As crypto industry is gaining popularity within the financial world, privacy has become the top priority for crypto traders. With increasing government regulations, many users are shifting towards trading platforms that offer anonymity without compromising functionality.
There are some crypto exchanges that allow crypto traders to trade or invest in crypto assets without revealing their personal details while going through the mandatory know-your-customer (KYC) procedure.
In this article, we have handpicked the top five non-KYC crypto exchanges that will help crypto investors to maintain confidentiality. We will explain why the crypto traders avoid KYC and the precautions to be taken when you trade on non-KYC crypto exchanges.
Why Crypto Traders Avoid KYC?
There are various reasons that the crypto traders prefer non-KYC crypto exchanges. They are as under:
Increased Privacy and Anonymity
Non-KYC exchanges help users to trade crypto assets without providing their personal information. These exchanges are developed for those who emphasizes on anonymity and want to avoid the risk of data leaks.
Easy and Quick Platform Access
In non-KYC exchanges, traders can immediately create an account and begin their trading. This will avoid delays caused by document verification process and provide access time-sensitive trading opportunities.
Reduced Risk of Identity Theft
Non-KYC crypto exchange does not ask its users for personal information and does not store it because sharing personal data with online platforms carries the risk of data breaches. Hence, by not asking for personal information, it protects its users from identity theft.
Global Crypto Accessibility
With the help of a non-KYC exchange, traders from countries where crypto is prohibited or under heavy regulations can access the market to trade crypto assets. Hence, these exchanges provide global crypto accessibility, bypassing legal hurdles.
No Centralized Authority
Non-KYC crypto exchanges align with the core principle of decentralized finance and do not depend on centralized authorities. They facilitates peer-to-peer transactions without any intermediary.
Top 5 Non-KYC Crypto Exchanges
Below are the top five non-KYC crypto exchanges that will be helpful for crypto traders preferring anonymity.
1. BloFin
BloFin is a cryptocurrency centralized exchange (CEX) established in September 2019 by Matt Hu and is based in the Cayman Islands. Its name “BloFin” is a combination of blockchain and finance which highlights its approach to integrated blockchain technology with finance.
BloFin exchange allows its users to start trading without the KYC process which helps in building anonymity and fast account setup. However, if a trader wants to withdraw more than 20,000 USDT then he needs to complete KYC level 1 verification to ensure a balance between maintaining security and user convenience.
According to Coinmarketcap, BloFin has a user base in more than 120 countries with it accepting over 50 fiat currencies.
Moreover, BloFin high market liquidity and up to 150x leverage for an enhanced trading experience. It also offers services for perpetual and futures trading.
2. WEEX
WEEX is a global crypto trading platform, established in 2018. The non-KYC facility of the exchange allows its users to deposit and withdraw amounts that provide accessibility while ensuring security. Users without KYC can withdraw up to 50,000 USDT per transaction with a daily cap of 500,000 USDT.
WEEX exchange has a 24-hour spot trading volume of $1.16 billion, has more than 5 million registered users and supports over 600 crypto assets.
The exchange also provides a user-friendly interface, low trading fees, and a wide range of trading tools.
3. CoinEx
CoinEx is a global crypto exchange that was founded in 2016 by Haipo Yang. The exchange offers various products and services including spot trading, futures trading, margin trading and others.
The exchange provides its users with an optional KYC feature that gives an option to crypto traders to start trading without a verification process. However, to access all the benefits of the exchange, the users must complete their KYC.
According to coinmarketcap, CoinEx maintains a user base of more than 4 million and serves around 200 countries. This exchange has over 600 premium crypto assets.
Non-KYC is one of the features of CoinEx. The other features comprise its availability in 15 languages, offering various services like spot trading, futures trading and margin trading.
4. Bitunix
Bitunix is a crypto derivatives trading platform founded in 2021 and registered in Saint Vincent and the Grenadines (SVG). It provides secure and cost effective trading services to the crypto traders.
The exchange offers its users with the optional facility to either trade with or without KYC, just by providing a mobile number or an email id. However, the exchange limits users’ withdrawals to maximum of $10,000 USD equivalent in tokens. If a user wishes to increase this limit, he needs to complete the KYC verification procedure.
Bitunix has a user base of more than a million traders from 100+ countries. Further, over 300 crypto assets available for users to trade.
Beyond the non-KYC facility, the Bitunix exchange also provides crypto spot and perpetual futures trading facility. Users can trade with up to 125x leverage on Bitunix with a low trading fee.
5. BYDFi
BYDFi (formerly known as BitYard) is a centralized crypto exchange established in 2020 with the aim to deliver safe and convenient crypto asset trading services. The name “BYDFi” aligns with its vision of “BUIDL Your Dream Finance”.
BYDFi exchange lets its users avail trading facilities without a KYC procedure. Without KYC procedure, the platform limits withdrawal up to 0.5 BTC. This provides traders with increased privacy.
The exchange has more than a million users across 150+ countries. It position itself as a competitive choice in the crypto exchanges ecosystem, offering tokens with up to 200x leverage, trading board bits for automated strategies and copy trading feature.
Precautions When Trading on Non-KYC Crypto Exchanges
Before starting trade on a non-KYC crypto exchange, here are a few things which a user needs to keep in mind.
Keep Track of Your Trades
Even if a trader uses a non-KYC exchange, he or she is responsible for reporting taxable events. Tax authorities clearly state that cryptocurrency is taxable and tax evasion is a criminal offense. Hence the trader needs to ensure accurate tax reporting to avoid severe penalties.
Ensure Credibility of Platform
There are multiple crypto exchanges that offer non-KYC features, however, not all exchanges operate with the same level of integrity. Hence, before indulging in any crypto exchange, the user must do proper research related to the platform’s history, user reviews, and security measures.
Trade on Popular Markets
Crypto trading on a well-established and popular market platform reduces security risk. By popular market platforms, we mean a crypto exchange with substantial market capitalization and liquidity that provides stability to the trader.
Stay Informed of Withdrawal Limits
As discussed above, each crypto exchange imposes withdrawal limits on its users who haven’t completed the KYC process. Hence, it is always suggested to stay informed of your withdrawal limits in order to avoid any unfavourable consequence and trade effectively.
Conclusion
Non-KYC crypto exchanges help crypto traders to trade in the market while maintaining privacy and anonymity. The above top exchanges – BloFin, WEEX, CoinEx, Bitunix and BYDFi allow users to freely access and start trading a broad range of cryptocurrencies. The exchanges offer speed, global accessibility, and cost-effectiveness to traders.
However, they may lack regulatory protections, lower liquidity, or carry higher risks of frauds and scams. But, the decision to use a non-KYC exchange depends on individual priorities and risk tolerance level.
Therefore, considering both the risks and benefits is a crucial task before choosing a non-KYC crypto exchange.
Also Read: FTX Extends KYC Repayment Deadline to June 1 for 400K Users
