UPDATE DEC 17 2017 – THE BITCOIN CRAZE
How to buy Bitcoins in the UK Anonymously
If you’re thinking about purchasing some bitcoins, you’ll probably want to know how secure the buying process can be for those who wish to remain anonymous. After all, you don’t want everybody who uses the same network as you to be able to see the details of your address and how many bitcoins you have.
While it is possible to buy bitcoins securely, you may not be able to buy anonymously – so if you wish to know more, you should read on to see what you can do to keep your information private.
Bitcoin exchanges
If you want to make sure that you can obtain bitcoins anonymously, then you need to make sure that your credentials are not linked to a bitcoin transaction.
If you buy some of these digital coins on an exchange, they will be linked to your name – and a lot of exchanges also need you to give them a scan your government ID to verify your identity. You may also need to give them some scans of bills or bank statements to prove your physical address, too.
Not only that, but a lot of exchanges will only accept national currency transfers through a credit card or a bank account, which will reveal your identity even more.
How to use the coins
There are several ways in which the currency can be used. The most common is via trade, where an individual might choose to trade coins for another resource; possibly gold, or even a financial currency value. The second is to buy, where a person will be permitted to invest their own money into the digital alternative.
The final one is to sell Bitcoins for profit – and this can either be a product, or a service. In the former instance, a product can be sold in exchange for digital cash (the coins). In the latter, a specialist may accept payment in this form of currency. With as few as 6 million coins due to be produced over the course of the next few years (before the entire project comes to a halt), now is a good time to consider investing.
By placing cash into a cold storage wallet when buying bitcoins for example, the buyer will be permitting a third party to use their own coins as collateral, in exchange for interest. Once their account matures, they will be allowed to withdraw their funds, including the accrued interest, where they can transact, trade, or sell all over again as they see fit.
The great thing about this method of payment is that it is valued at what people are willing to pay for it, so just a single coin with an estimated market value of £550 could pay for an entire service, or be invested until the price increases and the potential for a larger profit becomes apparent.