Do All Crypto Exchanges Require ID? [No-KYC Exchanges Explained] (2024)

Not all crypto transactions require ID, but it’s not as simple as you might think!

While platforms like Binance and Kucoin generally require ID verification (KYC), there are ways to buy or swap crypto without it. However, before jumping into “no-KYC” options like StealthEX or ChangeNow, understand this crucial difference:

Trading on platforms like Binance is like opening a bank account: you deposit funds, buy/sell crypto, and hold it within the platform. This requires KYC for security and regulatory reasons.

Swapping crypto on platforms like StealthEX is more like a quick cash exchange: you trade one crypto for another directly, similar to converting currencies at an airport kiosk. Some platforms allow smaller, non-KYC swaps for convenience, but with limitations and potential risks.

This article will dive deeper into the world of KYC and no-KYC crypto, explaining the pros and cons of each, and helping you make informed decisions for your crypto journey. Remember, understanding the risks before diving in is crucial!

So, you know that some crypto exchanges require ID (KYC), but what exactly is it and why does it matter? KYC stands for “Know Your Customer” and is a standard practice in finance, including crypto. It involves verifying your identity with documents like passports or driver’s licenses. This helps exchanges:

• Prevent illegal activities: KYC helps fight money laundering and terrorist financing by identifying who’s using the platform.
• Protect users: It verifies you’re who you say you are, reducing fraud and scams.
• Comply with regulations: Many countries have laws requiring KYC for crypto transactions.

Now, not all crypto transactions involve KYC. Smaller, decentralized platforms like StealthEX allow quick swaps without ID. However, remember:

• Limited amounts: These platforms often have lower transaction limits compared to KYC exchanges.
• Higher fees: Swapping without KYC can be more expensive due to added processing costs.
• Security risks: Platforms without KYC might have weaker security measures, making you more vulnerable.

Ultimately, the choice is yours. If you’re just dipping your toes into crypto with a small amount, a no-KYC swap might be tempting. But for larger transactions, trading, or long-term holding, the security and reliability of a KYC exchange often outweigh the convenience of skipping ID verification.

Are you considering buying cryptocurrency? Are you wondering if it’s worth the effort to create an account and complete verification? Let’s compare the buying experiences for each option:

Buying crypto on decentralized exchanges skips middlemen like banks, but that means you hold your own keys. That’s where Web3 wallets like MetaMask come in. Think of them as secure vaults for your crypto, controlled by you, not the exchange. It’s powerful, but remember, losing your wallet or its access key means losing your funds forever.

Pros:

• Fast and convenient: No long verification processes.
• Privacy-focused: No need to share personal information.
• Very secure: You own your crypto(keys), no hacks or loss of funds

Cons:

• Trading is not possible: You can only buy or sell at market prices
• Higher fees: Swaps can be expensive, especially for larger amounts.
• Custody issues: You hold the crypto directly (non-custodial wallet like MetaMask), which requires managing your own private keys (like a password). Losing them means losing your crypto forever.

Finally, choosing the right path depends on your priorities:

• For small, private, quick buys: No-KYC might be tempting, but be mindful of limitations and risks.
• For larger amounts, diverse options, and security: KYC exchanges offer a safer and more comprehensive experience.

Remember, a non-custodial wallet like MetaMask requires careful management of your private keys. Losing them means losing your crypto. For beginners, a KYC exchange with a custodial wallet might be a safer starting point.

As explained earlier, buying crypto without ID requires you to set up and install a crypto wallet. A crypto wallet like MetaMask or Trust Wallet allows you to store and send all kinds of different cryptocurrencies(e.g. BTC, ETH, or BNB).

Moreover, by using a crypto wallet you are in control of your funds and you have the privacy to do whatever you want with your funds. In other words, it’s like owning digital cash that you can send to any other person who also uses a crypto wallet.

Consequently, in the rest of this article, I’m going to show you how to install Trust Wallet, a popular web3 wallet that also allows you to receive Bitcoin. Additionally, I’ll guide you through the buying process on the decentralized StealthEX exchange to buy crypto without the need for verification.

However, if you are planning to become a trader or don’t want to go through the process of creating a web3 wallet, I advise you to use Binance or Kucoin. Both exchanges are reliable, but you need to do the KYC verification process first when signing up.

So do all crypto exchanges require ID? The answer is a clear no. Also, there are many decentralized exchanges out there, but for simplicity, I’ll show you the buying journey on the StealthEX exchange.

Finally, remember that you can skip some steps in this buying process if you already using this wallet regularly. That being said, let’s kick off from here (👍)

Download Trust Wallet from the App Store or Google Play Store for free. If you prefer a desktop, you can download the Trust Wallet by going to the Trust Wallet website.

Besides, don’t forget to verify first if you are visiting the official Trust Wallet website. Otherwise, you risk downloading a fake wallet.

After downloading Trust Wallet, follow the steps to set it up. It’s very straightforward.

1. Click ‘Create a new wallet’
2. Create a secure password
3. Secure your secret recovery phrase
4. Congrats! Your wallet is created

The most important part of setting up any self-custody wallet like Trust Wallet is recording your 12-word secret recovery phrase and storing it in a safe place.

Your secret recovery phrase is the key to your wallet and the funds within. Whoever has your recovery phrase has control of your funds. So make sure to keep it secure.

In other words, besides a password, you also need to secure the 12-word recovery phrase. The password gives access to your device, where the recovery phrase will allow you to do transactions on the blockchain.

Therefore it is important to write it down and lock it away in a safe place. Preferably in an at-home safe that is both fire and waterproof.

Never store your wallet’s private key online such as in a cloud or any files on your phone or computer.

If you lose your recovery phrase, there is no way to recover it or your wallet.

❗ TIP — A good option for securing your recovery phrase is to use a stainless steel crypto wallet that can survive about anything, from fire to acids, and lasts more than 20 years.

To be able to transfer cryptocurrencies to Trust Wallet you have to use your wallet’s public address — a unique identifier on the blockchain network.

Suppose you want to buy Bitcoin(BTC) at the StealthEX exchange then you need to give your wallet address to them. This is to let them send the required crypto to you.

Additionally, to find your Trust Wallet’s public address, click on ‘Receive’ button above in the menu. Once clicked, a huge QR code appears below the public key(Something like this: ‘bc1qacjyu7h7zntzf6jwgpzs0rfxlfnsrxwj7lmaff’)

Then, click the ‘Copy’ icon below to store the address in memory.

Once you have your wallet’s public address, you can transfer BTC from the StealthEX exchange by pasting the address into the “Recipient” field.

This will send the BTC directly to your Trust Wallet(It will be explained in detail in the next step).

At this point, you are ready to buy crypto with Trust Wallet without ID. To achieve this you need to initiate a swap on the StealthEX exchange. At this exchange, you can use a credit card to purchase Bitcoin. Remember that you only can buy without KYC if you purchase less than €700 (or any other currency). Below are the steps:

1. Just go to StealthEX. Open the Buy crypto window instead of the automatically loaded Exchange.
2. Then select fiat currency and choose the cryptocurrency that you want to buy. In this case: BTC.
3. Paste the BTC wallet address(copied above).
4. Purchase BTC using a credit card(VISA or Mastercard)

Again, when buying an amount of crypto under €700 for the first time you won’t need to take the KYC procedure. So just send in the fiat and wait for your purchase to go through!

All in all, buying crypto without verification is a pretty straightforward process that any beginner in crypto can understand. Enjoy your brand-new crypto adventure!

Related: How to Buy Solana(SOL) Without KYC