Get the weekly summary of crypto market analysis, news, and forecasts! This Week’s Summary The crypto market ends the week at a total market capitalization of $2,17 trillion. Bitcoin continues to trade at around $62,300. Ethereum experiences no changes and stagnates at around $2,400. XRP is down by 2%, Solana by 1%, and Dogecoin by 3%. Almost all altcoins are trading in the red, with very few exceptions. The DeFi sector decreased the total value of protocols (TVL) to around…
5 Cryptocurrency Exchanges You Can Trade in Without KYC Verification
These days, it’s taken as a given that Know Your Customer (KYC) practices must be endured to trade crypto on centralized exchanges, as stringent legislation in most countries requires crypto businesses to verify individuals’ identity using their service.
However, it is not mandatory to use a KYC exchange (also referred to as “surveillance exchanges” by their critics) to trade. Moreover, several businesses still lawfully operate in jurisdictions that do not dictate the use of KYC laws or have no official headquarters, putting them in a grey area regarding legal requirements.
Are you interested in buying crypto without the hassle of going through the KYC process repeatedly? The following guide examines five exchanges that don’t enforce KYC requirements and considers precautions you should take when using KYC-less crypto exchanges.
Changelly
Changelly is among the more well-known “instant” digital currency exchanges. Since 2015, the exchange has increased by more than 1.5 million registered users worldwide. Right now, the exchange serves more than 15,000 exchanges each day and has a month-to-month turnover of around 60,000 BTC.
With more than 90 altcoins to trade or purchase, Changelly has a significant rundown of exchanging sets to offer clients. It prides itself on quick exchanges, account security, top trade rates, simplicity to utilize, and a natural interface. Moreover, there is no ID confirmation enlistment that you have to accomplish to utilize their administrations.
To secure the client’s protection, Changelly does not require making an account to utilize its transformation administrations. This implies clients don’t have to submit individual data; they need a legitimate wallet address. That said, it is essential to note that purchasing crypto with a bank card may require extra confirmation before purchasing.
For individuals who stick to crypto-to-crypto changes, there isn’t any confirmation required. However, Changelly expects users to have supporting altcoins like LTC/ETH/DASH and exchange for BTC. So, if you possess altcoins, you can purchase BTC in seconds with no confirmation utilizing this platform.
Diversifi (Former Ethfinex)
Diversifi, rebranded from Ethfinex Trustless, is an Ethereum-based trading platform that places security, privacy, and control in the user’s hands. With the platform, users are neither required to sign up nor retain complete control of their funds throughout the trading experience while executing trades against a highly liquid off-chain order book. In addition, the platform has no deposit or withdrawal delays, plus users don’t sacrifice custody of their tokens.
The exchange enjoys liquidity provided by Bitfinex, thus facilitating the trading of ERC20 tokens without the need to undergo KYC. Diversifi allows users to take advantage of high liquidity and a low-spread trading experience without sacrificing their tokens’ control. The platform seeks to birth a new digital asset trading era by placing liquidity, privacy, and security in the user’s hands.
Kyber Network
Kyber Network is an on-chain liquidity protocol aggregating liquidity from a wide range of reserves, powering instant and securing token exchange in any decentralized application. While the platform doesn’t look like a conventional DEX, it performs a similar role by employing an on-chain liquidity protocol that enables the swapping of tokens via connecting an Ethereum interface such as Metamask.
Kyber Network is KYC-less with no order. Instead, users select the respective asset from a dropdown menu to swap tokens, then set a minimal acceptance conversion rate by adjusting a slider. After that, the order is fulfilled on-chain.
Kyber offers a wide range of decentralized use cases by enabling wallets, websites, and applications to integrate instant token exchange directly into the application logic.
OpenLedger DEX
OpenLedger is a KYC-less DEX platform built on the BitShares blockchain platform. The platform allows users to list their coins or exchange cryptocurrencies and supports ten languages. Users can convert their BTC or EOS paired with BitShares token to fiat-backed SmartCoins, which they can cash out using Ripple gateway, PayPal, or CCEDK’s NanoCard in a decentralized fashion. T
The platform also supports a range of stablecoins developed by Openledger pegged on various national currencies, such as the Chinese Yuan.
Will “No KYC” Exchanges Survive in a Regulated Industry?
Decentralized exchanges (DEXs) are many investors’ go-to option when anonymously trading crypto. The 5 DEXs identified above operate on-chain using smart contracts, and some don’t even require an email address to trade.
Therefore, trading on a DEX is effectively anonymous. Moreover, as decentralized exchanges are – at least in theory – protocols that operate independently of their owners, it isn’t easy to regulate them. But how long will decentralized exchanges be allowed to use in this manner?
Financial sovereignty, personal freedom, and liberty are cornerstones of Bitcoin and cryptocurrency. However, the options to buy and sell digital currency anonymously are becoming increasingly limited due to crypto having gone mainstream as an investment asset class.
For exchange operators who want to build profitable businesses, KYC will likely become mandatory across the globe.
Author’s Thoughts
In most countries worldwide, ID verification is required due to crypto monitoring rules put in place by financial regulators.
Yet, some decentralized exchanges based in less stringent jurisdictions still allow limited crypto trading without requiring KYC. This is good news for investors who prefer to stay anonymous, but these exchanges rarely support fiat deposits. Fiat deposits and withdrawals almost always require basic or full KYC.
Indeed, most anonymous DEX platforms use a tiered system requiring every user to provide additional information before depositing or withdrawing large amounts of digital assets.
Here are some of the processes that crypto exchanges use:
- No KYC – users can sign up for an exchange without completing checks. They are, however, limited to certain functionalities, such as no withdrawals.
- Basic KYC – users must upload identification documents such as IDs and photos. They also get fixed deposit and withdrawal limits.
- Full KYC – users must complete an entire verification before depositing or withdrawing large sums of digital assets.
The exchanges discussed above allow users to trade crypto without completing any checks. However, users must undergo a progressively stringent confirmation process to access more trading functionalities.
To ensure your safety while on an anonymous exchange, it’s essential to do your research before signing up. Read online reviews to get a feel of what others have experienced while trading on various DEX platforms, check out each exchange’s policies, and determine its customer support quality.
Finally, don’t leave all your coins there when trading on a “no KYC” platform. Instead, only deposit what you actively need for trading purposes and keep the rest of your portfolio in a non-custodial wallet.
Trade safe and keep your identity anonymous with one of the above exchanges that appeal to you most!
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