Topic: Is Kyc worth the risk? (Read 333 times)

Do you trade cryptocurrencies or not? If you do, what service do you use? If you use decentralized exchanges, you should be good but they probably lack a lot of features such as P2P, or there are almost zero to no bonuses, competitions, etc. where you can get extra money if you are trading regularly. Also, what if in near future, decentralized platforms start asking for KYC?

We never know what kind of regulations are imposed for each service provider in the future, so even the decentralized exchanges could be a target of the authorities that don't really like the concept of decentralization. What would you do then? Would you still avoid doing KYC?

Centralized exchange is not safe. Check the records properly many people have had bad experiences with centralized exchanges and the case of FTX is still fresh and the owner still facing huge cases in the court.

Centralized exchange is almost or even synonymous with the bank system where they freeze, steal your funds without your authorization. Centralized exchanges also puts your sensitive private details at risk. There is no preferable centralized exchange I can think of.

If you have to pass KYC make sure you are giving it up for a reputable exchange, the only exchange that I passed the verification is Binance, I use many others but I didn't pass their KYC requirements, the limited the safer, still, it doesn't mean that Binance can't do anything bad with your Identity, its worth the risk only if the exchange is reputable one.

Or exchanges can shut down, make a scam exit and later use their database with user KYC documents to sale and gain more money from their scam exchanges.

Hacks can happen directly on centralized exchanges or on third party providers for KYC verification. It can be a shame blame from centralized exchange or it can be true but the fact is you can not trust any entity to secure your documents.

If you have to KYC, go with it but if you have other options, let's don't do it!

KYC is not a matter for people who can easily to make selfie and share their identities on social media but KYC with personal documents contains bigger risk than selfie photos.

Is KYC worth the risk? I'm not sure about that, but, is KYC important for everyone to use different platforms and services? Yes, it is, and there is no way to bypass it, so it has to be done sooner or later. Maybe centralized exchanges are not safe, as they can be hacked, your money can be stolen if your account is compromised, or anything can happen, but as a trader, you have no choice but to comply with their rules and regulations.

About the best-centralized exchange, I would obviously recommend Binance as it is the leading exchange and the no. 1 in the world at the moment. I've been using it myself for years, and never faced any problems personally. Just make sure you enable all kinds of account security metrics.

What site do you submit KYC before because it’s really terrible if you do KYC on mediocre platform. Binance is somehow not bad nor good to do KYC because it’s the most use exchange in crypto and they have a better security feature on storing your documents compared to other exchange out there. Most of the crypto user doesn’t have a choice rather than to comply on it because CEX is the only way to convert fiat without any hassle and fair price.

This is the burden that crypto people enduring by submitting KYC on shit CEX which the government requires them.


Most of the newbie open an account first on exchange and do KYC before they create account in the forum. They just create an account here after exploring other ways to earn aside from trading. Besides in some cases. KYC is really inevitable if you really need the service badly. You might end up using a shady services that didn’t require KYC.

There are some KYC that could worth the stress and that does not mean that we have to enroll ourselves on KYC exchanges to have account with them. There are so exchanges that are very good and there is nothing we can do than to accept and enrol or there KYC because of there reputation.

Exchanges like Binance, Huobi, and others are good ones we can create account and do our KYC to have full access to our account. I would not suggest us to do KYC on new exchanges that are new in the market because they might get hacked due to security breach so we need to be very careful.

You have nothing to be ashamed of, because most people have no other choice but to buy cryptocurrencies through centralized exchanges, which in itself is not bad if you know that what you bought is not very smart to leave in a custodial service. There are always chances that something bad can happen with your personal data, but also that nothing bad will happen.

Your personal documents are not valid forever, so with the passage of time the chances of something bad happening become less and less. In addition, you have another choice, which is that you can always say that you have lost your identity card or passport and they will be canceled, and you can then create new documents.

Am so embarrassed  after reading this because I never thought Kyc was really this bad but now am so scared because of the number of Kyc I have done.
please can this post Why KYC is extremely dangerous – and useless        be among the pinned post in this board because This post is mainly for Newbies, we will continue making this mistake of thinking Kyc is important whereas its not only important but also increase Criminal activities. Please I know that there are many post about Kyc but this is the most detailed one please all Newbies really need this please

Also thanks everyone I really learnt alot from your reply and am going to do more research about Bisq exchange.

