Do you consider the process to buy bitcoin is as tricky as operating the military tank or as tiresome as sending the Mangalyan to Mars? Then you're mistaken, as buying bitcoin is as simple as making the two-minute noodles. Many of us wanted to purchase coins; either don't know how to buy or don't want to disclose our identities while buying the bitcoins or want to buy bitcoins anonymously.
What Is Cryptocurrency?
Cryptocurrency synonymously known as Bitcoins is still a mystery for potential crypto investors. Crypto or virtual currency is an experimental digital currency which is backed by the sophisticated algorithm and not by the financial institutions of the country. Decentralised digital assets are based on blockchain technology which is secured cryptographically. Every day the associated accelerating profits of the Bitcoin tempt the traders or risk-takers to invest in the currency and increase their wealth.
Present Crypto Status Of India
India, the country which had recently cleared that blanket ban of cryptocurrency by the Reserve Bank of India is unconstitutional; therefore crypto enthusiasts can freely invest the funds into crypto exchanges and gain as per their risk-taking capabilities. Since last year, the government of India has been sceptical about the future of cryptocurrency. But the decision of the Supreme Court bought the ray of hope for pragmatic crypto markets.
The country's present tech status does not resolve the problems related to cybercrimes, which is the primary reason that the government of India is hesitating to open the floodgates for crypto investors. On the contrary, most of the people wanted to buy and use the bitcoins and deploy it as the financial instrument to gain high returns. But considering the present situations, crossing the barriers of regulations seems to be difficult for them, and so they are searching the ways to buy bitcoins anonymously.
Why Do We Need To Maintain "Anonymity"?
Before discovering the ways to acquire bitcoins anonymously, the reasons for being anonymous need to be understood. As per most of the crypto investors, by maintaining the anonymous status, users can be protected against the sophisticated hackers who are keeping a close eye to the new investments. Bitcoin is based on blockchain technology which is cryptographically secured and aims to prevent various kinds of frauds. But as the digital tokens lure the tech-savvy professionals, they are employing efficient ways to hack the accounts. Also, bitcoin wallets which are vaults to protect your digital codes may reflect your IP address, which can be easily traced and real addresses can be revealed.
In a country like India, where cybersecurity is not as strong as that of first world countries, the crypto market and the sending and receiving of coins can be highly vulnerable to cyber-attacks. Thus, the privacy of information and secured transactions are two of the significant benefits of maintaining anonymity in a distributed decentralised network in the country like India.
Methods To Buy Bitcoins Anonymously, Without Disclosing ID
Now let us move on to the ways to buy bitcoins anonymously in India. By purchasing the virtual currencies without disclosing your identity can safeguard your funds, but the process needs to be clearly understood beforehand. However, the small effort can save huge pennies. Get ready to know the methods to invest your funds without providing any of your photo ID to different exchanges.
There are majorly three major pathways which do not require disclosing your identity during the investment process of Bitcoins:
- Using Prepaid credit card as a means to purchase crypto coins.
- Deploying other altcoins to buy bitcoins.
- Peer-to-peer trading of digital assets.
Using Prepaid credit card as a means to purchase crypto coins
One of the easiest ways to buy bitcoins is by deploying the "Prepaid Credit Cards". Some of the crypto exchanges and services associated with bitcoins allow the users to purchase the coins with cards without any verification of identity. It is just like using a Visa gift card to shop in a supermarket.
For example, cryptocurrency exchange Coinmama allows you to purchase bitcoins via credit card or cash, but the purchase limit is capped at a low amount.
Deploying other altcoins to buy bitcoins
The cryptocurrency holders can use the method of "shifting" by trading bitcoins with altcoins without any verification of identity. The technique also allows one to sell with the self without losing a penny as the commissions to mediators. For example, platform Changelly lets one trade coins without any disclosure of identity.
Suppose you have a verified account to buy the US $1,1000 of Ethereum coins and then exchange it for US $1000 of Bitcoins (BTC) at a different address. Thus, the verified address does not contain your bitcoins due to shifting to another address.
Peer-to-peer trading of digital assets
As the adoption of Bitcoin is pacing up, one can easily find people who own Bitcoins and ask them to sell to you. The peer to peer trading is similar to a barter system where miners directly sell the coins to the purchasers at the condition of liquidating some of the coins for fiat currencies or many times; bitcoin sellers find a person to trade coins with cash.
