How to Buy Bitcoin Anonymously, Without ID and Verification

  • George Shnurenko
    📚 WikiCoin

    If you are wondering how to buy Bitcoins anonymously in the US instantly, here are your options

How to Buy Bitcoin Anonymously, Without ID and Verification
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When Bitcoin first came to the scene, everyone was of the view that it was anonymous. However, as everything goes on the Blockchain, the global ledger shared publicly, actually, it’s not anonymous.

Remember that leaving a digital trail means that it’s just a matter of time before your transactions are de-anonymized and anyone with enough resources will be able to do that. That being the reason, everyone is now looking for options to remain anonymous on the Bitcoin network as much as possible.

So, the question is how to buy Bitcoins anonymously? Well, there are some companies that allow buying and selling Bitcoins anonymously. Besides, there are some tricks that give you the easiest way to buy Bitcoins anonymously.

Methods To Buy Bitcoins Anonymously

Available Options

Buy Bitcoin With Cash

Local Bitcoins, Bitcoin ATMs, Prepaid Cards

Disguise Transfers Between Identities

Helix, Joinmarket, Darkwallet

Other Options

Mycelium Local Trader, Bitsquare, Wall of Coins

Use cash to buy Bitcoins anonymously– the easiest way out

Yes, your best bet when looking to buy Bitcoins anonymously is to buy it with cash. You may wonder where to buy Bitcoins anonymously even with cash. Well, there are quite a few options available for that and the ones on top of the list are mentioned below.

1. Local Bitcoins

When looking to find the best way to buy Bitcoins anonymously with cash, you should better buy it in person. With Local Bitcoins, you can easily find people near you who are ready to sell their Bitcoins in exchange for cash.

Alias emails can be used for signing up at Local Bitcoins and it’s not necessary for you to verify your ID at this platform. Such Bitcoin deals don’t require any documentation whatsoever and allow you to remain truly anonymous.

2. Bitcoin ATMs

Another best way to buy Bitcoins anonymously with cash is through a Bitcoin ATM near you. However, the issue is that Bitcoin ATMs are not available everywhere and you may not have one very close to you.

But if you have access to one, go for it. Remember, however, that these ATMs require you to specify a Bitcoin address, but you have the option to say that you do not have one. And, when you choose that option, a paper address is generated for you most of the times. Afterwards, it’s possible for you to import private key of your paper wallet to send your Bitcoins anywhere you want.

3. Prepaid Card

You may have even wondered how to buy Bitcoins anonymously with a credit card. Well, you have prepaid credit cards for that and they can be availed at any convenience store or supermarket out there. These cards can then be used for making Bitcoin purchases at different platforms like Virwox or Coinmama without having to provide your ID.

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Disguising transfers between several identities

When looking for answers to how to buy Bitcoins anonymously online, you have the option of obfuscating transfers between several identities. There are several services available today that rely on Coinjoin concept for combining transactions of different users into a single transaction for disguising who owns the funds and how much of it. Let’s take a look at a couple of such service providers.

1. Helix

Helix relies on a long Coinjoin transactions chain for tumbling your Bitcoins. Grams, the team behind Helix, indexes dark sites, builds reviews and allows its users to tumble and mix their coins. The service can be used with or without a membership. All you need to do is to browse to Helix website using Tor Browser and provide the address of the recipient.

Random delay periods can be added allowing more transaction layers to form and make the transaction more anonymous. The status ID can be recorded for checking out the status of your transactions at a later stage.

2. Joinmarket

It’s another decentralized network where you can use Coinjoin to mix your Bitcoin transactions with other users. It doesn’t require any centralized party and you don’t even have to trust others. It’s different from the centralized services in the fact that your Bitcoins do not leave the address that is in your control. It means you’re not at risk even if the service shuts down while your transaction is being processed or when it maliciously starts stealing the Bitcoins. Remember, however, that you need considerable technical knowledge in order to install and use Joinmarket.

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What other options do you have?

