Exploring Crypto Investment Options Without A Social Security Number

Investing in cryptocurrency without an SSN is possible, but it's not a straightforward process. It requires time and effort, and there are several factors to consider. Firstly, familiarise yourself with the process and ensure you have the necessary documents for registration and identification. You can then explore various options for purchasing cryptocurrency without an SSN, such as decentralised exchanges, Bitcoin ATMs, anonymous payment methods, and peer-to-peer marketplaces. It's important to prioritise security and privacy when choosing an exchange and payment method. Additionally, setting up a secure Bitcoin wallet is crucial for storing your digital assets.

Crypto exchanges that don't require SSN

When it comes to crypto exchanges that don't require an SSN, there are a few options available, although the number of such exchanges is shrinking as governments around the world introduce stricter regulations on crypto trading. Here are some of the more popular platforms that currently don't require KYC (Know Your Customer) information, such as an SSN:

Hodl Hodl

Hodl Hodl is a peer-to-peer (P2P) crypto exchange that allows users to buy and sell Bitcoin without ID verification. The platform doesn't hold customer funds; instead, it locks Bitcoin in escrow to secure transactions. Hodl Hodl offers a variety of payment options, including bank transfers and in-person payments. It is available worldwide.

Changelly

Changelly is a user-friendly crypto trading platform that only requires an email address to get started. More information is needed to unlock advanced features, such as buying cryptocurrencies with fiat. Changelly is not available in the USA.

ByBit

ByBit is a Singapore-based crypto derivatives exchange that allows users to create an account and trade with minimal verification. Unverified accounts have a 2 BTC withdrawal limit. ByBit is not available in the USA and the UK.

TradeOgre

TradeOgre is a crypto exchange that allows users to buy and sell cryptocurrencies like Bitcoin, as well as privacy-focused coins like Monero, without any identity verification. It is available worldwide.

Pionex

Pionex is a popular crypto exchange that offers more than 300 cryptocurrencies for trading. It has different levels of KYC verification, with the most basic level only requiring the user's name and country. Pionex is available worldwide, with some restrictions in certain US states.

CoinEx

CoinEx is a Hong Kong-based crypto exchange that doesn't require verification for basic trades. It offers extensive cryptocurrency options, with more than 600 cryptocurrencies available. However, it has higher withdrawal and deposit limits for verified users. CoinEx is not available in the USA.

Bisq

Bisq is a decentralized, peer-to-peer crypto trading platform specifically for Bitcoin. As a non-custodial exchange, it doesn't require any identity checks. Bisq is accessible worldwide and offers a variety of payment methods.

ProBit

ProBit is a crypto exchange headquartered in Seychelles. Users can start trading with just email verification, with a withdrawal limit of $5,000 for these accounts. The withdrawal limit increases to $500,000 for accounts with full KYC verification. ProBit is available worldwide.

Uniswap

Uniswap is one of the world's biggest decentralized exchanges, built on the Ethereum blockchain. It allows users to trade ERC-20 tokens without any identity verification, simply by connecting their Ethereum wallet. Uniswap is available worldwide.

DYdX

DYdX is a decentralized crypto exchange that specializes in leveraged trading. It allows users to trade cryptocurrencies like ETH and DAI without any KYC requirements. dYdX is available globally and is a popular choice for privacy-focused traders.

Bitcoin ATMs

• Enter the amount you wish to purchase. Depending on local regulations and the amount, you may need to verify your identity, but not all Bitcoin ATMs require an SSN - some only need a phone number or email address.
• Provide your Bitcoin wallet address by using the ATM's camera to scan the QR code of your Bitcoin wallet address from your Bitcoin wallet app.
• Pay using cash, credit card, or payment app.
• Receive the Bitcoin in your wallet. This usually takes a few minutes, and the ATM will provide a transaction ID to monitor the status of the purchase.

There are tens of thousands of Bitcoin ATMs worldwide, with the majority in the United States. Some popular Bitcoin ATM providers include Coinhub, Lowest Fee Bitcoin ATMs, Byte Federal, Coinme, CoinFlip, and Cash2Bitcoin. These providers ensure the machines are secure, user-friendly, and compliant with local regulations.

Using a Bitcoin ATM is a convenient and quick way to buy Bitcoin, especially if you do not have an SSN.

Purchasing cryptocurrency anonymously

This guide will instruct you on how to buy cryptocurrency anonymously, without providing identification details or compromising your privacy. It is becoming increasingly difficult to do so due to changes in Know Your Customer (KYC) requirements, but it is still possible.

Methods

LocalCoinSwap

If you want to buy Bitcoin without verification, LocalCoinSwap is a good option. It is a peer-to-peer marketplace where you can find someone near you who is willing to sell Bitcoin for cash. You can use an alias email address to sign up, and as you are paying in cash, it is easy to remain untraceable.

Bitcoin ATMs

Bitcoin ATMs are another way to buy cryptocurrency without verification. These machines are similar to regular cash machines, but they allow you to buy Bitcoin with cash. Not all Bitcoin ATMs require ID, and they can be found all over the US.

