Bitcoin is decentralized, meaning no central government controls it. But how far does that lack of control go? Should decentralization also include not needing government documents, like ID, to buy or sell Bitcoin? Let’s explore that ...
While Bitcoin itself is entirely decentralized, the services that work as companions to Bitcoin might not be. For the sake of safety, most services that allow you to trade Bitcoin require an ID at some point. In fact, services that never request your ID, no matter how much you want to purchase, might not be as trustworthy as you’re hoping they are. If anything, providing your ID is a layer of security to keep you and your funds safe.
In the wake of El Salvador’s legalization of Bitcoin as tender, it becomes clear that the decentralized nature of Bitcoin and the safety of certain government features can co-exist.
So, while you might be enticed by the fully decentralized nature of exchanges that don’t require ID at all, keep in mind that the requirement for ID isn’t meant to “re-centralize” Bitcoin. Instead, it’s an effort to protect the people who allow Bitcoin to work. A lack of ID verification for transacting large sums of money is usually connected to a lack of security.
One example of a way people used to buy and sell bitcoin without any ID is through Peer-to-Peer (P2P) trading. This process included finding someone on the internet, agreeing to meet them somewhere like a cafe, and trading your digital currency in front of each other.
But this is 2021. And honestly, there’s a reason most people prefer not to use the P2P method anymore. It’s sketchy. I mean, meeting a stranger in public to trade funds with no form of identification or anything proving you can trust them? It’s no wonder P2P trading has lost popularity.
With all that being said, you still want an answer on how to buy Bitcoin without ID (or maybe you’ve changed your mind). Well, now you’re aware that pretty much all trustworthy wallets, exchanges, and machines do require ID at some point when trading Bitcoin. But the part of that sentence most crucial to this topic is “at some point.”
If you still want to buy Bitcoin without ID, you can … but there are some limitations.
For example, Coin Cloud Digital Currency Machines (DCMs) allow you to transact up to $1,000 (lifetime limit) with nothing except your phone number. This restriction is a safety measure to make sure you and your funds are safe and secure. Likewise, you can use the Coin Cloud Wallet app without ID as well.
If you want to transact more than the threshold allows, you can quickly and easily increase your limits at the machine. At that point, you do need to submit your ID. You’ve gotten to know us, and now we need to know you as well.
So maybe you want to test run a DCM to check out how it works and what features the Coin Cloud Wallet has long before you need to use your ID at all. Then, if you like and trust the Coin Cloud ecosystem and want to trade more, you can! All it takes is a simple verification.
Disclaimer: The information and views supplied on the Coin Cloud blog are for educational and entertainment purposes only. We are not financial advisors, so please do your research and consult with a trusted financial specialist before investing your money.
Founded in 2014 in Las Vegas, Nevada, Coin Cloud is the leading digital currency machine (DCM) operator. With over 4,500 locations nationwide, in 48 states and Brazil, Coin Cloud operates the world’s largest and fastest-growing network of 100% two-way DCMs, a more advanced version of the Bitcoin ATM. Every Coin Cloud DCM empowers you to quickly and easily buy and sell over 40 cryptocurrency options with cash.
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