Besides, in addition to offering several options for acquiring Bitcoin, Relai stands out for having its own self-custodial wallet. This means that ownership of the private keys is in the hands of the users, guaranteeing greater security and total control over their funds – an important differentiator in a market where trust is essential.

Well, in this article, you’ll get to know Relai, how it works and the main features that make it a great choice for those who are in Europe and want to start or continue their journey in the Bitcoin universe.

Let’s go!

What is Relai?

Relai is a company focused on Bitcoin solutions. It was founded in 2020 in Zurich, Switzerland, by bitcoiners Julian Liniger and Adem Bilican.

What is their goal?

Relai’s goal is to make buying and selling bitcoin easier for everyone – even those who have never bought bitcoin before.

Five years might not seem like much, but Relai has already built up a significant track record in the market. So far, it has handled more than 500 million dollars in deals and, in 2024, it was recognized as one of the fastest growing startups in Europe.

As we can see, the company’s growth has been truly impressive.

By 2024, it had reached 400,000 downloads of the app and was awarded “Best Cryptocurrency Company” by Swiss Crypto Awards. This only reinforces what we already know: when the focus is on making Bitcoin easier to use, things really do happen.

Oh, it’s also worth mentioning that Relai is not available outside Europe. The app can’t even be found for downloading. Therefore, this is an exclusive service for those living in Europe.

So, if you’re in Europe, you can access it in the following countries:

• Austria,
• Belgium,
• Czech Republic,
• Denmark, Estonia,
• Finland,
• France,
• Germany,
• Greece,
• Hungary,
• Italy,
• Luxembourg,
• Netherlands,
• Norway,
• Poland,
• Portugal,
• Slovakia,
• Slovenia,
• Spain,
• Sweden
• and Switzerland.

Well, now that you know more about Relai’s history and its main objective, let’s understand the main features of this platform.

Relai’s main features

The application has several interesting features that make it stand out in the market, such as: 

• User-friendly interface: the application has been designed to be easy to use, even for beginners. Therefore, any user can easily buy or sell bitcoin in a few clicks.
• Integrated non-custodial wallet: As we saw at the beginning of this article, Relai offers an integrated Bitcoin wallet, which improves usability for many users by eliminating the need for multiple applications. In addition, the wallet is autonomous and non-custodial, that is, the user is solely responsible for the private keys and can transfer Bitcoin from one address to another at any time.
• Recurring DCA: the app also allows users to set up automatic Bitcoin purchases at regular intervals (DCA – Dollar Cost Averaging) with lower fees.
• One zero-fee purchase: this feature allows users to make one Bitcoin purchase per month without paying any fees, as long as the amount does not exceed 100 EUR/CHF.
• Solid regulation: Being based in Switzerland, Relai operates within a solid regulatory environment recognized for its stability and security.
• Payment methods: through the app you can buy Bitcoin in a variety of ways, whether by bank transfer, credit card or even Apple Pay. 
• Lightning Network: the application also has self-custodial integration with Lightning Network, enabling instant transactions with low fees. Super cool, right? This is a real differentiator, as few Bitcoin-only platforms have this functionality integrated.

Resources for all types of bitcoiners

But what if I’m an experienced user? Is Relai still worth using? Yes! Although the app was created to cater for novice users who want to buy or sell Bitcoin, the company has also developed a business model aimed at different user profiles, offering personalized services according to their needs.

On their site, you can visualize these categories of services, which are:

• App,
• Private,
• and Business.

Let’s understand how each category works!

1. Relai App: Simplicity for those starting out

If you are taking your first steps in Bitcoin, the Relai App is the ideal solution to get started in a simple, practical and secure way.

With an intuitive design, the app was created so that anyone (anyone at all!) can buy Bitcoin without complications, even without any technical knowledge.

• Buy bitcoin in minutes: An easy-to-use application for acquiring bitcoin in an uncomplicated way.
• You’re in control: Unlike many other platforms, the Relai App puts you in charge. In other words, the bitcoin you buy goes straight into your wallet, where only you retain exclusive control of the private keys, guaranteeing greater security and financial sovereignty.
• Payments however you prefer: Make purchases via bank transfer, credit card, Apple Pay or Google Pay.
• Invest automatically: Set up a weekly or monthly automatic investment plan (DCA) and accumulate Bitcoin without worrying about currency fluctuations. This feature is ideal for those who want to invest gradually and minimize the impact of market volatility.

So, if you’re looking for practicality and autonomy, the Relai App is the perfect starting point for accumulating Bitcoin.

