Privacy is today’s most valued asset and it is constantly under threat. When buying cryptocurrencies the chance getting your privacy attacked is not an impossible thing. When this market began to develop, the users and exchanges were at a very low number, but, as the user base grew, so did the privacy attacks.
Implementing regulation could be the answer to this problem but somehow the crypto community is not convinced. Exchange platforms have tons of work when they have to make a procedure in order to be compliant with various regulations thus asking for clients to go through a lot of identity verification processes. Some exchanges require different stages of verification such as asking for a verified email, government ID, proof of residence and much, much more.
However, without the regulation, anonymous trading is still mainly possible.
There are plenty of peer-to-peer trading platforms that allow users to trade crypto for traditional currencies by person-to-person trades. Buyers can reply to the many advertisements they can find on crypto websites and meet the person to buy bitcoin with cash or just trade via online banking. Another way to trade anonymously is to use decentralized exchanges within bitcoin wallets that make local trades possible. Most of these platforms don’t ask the users for a special ID verification besides an email address. Also, Bitcoin ATMs allow people to exchange bitcoin and cash.
Trading like this also has its risks. Sometimes users can get scammed, cannot guarantee if the transactions between the two parties will eventually be finalized and also further regulatory framework can make these kinds of trading more difficult.
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