Buy Bitcoin anonymously and avoid KYC - YouTube

KYC short for know your customer has been  slowly taking over the cryptocurrency space  

it's becoming significantly more difficult  for somebody to buy cryptocurrency without  

giving up their personal information know your  customer is basically the process of identifying  

and verifying the identity of a client so common  ways to do this is by asking a named birthdate or  

a copy of a government issued id the supposed  reason for this is the prevention of criminal  

activity like money laundering but is it really  a good idea to give away our privacy like that  

so why do i think that privacy is important  well first of all it's a qualified human right  

and most of the times when i mention privacy to  people they say they don't really care about it  

because they have nothing to hide well there's all  sorts of examples that illustrate the importance  

of privacy like why else would you close your  curtains at night but in reality that sentence  

saying that you don't care about it because you  have nothing to hide implies that there are two  

kinds of people good people and bad people  your definition of bad can be something like  

violence criminals bank robbers thieves or  whatever but the definition of bad for the  

people in power or like government for example  can be something completely different their  

definition of bad person could be somebody who  questions their authority basically privacy isn't  

about hiding something it's about protecting  something people who are in a bad position who  

don't have access to banking services or money  in general were given an opportunity with bitcoin  

i'm thinking about farmers who live in a country  that was torn apart by war people who don't have  

access to banking services people who don't  have access to a government-issued id victims  

of hyperinflation and so on the more regulations  that get pushed on cryptocurrency and bitcoin the  

further we stray from the original id and the more  difficult it will become for people like this to  

have access to money bitcoin is often seen as an  anonymous payment network but in reality the way  

bitcoin works is actually quite transparent all  the transactions that were ever made are public  

traceable and permanently stored on blockchain  so how can you protect your identity while using  

bitcoin well in order to send and receive bitcoin  you will need to create a digital wallet you can  

compare this to your bank account which you give  to friends if they need to give you money and the  

thing about this wallet address if we look on the  blockchain and we check a transaction we can see  

a from address and an amount and a two address  but we don't know who that address belongs to  

so as long as you don't link your identity to your  wallet nobody will know that's you so once you've  

created your wallet you will now be able to send  and receive bitcoin so imagine that you would want  

to buy some bitcoin well the most common way to  do this is by going to one of the major exchanges  

and buy bitcoin through them but in order to use  the services of one of these major exchanges you  

will have to go to a kyc process first this can  involve giving your name address and sometimes  

even a copy of a government-issued id this is an  alleged attempt to prevent criminal behavior like  

money laundering but of course it carries  some risks with it a big risk could be  

data breaches if a hacker manages to get access  to one of these exchanges database he could  

easily obtain all your personal information  another risk is that people who are in a difficult  

situation and who not necessarily have all the  required documents are being denied access to  

cryptocurrency another big risk has to do with  how the blockchain works i've told you before  

that we can check the blockchain and see all the  transactions that ever happened with every bitcoin  

so imagine that you bought one bitcoin through an  exchange and your identity is now linked to that  

bitcoin so now imagine that way up the chain  let's say one year ago that bitcoin was used in a  

criminal activity if the police comes across that  transaction that happened in the past the one with  

the criminal activity they can follow that bitcoin  all the way up the chain and come across you and  

this will be reason enough for them to demand all  your personal information from that exchange and  

probably that exchange will just give it to them  on top of that in some countries this might be  

reason enough to issue a search warrant or to even  spy on you so needless to say this is a privacy  

disaster that can lead to dire consequences  these are just a couple of reasons why i think  

privacy is so important and that's why today i'm  going to show you how you can buy cryptocurrency  

kyc free luckily for us there's a website that  lists exchanges that don't require a kyc process  

it's called kycnot.me the exchange that we will be  using today is huddle huddle it's a peer-to-peer  

bitcoin trading platform that allows users to  trade directly with each other so how does huddle  

hold all work well the first step you take is  creating an account the only requirement for this  

is a working email address once you've created  your account and you verified it through mail you  

can start buying bitcoin in the top left part of  the website you can see the option to buy bitcoin  

once you've clicked on that you arrive on this  page where you see all the potential offers  

there's also this filter with the payment methods  and as you can see there's a lot you can do bank  

transfers credit cards paypal venmo western union  gift cards cryptocurrency and the list goes on  

there's also the option to create an offer so when  you create an offer it's possible to announce to  

potential sellers that you're willing to buy  bitcoin at a specific price it's also possible  

to follow an exchange rate in this example i've  selected finance and it's possible to specify  

how much more you want to pay than market price  one thing that immediately caught my eye when  

you're using a peer-to-peer platform like this is  that the prices in general are a little bit more  

expensive so you have to look around a little  bit in order to find market price bitcoin or  

maybe find something like one or two percent more  expensive what's important to me is that we have  

the choice everybody can choose what kind of  bitcoin they buy be it on an exchange that  

requires you to go through a kyc process it's just  important to me that the option to buy kyc free is  

there then it's up to you the user to decide how  important privacy is for you so anyway back to  

hodon hollow imagine that you found a good deal  how would it work exactly basically everything  

you need to know is explained in the following  paragraph so when you found a seller and you try  