Binance seems to be the most commonly use Cex in the world, and one thing you need to understand is that both centralized and decentralized exchange has their merits and demerits, of which due to the fact that since Cex is regulated, that's why KYC is been made compulsory, since by depositing funds on a Cex exchange, you lose control over your funds, unlike decentralized exchanges who allows user to buy and sell Bitcoin with fiat while staying anonymous, and a good example is of it  "Bisq.network" which works mostly on window devices.

It is not worth it mate because of the risks involved. Your information could be compromised when the exchange gets hacked or the exchange can contract a third party agent for KYC who can as well sell your information to any interested parties. Think of the damage that can be done to an individual if such information falls into the wrong hand. Anyone can use your information to commit fraud like create a fake profile and launder money and this is just one of many examples. I've about $70 stocked in coinbit exchange for over a year and the only way I can withdraw it is to carry out their KYC, which I don't want to. So I'm left with two options perform KYC or forfeit it, and I choose the latter.

A lot of things can go wrong, and you should know that CEX has already been hacked once and thousands of users' personal data were stolen. What is even more strange is that they claimed that CEX was not directly hacked, but that a "third-party vendor" was to blame, which means that most of these CEXs have multiple options to be hacked when it comes to user's personal data. In other words, you give them your personal data, and they can pass it on to someone else for safekeeping or sell it to interested parties.

https://thehackernews.com/2019/08/binance-kyc-data-leak_26.html

I did KYC on binance but thats the only exchange I am submitted my documents and so far this is the trusted centralized exchange. But of course dont trust them completely, I just need them to have a gateway to fiat for my crypto. But if I found a p2p on the philippines or group that allowed or accept crypto for their cash easily then will definitely swich it up to them.

It is better to stay off any centralized exchange if what you care about is your KYC information getting stolen, in this case even the biggest centralized exchange can't be trusted, we don't know what they would do with users' identity in the back, it's better to find yourself a perpetual Dex exchange like GMX or others.

There's no relation between identity stolen and lost funds, but the reason is your identity might be used for bad thing and you don't have anyway to know what does the exchange will do with your identity. What if the person behind the exchange sold your identity or use it to create a scam project where the CEO of the project is your name with your face? if someone report the site and want to lawsuit the CEO, don't be surprised if there's a police arrest you.

The worth of taking risks depends upon the value of money you want to store, trade whatever transactional activity you want to do. Centralized exchanges have their own benefits but it comes with the cost of anonymity and you will be lost the custody of your assets on those platforms. I used Binance and to be honest till now none of my trades or p2p transaction made me any trouble but a few days back there was a case in our country well it was a case of corruption and our authorities ask finance to get details of scammers transactional data. But Binance did not support our authorities. Some said they did but. I say if they did then why our authorities were unable to get that stolen money back?

Overall, getting information about customers from centralized exchanges is also not that easy you got to have great resources and links to higher people. Let's say you have links to them and are able to get data then I don't think CEXs will allow this. I am not promoting them or advising you to use them just sharing my experience hoping to give you an idea of how CEXs work even if they are centralized your information is safe with them but still there exists the risk.

Talking about ftx exchange, after its bankruptcy no doubt all withdrawals were on halt and people were unable to withdraw or deposit money but after a few weeks people started to withdraw their assets here is the post I shared before about how people of Japan were able to withdraw their assets from FTX. So yes Centralized crypto exchanges that care customers over governments, do care about users money.

Thwrei no most secure centralized exchange as when the flood comes they won't be able to withstand the heat. Even Binance that's standing head above the rest at the moment, if it gets hit majorly and customers begin requesting for their coins been held on the exchange, I don't they'll be able to withstand the heat and would halt withdrawal. You should never trust any centralized exchange as they can go out if existence at any moment. If many were told that FTX was going to collapse they won't have believe for a second that it was possible but today the rest is history.

Centralized exchange aren't the only option available for trading, we have decentralized exchange that can do the job quite easily. Decentralized exchanges now has the volume that was once held by only the centralized exchanges so complaining of liquidity shoudn't be in the debate anymore. Trading on decentralized exchange is even more comfortable then the centralized exchange and you get to hold the coins in your personal wallet as such if the platform get compromised, you won't be after affected.

Using centralized exchanges for trading cryptocurrency can be convenient and provide access to a wide range of trading pairs, but it also comes with certain risks, such as security vulnerabilities and potential loss of funds. Therefore, it is important to be cautious and take steps to protect your funds when using centralized exchanges.