2. Relai Private: Exclusivity for experienced investors

Now, if you already understand the market and are looking to trade large volumes of Bitcoin (that is, more than CHF 100,000 or EUR 95,000 per year), Relai Private offers an exclusive and personalized service to meet your specific needs.

• High-value trades: large amounts of bitcoins bought and sold with total confidence and expert support.
• Personalized service: With Relai Private, you have access to a single point of contact who accompanies the entire buying and selling process, guaranteeing discretion, efficiency and a tailor-made experience.

This plan is more ideal for intermediate and advanced investors who value dedicated support and personalized operations.

3. Relai Business: Bitcoin for your business

On the other hand, Relai Business is the perfect solution for small and medium-sized companies that want to integrate Bitcoin into their balance sheet simply and quickly.

• Add Bitcoin to your business: invest in your company’s financial future by converting part of your capital to Bitcoin.
• Expert advice: Relai’s team offers detailed guidance at every stage in order for you to make informed decisions in line with your objectives.
• Fast and efficient: acquire Bitcoin for your company in less than 24 hours, without complications and with dedicated support.

Therefore, if you’re a company that believes in Bitcoin’s potential as a store of value, Relai Business can help you turn that vision into reality.

What are Relai’s fees?

Relai’s rates vary according to the profile you choose, as seen above. So let’s understand how the fees work in each case:

1. Relai App:

• Bitcoin purchase: 1% tax (becomes 0.9% if you use an invitation code);
• Credit card purchases: additional fee of 3% per transaction;
• Bitcoin sale: 1% (+ the variable rate of the on-chain network).

In addition, Relai offers a promotion where the first purchase of 100 CHF/EUR each month is free of charge, up to a total of 1,200 CHF/EUR per year. 

The minimum amount to start a Bitcoin purchase is 50 CHF/EUR.

2. Relai Private

Relai Private has a tiered fee structure based on transaction volume. This way, the higher the purchase volume, the lower the fee.

These fees include the service, buying bitcoin and sending it to the wallet.

• Transactions from 100k-250k: 0,9%
• Transactions from 250k-500k: 0,8%
• Transactions from 500k-750k: 0,7%
• Transactions from 750k-1.0m: 0,6%
• Transactions from 1.0m-5.0m: 0,5%
• Transactions from 5.0m-10m: 0,4%
• Transactions from 10m-50m: 0,3%
• Transactions from 50m-100m: 0,2%
• Transactions over 100m: 0,1%

3. Relai Business

The same goes for Relai Business, with tiered rates. These fees also include the service, the bitcoin purchase and its remittance to the customer’s wallet.

• 0 – 100k: 2,0%
• 100k – 250k: 1,8%
• 250k – 500k: 1,6%
• 500k – 750k: 1,4%
• 750k – 1.0m: 1,2%
• 1.0m – 5.0m: 1,0%
• 5.0m – 10m: 0,8%
• 10m – 50m: 0,6%
• 50m – 100m: 0,4%
• 100m+: 0,2%

Pros and cons of Relai’s services

Now that we’ve given you an overview of Relai’s services, what would you say are the advantages and disadvantages of the platform? After all, not everything in life is perfect.

Advantages

• Easy and simple to use app
• Automatic purchase configuration
• Application that works as a self-custodial wallet 
• Integration with the Lightning Network and self-custody
• The possibility of buying bitcoin with a credit card
• Transparent fees

Disadvantages

• Only available in some European Union countries 
• Mandatory use of KYC
• Zero-rated purchase limited to 1,200 euros per year

Final thoughts on the app

If you’re in Europe and are looking for a simple and secure way to enter the Bitcoin world, Relai could be just what you need.

Crafted to make life easier for those who want to buy and sell Bitcoin, Relai offers an intuitive experience, allowing you to keep possession of your own private keys, that is, total control over your Bitcoin.

So imagine being able to buy Bitcoin in just a few clicks, directly from your cell phone, without bureaucracy and with total security.

Well, Relai makes it possible… With the added bonus of being able to make automatic purchases, set up investment plans and even get Bitcoin without fees on the first purchase of the month.

However, as we’ve seen, it’s not all flowers, and Relai is not yet available in all regions. But don’t worry! The company’s accelerated growth and the increasing adoption of Bitcoin worldwide indicate that Relai may expand to new locations soon.

Who knows, in the near future, non-European bitcoiners will also be able to take advantage of all the benefits Relai offers?

I hope you have enjoyed this article and that it has helped to clarify how this app works.

