How to Trade Forex Completely Anonymously

High profile investors used to reserve anonymous trading for special occasions. But now that cryptocurrencies are more widely used in FX trading, anyone can trade in secret. The use of anonymity in commerce has both advantages and disadvantages. Use Bitcoin or any other altcoin accepted by your broker if you want to trade currencies anonymously. The documents entitled “Know Your Customer” are based on an anti-money laundering strategy that was implemented in 2014. The effort was aimed at combating money laundering, particularly those committed by those who seek to support international terrorism. Obviously, KYC rules have a particularly good reason for being, so we can’t exactly call them a “bad” thing.

How to Trade Forex Completely Anonymously

KYC (Know Your Customer) paperwork has been a problem for No KYC Forex traders and brokers also since the beginning of Forex trading. These documents are often the only thing standing in the way of a potential trader and the platform they need to make money in FX trading. This article will discuss what it means to trade discreetly, the benefits of doing so, and most importantly, how best to use Bitcoin for this purpose.

Forex Trading: KYC Based or Anonymous

Forex investing is a highly governed industry, unlike cryptocurrency trading. Regulators require forex brokers to perform extensive know-your-customer (KYC) procedures before allowing traders because of this. Traditionally, anonymity has not been a feature of exchanges. But over time, many people have switched to hybrid or anonymous trading methods. What exactly is anonymous trading then? Investors who trade anonymously do so voluntarily; nevertheless, their trading activity is still recorded in the order book. An investor often has the option of trading on a national (anonymous) market or through the more exclusive dark pools.

Since anonymous brokerage firms are still subject to regulation, they do not offer perfect anonymity as authorities can still obtain details about a specific trader’s identity and activities. Dark pools, on the other hand, are exclusive trading venues that are generally inaccessible to the general investing public. Like traditional brokerages, they can register and operate legally. Cryptography is extremely useful for maintaining the anonymity of transactions, whether you are trading on an open market or in a dark pool. Now let’s find out why you might consider trading anonymously.

Why trade Forex in the dark?

The reasons why investors trade anonymously can vary slightly. But the following are typical explanations.

Identity Protection: You may choose to remain anonymous as an exchange investor for personal purposes. Sometimes all you want is privacy, whether it’s to get around certain boundaries, avoid stalkers, etc.

Securing your strategy: If you are a very astute trader, your strategies could always be imitated. They will have a harder time understanding your approach if you negotiate while keeping your identity a secret.

Hide your intention: Due to the irrational nature of cryptocurrency markets, if other users notice that you are buying or selling in large amounts, prices may change, sometimes to your detriment. Buying or selling secretly in such a situation allows speculation to control price movements.

Using Bitcoin for Anonymous Forex Trading

Cryptocurrency trading on the forex market is quite likely. And while you can trade forex using any cryptocurrency (if your broker allows it), there are some advantages to using Bitcoin. The main one is undoubtedly its widespread acceptance. Due to its volatility, BTC is a good currency for investments. So here is how you can trade currencies using Bitcoin.

Get Bitcoin first: Naturally, buying Bitcoin is the first step. To do this, you need to go to an exchange (not a forex exchange, however). Check out companies like Coinbase, Binance, and Changelly.

Find a reliable broker: Bitcoin is not accepted by all FX brokers. Forex brokers that accept bitcoin deposits are the ones that do.

Deposit bitcoins: Make a Bitcoin deposit with the broker and give them the details of the trade they need to make.
This is, of course, a high-level summary of the proceedings. You should be aware of some nuances, such as how to evaluate brokers and the pros and cons of using Bitcoin to trade cryptocurrencies. Here are a few to consider.

Benefits of Bitcoin Forex Trading

Improved anonymity: You don’t have to disclose your personal financial information when trading forex using Bitcoin.

Increased leverage: The leverage offered by brokerages has increased for Bitcoin trading. It can be really advantageous if you know how to exploit leverage.

Potentially lower expenses: To attract the new generation of BTC-forex investors, bitcoin depository companies are said to have lowered their brokerage fees.

Lower deposits allowed: Once again, it seems that forex brokers accepting Bitcoin deposits are using this tactic to attract new investors.

Cross-border trade: Cross-border trade is simplified since Bitcoin is a global currency that can be used by anyone, anywhere.

Disadvantages of Bitcoin Forex Trading

Volatility: Since the price of Bitcoin constantly fluctuates, a broker can reap the profits from traders by buying their Bitcoin at the lowest rate of the day and selling it at the highest rate of the day.

Take advantage of temptation: The leverage used to lure BTC-forex brokers poses a significant risk to novice investors.

Combination of different asset classes: Bitcoin and FX are two distinct types of assets. The complexity and risks of exchanges are increased by the use of an “intermediate” currency.

Risks of using Bitcoin: If not properly secured, bitcoin, like all cryptocurrencies, can be easily stolen. A reputable and regulated broker will protect your money.

Conclusion

The advantages of using Bitcoin for anonymous trading are numerous. You can benefit from increased leverage, cheaper minimum deposits, lower fees, easier cross-border transactions and other factors. You can also try with a growing number of bitcoin deposit forex brokers. To avoid losing money, exercise a lot of caution, research brokers thoroughly, start slow, and experiment with small deposits and trades. All in all, whether you are a seasoned player or brand new to the game, anonymous currency trading with Bitcoin is an intriguing endeavor that you can pursue.

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