If you choose to use a centralized exchange, it is recommended to choose one that has a strong track record of security, compliance, and customer support. Some of the most popular and reputable centralized exchanges include Binance, Coinbase, Kraken, and Gemini.

When using a centralized exchange, it is important to take steps to protect your account and funds, such as enabling two-factor authentication, using a strong and unique password, and regularly monitoring your account activity for any unauthorized transactions.

Regarding KYC, while it can be inconvenient for some users, it is often a legal requirement for centralized exchanges to comply with anti-money laundering (AML) and know your customer (KYC) regulations. However, you can choose to use decentralized exchanges (DEXs) that do not require KYC, but they may have less liquidity and fewer trading pairs compared to centralized exchanges.

if you don't like KYC, you can use DEX exchange. that is if you have any concerns regarding KYC with CEX exchanges.
no CEX exchange is completely safe for you. if you want to trade, you can try to choose an exchange with a high trading volume. I use Binance.
but my advice, after you finish trading, you can withdraw your money to your wallet. never leave your assets on the exchange.

To answer the question, we would need to discuss the potential risks of submitting your KYC to different platforms and the benefits one can gain from doing that.

The Risks are quite long and revolves around mismanagement of your identity documents which can be used maliciously against you. There is also the risk of someone else posing as you to commit crimes or the government linking your assets to your personality, whic you might not want if you desire to remain private.

The only benefit it gives is access to trade on a centralized exchange.

Not worth the risk for me.

- Jay -

For the most part, it's a very dangerous thing to do, since they could easily do anything to your identity. But I guess it wasn't that bad if you're going to do it on some trusted website I mean I do it most of the part If I really need the platform and when I think it's worth it. But I wouldn't do it if there are red flags and it's obviously a shady website.

I mean it is an exchange I would probably just do Binance for KYC and just do everything on it, then just trade on other platforms without doing KYC they didn't really need KYC for the most part I think. Binance was a pretty trusted exchange in my experience. What happened to FTX could easily happen to all the exchanges even to Binance but it was a pretty big legitimate exchange so probably small exchanges will crumble first before Binance.

When you are a trader you will need an exchange that has tons of volume which you can't see on DEX.

Which is it that you prioritize the most, earning from trading or privacy? Probably a dilemma that a trader has to face unless he is prepared to just do on dex and now cashing out.

Centralized exchange is the best for cryptocurrency traders specifically the day trader because they offer a higher level of comfort in trading execution and liquidity but it's never advisable to keep your funds on CEX for the long term.

You'll have to do your own research about the CEX that will be best for you but over years Binance was able to make a good reputation in the CEX setting by providing SAFU, etc. Meanwhile, they also have their own flaws and seem to be restricted in some geographical areas which is the reason why I advise you to do your own research.

You gave your information and proof of your identity... If it is mishandled or used to any evil purposes, you might initially get in trouble since they are using your name.

Think of it... What if they got hacked? What if they sell your identity to others? Do you still think that you have nothing to worry about?
Well sometimes, KYC is necessary. Because of that, do some extended precaution of processing one.

Since active trading in cryptocurrencies I don't remember with how many exchange have been success pass with KYC and several airdrop project submit document ID. I don't worry when looking how compete with exchange market for submitting document ID and ever got scam on one exchange market until right now but not problem with document have been uploaded with exchange closed right now.

Required for submitting KYC if want trading and joining several airdrop project, if OP still not agree for submitting and his document ID become public better trade with dapp exchange market and need to pay fees on every transaction between sell or buy. I don't complaint with all exchange active for trading right now required with KYC and have several exchange need to upgrade until post proof document for getting higher amount limit withdrawing in daily day.

Don't call me a fool but I am wondering what could possibly go wrong after passing a KYC verification on a reliable exchange like Binance, the reason why I have confidence trading Bitcoin on Binance is because of the KYC, once they pair with someone through P2P I know that I can't get scammed because to use Binance exchange P2P you need to pass KYC first.

This is certainly one of the options to avoid verification through personal documents, but you should know that whoever you trade with will still be able to see your information when it comes to the bank account to which you will receive payment when you sell Bitcoin. Of course, it is not nearly as risky as sending personal documents to a CEX, which is always at risk of being hacked, but sometimes not only in the sense that crypto-currencies are stolen, but personal data is also stolen.

Those who have become victims of identity theft often go through agony trying to prove that someone stole their data, but I believe that many are not even aware that someone is using their data in an inappropriate way.