Keep reading and learning here: How to Buy Bitcoin via P2P

The post Relai: buy and sell bitcoin easily in Europe appeared first on Area Bitcoin.

However, over time, many platforms deviated from this focus, embracing altcoins and questionable “crypto” projects. This shift created confusion in the market, damaged the space’s reputation, and made it more challenging for users to find a trustworthy, Bitcoin-only environment.

As a result, companies that uphold Bitcoin’s core principles — decentralization, security, and financial sovereignty — have become rare but essential. Fortunately, they do exist, even though they remain a minority.

A great example is River, a U.S.-based platform dedicated 100% to Bitcoin.

Unlike many other exchanges, River has stayed true to its mission, avoiding distractions from altcoins and maintaining a focus on providing a reliable, secure, and efficient solution for buying and storing Bitcoin.

Additionally, It offers advanced tools for users who want to explore the Bitcoin market in more depth, all while staying aligned with Bitcoin’s fundamental values.

In this article, we’ll explore what River is, how it works, and its key features.

Let’s dive in!

The History of River

River was founded in 2020 by Alex Leishman and Andrew Benson and is headquartered in Ohio.

From the start, the company focused on building a strong and reliable Bitcoin infrastructure. In 2023, River secured $35 million in a funding round led by prominent investors, including Peter Thiel, co-founder of PayPal.

What sets River apart in the market is its commitment to providing unique client solutions and prioritizing long-term services. The platform offers a user-friendly interface ideal for beginners while also catering to more experienced users with advanced, premium services designed to meet their needs.

Key Features of River

1. Bitcoin-Only Company

Unlike most platforms or exchanges, River focuses exclusively on Bitcoin.

This means it does not offer shitcoins to its clients, which is a significant advantage. This focus demonstrates the company’s commitment to Bitcoin while ensuring safety and transparency for its users.

2. Proven Custody

All Bitcoin stored on the platform is secured by River using a combination of cold wallets (offline storage) and other security measures to protect user funds.

The company also implements a Proof of Reserves system, enabling users to verify that the Bitcoin held in custody matches the amounts claimed by the platform.

3. Support from Financial Advisors

One of the company’s distinguishing features is its humanized support. They answer questions ranging from the simplest to the most complex to help customers build wealth with BTC.

Additionally, River also offers advanced features for buying and selling Bitcoin, including:

• Performance Reports: users can track the growth of their investments over time.
• Bank Account Integration: it simplifies deposits and withdrawals.
• Fee-Free Recurring Purchases: ideal for those who want to use Dollar-Cost Averaging (DCA) to accumulate BTC over time through fixed, recurring purchases. By the way, DCA purchases within the app are free of charge.

Bitcoin Interest feature

River recently introduced a feature in its app that allows users to deposit fiat currency and earn interest in Bitcoin. The feature, called “Bitcoin Interest on Cash”, offers an interest rate of up to 3.8%.

Here’s how it works: users deposit fiat money into the platform, and the interest earned is automatically converted into Bitcoin and credited to their accounts monthly.

This service is offered in partnership with Lead Bank, an FDIC-insured bank in the U.S. (Federal Deposit Insurance Corporation).

The FDIC is an independent U.S. government agency established by Congress to provide deposit insurance, protecting customers’ funds in the event of a bank failure. It insures up to $250,000 per account held with an insured bank.

As a result, River customers can enjoy the added security of FDIC insurance.

River App features

Beyond the features already mentioned, River also offers other tools that make it more than just a Bitcoin buying and selling platform.

• Private Clients: This feature caters to high-net-worth clients seeking a personalized platform experience. These clients have access to dedicated advisors, priority support, high transaction limits, and tax optimization assistance.
• River Link: This function allows users to create a link within the platform to pay or send Bitcoin as a gift to friends and family via text messages.
• Inheritance System: The app allows users to set up family beneficiaries to receive their Bitcoin in the future. With this service, clients can select individuals who will inherit their Bitcoin in case of unforeseen events. Additionally, River has a dedicated concierge team to help establish a beneficiary plan and assist families in securely and practically accessing the Bitcoin.

Educational focus

River places a strong emphasis on education, offering articles, reports, and newsletters to help users deepen their understanding of Bitcoin.

In the “River Learn” section, the company’s blog, users can explore articles covering a wide range of topics, from beginner basics to advanced insights, providing a solid foundation for Bitcoin knowledge.

Additionally, River’s financial engineering team creates in-depth technical reports on topics like Bitcoin, web technologies, security, and infrastructure.