Yes, there are some other avenues available where you can get the answer to your primary question can I buy Bitcoins anonymously. These include:

1. Mycelium Local Trader

The popular Bitcoin wallet Mycelium brings this option to you. In fact, Local Trader is a feature that comes built into your Mycelium mobile application. It’s a simple feature that uses the location of your phone for connecting you with local traders in your close vicinity. Buyers and sellers can then meet personally for exchanging cash and Bitcoins without needing any verifications or IDs.

2. Bitsquare

It’s a peer-to-peer marketplace where cryptocurrencies are traded.

The exchange is completely decentralized and doesn’t require any name, email or verification. For keeping it completely anonymous, the network uses Tor browser and does not hold Bitcoins or fiat in any account or on the server.

Whether it’s the order placement, matching or execution, the network is fully decentralized.

3. Wall Of Coins

It is another option that you can try for buying Bitcoins without having to disclose your identity. Primarily, it’s another cash-based system, but it requires the buyer to deposit the cash in some bank account.

The seller shares the details of their bank account and the buyer has to visit their nearest branch to make the deposit.

The platform holds the coins in escrow and once the deposit is confirmed, the escrow is released.

What’s best for you

So, if you are wondering how to buy Bitcoins anonymously in the US instantly, the above options will work for you. It’s just the matter of deciding which one suits your needs best and you can simply go with it.

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SegWit Explained: What Is Bitcoin's Segregated Witness?

SegWit Explained: What Is Bitcoin's Segregated Witness?
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Segregated Witness (SegWit) is an implemented protocol update that solves the problem of the Bitcoin’s blockchain transaction malleability. The point is in one of the transaction components. The first part is the Basic information (the sender, the amount, the recipient). And the second part — Witness — carries a special cryptographic signature (code). This code is a confirmation of the virtual transaction in Bitcoin currency.

Witness’ signature creates difficulties for the blockchain because the form can be changed after the appearance in the block. Bitcoin will still reach the addressee, but the construction of new transactions will be complicated because they all go along the chain. Unconfirmed transactions slow down the speed of new ones, reducing the overall Bitcoin network performance due to pulling data from a past virtual transaction.

The current Bitcoin protocol makes it difficult to implement large-scale updates, as well as to conduct fast transfers. The problematic network feature is called the “transaction malleability”. Against this background began the movement for the introduction of SegWit.

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The goals of SegWit

Segregated Witness must restore the Bitcoin network and adapt the blockchain technology to new realities. The main task is to solve transaction malleability and scalability. SegWit optimizes the transaction process and creates conditions for the subsequent increase in virtual block size. SegWit has to solve such problems and questions:

  • If Witness signature is segregated from a block of Bitcoin increases size and bandwidth of the entire network.

  • The transaction size is reduced by 2 times.

  • Reducing the blockchain size, which saves disk virtual space for nodes.

  • Starting and synchronization of nodes speed up significantly.

  • The enhanced spam protection mechanism of Bitcoin currency.

It follows that SegWit addresses the most important aspects for Bitcoin: scalability, protection level, transactions speed, and interaction with new protocols.

The story of Segregated Witness

The first talk about the need to modernize Bitcoin’s protocol and about possible ways to solve the transaction malleability problem appeared in 2012. Bitcoin-Core developers Russell O’Connor, Luke Dashir, Gregory Maxwell and others became initiators. Active actions for the currency began in the summer of 2014, when Maxwell, Pieter Wuille and cryptographer Adam Back launched the blockchain research company called Blockstream. In this environment, they found a solution to Bitcoin’s problem. It was decided to separate special cryptographic signature from the main part of the transaction. They called this function Segregated Witness.

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In parallel with Segregated Witness, the idea of ​​optimizing Bitcoin’s blockchain by increasing the block size (the default is 1 megabyte) appeared. It could be realized only through a hard fork — a rigid network separation through the introduction of changes incompatible with the current protocol. SegWit, on the contrary, was a soft fork or partial update of Bitcoin’s protocol. To implement it, the Witness’s signature must be segregated in a new part of the virtual block. And its anchor (Merkle Root) recorded in the transaction of miners’ fees. As a result, more space remained in Bitcoin’s block, and its size increased without actually increasing. This result allowed us to solve the problem of the Bitcoin network scalability, which was also quite acute.