Platforms like LocalBitcoins allow finding the interested sellers and buyers alike where one might agree to buy bitcoin in fiat currency.
Thus in 2020, we have majorly few ways to acquire bitcoin anonymously:
- Buying coins through mining where coins have no history of any transaction, but it is not a practical way to get the coins.
- Earning through various airdrops or various companies but the identity crisis will still be present.
- Exchange or swapping of bitcoin with fiat which is an underutilised method can be one of the most feasible ways to buy bitcoins anonymously in India;
- Buying through prepaid cards or debit cards and using other altcoins to purchase bitcoins.
Platforms Which Work On "No Verification" Motto
Now, the methods are known to us for purchasing the bitcoins without any Photo ID, but a mystery is not entirely solved. The platforms which can be utilised in India are still not mentioned. So, let us now discuss the companies or exchanges which do not ask for the personal information of the user:
1.LocalCryptos: It is a peer to peer marketplace which entertains around 1500 cities across the world. Localcryptos performs the work of matchmaking by giving the seller of bitcoin a perfect match of bitcoin buyer in return of cash or fiat currency. The platform works as an escrow manager. The point of caution: Don't forget to check the reputation of users with whom you are trading.
2.Coinmama: It is considered as one of the best options to the new crypto enthusiasts who wanted to start their investments with small amounts without disclosing their IDs. You can easily buy the worth of 150 dollars bitcoins using your debit or prepaid credit card.
3.Bitsquare: It is an entirely decentralised exchange which does not ask for a name or email id or any details related to identity verification while acquiring the bitcoins. From placing the order till executing it, it is completely anonymous as it utilises the distributed "onion" network Tor.
4. Shapeshift Or Changelly Exchange: Both of the crypto exchanges require no ID to verify the user. But one of the problems associated with these exchanges is they need supporting altcoins to exchange for Bitcoins.
Till now, we have learned about the methods and platform to buy bitcoins anonymously in India. Few of the measures need to be taken by users also like improving bitcoin privacy by generating new addresses for each received transaction; maintaining online privacy by using HTTPS and open source solutions for better encryption, and managing the strength of the password to keep the status anonymous.
Why Do Bitcoins Need To Compliment INR?
The crypto space of India was in vain till March 4, 2020, due to the misinterpreted blanket ban by the RBI but the decision of Supreme Court which declares the ban as unconstitutional aims to create opportunities for the investors. The ray of hope started coming when at the end of 2019, world's leading crypto exchange Binance acquired the WazirX, the Indian Bitcoin exchange along with the plans to make a fiat onramp for the INR.
Though India is not technologically that sufficient to avoid significant cybercrimes, the economic and political conditions of the country makes it a perfect fit to Bitcoin. The Economic Times reported that bitcoin could attract the Indians as it offers an armour against inflation and refuge from the political and economic turmoil of the nation. Even after various government schemes, many Indians are still not having banking accounts due to the process of substantial documentation, and bitcoins can facilitate them to transact without any central authority.
Cryptocurrencies are establishing their place in Indian markets. According to the reports, more than 600,000 Indians have invested in Bitcoins. Also, the multinational companies like Dell based in India are including digital assets as one of the modes for their payments. On the positive note, private bitcoin companies came with the association called Digital Assets and Blockchain Foundation India, which aims to educate people on the benefits of Bitcoins along with its usage.
Undoubtedly, fiat is still far more popular than Bitcoin in India. Even, the fact cannot be denied that younger generations are considering bitcoins as one of the alternatives for their investment purposes. But the experts are doubtful that intended regulations may harm Bitcoin privacy and hamper the innovation. Thus investors are employing the ways to buy bitcoins anonymously in India.
Conclusion
To sum things up, it can be stated that anonymity acts as the safeguard against the seizure of accounts, shield against the black swan events and hedge during economic turmoil. India is still confused about the acceptance of cryptocurrencies, but the citizens are enthusiastic about buying bitcoins anonymously. You must realise that digital tokens can increase your wealth when utilised in a calculated and cautious way. The fact needs to be understood that your bitcoins are yours which deserves no interference, so the anonymity must be maintained since buying till transacting your Bitcoins.
Source: Cryptoknowmics