult for prying eyes to determine who sent money to whom.
- Hiding your IP address. Your IP address is a unique address for your computer that reveals where you’re connecting to the Internet. To prevent it being linked to your cryptocurrency wallet address of transactions, you can consider ways to hide your IP, such as using a VPN service or encrypting and rerouting your Internet traffic through a service like Tor.
- Using a dedicated privacy coin. Coins like Monero and Bytecoin have built-in privacy features designed to provide anonymous transactions.
- Taking simple privacy precautions. Be mindful of your footprint when using the crypto buying methods listed higher up this page. For example, avoid giving someone your phone number when paying cash for bitcoin on a local exchange.
Pros and cons of buying cryptocurrency without ID
Pros
- You can keep your financial information private
- You don’t need to go through a time-consuming ID verification process
- Makes cryptocurrency accessible to the estimated one billion people around the world who don’t have proof of ID
Cons
- Can often be more complicated and inconvenient than simply buying with ID on a conventional crypto exchange
- You may need to settle for a higher price
- You can usually only buy a small amount of crypto before being asked to provide ID
- Many cryptocurrencies aren’t actually anonymous, so your transaction could potentially be linked to your identity
- There’s always the risk that your desire to remain anonymous attracts suspicion and unwanted attention
Bottom line
Whatever your reason for wanting to buy crypto without ID, there are several options available. However, each of those methods comes with a varying level of risk and its own pros and cons, and you’ll usually need to pay an additional premium to get the privacy you want. Make sure you research all of your options before deciding on the safest approach.
Compare exchanges that don't require ID
FAQs
Disclaimer: Cryptocurrencies are speculative, complex and involve significant risks – they are highly
volatile and sensitive to secondary activity. Performance is unpredictable and past performance is no guarantee of
future performance. Consider your own circumstances, and obtain your own advice, before relying on this information.
You should also verify the nature of any product or service (including its legal status and relevant regulatory
requirements) and consult the relevant Regulators' websites before making any decision. Finder, or the author, may
have holdings in the cryptocurrencies discussed.
Disclosure: As of October 2018 the author holds ADA, ICX, IOTA, POWR and XLM.
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Howdy! This blog post couldn’t be written much better!
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