Pretty cool, right?

Pros and cons of River

Certainly, one of River’s biggest advantages is that it is a Bitcoin-only company, eliminating the noise of shitcoins and enabling users to focus solely on what truly matters. Additionally, the platform caters to a wide range of clients, from beginners to more advanced and institutional users.

The platform also supports the Lightning Network, Bitcoin’s second-layer solution for micropayments, making Bitcoin more practical for everyday transactions with reduced fees.

The company also provides support for businesses looking to integrate Bitcoin into their balance sheets. Another standout feature is its competitive fees, as clients who utilize the DCA (Dollar Cost Averaging) feature do not incur any fees.

Despite its many benefits, River has some limitations. It operates exclusively within the United States, restricting accessibility for users in other regions.

Moreover, while River prioritizes transparency and security, it is a centralized company that requires Know Your Customer (KYC) verification. As a result, users must share personal information, which could potentially be disclosed to government authorities.

What do we think about this platform?

River is a company with a strong Bitcoin ethos that is genuinely committed to helping people understand and use Bitcoin effectively.

The platform stands out with its transparency features and significant focus on education, making it a valuable resource for beginners entering the Bitcoin space.

For those just starting out and who don’t mind completing KYC, River could be an excellent choice to begin their Bitcoin journey—provided they reside in the U.S., as the service is unavailable in regions like the UK and Australia.

That said, it’s always important to prioritize self-custody. Keeping your BTC on centralized platforms (even those with cold storage) is not advisable for long-term security.

On the other hand, if privacy is your top priority and you’d rather not share personal information with a company, consider a P2P platform like Robosats as an alternative.

We hope you enjoyed learning about River and its features.

See you in the next article, and OPT OUT!

The post What is River? U.S. Bitcoin-Only Platform appeared first on Area Bitcoin.

In this article, we’ll dive into what Coinbase is, how it works, its features, and whether it’s worth using. If you’re unsure about this exchange, this is the perfect place to find your answers.

Let’s get started!

About Coinbase

Coinbase was founded in June 2012 by Brian Armstrong, a former Airbnb developer, and Fred Ehrsam, a former Goldman Sachs trader, one of the largest investment banks in the United States. The two met at an entrepreneurial meetup, and while Ben Reeves, co-founder of Blockchain.info, was initially part of the team, he later left due to differing visions for Coinbase’s direction.

The company started with a straightforward goal: to provide a simple and intuitive platform for anyone to buy and store Bitcoin. Today, Coinbase calls itself “the world’s most trusted platform for buying, selling, and managing cryptocurrency.”

Initially focused on the U.S. market, the exchange allowed users to buy and sell Bitcoin through bank transfers. Over time, they expanded to support other currencies.

In 2013, after securing a $23 million investment, the company gained more market notoriety and saw a significant surge in 2017, as interest in Bitcoin and other cryptocurrencies grew. During this period, Bitcoin’s price skyrocketed to $20,000.

Stock Market Listing

In 2020, Coinbase filed for an IPO (Initial Public Offering) to list its shares on the U.S. stock market.

The company achieved a pre-IPO valuation of $100 billion through a private auction. This milestone not only made Coinbase the first exchange to go public but also established it as the most valuable company in the sector to undertake an IPO.

On April 14, 2021, it was officially listed, debuting with a reference share price of $250. To mark the occasion, the company embedded a hidden message in Bitcoin’s blockchain, referencing Satoshi Nakamoto’s original message in the Bitcoin genesis block.

Coinbase Services

In addition to enabling the buying and selling of Bitcoin and altcoins (shitcoins), Coinbase offers a range of services designed for both individual users and businesses:

Individual users:

• Wallet: A self-custodial wallet for securely storing Bitcoin, altcoins, NFTs, and DeFi assets.
• Card: A card that allows users to spend cryptocurrency and earn cashback in digital currencies.
• Learning Rewards: A feature where users can watch videos and complete tasks to earn cryptocurrency rewards.
• On-chain Apps: A collection of blockchain-based services marketed as decentralized (though not fully decentralized).
• Staking: A tool for staking cryptocurrencies to earn rewards.
• Private Client: Services for funds, family offices, and high-net-worth individuals.
• Coinbase One: A subscription service offering lower trading fees and higher staking rewards.

Businesses:

• Institutional: Solutions for institutional investors.
• Prime: Integrated trading, finance, and custody services.
• Asset Listing: A service for companies to list their assets (shitcoins) on Coinbase.
• Commerce: A feature enabling merchants to accept digital currencies in their businesses.
• Platform: A spot market for high-frequency trading.
• International Exchange: Access to perpetual futures markets.
• Derivatives: Futures market trading.
• Staking: Earn rewards through staking in Coinbase products.