Prepaid Cards

You can buy a prepaid credit or debit card from a supermarket or convenience store and then use this to buy Bitcoin without providing identification. You can then use sellers on LocalCoinSwap to make your purchase.

No Verification Exchanges

Some exchanges, such as BitFinex and ShapeShift, do not require ID verification if you are only depositing cryptocurrency. On ShapeShift, you need to buy altcoins or another digital token before buying Bitcoin, but there is no account required, and the site does not hold your coins.

In-Person Cash Trades

Meeting a seller in person and buying crypto with cash is another way to remain anonymous. This can be arranged through a platform such as LocalCoinSwap, but it does come with risks.

While it is possible to buy cryptocurrency anonymously, it often comes with higher fees and limited options. It is also important to be aware of the legal risks in some jurisdictions. Ultimately, it is up to the individual to decide how much anonymity they require and how much they are willing to sacrifice in terms of convenience.

Using a prepaid card

Prepaid cards are a way to buy crypto anonymously in the US. They can be bought at supermarkets or convenience stores without verifying your identity, and can be used to buy Bitcoin and other cryptocurrencies. However, it's important to compare rates before purchasing, as prepaid cards may not offer the best rates for buying crypto.

When buying a prepaid card, it's worth noting that the U.S. Patriot Act has made it almost impossible to activate or apply for a traditional prepaid card without a Social Security number. However, some cards on the market allow you to apply using an alternate form of identification, such as an Individual Taxpayer Identification Number (ITIN) or other foreign ID number.

• Bluebird® American Express® Prepaid Debit Account: This card is issued by a major credit card company and is regularly rated as one of the best prepaid debit card options available. It offers no monthly or foreign transaction fees, and free ATM access at over 38,000 MoneyPass® ATM locations. It accepts an ITIN in lieu of a Social Security number.
• Serve® American Express® Prepaid Debit Account: This card is similar to the Bluebird option above, also offered by American Express, and will accept an ITIN instead of a Social Security number. It offers free withdrawals at over 37,000 MoneyPass® ATM locations nationwide and no monthly fee if you direct deposit $500 or more within a statement period.
• The Mango Prepaid Mastercard®: This card is ideal for foreign exchange students or non-permanent residents of the US as it accepts a national identification number, personal code, or ID code in place of a Social Security number. It offers the added benefit of attaching to a high-yield savings account that can be accessed through a desktop computer or mobile device. There is no credit check required for this card.

Using a hardware wallet

Crypto hardware wallets are physical devices that store your private keys offline, allowing you to access and manage your cryptocurrency assets securely. They are often designed as USB or Bluetooth devices, although some may connect wirelessly via Bluetooth or NFC.

Step 1: Purchase and Install Software

Buy a hardware wallet from a reliable manufacturer, such as Ledger, Trezor, or Ngrave, or their authorised resellers. Visit the manufacturer's website and install the wallet software on your computer or mobile device. Ensure that your device meets the recommended specifications, such as the operating system and processor.

Step 2: Connect the Hardware Wallet

Use the provided USB cable or a wireless connection to connect the hardware wallet to your device. Follow the on-screen instructions to initialise the wallet, which includes setting a PIN or passphrase for security. Create a backup recovery seed phrase and securely store it in multiple offline locations. This recovery seed is crucial for restoring access to your funds if your hardware wallet is lost, damaged, or stolen.

Step 3: Add Funds and Transact

Within the wallet software, locate the option to receive or deposit cryptocurrencies. You will be provided with a wallet address (public key) to send and receive crypto. Copy this address or scan the QR code to add the desired amount of cryptocurrency from an exchange or another wallet.

To send cryptocurrencies, select the option to send or transfer funds within the wallet software. Enter the recipient's address and the amount you wish to send. Confirm the transaction details on the hardware wallet's screen by physically inputting the PIN you set up earlier.

Step 4: Confirm, Sign, and Verify Transactions

Once you confirm the transaction details on the hardware wallet, you will be prompted to authorise the transaction by entering your PIN or passphrase. The hardware wallet will then sign the transaction with the private key stored within it, and the funds will be transferred. You can track the progress of the transaction using blockchain explorers or within the wallet software. Verify that the transaction has been confirmed and added to the blockchain.

Security and Backup

Hardware wallets provide an extra layer of protection against cyber attacks, phishing, and malware. They are considered "cold wallets" or "cold storage" because they keep your private keys offline and away from potential cyber threats. Even if your computer is insecure, your assets stored in the hardware wallet remain safe. Additionally, hardware wallets allow you to retain full control and ownership of your private keys, ensuring that no third party can access or tamper with your transactions.

In the event of loss, theft, or destruction of your hardware wallet, you can use the backup recovery seed phrase to regenerate your private key and recover access to your funds using a different wallet. It is crucial to keep your seed phrase safe and offline, preferably in a safety deposit box.

Disadvantages

While hardware wallets offer robust security, they have some disadvantages. Firstly, they incur upfront costs and can be expensive. Secondly, the setup process can be cumbersome, especially for beginners. Lastly, hardware wallets are less convenient for day-to-day transactions as they require physical connectivity to access your crypto. Therefore, hardware wallets are more suitable for long-term holding rather than frequent trading.

Frequently asked questions