Worrying about privacy and traceability when you cash out Bitcoin? Read this article and you will learn how to sell Bitcoin anonymously without anyone knowing.
Why do you need to sell Bitcoin anonymously?
Although Bitcoin is more and more popular in the mainstream, there are myths about this kind of currency that are starting to broaden out; one of them is the anonymity of Bitcoin.
Bitcoin is pseudonymous, not anonymous
Bitcoin has the reputation of being an anonymous virtual currency, but that statement is not totally accurate. In fact, Bitcoin is more pseudonymous rather than anonymous.
Anyone can create a Bitcoin address (also known as a public key) on its public blockchain, then use it to send and receive Bitcoin effortlessly. However, once you appear on the blockchain, your footprint never fades.
A Bitcoin transaction, by design, is recorded eternally on the public ledger. That means every action you take is stored permanently and transparently. Everyone can see the balance of your address, the history of your transactions and your partners’ addresses involved.
In short, the public knows all the transactions you made, even if you, the address holder, are pseudonymous. This nature of Bitcoin makes it a transparent currency, but it doesn’t benefit your privacy at all.
Parties of a Bitcoin transaction are easily identified
When making a Bitcoin transaction, neither the sender nor the receiver needs to submit identity cards or other personal info. Nonetheless, there are many tools and techniques to identify the parties involved, including the IP address of the sender or the time-stamps. Especially these days, coins are marked by many entities, meaning your coins are easily linkable and trackable.
Normal people could not link these clues together, but the hackers and bad guys can. They may backtrace your transactions and figure out your real identity. In this case, not only your funds are at risk but also your real-world life.
Thus, if you don’t want to take these risks (believe me, you will never like it), you should learn how to sell Bitcoin anonymously and transact coins without anyone knowing.
If you still wonder how to use bitcoin anonymously, have a look at useful methods below.
The ultimate guide to how to sell Bitcoin anonymously
As previously explained, Bitcoin transactions are transparent, making it hard to transact coins without exposing your identity. It’s even easier to trace your transaction history when you use a KYC-exchange.
Regulated crypto exchanges require your identity document to prevent money laundering and protect your account better. However, KYC is the policy that helps to link your real-life closer to your crypto assets.
Hence, if you want to sell Bitcoin anonymously, the most important thing is to stay away from exchanges that require the KYC document.
There are other platforms and methods that provide anonymity for Bitcoin purchases and all listed below are the most suitable for you.
Method #1. In-person purchase to sell Bitcoin anonymously
Crypto exchanges are not the only way to buy and sell Bitcoin. In a very traditional way, you can find a buyer that lives near your area and make a deal face-to-face.
The number of people that are willing to purchase will surprise you. Because it costs fees and time to trade on a crypto exchange or evenly they also want to protect their privacy, they turn to accept in-person purchasing.
The process is pretty easy. You can join some local community on Facebook, Telegram to seek buyers. After that, you two make an agreement on the price (which is usually lower than the exchange’s price), the place and the payment method. Then, you meet your partner person-to-person, send Bitcoin to him and take your payment.
It’s better when you actually know your partner, or in a good relationship with him. In this way, selling Bitcoin to friends and relatives is much safer.
Of course, the downside is that it’s a high risk when you make a deal with strangers. In this case, meeting a person without checking his credit or having some self-protection tips may be harmful. There is no guarantee that you will not be scammed by the bad guys.
In this way, a Bitcoin ATM is a more suitable method.
Method #2. Two-way Bitcoin ATM to sell Bitcoin for cash
Similar to a common ATM, Bitcoin ATMs are machines that accept cash and pay Bitcoin directly to your address. More conveniently, there are two-way Bitcoin ATMs that offer a way to sell Bitcoin for cash.
You can find a two-way Bitcoin ATM near your living area at Coin ATM Radar live map.
And this is the user manual:
- You choose the withdraw cash option
- You choose Bitcoin
- You choose the amount you wish to withdraw
- You send Bitcoin to the given address
- And finally, collect your cash.
However, one of the most disappointing things is that there are fewer and fewer Bitcoin ATM machines that require no-KYC. Due to government regulations, many Bitcoin ATM providers must require some KYC documents from users. Thus, it’s harder for you to find a totally anonymous Bitcoin ATM nowadays.
Therefore, selling Bitcoin on a peer-to-peer exchange is the more advanced method.
Method #3. Sell Bitcoin anonymously on the Peer-to-Peer Exchange
A Peer-to-peer (P2P) exchange is the online marketplace that connects buyers and sellers all around the world. That means it plays a role as an intermediary between you and your partner.
LocalBitcoins.com, LocalCryptos.com, and Paxful are worth considering. These exchanges differ from in-person purchasing because of the credit rating. The platform opens for users to rate their partner, express their experiences, meaning the higher rating, the more trustworthy.
Additionally, you can be able to accept various payment methods on these platforms, including cash, PayPal, other cryptocurrencies and wire transfer. It provides you more convenience than the above methods.
Unfortunately, this convenience isn’t free. As a third-party, a P2P exchange takes fees as revenue. As a consequence, you may offer a higher price than usual. Even if you don’t mind this kind of fee, purchasing frequently may cost you a lot of money.
Of course, we must accept trade-offs in return for convenience. But there is another method which is not only free but also provides awesome features. Let me introduce you to the private crypto wallet.
Method #4. Private crypto wallet to sell Bitcoin anonymously
A private crypto wallet was born to provide anonymity and privacy for Bitcoin users. This kind of wallet helps you transact Bitcoin (and other assets) without anyone knowing.
Every private crypto wallet has its own techniques to obscure your transactions, some are advanced and others not. With no doubt, the Incognito Wallet is definitely one of the best private crypto wallet apps on the market.
The Incognito Wallet: The ultimate way to send and buy crypto anonymously
Based on the idea of a sidechain for all blockchains, the Incognito Wallet gives you the easiest way to buy and sell Bitcoin anonymously.
Using smart contracts and trustless custodians, the wallet turns your coins into their privacy version and vice versa. For instance, your Bitcoin (BTC) can be switched to privacy Bitcoin (pBTC) at the rate of 1:1. Then you can easily receive and send Bitcoin anonymously, without anyone knowing your balance or your real identity.
Want to turn your coins back? Just one tap. And pBTC will be returned back to its origin effortlessly.
To sell Bitcoin anonymously, you can send pBTC to the buyer’s Incognito Wallet address and take your payment. In this way, no one will be able to trace back your transaction and find out who actually you are. As a result, your privacy is totally protected.
One more advantage is that the wallet is completely free. You don’t need to pay for any of its awesome features.
Conclusion on “How to sell Bitcoin anonymously”
The transparency and traceability of Bitcoin transactions are the motivations for the crypto community to seek ways to sell Bitcoin anonymously.
Once you find the most suitable method yourself, you will never want to sell Bitcoin in the traditional ways anymore. Some methods cost a fee, others do not. But your privacy is absolutely protected, and that’s the price to pay.