to buy from him a contract will be created between  the two parties so hold the huddle will generate  

a multi-sig escrow bitcoin address the seller  will then send this bitcoin from his wallet to  

this account created by huddle huddle and when  the bitcoin is locked in escrow the buyer sends  

fiat to the seller the seller then releases the  log bitcoin from escrow using his payment password  

and the buyer receives them into his wallet so  what does that mean well hudal huddle will create  

a locked bitcoin address the seller will send his  bitcoin to that address then we wait until the  

buyer sends money to the seller once the seller  has received that money he will unlock the bitcoin  

that is in that locked account and then the buyer  will instantly receive the bitcoin he tried to buy  

you might wonder what they mean with a multisig  escrow account well basically this is just  

a regular bitcoin address but it is locked so you  need at least two keys to open this in the case  

of this trade there will be three keys the seller  has a key the buyer has a key and although huddle  

has a key this ensures that only when an agreement  is reached that the locked funds will be unlocked  

in case that there's a dispute so imagine that  the seller has received money from the buyer and  

he doesn't unlock the bitcoin it's locked in there  well in that case the buyer would file a dispute  

and he would contact huddle huddle if he can prove  what happened and the support manager from hotel  

hotel approves everything then that manager can  use his key together with the key of the buyer  

and they can unlock the bitcoin that's in the  locked address so that's in a nutshell how you  

can buy bitcoin kyc free using a peer-to-peer  platform there's multiple platforms out there  

and another noteworthy one is bisque bisque is a  decentralized exchange that uses a peer-to-peer  

network to buy and sell crypto the reason that  they use total huddle as an example is because  

it's so simple bisque is also relatively simple  but it requires you to download a client so that's  

why i've chosen the most simplistic methods to use  as an illustration so now you know why privacy is  

important and how you can buy kyc free bitcoin the  only thing that you still need is a decent wallet  

there's multiple wallets out there but one  that i really like is the samurai wallet the  

samurai wallet is described on their website as  a modern bitcoin wallet hand forged to keep your  

transactions private your identity masked and your  funds secured it's a wallet that you can use on  

your phone and it's really simple to use you just  go to their website click on the download page  

and here you can download the android apk or you  can even just download it to the google play store  

so one more question you might have is that if you  already bought bitcoin through a kyc platform what  

do you do then well basically there's two options  you can take the first one basically is that you  

get rid of all the bitcoin that you bought through  a kyc platform and you just start fresh you buy  

new bitcoin to non-kyc platforms there's one thing  to keep in mind with this method and that is that  

in most countries selling bitcoin is a taxable  event so you gotta be careful that you don't lose  

too much money by doing this action again it's up  to you to decide how important privacy is for you  

i can understand that this option isn't really  attractive for everybody and that brings me to  

option two you can basically just hold all the  bitcoin that you've bought to a kyc exchange  

and keep it in a certain wallet then create a  new wallet where you um will store all the future  

bitcoin that you will buy to a non-kyc exchange so  basically the second option is the separation of  

your bitcoin and i also have to add that there are  some more advanced techniques like coinjoin and  

using mixers but these are a little bit outside  of the scope of this video i also have to add that  

the most secure way to interact with your bitcoin  is by creating your own node this will allow you  

to verify your own transactions and on top of that  use an air gapped hardware wallet but again these  

options are a bit more for advanced users but i  just wanted to make you aware of the options that  

exist so and that brings us to our conclusion i  want to start by saying that i condemn criminal  

activity through bitcoin i even want to take it  one step further and say that i condemn criminal  

activity in general people will always find a way  to abuse a technology or a system be it by using  

cash digital money or even bitcoin it just can't  become an excuse to take away our privacy bitcoin  

was created as a decentralized peer-to-peer way  to send money and thanks to the software a lot of  

people were given opportunities a good example for  the need of easy access to cryptocurrency would be  

the situation in somalia a couple of years ago the  uk decided not to allow bank remittances services  

to somalia anymore people were sending money  through this service and once they weren't able  

to do this anymore the country started to starve  forty percent of their population according to  

this article were relying on the service uh for  food and medicine and that's where the beauty of  

bitcoin comes in it doesn't discriminate everybody  that has the required hardware can set up a wallet  

and start using bitcoin to send it worldwide  if we give up a right for privacy we will kill  

innovation and keep poor people poor alright  so that was it for this video i hope you guys  

understand why i think privacy is so important  now and why i think bitcoin should stay kyc free  

before i end the video i want to give a shout out  to bitcoin q a be sure to check out their twitter  

they have some great information about bitcoin and  privacy the following website that was created by  

them basically has all the information you would  need to know about privacy and bitcoin i really  

hope that people found this video interesting  and that the importance of privacy is a little  

bit more clear in general i'm really curious to  see what you guys think about cryptocurrency and  

privacy and the whole kyc situation please leave  a comment and let me know what your thoughts are  

on the subject i also have a discord server i'll  leave a link to that in the description here we  

talk about cryptocurrency and the stock market in  general we can also talk about privacy of course  

i want to thank you guys for watching  please leave a like and subscribe and bye

you