After the appearance of the second idea, a real war broke out, including among the developers of Bitcoin currency. Miners and pools couldn’t come to a consensus from 2015 to August 2017. As a result, SegWit was accepted and activated. A special code called BIP91, developed by Bitmain engineer James Hilliard, turned out to be the best compromise among all the proposals received over several years.
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The main advantages of Segregated Witness

The list of benefits which will be received by the Bitcoin network with the introduction of SegWit is very large, we focus the main ones:

  1. The third party will lose any options of signature’s changing, which will facilitate the development of new smart contracts.

  2. Dividing special cryptographic signature from Basic data will significantly increase transaction size and Bitcoin’s blockchain bandwidth, and the average virtual block size will be 1.7-2 MB.

  3. With Segregated protocol, transactions in Bitcoin currency will remain available to participants who have accepted SegWit, and those who refuse to do so. At the same time, users with an updated protocol will work with smaller commissions.

  4. The adoption of SegWit greatly simplifies the implementation of new soft forks, allowing to introduce new ideas to improve the security of Bitcoin currency.

  5. The block validation rate and transaction security will increase due to a change in the signature hash function from linear to exponential.

  6. A segregated signature will reduce the currency’s charging fees.

  7. SegWit will have a positive impact on the Bitcoin ecosystem here and now, as well as create a springboard for further development.

Arguments against SegWit

Even today, Segregated Witness is not fully accepted by the Bitcoin network. Sceptics believe that this will take years because the number of nodes has already exceeded 10,000. An increase in the number of participants and a virtual transaction will result in a Bitcoin’s block size of 2 MB is small for the needs of the ecosystem.

Partial centralization of Bitcoin’s system due to the implementation of the SegWit protocol will increase the number of unconfirmed transactions, which will strip the network and make currency vulnerable to hacker attacks.

Some Bitcoin developers and pools believe the adoption of SegWit is dictated by the economic gain of Blockstream, which owns the Lightning Network protocol. Its technical implementation in the Bitcoin network without Segregated Witness is almost impossible.

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Will the time come for SegWit2x?

Speaking about the implementation of Segregated Witness and Bitcoin currency, it is impossible not to mention the postponed indefinitely SegWit2x. The agreement was the result of heated discussions and a search for consensus. It was decided to make a hard fork, after which the block size should increase to 2 megabytes. The split was scheduled for mid-November 2017. In fact, Bitcoin would split into two networks with its own coin, rules, signatures and standards.

However, the idea was not destined to come true. Firstly, the negative attitude of the developer community and the launched NO2X campaign did not play into the hands of the “Segregated” protocol. Secondly, BIP91 was implemented earlier and it was successful.

As a result, on November 8, 2017, the complete closure of the project was announced. But there were people who positively evaluated the results for Bitcoin. For example, the head of, Peter Smith, who initially supported the Segwit2x idea, spoke as follows:

“We’re relieved. The goal of the NYA was to bring the community together and keep the majority of the users on the same chain for at least a little while longer.”

SegWit usage metrics
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Results for Bitcoin and blockchain

From the moment of implementation of Segregated Witness, a year and a half has passed, but the protocol is not accepted by 70%. Many large services have not yet implemented it into their processes. However, positive changes are already visible, especially for ordinary users. Now the average transaction cost with confirmation within 20 minutes, according to Bitcoin Core Fees, is estimated at 5 satoshi/byte, that is, about $ 0.08 for the entire virtual transaction.

Spam attacks on the Bitcoin network have also stopped, the mempool remains free, and the average block size has exceeded 1 MB. In addition, the activation of SegWit has opened the doors to the implementation of new solutions and prospects for Bitcoin and cryptocurrency in general.

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