Anonymity has always been an important aspect of the
cryptocurrency industry, stemming back from the early beginnings of Bitcoin.
Even Bitcoin itself was created by the mysterious pseudonym Satoshi Nakamoto,
who chose to keep his or her real identity private from the rest of society.

Whether Nakamoto did this to protect Bitcoin itself, or to protect
his or her own personal details is not known, but the powerful message remains
today that cryptocurrency users prefer to remain anonymous.

The need for anonymity has
sparked a whole subset of privacy coins such as Monero or Dash, which are aimed
at keeping the user’s identity, address, and other private details, hidden from
the rest of the world.

With remaining anonymous so important to cryptocurrency users,
it’s bewildering that so many cryptocurrency exchanges mandate extensive
know-your-customer (KYC) processes that demand private user information and can
often delay the user’s access to a platform.

One cryptocurrency exchange, however, PrimeXBT, cares about the
privacy of their users, and offers quick registration with no KYC procedure.
This allows traders to sign up quickly, make their first deposit, and start
trading, long before a user of any other exchange is able to upload their
personal identification cards.

For any traders unsure if going through a KYC process is right for
them, here are 6 things you should know about KYC.

Data
Leakage Risk

The number one reason for identity theft is due to other websites
and platforms being hacked and having sensitive user information stolen. By
uploading important government documents to an unknown cryptocurrency exchange,
users are put at great risk to have their information stolen, which could
potentially make its way into the wrong hands. This could lead to identity
theft, credit issues, and much more, as the same identifying documents the user
uploaded can be used to steal their identity.

Earlier in 2019, a dark web hacker admitted to stealing customer
KYC data from some of the world’s leading exchanges and was selling it to
others on the dark web for profit. This wouldn’t have happened if users elected
to avoid the KYC process at these exchanges, or used exchanges that don’t
require KYC, such as PrimeXBT.

Long
Registration Process

When any trader finds an exciting new platform to trade on, they
want to get started profiting right away. However, with KYC, documents must be
reviewed extensively by support staff at exchanges and it could lead to
significant delays in the registration process.

This leads to a lot of frustration for users, who simply want to
make a deposit and start trading immediately. A Reddit user recently complained
of Coinbase representatives being unable to verify a document after repeatedly
uploaded the same document again and again. Eventually the trader decided to
give up and move along to another exchange.

Not
Anonymous

This one might be obvious to most, but it’s worth noting that the
second a trader adds their personal information to an exchange, they are no
longer anonymous. Not only is their personal and private information living on
some server at an exchange, the information is being shared with government
agencies and who knows who else. Once they have your information, it is no
longer yours.

Inability
to Open an Account

Sometimes, for reasons not always communicated, exchanges can and
will deny a user access to a platform, even if they have included all relevant
personal details and uploaded the proper required documents. Unfortunately,
users are up to the exchange’s mercy, and even if there are no issues on the
user’s end, exchanges can make mistakes, and deny people for the wrong reasons
mistakenly.

Worse-yet, these exchanges don’t usually give a reason, leaving
the user scratching their head wondering why their KYC was rejected.

Account
Restrictions

On some exchanges, depending on the level of KYC passed and which
documentation is offered, certain limits are added to withdrawals. This means
if a user hasn’t passed all of the KYC levels, the exchange can limit a user
from withdrawing their own money! This is completely against the goals behind
cryptocurrency as a whole, as it was designed so individuals can control their
own money. No exchange should be able to tell you how much or how little of
your own money you can use and for what.

For example, even Binance limits withdrawals for non-verified
users to just 2 BTC every 24 hours. If a user gets verified, they can withdraw
up to 100 BTC each 24 hour period.

Illusion of
Security

KYC can give users a false sense of security. The thought is, if a
user uploads their ID and other sensitive information, then no hacker can get
into their account without providing the details. However, in addition to
exposing personal information to potential theft by uploading it to an exchange
in the first place, it isn’t uncommon for hackers to simply obtain information
another way, possibly via the dark web, and gain access to the user’s account.
Things like SIM-card swapping scams have become rampant, causing users to lose
their crypto assets. If a hacker truly wants into your account, they’ll get in
one way or another. The addition of KYC is never a replacement for personal
presence.

Conclusion

KYC is rarely helpful to anyone other than companies bent on
tracking individuals, or hackers seeking to steal personal information. But,
regardless, it’s something that so many crypto traders and investors are faced
with each and every time they try a new exchange.

PrimeXBT puts user
privacy and safety first, above all else, and ditches the lengthy KYC process
in order to streamline the registration experience and get traders using their
cutting edge platform quickly. In just a few clicks, users can sign up, make
their first deposit and start profiting more than ever using 100x leverage.

The post Anonymous Trading on PrimeXBT: 6 Things You Should Know About KYC appeared first on Ethereum World News.