Many cryptocurrency exchanges in the UK require some form of identification in order to comply with anti-money laundering regulations set by the Financial Conduct Authority (FCA). This is commonly known as the “Know Your Customer” (KYC) rule.
However, many people are uncomfortable sharing their personal information with exchanges. Reasons may vary, but a typical one would be the risk of having their identities stolen or their accounts hacked.
Bitcoin is often seen as the entry point into the cryptocurrency world. It is one of the oldest and most well-known digital currencies, and it has the largest market capitalization of any cryptocurrency.
Although we previously covered the best services to buy Bitcoin in the UK, this article will focus on how you can buy Bitcoin without having to go through a rigid KYC process.
Before we start, it should be iterated that despite the risks of identity theft, it is still recommended to invest in Bitcoin with a reputable exchange that follows KYC procedures. Let’s dive in!
Ways to Invest in Bitcoin in the UK Without an ID
There are several ways you can invest in Bitcoin in the UK without providing identification. The most common method is to use a peer-to-peer (P2P) exchange. These platforms connect buyers and sellers of Bitcoin and allow them to trade directly with each other.
Since the main purpose of these platforms is to connect traders, they don’t often require you to provide any personal information or upload any documents. All you need is a Bitcoin wallet to store your coins in and an account with a P2P exchange.
Some of the most popular P2P exchanges in the UK are LocalBitcoins and Paxful. Both platforms have a large number of users and offer a variety of payment methods, such as bank transfer, PayPal, and even cash.
However, it’s important to remember that when trading on these exchanges, you are dealing directly with another person. There is always the risk of the other party being dishonest or fleeing after you have made a payment.
For this reason, trade only with people who have a good reputation on the platform and always use an escrow service to protect yourself.
Another way to buy Bitcoin without an ID is to use a prepaid card. There are a few companies in the UK that offer prepaid cards that can be loaded with Pound Sterling (GBP) and used to purchase Bitcoin. The cards are anonymous and don’t require any personal information to be provided.
Another way to buy Bitcoin without an ID is by using a Bitcoin ATM. These machines allow you to insert cash and receive Bitcoin in return. They are becoming increasingly popular as they provide a simple and easy way to buy Bitcoin without having to go through an exchange.
However, not all Bitcoin ATMs allow transactions without an ID. Some require you to verify your identity before you can make a purchase. The fees for using a Bitcoin ATM can also be quite high, so it’s important to compare the costs before you use one.
Lastly, you can buy Bitcoin through an exchange that doesn’t require KYC. However, these are often not regulated in the UK, so it’s best to steer clear from them or at least proceed with caution.
Why Invest in Bitcoin in the UK Anonymously?
There are many valid reasons why one would want to invest in Bitcoin anonymously. Below are the most common ones:
1. Privacy and Security
Some people simply do not want their personal information out there. They may be concerned about identity theft or have other reasons for wanting to stay anonymous.
Many high-profile hacks have also occurred in the cryptocurrency world. By keeping your personal information off of an exchange, you minimise your risk of being hacked.
According to research, cryptocurrency is still the most fraudulent industry, beating out fintech and mobility. Identity fraud made up 44% of all fraud incidents that occurred within the industry in 2021.
2. Exchanges are Not Hacker-Proof
Even the most reputable exchanges are not immune to hacks. Coinbase suffered a cyberattack in 2021 when hackers stole cryptocurrency from at least 6,000 accounts. The hackers exploited a bug in the platform’s multi-factor authentication process.
Naturally, such incidents may discourage traders from sharing their personal information on these exchanges.
3. Complicated KYC Processes
The KYC process can be complicated and time-consuming. It may take days or even weeks for an exchange to verify one’s identity. Some people do not want to go through the hassle of providing personal information and documents just to buy Bitcoin.
4. Personal Financial Reasons
In some cases, people may not want their spouses or family members to know about their Bitcoin investments. Perhaps they are worried about how it will affect other financial decisions, such as joint investment accounts or inheritance.
5. Local Restrictions
Certain localities and governments in the UK have placed restrictions on purchasing Bitcoin. In these cases, buying Bitcoin anonymously can give investors access to the digital currency.
Payment Methods for Investing in Bitcoin in the UK
When it comes to payment methods, there are several options available for buying Bitcoin in the UK. The most popular methods are bank transfer and credit/debit cards.
- Bank transfer: This is the most common method used in the UK. All you need is a bank account that supports Faster Payments. This includes all of the major banks in the UK, such as Barclays, HSBC, Lloyds, Natwest, RBS, and Santander. The main disadvantage is that it can take up to two days for the funds to clear into your account.
- Credit/Debit card: This is the second most popular method in the UK. The main advantage of using this method is that it’s instant. The funds will be available in your account immediately after you make the purchase.
- PayPal: You can also buy Bitcoin using PayPal, but there are a few disadvantages. Firstly, not all exchanges accept PayPal as a payment method. Secondly, even if they do, you will probably be charged high fees. And lastly, the funds you receive will be locked into your account for 180 days. This means that you won’t be able to withdraw or spend them during that time.
