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Many traders want to invest in Bitcoin but keep their identities anonymous. Governments around the globe oblige Bitcoin and cryptocurrency exchanges or trading platforms to perform a KYC check. KYC stands for Know Your Customer. This means that if you want to buy Bitcoin on such exchanges, you have to provide proof of identity.
Some platforms do allow you to buy Bitcoin for smaller amounts without verification. In this article, we are going to take a look at these kinds of platforms.
Where to Buy Bitcoin with credit card but without verification in the UAE?
On ByBit, PaxFul, or LocalBitcoins.com. These are the 3 best options to buy Bitcoin with a credit card without verification in the UAE. They all have their own pros and cons.
ByBit
ByBit is a cryptocurrency exchange that also functions as a fiat-to-crypto gateway. This means users can buy Bitcoin by bank transfer and credit card. ByBit is an unregulated exchange, which means they have no KYC procedure in place. Users can buy up to $1,500 in cryptocurrency without any identification whatsoever.
Pros: Take part in crypto staking, Trade crypto with up to 100x leverage, Buy Bitcoin with a credit card without KYC verification
Cons: The trading interface might be overwhelming for new users
PaxFul
Paxful is a peer-to-peer platform that offers hundreds of payment options. You can use Paypal, Skrill, or credit cards to buy Bitcoin. On PaxFul you can choose to make a direct transfer to another person, who then sends the Bitcoin to your wallet.
Based on the amount of crypto you want to buy and the way you want to do this, Paxful will connect you with someone who meets the same conditions. Note that this is a Peer-to-Peer trading platform, which is riskier than using a regular broker or exchange.
Pros:Buy Bitcoin directly from someone else, Over 300 payment methods, Live chat during trading, Fixed Fees, Escrow service
Cons: Unregulated, Chance of getting scammed
LocalBitcoins.com
An alternative to Paxful is LocalBitcoins.com. The principle is about the same. However, you can also create your own ad via LocalBitcoins. Be careful here when trading with cash and always check the reputation of the person you wish to buy from. LocalBitcoins has a feature that you can use to search for people near you who are willing to sell their Bitcoin.
Pros: Buy Bitcoin with cash, PayPal, or one of the other available payment methods, Create your own ad, Escrow service
Cons: Unregulated, Change of getting scammed
Is it possible to cash out Bitcoin without verification?
Yes, it is possible to withdraw Bitcoin without verification via P2P exchanges, Bitcoin ATMs, withdrawals to a hardware wallet, and cash sales in person.
Buying and selling Bitcoin in cash
Cash money cannot be linked to an identity. This makes it the most ideal way to make an anonymous Bitcoin transaction.
All you have to do is create a Bitcoin wallet. Creating a Bitcoin wallet is completely free of charge and is also anonymous. The problem is: Do you know someone who is willing to give up their virtual gold in exchange for cash? The chances are slim that you will find someone who you can trust and who does not overcharge.
The internet would of course not be the internet if there were no platforms where you can find people who are willing to accept cash for Bitcoin. Another option is to use a Bitcoin ATM.
Buy Bitcoin with cash through a Bitcoin ATM
There are special Bitcoin ATMs in UAE. The first one was placed two years ago at the Rixos Premium Dubai Hotel at JBR. With the website Coinatmradar.com, you can find a Bitcoin ATM near you.
You can then use this ATM to make cash purchases completely anonymously. (Usually, there are also restrictions on this, be sure to check with the store in your area what the options are).
You should expect that you usually pay about 10% more to buy Bitcoin with cash, compared to the market price at that time. It is possible in some cases to sell your Bitcoin for cash with a Bitcoin ATM.
Buy Bitcoin Anonymously through a P2P Trading Platform
P2P stands for Peer-to-Peer or person-to-person. So you are dealing with another person instead of a broker or exchange. Peer-to-Peer trading is a bit riskier.
These P2P platforms use some form of social validation. After each transaction, the buyer can give a rating to the seller of Bitcoin with whom he has traded. Most of the time there are security measures such as the use of escrow, where you can only agree if the full terms of the transaction have been met. You can buy crypto with a credit card, PayPal, gift cards, or any other sort of payment with P2P platforms. It is also possible to sell your Bitcoin and receive payment in all sorts of ways.
Why do people buy Bitcoin without verification?
Because they do not want to be traceable. It could be the case that they fear becoming the target of hackers or other criminals. On the other hand, it is also possible that they want nobody to know they are investing in cryptocurrency assets. Note that Bitcoin isn’t as anonymous as many people think and investigators and hackers can track you down. This is because the human element is the riskiest when dealing with cryptocurrency.
The most common reasons why traders buy Bitcoin without verification are:
- Security – When dealing with cryptocurrencies, many traders prefer to remain anonymous. They don’t want to have someone track down their transactions for security reasons.
- Privacy – Most investors want to remain private. They don’t want others to know what they are investing in.
- Not wanting to rely on exchanges – Some cryptocurrency traders do not want to rely on cryptocurrency exchanges. They fear that hackers can hack these and steal their funds or data.
- Governmental restrictions – In some countries buying Bitcoin and other cryptos is illegal.
Buying Bitcoin with a credit card, but without verification – our verdict
Buying Bitcoin without verification comes with extra costs and security risks. Unless you buy through a Bitcoin ATM or through a friend or family member you can trust, we generally do not recommend it. (Partly due to the high transaction costs). The cheapest way to Buy Bitcoin remains via crypto brokers and exchanges like eToro.
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Stefan Grasic (Dipl.-Jur) is the owner of Business24-7 and has considerable experience in the financial and investment niche, but also enjoys writing articles for the general readership. Stefan is an active stock, CFD, crypto and general investment researcher, advising blockchain companies such as Blockbird, GoCrypto, Hive Terminal at their start up level. Stefan began trading in 2010 as a college student. Money was tight,…