A large amount of Nigerians are rushing to own a piece of the celebrated digital currency – Bitcoin. However, ever since the legal ban on carrying out cryptocurrency transactions through financial institutions in the country, crypto traders are subjected to trading anonymously.
Before now, buying or selling bitcoin used to be very easy since it can be done without the use of ID verification. But the stiff regulations of the government over how these coins are transacted have made them difficult to buy especially with the unending requirement of personal data and information.
If you want to buy bitcoin without verification, especially being a newbie trader, there are three main options which are: either use Peer-to-peer (P2P) marketplaces, Prepaid cards, or through Cryptocurrency exchanges and shifting services.
We will look at the pros and cons of each of these methods. However, before that, it is important we first look at why you’d want to buy Bitcoin anonymously in Nigeria.
Afterward, the rest of this article will focus on the pros and cons of buying bitcoins without ID and then other ways you can trade BTC safely and securely apart from trading anonymously.
Why do traders buy Bitcoin Without ID?
You will realize that majority of the exchanges that allow for buying and selling of Bitcoin usually require that users remit formal ids such as National Passport, National ID, or Drivers License.
The challenge of having a Valid ID in Nigeria
Given the situation of red tape in the Nigerian system, it can be a very daunting task for an average Nigerian to possess these documents. As such, it limits him or her from trading or buying Bitcoin through these exchanges.
For this reason, many people in this situation would prefer to look at ways they can still buy bitcoin without having to provide those Valid ID documents for verification of identity.
For security reasons
Aside from the challenge of attaining the documents, it is also considered a thing of security and safety when you can trade bitcoin in Nigeria anonymously.
It is no news that Bitcoin exchanges are prone to hacking and even some crypto exchanges get hacked, and valuable information of users is stolen.
Suppose one has bought Bitcoin without an ID card on the supposedly hacked exchange. In that case, the person’s personal information cannot be accessed or manipulated.
For faster transaction process on the exchange
Thirdly, many people look at the opportunity of trading cryptocurrency especially Bitcoin without verification primarily due to the cumbersome process involved in actually going through the verification steps on many of these exchanges.
If it was left to you, won’t you prefer to patronize the platform that is quicker to purchase Bitcoin without the ID process than those that make it mandatory to provide an ID verification? That’s right.
So if you are the type that just wants to trade a little amount of Bitcoin, your transaction is expected to be completed in minutes. Hence, getting delayed with the verification process is unnecessary. Hence, you will want to look for how you can buy bitcoin without having to verify your ID.
3 Ways You Can Trade Bitcoin Without Verification – Explained
So, currently, if you want to buy Bitcoin or any cryptocurrency without verification, that is, buying anonymously, then there are three options you can choose:
- Peer-to-peer (P2P) marketplaces
- Prepaid cards
- Cryptocurrency exchanges and shifting services
Peer-to-peer (P2P) marketplaces
In a recent guide, I extensively explained what it means to transact bitcoin using the P2p marketplace. While this channel will allow you to buy crypto without ID, it also allows you to cut out the middleman to deal directly with the seller so that you can negotiate for the deal you want
The downside of using P2P is that you may need to settle for a higher price and it could take time to find the right seller.
Examples of P2P platforms include LocalBitcoins and Paxful. Here, you interact directly with other users who want to sell their crypto many of who would not require you to provide any ID before you buy.
Using prepaid cards
Another way you can purchase crypto without providing proof of ID is by using prepaid cards. Although they are not widely accepted, these cards are similar to Visa gift cards that you are probably familiar with.
You can buy at a supermarket or store without verifying your identity. Keep In mind that this method appears to be a time-consuming way to buy crypto and you’d want to watch out for high fees.
Through Cryptocurrency exchanges
You can Buy bitcoin in Nigeria without verification through cryptocurrency exchanges. The good thing about this method is that it is relatively simple to use and there are competitive fees or rates.
However, many exchanges or start-up FInTech in this space are now requiring ID as it is impossible to buy crypto with fiat currency without providing proof of ID. But there are still some platforms of a similar kind that will allow you to exchange one cryptocurrency for another without needing to verify your ID.
For this website, dropping an active and valid email address or phone number is required while signing up for the account for using it to buy any bitcoin.
Beware Of The Downsides…
Despite the promising fast transaction that you can expect from buying crypto without verification, one of the major downsides of doing so is the complication that comes along with it.
For example, some exchange platforms may boast of a simple user interface but only at the expense of demanding ID verification.
Aside from these, those who occasionally buy bitcoin anonymously would testify that doing such is more expensive compared to making the transaction through regular exchanges that will demand ID. Online merchants who do not demand verification would want to pry on your desire to remain anonymous, ense increasing the rate at which you buy.
You must also be aware that some online crypto transactions may claim to offer anonymous buying and selling of Bitcoin but in reality, they don’t.
When purchases are made on this website, they can be traced to your ID at the end of the day.
Other ways to protect your identity when buying Bitcoin in Nigeria
Aside from trading or buying Bitcoin anonymously or without verification, there are more ways to protect your privacy when buying cryptocurrencies.
If your privacy is a top priority to you, as you’ve gone through the possible downsides to trading bitcoin without verification, you’d want to consider other measures such as the use of a new address for each transaction, the use of multiple wallets, the use of mixing services, and even hiding your IP address while interacting with your crypto wallet address of transactions.
Another way you can protect your privacy is by using a dedicated privacy coin that contains features designed to offer anonymous transactions.
Good examples are Monero and the rest. Taking simple privacy precautions like being mindful of your footprint when using the crypto buying methods discussed earlier is another way you can protect your privacy.
What this means, by extension, is that you should not attempt to give someone your phone number when buying bitcoin on a local exchange and other related precautionary ideas.
Where is the best place to buy Bitcoin without ID verification In Nigeria?
Trading of Bitcoin now has a new culture in Nigeria, specifically after the ban on these financial activities. It is a good thing that, as a reaction to this trend, several exchanges allow Nigerians to purchase Bitcoin without ID through their apps, websites, or channels.
Popular platforms that allow Nigerians to buy Bitcoin without ID verification include Paxful, Luno, and Nairaex. This is not to say that these online platforms have not had their fair share of dragging especially in the area of transparency and that is why many people consider better alternatives like SnappyExhange.
In summary
Yes, it is possible to buy Bitcoin without verification in Nigeria. Today, many websites facilitate that. And, the pros and cons of buying cryptocurrency without ID are clear. For one, you can keep your financial information private and you don’t need to go through a time-consuming ID verification process.
On the flip side of the coin, you may need to settle for a higher price and you can only buy a small amount of crypto before being asked to provide an ID.
Despite this, being able to buy BTC anonymously, especially in a time like this has made cryptocurrency accessible to the estimated one billion people around the world who don’t have proof of ID.
Keep in mind that when you trade Bitcoin anonymously, there’s always the risk that your desire to remain anonymous attracts suspicion and unwanted attention from stakeholders of financial intelligence institutions in the country.