Platform Fees (Maker-Taker)

Coinbase operates on a fee model known as maker-taker, where fees differ based on whether you’re adding liquidity (maker orders) or removing liquidity (taker orders).

Fees may also vary slightly depending on your country and chosen payment method, but generally, they include:

• Taker Fees: Between 0.05% and 0.60%, depending on the 30-day trading volume.
• Maker Fees: From 0.00% to 0.40%, also depending on trading volume.
• Deposits: ACH (bank transfers in the U.S.) are free. Wire transfers have a $10 deposit fee and a $25 withdrawal fee.
• Withdrawals: U.S. dollar withdrawals also incur a $10 fee for wire transfers.

Coinbase Wallet

Alongside its trading platform, Coinbase offers a hot wallet that supports Bitcoin and shitcoins. This wallet is self-custodial, giving users control over their private keys.

However, the trustworthiness of Coinbase Wallet has been questioned, as it is linked to a centralized company that enforces KYC (Know Your Customer) checks on its users.

Additionally, its support for multiple networks and applications may pose security risks for users who solely want to store Bitcoin.

Is Coinbase Reliable?

While Coinbase is a globally recognized platform with thousands of users, it operates as a centralized service and requires KYC (Know Your Customer) verification. Additionally, its focus on offering services involving shitcoins suggests a greater emphasis on monetizing users rather than providing a purely secure and efficient Bitcoin solution.

It’s important to note that Bitcoin should never be stored on exchanges or with third parties. Centralized platforms can freeze or close your account without warning, as was the case with a user who shared their experience on X (formerly Twitter):

His account was restricted and in the comments, we can see several other cases of users who had their accounts restricted or banned for no reason in Coinbase. Many attempts to contact the company’s support remain unanswered.

This isn’t exclusive to Coinbase–it’s a common risk with centralized exchanges. That’s why it’s always worth emphasizing: an exchange is not a wallet (even if Coinbase has one).

To ensure the security of your Bitcoin, always use a self-custodial wallet, preferably a cold wallet, such as hardware wallets like Jade or Trezor.

Conclusion

As we’ve explored throughout this article, Coinbase is one of the largest exchanges in the market, offering a variety of services for both individuals and businesses. Its status as the first exchange to go public has brought significant attention to its role in the industry.

However, self-custody remains a fundamental principle/pillar of Bitcoin. It’s always recommended to purchase Bitcoin and transfer it immediately to a self-custodial wallet for complete control over your assets.

I hope this article has provided valuable insights into Coinbase and helped you determine whether it’s a reliable platform for your needs.

Until the next article, and OPT OUT!

The post What is Coinbase? Is it Reliable? appeared first on Area Bitcoin.

For many, KYC comes at a high cost: the invasion of privacy, the risk of sensitive data leaks, and the financial exclusion of those unable to meet bureaucratic requirements.

In Bitcoin, KYC presents a contradiction. Rather than protecting users, it exposes them to potential abuses of power and centralizes information within systems historically prone to failure and corruption.

In this article, we’ll explain what KYC is and how it relates to Bitcoin. You’ll also discover the main methods for buying BTC without KYC.

Let’s dive in!

What is KYC or Know Your Customer?

KYC, or “Know Your Customer,” is a process companies use to verify the identity of their customers. It typically requires submitting documents like an ID and proof of address to confirm that the customer is who they claim to be.

Governments and financial institutions argue that KYC’s main purpose is to prevent financial crimes, such as money laundering and fraud. However, these measures often go beyond what’s necessary, compromising individual privacy and financial freedom in favor of centralized control.

What is the Purpose of Know Your Customer?

Know Your Customer (KYC) is a process in the financial sector aimed at verifying the identity of platform users. It is often justified as a way to reduce fraud and combat financial crimes such as money laundering and terrorism financing.

In practice, KYC enables banks, fintechs, and exchanges to closely monitor their users, under the premise that this enhances security and regulatory compliance. However, this level of control often extends beyond “protection,” strengthening the power of governments and financial institutions by granting access to sensitive personal information, including identity documents, proof of address, and even selfies.

These data, stored on centralized servers, heighten the risk of data breaches and privacy violations, leaving users vulnerable to potential abuses. While governments promote KYC as a tool for meeting international compliance standards and preventing illegal activities, the reality is that it reinforces centralization and expands control over everyday citizens.