- Cash: You can also buy Bitcoin using cash. This is done by meeting someone in person and exchanging cash for Bitcoin. The advantage of this method is that it’s private and fast. It can be risky, however, as you could be dealing with a scammer.
- Wire transfer: Some exchanges support wire transfer without verification. Through this method, you can have funds usually clear into your account within 24 hours. The main disadvantage is that it can be quite expensive, with fees often around 0.5% or more.
- Other cryptocurrencies: If you already own another cryptocurrency, such as Ethereum or Litecoin, you can use this to buy Bitcoin on an exchange that doesn’t require KYC. This is because most exchanges accept a wide range of payment methods, including other digital currencies.
How to Invest in Bitcoin With No ID – Step by Step
Steps to buy Bitcoin UK no ID vary, depending on where you plan on buying your Bitcoin. We’ll detail them all below:
Through a Peer-to-Peer (P2P) Exchange
Step 1: Choose a P2P Exchange
The first step is to find a P2P exchange that doesn’t require an ID. We recommend LocalBitcoins or Paxful, as they are two of the most popular P2P exchanges in operation today.
Step 2: Register and Login
Next, you’ll need to register for an account on the exchange of your choice. This process is usually pretty straightforward and shouldn’t take more than a few minutes. The only information you need to share here is typically a username, password, and email address.
Step 3: Find a Seller
Once you’re registered and logged in, you’ll be able to start buying and selling Bitcoin. you’ll need to find a seller that’s willing to sell you Bitcoin without requiring an ID. You can do this by clicking on the “Buy Bitcoin” tab and then selecting the “No ID required” option.
Step 4: Select Your Payment Method
Now that you’ve found a seller that doesn’t require an ID, you’ll need to select a payment method. The most popular methods are bank transfer, PayPal, and cash.
Step 5: Complete the Transaction
The final step is to complete the transaction. This will usually involve sending your chosen payment method to the seller’s account. Once the seller has received your payment, they will release the Bitcoin from escrow, and it will be sent to your wallet.
Through a Bitcoin ATM
Step 1: Find a Bitcoin ATM
There are many Bitcoin ATMs located around the UK. Most of them will require you to have an existing cryptocurrency wallet before you can buy any Bitcoin.
Step 2: Insert Cash into the ATM
The amount of Bitcoin you can buy will be based on the GBP amount you entered.
Step 3: Choose to Buy or Sell Bitcoin
When buying, you’ll need to input your wallet address so that the BTC can be deposited into it.
Step 4: Complete the Transaction
Finish it up and wait for the BTC to arrive in your wallet. Make sure to keep your receipt in case you need to verify the transaction at a later date.
Using a Prepaid Card
Step 1: Buy a Prepaid Card
You can buy a prepaid card at any convenience store or gas station. You don’t need to show an ID to buy a prepaid card, but you will need to load it with cash.
Step 2: Find an Exchange That Accepts Prepaid Cards
Once you have a prepaid card, you’ll need to find an exchange that accepts prepaid cards and doesn’t require IDs.
Step 3: Register on the Exchange
When you’ve found an exchange that meets your needs, sign up for an account. You’ll usually need to provide some basic information, like a username and email address.
Step 4: Deposit Money Onto the Exchange
Now that you have an account, it’s time to deposit money onto the exchange so you can buy Bitcoin. To do this, you’ll need to link your prepaid card to the account.
Step 5: Buy Bitcoin
With your prepaid card loaded with cash and linked to your account, you’re ready to buy Bitcoin. Navigate to the appropriate section of the exchange, enter how much Bitcoin you want to buy, and confirm your purchase.
Through an Exchange
Step 1: Find an Exchange with No KYC
The first step is to find an exchange that doesn’t require users to go through a KYC process. Unfortunately, this is getting harder and harder as exchanges face increasing regulatory pressure to implement KYC procedures. However, there are still a few exchanges left that don’t have any KYC requirements.
Step 2: Register on the Exchange
Once you’ve found an exchange that doesn’t require KYC, you can create an account. This is usually a pretty straightforward process. All you need to do is provide your email address and create a password.
Some exchanges might also require you to set up two-factor authentication (2FA). This adds an extra layer of security to your account by requiring you to enter a code from your phone whenever you want to log in or make a transaction.
Step 3: Deposit Funds
Once your account is created, you’ll need to deposit funds in order to buy Bitcoin. The most common way to do this is through a wire transfer or a credit/debit card. Some exchanges might also support other methods, such as e-wallets like PayPal.
Step 4: Buy Bitcoin
Once your account is funded, you can start buying Bitcoin. Most exchanges have a pretty simple interface that allows you to buy Bitcoin with just a few clicks. All you need to do is enter the amount of Bitcoin you want to buy and hit the “Buy” button.
