After reading the previous chapter, you may be wondering how you can buy or sell bitcoin without having to undergo an identity verification procedure, in order to avoid the risks associated with KYC. There are several ways to trade Bitcoin.

As we have seen, the best method in terms of confidentiality remains P2P (person-to-person) exchange with cash settlement. This method allows you to minimize the traces left behind and considerably reduces the possibility of key identification, whether you're buying or selling.

Nevertheless, there are risks to personal security. The main danger lies in the fact that, during the exchange, the counterparty will know that you are holding a large sum of money, either in cash or in bitcoins. This information can attract the attention of malicious persons. Indeed, it's generally advisable to be discreet about your bitcoin holdings. This advice could also be applied to cash. However, when exchanging in person, it's inevitable that you'll reveal your own bitcoins, and this may attract unwelcome attention.

To mitigate this risk, I recommend favoring cash transactions with trusted individuals, such as family members or close friends. Alternatively, you could also consider trading at local Bitcoin meetups, after attending a few times. This will allow you to get to know the other participants better and not be alone when physically exchanging. However, it's essential to acknowledge that P2P cash exchanges inherently pose risks to your personal security that don't exist when purchasing via a regulated platform and through your bank account.

Furthermore, depending on your location, transporting and storing large sums of money can be risky, whether it involves bitcoin or cash.

Exchanging cash can also pose legal risks in the event of police or other checks. Although there are no restrictions on the amount of cash you can carry in most countries, excessive amounts can arouse suspicion. Be cautious, especially if you have to travel long distances, and avoid making multiple large transactions at once, so as not to have to justify possession of large sums.

Finally, another disadvantage of P2P purchases is that the price is often higher than on regulated platforms. Sellers often charge a markup ranging from 1% to sometimes more than 10%. There are several reasons for this price difference. Firstly, this is a common practice among P2P sellers that has become established over time. Secondly, sellers have fees associated with the transaction to cover the costs of sending the funds to the buyer. There is also an increased risk of theft in P2P sales compared to platform transactions, which justifies compensation for the risk taken. Finally, the extra cost may be linked to the demand and quality of the exchange in terms of confidentiality. As a buyer, the gain in confidentiality has a price, which is reflected in the markup applied by the seller. Some bitcoiners also believe that the markup price of BTC bought on P2P reflects its true price, and argue that the lower prices on regulated platforms are the result of a compromise on the confidentiality of your personal data.

A less risky alternative in terms of personal security is to conduct P2P exchanges exclusively online, using electronic payment methods such as PayPal, bank transfers, or Revolut.

This approach avoids many of the risks associated with cash transactions. However, the risk of the counterparty defaulting on an online exchange is greater. Indeed, in a physical exchange, if you hand over money to the seller who doesn't send you the bitcoins in return, you can immediately call him to account, since he's standing in front of you. Online, on the other hand, it's often impossible to track down someone who has stolen from you.

To mitigate this risk, specialized platforms for peer-to-peer (P2P) exchanges can be utilized. These platforms use conflict resolution mechanisms to protect aggrieved users. Typically, they offer an escrow system, where bitcoins are held until payment in fiat currency is confirmed by the seller.

In terms of personal security, this method of purchase is considerably safer than exchanging cash in person. However, as mentioned above, online P2P exchanges leave more traces than physical exchanges, which can be detrimental to Bitcoin's privacy. By using an online fiat payment method, such as a bank, you expose more information that could facilitate key identification.

Once again, I wouldn't recommend making too many large trades in a single transaction on these platforms. By splitting up your transactions, you spread the risk of counterparty theft.

Once again, another disadvantage of P2P purchases is that the prices are often higher than those observed on regulated platforms. Sellers often charge a markup ranging from 1% to sometimes more than 10%. There are several reasons for this price difference. Firstly, this is a common practice among P2P sellers that has become established over time. Secondly, sellers have fees associated with the transaction to cover the costs of sending the funds to the buyer. There is also an increased risk of theft in P2P sales compared to platform transactions, which justifies compensation for the risk taken. Finally, the extra cost may be linked to the demand and quality of the exchange in terms of confidentiality. As a buyer, the gain in confidentiality has a price, which is reflected in the markup applied by the seller. Some bitcoiners also believe that the markup price of BTC bought on P2P reflects its true price, and argue that the lower prices on regulated platforms are the result of a compromise on the confidentiality of your personal data.

As far as solutions are concerned, I've personally always used Bisq and I'm very happy with it. Their system is tried and tested and seems reliable. However, Bisq is only available on PC, and its interface may be too complex for beginners. Another drawback is that Bisq only operates with on-chain transactions, which can become costly during periods of high Bitcoin transaction fees.

-> See our Bisq tutorial.

For a simpler option, you can try Peach, a mobile app that connects buyers and sellers with a built-in conflict resolution system. The process is more intuitive than Bisq's.

-> See our Peach tutorial.

Another online option is HodlHodl, a well-established platform that offers good liquidity, although I haven't personally tested it.

-> See our HodlHodl tutorial.

For Lightning Network-based solutions, try RoboSats and LNP2PBot. RoboSats is accessible via a website and is relatively simple to use. LNP2PBot is more atypical, as it operates through an exchange system within the Telegram messaging application.

-> See our RoboSats tutorial.

-> See our LNP2PBot tutorial.

Depending on the country you live in, you may have access to regulated platforms that don't require KYC procedures to buy or sell bitcoins. In Switzerland, for example, you could previously use Relai and MtPelerin, which now offer their services under KYC regulations.

-> See our tutorial on Relai.

As we saw in the previous chapter, this type of platform mitigates the risks associated with KYC procedures; however, it also presents a higher level of risk for key identification. In terms of Bitcoin confidentiality, then, these platforms offer better protection than buying methods with KYC, but they remain less attractive than P2P exchanges.

However, in terms of personal security, using these platforms is far less risky than P2P exchanges. They are also often simpler to use than P2P platforms.

Another option for buying or selling bitcoins without KYC is cryptocurrency ATMs. Personally, I've never had the opportunity to test this solution, as it is not available in my country. But this method can be very interesting, depending on where you live.

The problem with ATMs is that they are either prohibited in some countries or highly regulated in others. If an ATM requires an identity verification procedure, then it is exposed to the same risks as those inherent in KYC-regulated platforms. On the other hand, if the ATM allows transactions without identity verification for small amounts, then its use can offer a level of confidentiality comparable to that of a P2P cash exchange, while avoiding most of the risks associated with this type of exchange.

The main disadvantage of ATMs is their often high exchange fees, which can range from a few percent to as high as 15% of the amount exchanged.

Finally, I would like to introduce you to a solution that works well for those who want to use their bitcoins on a daily basis to make purchases, rather than sell them against fiat currencies.

The best way to spend BTC is, of course, to use Bitcoin or the Lightning Network directly to purchase goods or services. However, in many countries, the number of merchants accepting Bitcoin is still limited. A practical alternative is to use gift cards.

Several platforms that do not require KYC procedures offer the possibility of exchanging bitcoins for gift cards that can be used at major retailers. These include CoinsBee, The Bitcoin Company and Bitrefill. These platforms make it much easier to use your bitcoins on a daily basis, giving you access to a wide range of products and services without having to convert them into fiat currency.

Other ways of acquiring bitcoins while protecting your privacy include, of course, mining. To start mining sats, you don't need to reveal your identity; simply find a valid proof of work and submit it to the network. If you opt for pool mining, some pools require some form of identification, such as a KYC, while others do not.

Another method is to work in exchange for bitcoins. This method of acquisition can be interesting, but the degree of identification required varies considerably depending on the circumstances.