It is true that the world of digital currencies is decentralized and unregulated, but people must authenticate themselves to trade in this market. Famous exchanges Binance and Coinbase are among the platforms that do not allow buying and selling without authentication in order to prevent money laundering and fraud. However, some people may have wondered if it is possible to buy and sell digital currencies without authentication. We are here today to answer this question. So stay tuned until the end of this article from Reza Shirazi Digital Currency Academy to learn more about the possibility of buying and selling without authentication and related tips.
What is authentication?
Authentication or KYC verification is a mandatory process in which you are asked to identify yourself to a platform or a third party. Companies use this authentication to ensure that you are who you say you are. Authentication has been a mandatory step in conducting business and banking transactions for many years.
What is authentication in digital currencies?
The authentication process in digital currencies is exactly the same as that of traditional banking services. In fact, the purpose of authentication is the same on both platforms. This authentication is done to identify, verify customers, and track their transactions regularly. However, there are differences between banking authentication and cryptocurrency authentication.
Banks still tend to offer personalized services. For this reason, authentication is done by comparing the customer's photo and signature. However, on platforms active in the cryptocurrency space, this authentication is done online. To do this, they use special advanced biometric selfie and document verification tools. Generally speaking, it can be said that authentication in digital currencies is a completely digital and online process.
Why do some cryptocurrency users avoid KYC?
Why do you think some users want to sell and buy digital currencies without authentication? In 2018, the Indian government imposed a 30% tax on cryptocurrencies; for this reason, citizens of this region preferred to buy and sell without authentication. Other cases in which some people do not want to authenticate are:
- Some people think that the authentication process violates the rules of the digital currency world.
- Some people are afraid that their IDs will be passed on to third parties.
- Some users avoid authentication to avoid penalties.
- Some people are trying to avoid taxes.
- Some miners avoid authentication.
- Some people do not want to authenticate for privacy reasons.
Is it possible to buy and sell digital currencies without authentication?
The answer to this question should be yes! Users who do not want to go through the authentication process for some reason can buy and sell currencies without authentication on this market. Although many exchanges use authentication as a mandatory step, there are other exchanges that allow you to buy and sell currencies without authentication.
But as you can imagine, this can have many consequences. Next, we will explore the problems that the lack of authentication will cause you.
Consequences of the lack of authentication in digital currency
Although many cryptocurrency platforms do not allow logins without authentication, this situation has become an opportunity for speculators. These people will sell you a verified account in exchange for a little money. These accounts are created and you receive fake documents or real data.
Fraud
Many hackers use exchanges that do not require authentication to commit sabotage. In addition, many of them bypass authentication to create fake, untraceable accounts. They use this work to achieve their sinister goals and destroy people's assets. One of the problems caused by the removal of authentication is the increasing number of these hackers.
Money Laundering
Selling and buying digital currencies without authentication is the basis of money laundering. For example, let's say someone deposits a large amount of stolen digital currency at a currency exchange. He will convert this asset into different currencies and eventually withdraw the desired money from the exchange in the form of clean money. In the end, this person has easily converted the dirty money into clean money or laundered money.
Falling into a phishing trap
Buying and selling without authentication poses a risk of phishing. Phishing is when you want to buy or sell and a malicious person sends you a corrupted link instead of the original exchange link. Because you are not aware of this scam, you deposit your property at the broken link and address and lose it.
Enter multiple currencies without authentication
If for some reason you want to buy and sell currencies without authentication, you can use one of the following exchanges:
- base pi
- Who is Kevin?
- Cream of Bisque Soup
- Goodbye
- one thumb
- Ether Delta
- And…
However, if you are about to become a professional trader and want to advance your work in principle, use authentic exchanges that require authentication. To find out about trustworthy exchanges, you can visit the Introduction to the stock market category and get all the information you need.
final word
In this article, we will try to answer your question: is it possible to sell and buy digital currencies without authentication? Give a complete answer. As you have read, this is possible, but we do not recommend it for the reasons mentioned. If you want your transactions to be carried out as safely as possible, you should not bypass authentication. Since the world of cryptocurrencies is decentralized and unsupervised, the authentication process can be a good guarantee for making transactions in this market.
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