Skip to content Skip to sidebar Skip to footer

Bitcoin Traders Are Finding Creative Ways to Avoid KYC

Cryptocurrency traders on Bisq are using Revolut to buy and sell bitcoin without the need for KYC/AML. The decentralized, peer-to-peer marketplace allows anyone to buy or sell cryptocurrency via a range of payment processors and traditional banking services. With Localbitcoins now a twisted nightmare of KYC, privacy-conscious traders have few platforms to which they can turn. But in Bisq, they appear to have found a solution of sorts.

Also read: The Bank of Google Wants Your Spending Data

Trading Bitcoin Without the Awkward Questions

Unlike services such as Localbitcoins or buy.Bitcoin.com which work in-browser, Bisq requires users to first download the application before buying and selling crypto, with Windows, Mac and Linux systems all supported. A popular method of purchasing BTC on Bisq (formerly Bitsquare) is with Revolut, with many users opting for the virtual banking service on account of its speed and convenience. Although quick and easy at the initial point of use, there are potential pitfalls to relying on Revolut.

Bitcoin Traders Are Finding Creative Ways to Avoid KYC

As early as last year, Bisq issued a warning regarding the service and its suitability for avoiding unwanted attention. As the Bisq twitter account stated: “Payment methods based on traditional finance systems are going to require KYC at some level, sooner or later. Revolut is not special in this regard.”

It’s not just KYC/AML which poses problems either: a number of users have complained that after repeated transactions on Bisq, Revolut has suspended their accounts, leading to weeks of uncertainty and added complications. Revolut itself, it should be noted, requires KYC in order to obtain an account, and is not an anonymous or pseudonymous service.

A Little Privacy Please

Since the onboarding process at centralized exchanges and the obligatory intrusion of KYC remains a bone of contention for many, bitcoiners continue to seek out dependable decentralized alternatives. The development team behind Bisq describe it as “pure P2P infrastructure” built on the Tor network and using local wallets with no custodial accounts. Bisq does not require the user to provide a name, email ID, or verification, so it ticks all the boxes for anyone who takes their privacy seriously. The decentralized exchange also offers a large number of fiat currencies with which users can onboard including the US dollar, Canadian dollar, Australian dollar, Euro, British pound and Russian rouble. That said, for all its benefits, there are still limitations to using the decentralized exchange, including higher spot prices, which means the platform won’t suit everyone.

Bitcoin Traders Are Finding Creative Ways to Avoid KYC

Perhaps one of the bigger issues at this time is liquidity, although Bisq is hardly the only decentralized exchange that has struggled in this regard. Trade volumes remain relatively low and the amount of bitcoin a new user can purchase is initially limited to just 0.01 BTC. This increases over time, with accounts maturing after 60 days, but some payment methods retain restrictions in any case. Bank-based payments are limited to 0.25 BTC for instance, while Perfectmoney and Alipay allow purchases of 1 BTC. It’s clear that Bisq are extremely safety conscious and mistrust many of the most popular fiat payment processors, especially those that offer chargeback facilities. Part of their efforts to mitigate ongoing risks include a deposit and arbitration system which adds another layer of security for traders.

Bitcoin Traders Are Finding Creative Ways to Avoid KYC

Options for traders who have tired of Localbitcoins.com and its kowtowing to onerous compliance regulations are thin on the ground, but there is an outlet for bitcoin cash proponents. Local.Bitcoin.com enables anonymous P2P transactions, providing a private way to buy and sell bitcoin cash. Between it and Bisq, there is at least a mechanism for exercising one’s right to purchase cryptocurrency without enduring the data-breach-waiting-to-happen that is KYC.

What other pro-privacy exchanges do you recommend? Let us know in the comments section below.


Images courtesy of Shutterstock.


Did you know you can verify any unconfirmed Bitcoin transaction with our Bitcoin Block Explorer tool? Simply complete a Bitcoin address search to view it on the blockchain. Plus, visit our Bitcoin Charts to see what’s happening in the industry.

Kai Sedgwick

Kai’s been manipulating words for a living since 2009 and bought his first bitcoin at $12. It’s long gone. He’s previously written whitepapers for blockchain startups and is especially interested in P2P exchanges and DNMs.

Kai Sedgwick , 2019-11-17 00:15:19 ,

Source link

Leave a comment

NewsBlock © 2019 - 2020 All rights reserved.

NewsBlock © 2019 - 2020. All rights reserved.


While Bitcoin’s price seemingly moves without rhyme or reason — collapsing by dozens of percent and embarking on face-melting rallies on a whim — the cryptocurrency market is filled to the brim with fractals.

Related Reading: Analyst: Bitcoin Price Likely to Fall to Low-$8,000s as Chart Remains Weak

A brief aside: A fractal, in the context of technical analysis and financial markets anyway, is when an asset’s price action is seen during a different time. This form of analysis isn’t that popular, but it has proven to be somewhat valuable in analyzing Bitcoin.

One recent fractal popularized by a well-known cryptocurrency trader is implying that BTC is going to return to the low-$7,000s in the coming days.

Bitcoin Fractal Implies Retracement to Low-$7,000s

A well-known crypto trader going by “Tyler Durden” on Twitter recently posted the chart below, which shows that a Bitcoin price fractal may be playing out. The fractal has four phases: horizontal consolidation marked by one fakeout, a surge above the consolidation phase, a distribution, then a strong drop to fresh lows.

If the fractal plays out in full, BTC could reach the low-$7,000s again, potentially as low as $7,100. This would represent a 20-odd percent collapse from the current price point of $8,800.

It isn’t only a fractal that is hinting Bitcoin has the potential to visit its lows. As we reported on Saturday, Bloomberg believes that if the GTI Vera Convergence Divergence Indicator flips red, a downtrend could push the cryptocurrency back to $7,300.

Related Reading: Stephen Colbert Pokes Fun at Bitcoin in Monologue: Mainstream Gone Wrong?

Can Bulls Step In?

But again, many believe it is irrational to have such bearish interpretations of the cryptocurrency’s chart at the moment. As reported by NewsBTC earlier, Popular crypto trader Mayne recently noted that the “people waiting for $6,000” are irrational. He quipped that Bitcoin retracing and consolidating after its fourth-biggest bull move in history ($7,300 to $10,500, a 42% gain) is perfectly par for the course, but noted that it’s totally possible we can go lower from $8,800.

The medium-term technicals support this.

Trader and CoinTelegraph contributor FilbFilb found that by the end of November or start of December, the 50-week and 100-week moving averages will see a “golden cross,” which he claims is far more significant” for the Bitcoin market that other technical crosses.

Also, a Bitcoin price model created using Facebook Prophet machine learning found that the leading cryptocurrency is likely to end the year at just over $12,000. What’s notable about this model is that it called the price drop to $8,000 months in advance, and forecasted a ~$7,500 price bottom for BTC.

To put a cherry on the cryptocurrency cake, Crypto Thies observed that when Bitcoin bottomed at $7,300, it bounced decisively off the 0.618 Fibonacci Retracement of the move from $3,000 to $14,000, which correlates with the two-week volume-weighted moving average. He added that summer 2019’s consolidation was marked by Bitcoin flipping major resistances into support levels, implying that a bullish reversal and subsequent continuation is likely possible in the coming weeks.

Featured Image from Shutterstock


Nick Chong , 2019-11-10 12:00:38

Source link