Where to Buy Bitcoin in the UK Anonymously
|Number of Coins
|0.05% Maker/Taker FeesAbove 0.02% Spot Trading Fees
|0.0012 BTC Maker Fee0.0088 BTC Taker Fee
|0.00005 BTC Security Deposit
|0.5 to 1% Seller Fee
|0.005 BTCSecurity Deposti
|Depends on BTC price
If you’re wondering how to buy bitcoin anonymously, ByBit is a derivatives exchange that offers trading in BTC, ETH, EOS, and XRP perpetual contracts with leverage up to 100x. It is one of the few exchanges that allow you to trade with leverage without having to go through a KYC process.
ByBit was established in March 2018 and is currently headquartered in Dubai. The company has offices in Hong Kong and Taiwan too. It’s important to note however that this exchange is not regulated.
- 100x leverage: ByBit is one of the few exchanges that offers leverage up to 100x on Bitcoin and Ethereum perpetual contracts.
- Fast executions: ByBit has built-in order matching and settlement mechanisms that allow for fast execution speeds.
- Auto trading: ByBit’s platform supports bots and algorithmic trading.
- Secure platform: ByBit uses multi-signature wallets and 2FA to help keep your account secure.
- Trading fees: 0.05% maker/taker fees, above 0.02% spot trading fees
- Withdrawal fees: Depend on bank
Bisq is a decentralised exchange that allows for peer-to-peer trading of Bitcoin. There is no need to create an account or go through a KYC process. Instead, you trade directly with another user.
Bisq supports a wide range of cryptocurrencies and payment methods. However, it should be noted that Bisq is not a beginner-friendly platform. It requires users to have some technical knowledge in order to use it effectively.
Cryptocurrencies are held in escrow until the trade is completed, and the platform doesn’t ask for any personal information. This makes it one of the most private ways to buy Bitcoin in the UK.
- Open-source: Bisq is an open-source platform that is constantly being improved by its community of developers.
- Decentralised: The platform doesn’t have a single point of failure and is resistant to censorship.
- No ID verification: The platform allows you to buy crypto without verification and doesn’t require account registration. You can get started in minutes.
- Multiple payment methods: You can buy Bitcoin with a wide range of fiat currencies and payment methods, including bank transfer, Cash App, PayPal, and more.
- Trading fees: 0.0012 BTC Maker Fee, 0.0088 BTC Taker Fee
- Withdrawal fee: 0.0003 BTC
Paxful is a peer-to-peer (P2P) marketplace that allows buyers and sellers to trade directly with each other. There are more than 300 payment methods available on Paxful, and many of them can be used to buy Bitcoin without having to go through a KYC process. Furthermore, Paxful provides a free crypto wallet. Paxful has offices in Estonia, US, Hong Kong, and the Philippines.
- Secure trading: All trades on Paxful are protected by escrow. This means that the Bitcoin is released to the seller only after the buyer has made payment.
- Multiple payment methods: You can buy and sell Bitcoin with over 300 payment methods on Paxful.
- Paxful wallet: Paxful provides a free crypto wallet.
- 24/7 customer support: Paxful has a team of customer support agents who are available 24/7 to help you with any issues you might have.
- Referral rewards: You can earn Paxful points (PX) by referring new users to the platform. These points can be used to get discounts on future trades.
- Trading fees: 0.5 to 1% Seller Fee
- Withdrawal fee: 0.5% Fee
LocalBitcoins is another P2P marketplace where buyers and sellers trade directly with each other. It was founded in 2012 and is one of the oldest and most well-known Bitcoin exchanges.
LocalBitcoins features various verification tiers but the lowest one lets you buy crypto without ID. There are several payment methods available, many of which can be used to buy Bitcoin without revealing your identity.
- No trading fees: LocalBitcoins does not charge any fees for buying and selling Bitcoin
- Advanced security features: LocalBitcoins has implemented several security features to protect its users, such as 2-factor authentication.
- Over 30 payment methods: LocalBitcoins supports a variety of payment methods.
- Trading fees: None
- Withdrawal fees: None
1. What is Bitcoin?
Bitcoin is one of the most popular and long-lasting cryptocurrencies, having been around since 2009. It is often considered an entry point for new investors in the world of cryptocurrency Bitcoin can be used to purchase goods and services, or traded for other cryptocurrencies or traditional currencies.
2. Is it possible to buy Bitcoin in the UK with no ID?
Yes, it is possible to buy Bitcoin no ID, but it is getting increasingly difficult to do so since many exchanges have implemented KYC measures. The options you have now are either to buy Bitcoin from another person through a peer-to-peer exchange or buy from an exchange that is not regulated yet in the UK. However, the latter is technically illegal.
3. What is a peer-to-peer exchange?
A peer-to-peer exchange is an online platform that connects buyers and sellers of Bitcoin. The most popular peer-to-peer exchanges are LocalBitcoins and Paxful. P2P exchanges do not require KYC, so you can trade anonymously. However, you should be aware of the risks associated with trading on these platforms, as there have been cases of scams and fraud.
4. Is it safe to buy Bitcoin without ID?
There is a certain level of risk associated with buying Bitcoin without ID, as you are more susceptible to scams and fraud. However, if you take the necessary precautions (such as only dealing with reputable sellers and using a secure platform), then it can be a safe way to trade.