There is no doubt that the cryptocurrency market has revolutionised the current financial front of the world, but can you buy crypto without ID?
Investors are now flocking to various crypto exchanges to access the newly launched cryptocurrencies on new Coinbase listings and Binance new listings, but buying crypto without an ID can limit a person's ability to trade crypto.
Furthermore, it can also limit a person's ability to withdraw crypto as well. Let's take a look at whether users can buy crypto without an ID and its consequences in the long term.
Can You Buy Crypto Without an ID?
Contrary to popular belief, buying crypto without an ID is quite permissible. Users can buy crypto without an ID on certain exchanges, but up to a predetermined limit.
There are a few places on the internet that do offer users an opportunity to trade crypto without an ID.
LocalBitcoins is an exchange that permits users to trade crypto without an ID but a person can trade up to 1000 euros or equivalent per year.
The leading crypto exchange Binance has recently updated its withdrawal rules that allow users to trade 0.06 BTC per day to those who do not possess valid ID proof.
Paxful users do not require an ID to commence crypto trading on its platform. However, the exchange will ask for a verification document in the case when the user's account reports earnings/trade volume/wallet activity that exceeds the limit of $1500.
Kucoin users can withdraw 1 BTC in 24 hours if they do not possess a valid ID.
While it was a popular assumption that it's nearly impossible to buy crypto without an ID, it turns out that users can enjoy a few facilities that selected exchanges to offer to users that have no valid ID proof.
However, to enjoy the uninterrupted flow of crypto services, we advise you to trade crypto with valid identity proof.
Can You Access A Crypto Wallet Without ID?
Unlike exchanges, many crypto wallets do not require valid ID proof or KYC to permit users to trade crypto.
Indeed, the most popular wallet, MetaMask, does not require any KYC for this. Instead, it has quickly become the victim of a popular phishing scam where MetaMask users are targeted by bad actors requesting they fill in KYC details.
Aside from privacy reasons, many crypto users also recommend that others hold their assets in a crypto wallet rather than in an exchange for full access. The term "not your keys, not your crypto" remains prevalent in the crypto world. This is especially as exchanges and platforms are falling and declaring bankruptcy.