Various cryptocurrency exchanges enable you to use their services without validating your identity. As a result, you don’t need to supply personal information or verify the information provided during registration or while using the exchange. Likewise, you can swap BTC to ZEC at LetsExchange.io. In most situations, an anonymous crypto exchange requires just an email address and a password before you can begin using services.
Reasons Why Users Choose to Use Anonymous Exchanges
Identification verification at cryptocurrency exchanges often entails supplying personal information. It suggests writing your name, address, and date of birth. Furthermore, you’ll have to attach proof of identity and residency papers. Frankly speaking, it’ll take a lot of time.
Most exchanges need identification verification for AML, which is anti-money laundering reasons. Furthermore, it requires conducting a KYC, explained as know your customer, procedures to comply with the nation’s regulations where they operate. Here are some explanations for using anonymous exchanges from users:
- Because cryptocurrency is like a treasure, someone may designate a target that holds it. Unlike any other asset, the coin may be stolen in large quantities all at once;
- There’s no limit to the number of coins you can get at once, and no authority can stop a questionable transfer;
- Sometimes being anonymous is the safest and wisest option;
- Many users would like to keep their money secret for their reasons.
The verification procedure also involves presenting documentation. It’s necessary to confirm your identification in a government-issued picture ID and your address in the form of utility bills. Validating this information may take longer, perhaps weeks, if there’s increasing demand for the platform’s services. You may exchange crypto online anonymously since you don’t have to wait for the verification procedure to be approved by the site.
What’s the Difference between Trading and Investing in Crypto?
The phrases “investment” and “trading” are often used interchangeably in the crypto world. However, much as in the stock market, these two names relate to distinct tactics. For instance, in the case of investing:
- You usually do so with a long-term goal when you buy a cryptocurrency. As a result, many investors are looking for the most significant long-term crypto investments.
- That implies you’ll most likely keep your tokens for at least a year.
- After you’ve purchased your selected tokens, you’re not obliged to do something.
Now, look at the process of trading cryptocurrency and how it differs from investing:
- Cryptocurrency trading is often seen as a short-term strategy.
- You may get a cryptocurrency and cash out within several weeks or months. That’s also known as cryptocurrency day trading.
- In rare circumstances, traders may start and terminate a position on the same day.
- Crucially, trading requires active engagement in terms of research and technical analysis.
As a newcomer to this market, it’s essential to have a long-term strategy for crypto. That indicates that you’ll seek potent initiatives with a viable long-term perspective. As a result, you’ll have little interest in shorter-term volatility.
How to Choose the Best Exchange
Remember that crypto is still under development. Therefore, things might change rapidly. These days, you can find multiple decentralized exchanges available. Moreover, many crypto specialists think they’ll permanently keep altering existing exchanges.
Furthermore, legislation may be enacted, and new technology or challenges may emerge. So, keep up with the news. The best cryptocurrency exchange is different for everyone. Therefore, do your research and remain cautious. However, the one thing you should continually look for is your security and the safety of the transactions. You can have it all while using anonymous exchanges like LetsExchange.io.