You can use Bisq exchange, It's a decentralise exchange that allows you trade bitcoin and other cryptocurrency but you can only Trade on your computer and not on your mobile and also you can't place an order, every trade must be done online although it has a mobile app to keep track of the market. Here is some post about guides for using Bisq exchange
Guides for using Bisq
[GUIDE] How to buy and sell Bitcoin using Bisq
[ANN] Bisq - Exchange, Decentralized.

Because of their liquidity, user-friendly interfaces, and ability to offer a diverse selection of trading pairs, centralized exchanges can be beneficial to traders. They do, however, demand customers to go through KYC (know-your-customer) processes, which include providing personal information such as identity papers. The possible hazards connected with centralized exchanges include the likelihood of hacking, security breaches, or the exchange's insolvency, which might result in the loss of cash.

IMHO KYC is really critical, I can't just do KYC for any centralized exchanges, that's why I need to be careful in choosing the one that has a strong reputation for security, transparency, and reliability.
Since security measures may continually be enhanced or exploited, there is no one "best secure" centralized exchange but like I said, some of exchanges, incorporate extensive security measures such as multi-factor authentication, cold storage, and insurance coverage. Examples of reputable centralized exchanges include Binance, Coinbase, and Kraken. So, after choosing meticulously, if something bad happened I won't be too regret.

What is your concentration in the crypto space and how is the business scale?
If you've always dealt with centralized services I think you'll be familiar with KYC and for some people it's part of the normal administrative process to legal complement and protection. For example, if you're an active trader, centralized lending business, staking, etc. with a value of more than $ 100k in each transaction.

It depends if you are a kind of person does not want to make them on the information broadcasted online to prevent leaking of information for the possible risk of an account or other asset. For me KYC verification at least level one is ideal to make a basic recovery of the assets but the use of the picture and ID needed for the possible of identity theft.

Binance exchange is one of the biggest exchanges that a lot of people interact with, but you really need to pass KYC before withdrawal. If you are looking for an exchange that doesn't require KYC to trade and withdraw, I think MEXC, Coinstore, Probit, and Digifinex exchange are KYC free at a certain withdrawal limit. I have used them before, but the only term is that if you did not pass KYC, you will have a daily withdrawal limit unless you have passed their KYC. Note that it has been a while since I used those exchanges, so kindly check to be sure that their terms have not been updated. So long as you are not keeping your asset on the DEX, you are safe, because your asset on a CEX is not 100% in your control. Not your key, not your token.

Well, everything you read about centralized exchanges are absolutely correct, your identity can be stolen and your funds seized on any of them, thus there is no need seeking one you think is most secure if that is what you want to escape from, as they are all guilty in that regard. There are decentralized alternatives to them, but if you are a day trader and you feel centralized exchanges are your only option, thus you should DYOR and choose the 'biggest' exchange instead of new ones that would steal any deposit you send to them. But even as a day trader, be cautious of the amount of money you leave in the exchange, move the large sums to your non custodial wallets.

Right now pretty hard to find exchanges that do not ask for KYC because some exchanges right now that do not have KYC are seized by authorities.
So we do not have any other choice but to use the centralized exchange. And I think it's not extremely dangerous to use centralized exchange just make sure that choose an exchange that is trusted and proven that they can protect customer's funds like Binance.

You should read the terms and conditions before signing up on any platform. If you have concern about your privacy you should avoid those who need KYC to use their platform or to cash out your money from them.
Though I am now very much into not sharing my details with anyone but I have to use an exchange so I have to get it verified. But other than that I don't use my information anywhere else. So for you it depends on how badly you need to use that service.

It's going to depend on how badly you need the specific platform. If you absolutely need to — maybe you have literally zero way of buying/selling crypto in your country besides using a KYC exchange, then maybe you might not have a choice.

On the other hand — if there are alternatives and you're willing to go through the extra effort(and potentially risk?) of using the alternative platform, then go ahead.

Is KYC worth the risk? Pretty good question. If you're interested in the topic, check out one of these threads. It has been discussed plenty of times already.

1. Why KYC is extremely dangerous – and useless

or here

2. Is kyc verification dangerous?

In addition to that just use the Bitcointalk forum search function and you will find plenty of other threads that feature KYC and its pros & cons.

Since joining this forum I have seen reasons why I should cautious about doing Kyc and Centralise Exchanges do ask for it but for a Trader is using Centralized exchanges the best ?
If Yes, what is the most secure centralise exchange to use? because I read that aside from a person identity be stolen, they may lost their funds or not been able to access it and this happened to FTX customers