In the context of Bitcoin, KYC is seen by many as a direct affront to the principles of decentralization, privacy, and autonomy. More than a tool against crime, KYC becomes an instrument to limit anonymity and reinforce the dominance of the same power structures that Bitcoin seeks to challenge.

How Does Know Your Customer Work?

The Know Your Customer process involves a series of steps that companies follow to verify the identity of their customers, typically required during registration on financial platforms such as banks, exchanges, and fintechs.

Here’s how it works:

1. Registration and collection of personal information: the customer fills in basic information, such as full name, date of birth, email, or phone number. These initial details serve as the basis for the verification process.
2. Submission of documentation: after providing personal data, the customer is asked to submit identity documents, such as an ID card, passport, or driver’s license, as well as a recent proof of address. This is to confirm that the individual is who they claim to be.
3. Photo identity verification: in many cases, companies request a selfie or a photo of the customer holding their ID document. This step helps prevent the use of fake documents and ensures that the person registering is, in fact, the owner of the submitted documents.
4. Risk analysis and compliance: after verifying the data, the company performs a risk analysis, searching for additional information about the customer in public and private databases. The goal is to identify possible criminal records, fraud history, or any other suspicious activity.
5. Approval or rejection of the registration: based on the verified information, the company decides whether to approve or reject the registration. If something suspicious is found, the company may deny or limit the customer’s access to the service.

While financial companies justify this process as necessary for regulatory compliance and security, it is highly intrusive and raises concerns about privacy and data security.

Why Is KYC Important for Businesses and Governments?

Financial companies, including banks, fintechs, and exchanges, implement KYC to comply with government regulations and prevent being used for illicit activities.

For governments, KYC serves as a powerful tool to:

• Track financial transactions.
• Collect taxes on capital gains.
• Monitor and control who holds significant wealth.

And for Individuals?

While KYC offers a layer of protection against fraud on centralized platforms, it also raises significant concerns. The demand for sensitive personal data heightens the risks of:

• Personal information leaks: Stored data becomes a target for hackers and breaches.
• Abuse of power: Governments and corporations gain unprecedented control over individuals.
• Loss of privacy: Individuals sacrifice autonomy over their financial and personal data.

Is KYC a Threat to Bitcoin?

When it comes to Bitcoin, people fall into two camps: those who view it as a financial asset (a means to an end), and those who view Bitcoin as a tool for privacy and financial freedom, where you do not rely on third parties to use your own money.

For proponents of sovereignty, KYC enables governments to force individuals to declare their assets and monitor all their financial transactions. In authoritarian regimes, this surveillance can turn into arbitrary confiscation, often disguised under the pretext of tax laws.

Governments claim KYC is essential for combating financial crimes, yet studies reveal that illicit Bitcoin activity accounts for only a negligible percentage of transactions. This suggests KYC’s primary goal is not security but control: identifying who holds wealth and profits from capital gains.

For those who see Bitcoin as merely an asset, purchasing it through KYC-compliant platforms and declaring it to the government is often seen as a minor inconvenience. Their focus is on using Bitcoin for future purchases or converting it to fiat, so KYC does not significantly interfere with their objectives.

In summary, KYC is less a threat to Bitcoin itself and more a challenge to individual privacy and financial sovereignty.

Key Characteristics of Bitcoin

Bitcoin was designed as a decentralized currency, enabling transactions without relying on third parties or intermediaries like banks or governments. This independence is a cornerstone of Bitcoin, and those who understand its purpose often oppose KYC, taxes, and any measures that undermine user privacy.

Bitcoin’s design requires no personal data: anyone—even an artificial intelligence—can use it for payments. There’s no need for identities, proof of address, or any bureaucracy. All that’s necessary is a wallet that adheres to the network’s consensus rules. This simplicity sharply contrasts with traditional financial systems, where money is tied to information that tracks its origin and destination.

KYC transforms this freedom into vulnerability. Collecting sensitive data about who owns Bitcoin and how much they possess opens the door to corrupt or abusive use of that information.

While Bitcoin is technically harder to confiscate, KYC-compliant exchanges create a loophole. Governments with access to data about Bitcoin buyers can track individuals and pressure them to surrender their coins.

In this light, KYC becomes more than a compliance measure—it’s a threat to individual sovereignty. It exposes users to data breaches and empowers centralized authorities to misuse sensitive information.

KYC serves centralized powers far more than it protects the public.

Is It Possible to Buy Bitcoin Without KYC?

