5 Great Crypto Exchange Platforms that Don’t Require KYC Verification
KYC (Know Your Customer) guidelines are a prominent feature in financial systems. KYC is part of the wider Anti-Money Laundering (AML) policies that reduce the risks in financial transactions. KYC refers to the process of verifying the identities of the individuals using a service, and in most countries, it involves providing some identification documents.
Following the numerous risks in the crypto world, many exchanges nowadays require KYC checks. The procedures are especially standard in centralized exchanges. KYC procedures help reduce the cases of illegal activities in crypto exchanges, which have been rampant in recent years. However, they also interfere with anonymity in crypto exchanges, which is crucial for many investors.
Investors who would rather not give their personal information to trading platforms may have a harder time finding an exchange that accommodates them. Luckily, several crypto trading platforms allow people to trade without KYC verifications. Here are the top 5 exchanges that you should be on the lookout for if you’d rather remain anonymous when crypto trading.
Block DX is a decentralized exchange (DEX) powered by Blocknet Protocol. The Blocknet, which is a blockchain interoperability protocol, allows private and public blockchains to communicate, interact, and for users to exchange crypto across the platforms. Additionally, the protocol allows the connection to external off-chain APIs and services.
Unlike other decentralized exchanges, Block DX decentralizes all components of the platform. Although it mimics a centralized exchange experience, users can transact directly from their wallets without an intermediary. Some of the features that make Block DX stand out include no accounts, greater flexibility thanks to no withdrawal and trade limits, and trading pair freedom. To take an existing order, users only need a small amount of BLOCK, the platform’s native token. However, creating an order doesn’t require any BLOCK tokens.
ByBit is a Singaporean exchange founded in 2018. Crypto enthusiasts believe the platform could grow exponentially with the introduction of KYC procedures, but the derivatives futures exchange platform is yet to put these measures in place.
ByBit offers a variety of features, especially for traders who would love to venture into margins trading. The BTC-USD perpetual swap is the most popular product, and users can also trade XRP, ETH, and EOS. Besides, the platform provides a variety of crypto margin trading guides that contain useful tips and tricks for swapping crypto derivatives.
Users from most parts of the globe can use ByBit without KYC verification. The platform provides a neat user interface that is available 24/7 and in different languages. The platform also offers an iOS and Android mobile app for easier access to the exchange. However, it is worth pointing out that ByBit bars US users from trading on the platform.
If you need to swap your cryptocurrencies for some other without KYC verification, Changelly should be your go-to exchange. The platform has been around since 2013 and currently supports more than 150 cryptocurrencies. If you would like to exchange for BTC, you would need supporting cryptos such as ethereum and Dash. Despite it being a centralized platform, you don’t require ID verification registration to use the swapping services.
One of the best features of Changelly is the vast array of payment services acceptable on the platform. In addition to crypto deposits, traders can use bank transfers, credit card payments, and even Apple Pay to make deposits. Besides, Changelly features a trading algorithm that finds the best trading prices by scanning other platforms.
The only instance where you would need to complete KYC verification is if suspicious activity is detected. If you require additional security when swapping your coins, a VPN would be an excellent choice.
Ethereum holders will particularly love this decentralized cryptocurrency exchange. IDEX is specially designed for trading ethereum and ethereum-based tokens (ERC-20). By combining the security of blockchain technology with the speed of centralized platforms, IDEX provides one of the best exchanges for ethereum users who would like to transact anonymously.
Traders on IDEX are identified using their wallet addresses. Therefore, there’s no need for further verifications. To get started on the platform, users only need to unlock their Ethereum wallets, deposit tokens on the exchange, and start trading. Following a rebranding of the parent company, IDEX swapped its native token from AURA to IDEX in a 1:1 conversion. Users who previously held AURA tokens swap them at their leisure, with no deadline in place. IDEX coin holders receive a percentage of the fees generated from the transactions on the platform.
Some of the crypto exchanges feature partial KYC verification, and the world’s largest exchange is one of them. The Hong Kong-based exchange boasts of more than 10 million active users and supports over 150 cryptocurrencies.
To open an account on Binance, you only need an email address. You can also deposit, withdraw, and trade up to 2 BTC per day without requiring KYC verification. Spot trading on Binance doesn’t also need verification. However, users who transact large volumes of BTC will need to complete the KYC procedures so that they can transact on the platform. Additionally, US traders must use Binance US, which features KYC verification during registration.
To deposit funds on Binance, users can either use bank transfers, credit cards, or crypto deposits. The platform’s native token is Binance Coin ( BNB). Holders of the coin enjoy a discounted rate when trading any of the over 500 trading pairs available.
Undoubtedly, KYC verification on cryptocurrency exchanges helps to keep the platforms safe from users who would be engaging in malicious activities. However, these procedures strip the crypto world of anonymity, which was one of the significant features that drew people into the world of digital currencies.
Despite the security offered, KYC procedures could also pose a potential threat to investors in case of data breaches. Therefore, it is no surprise that many crypto enthusiasts love to maintain their privacy when transacting on public ledgers. Sure, there are other options, such as bitcoin mixers. However, a good exchange without KYC verification is enough for most investors. So, why don’t you check out our list above and find one that works for you? Keep in mind that there are several other options available, and you only need to do your research to find a platform that works for you!
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Originally published at https://hackernoon.com on August 26, 2020.