Yes, it is possible to buy Bitcoin on platforms that do not require the Know Your Customer (KYC) process.

Although many platforms require KYC to comply with regulations, there are market options where this practice is not mandatory, offering users greater privacy.

Let’s explore some of these options below, including P2P platforms, Bitcoin ATMs, and decentralized platforms.

1. P2P

Peer-to-peer (P2P) platforms like Bisq, Robosats, and Hodl Hodl enable direct transactions between buyers and sellers without intermediaries.

On these decentralized platforms, users can trade Bitcoin directly with each other, with various payment options, and once the payment is completed, the funds are sent directly to your Bitcoin wallet.

While these platforms may require KYC depending on the amount or country, the majority of transactions are conducted without verification.

Additionally, these platforms offer various layers of protection for buyers and sellers. Bisq, for instance, uses security deposits, features an arbitration system for disputes, and has a reputation system for users.

2. ATM

Bitcoin ATMs are a popular option for buying Bitcoin without undergoing a full KYC process. You can purchase cryptocurrency with cash by inserting bills and receiving the BTC directly in your wallet.

However, keep in mind that in some locations, larger transactions may require identification.

The good news is that websites like CoinATMRadar can help you find nearby ATMs and check their usage requirements. This makes Bitcoin ATMs a convenient and anonymous option for smaller purchases — but beware: ATM transactions typically come with higher fees.

Should You Buy Bitcoin With or Without KYC?

If you purchase Bitcoin with the intent to convert it into an asset in the future, you might opt to buy it with KYC, as you will need to prove the source of funds when converting it to fiat or even when registering it under your name for a high-value asset.

On the other hand, those who wish to maintain total privacy will prefer to buy without KYC. These people usually avoid acquiring assets tied to the fiat system, such as cars and real estate, and instead use Bitcoin as a store of value for generational wealth transfer.

The most important thing is to reflect on what you intend to do with this Bitcoin in the future: what is your goal, and what tools will you use in a favorable scenario — such as when you can use Bitcoin for payments — or in a challenging scenario where excessive taxes and loss of privacy may exist.

Coin Selection

In certain Bitcoin wallets, you can perform coin selection, allowing you to manage both KYC and non-KYC Bitcoin within the same wallet and choose which to use for specific transactions.

For example:

• KYC Bitcoin: Use coins acquired through platforms requiring identity verification for purchases like real estate, as these have been declared to tax authorities.
• Non-KYC Bitcoin: Retain coins obtained without identity verification for private transfers, such as passing wealth to family, without converting them into assets linked to the fiat system.

Sparrow Wallet facilitates this organization by enabling you to label your Bitcoin, indicating their source or method of acquisition.

Conclusion

As discussed in this article, Know Your Customer (KYC) is a standard practice in the financial sector, promoted as a means to combat fraud and illegal activities.

For users of centralized exchanges like Binance, KYC ensures regulatory compliance. However, it clashes with Bitcoin’s core principles of financial sovereignty and enhanced transaction privacy.

Alternatively, those who value privacy can explore non-KYC options such as P2P platforms, Bitcoin ATMs, and decentralized exchanges. While these methods may involve higher fees, they allow transactions without sharing personal information.

Ultimately, KYC presents a trade-off between convenience and privacy. For some, it’s just a formality; for others, it’s a tool of financial control.

Whatever your preference, understanding how these options work is a crucial first step in making informed decisions about how to manage and store your satoshis according to your priorities.

Thank you for reading—best regards, and opt out!

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For those looking to live on Bitcoin without relying on conversions to fiat currency, this is an excellent alternative.

Imagine being able to pay for services from major brands like Amazon, Netflix, iFood, and many more—all using just Bitcoin. That’s exactly what Bitrefill offers.

In this article, we’ll explain how the platform works, its benefits, and, most importantly, how you can use it to buy gift cards with Bitcoin in just a few easy steps.

Whether for personal use or as a gift, Bitrefill provides a super simple and accessible way to purchase services with Bitcoin.

What is Bitrefill?

Bitrefill is a platform that lets you use Bitcoin to buy gift cards, top up mobile phones, and pay bills.

Founded in 2014, the company offers a wide range of products, including gift cards, eSIMs, mobile top-ups, travel services, gaming-related items, and even bill payment options in certain countries.

The platform’s primary advantage is making Bitcoin usable as a currency, eliminating the need to convert it into fiat currencies like USD or BRL.

The platform accepts both shitcoins and Bitcoin, either on-chain or via the Lightning Network. The Lightning option is particularly advantageous for those seeking speed and minimal fees.

As we have mentioned, one notable feature is its partnerships with major global brands like Amazon, Uber, Airbnb, Google Play, and more, depending on availability in each country.

Additionally, Bitrefill offers a rewards program called “sats back,” where users earn a percentage of their purchase value back in satoshis (fractions of Bitcoin).

This cashback-like feature incentivizes users to engage with the platform while enjoying valuable bonuses.

In summary, Bitrefill simplifies Bitcoin usage, allowing Bitcoiners to spend their satoshis on items, pay bills, and access everyday services seamlessly.

How does Bitrefill work?

Using Bitrefill is simple. You access the platform, choose the gift card, top-up, or service you need, and select Bitcoin as your payment method.

After selecting the gift card or top-up value, proceed to payment, which can be made with Bitcoin or altcoins. A standout feature is the option to pay via the Lightning Network, offering lightning-fast transactions with minimal fees.

Once your payment is confirmed, you’ll receive the gift card code or top-up confirmation by email, typically within minutes. You can then use the gift card at the store to purchase your desired product or service.

It’s that easy!

Which wallets and exchanges can I use with Bitrefill?

Bitrefill is compatible with most wallets and exchanges, making it highly accessible for all users.

You can use mobile wallets, hardware wallets, and exchange accounts that support transfers to complete your transactions on the platform.

Here are some popular options:

• Exchanges: Binance, Kraken, Coinbase, Bitfinex, and Bitstamp. These exchanges allow transfers to external addresses, enabling you to send funds to Bitrefill.
• Lightning Network Wallets: Muun, Wallet of Satoshi, and Phoenix — these LN wallets are great options for using Bitrefill, allowing Lightning Network payments for instant transactions.
• Cold Wallets: Jade and Trezor — ideal for those who prefer the security of a cold wallet and want to use offline funds to send to Bitrefill.

This flexibility with wallets and exchanges lets you choose the option that best suits your needs, whether sticking with one you already use or creating a new account for daily Bitcoin transactions.

Buying gift cards with Bitcoin on Bitrefill (in practice)

As mentioned earlier, buying gift cards on Bitrefill with Bitcoin is a quick and straightforward process.

Here, we’ll provide a step-by-step guide to purchasing gift cards using the Lightning Network, as it offers the best rates. For this example, we’ll use the Muun Wallet.

Step-by-step guide

Muun Wallet is an excellent option for using Bitrefill, so we’ll demonstrate the process with this Lightning wallet. If you don’t already have the Muun Wallet, simply download the app from the official website.

Once you’ve installed the Muun app, follow these steps:

Download the app or visit the website. For this guide, we’ll use the website, but the process is the same on the Bitrefill app.

1. Sign up using your Gmail or create a new email account (e.g., Proton Mail for added privacy). No KYC is required—just an email address.

After that, click on “Create account” and you will see the home panel of the app.

2. Search for the desired service. Look for the gift card or service you want. In this example, we’ll purchase a Best Buy gift card.

3. Choose the gift card value: after selecting the Best Buy gift card, choose the amount you wish to purchase. In our example, we selected $5. Now, just click on ‘add to cart’ and then, click on ‘checkout’.

4. Select Bitcoin or Lightning as the payment method: At checkout, choose Bitcoin or Lightning as your payment method. For this guide, we’ll use Muun Wallet, which supports the Lightning Network. If you’re using a non-Lightning wallet, simply select Bitcoin.

5. Open your wallet app to complete the payment or scan the QR code. As I already have the Muun app installed, I clicked on “Open in Muun” and made the payment directly in the wallet app.

6. Confirm the payment: After reviewing the amount and confirming the payment, the transaction will be processed in seconds.

As soon as Bitrefill confirms the payment, the gift card code will be released to your account.

This same process applies to all other gift cards available on Bitrefill, which we’ll explore further in the next section.

Which stores can I buy gift cards for with Bitcoin?

Bitrefill enables you to purchase gift cards for a wide array of stores and services using Bitcoin, including:

• Uber: For rides and deliveries with Bitcoin.
• Airbnb: For booking accommodations worldwide with BTC.
• Disney: For enjoying Disney parks and products using Bitcoin.
• iFood: For ordering food and paying with BTC.
• Google Play: For purchasing apps, movies, and other digital content.
• Shopee: For buying a variety of products online.
• Netflix: For subscribing to or renewing the streaming service.

Other popular options include Amazon, Starbucks, Apple, eBay, Roblox, Spotify, and many more.

With Bitrefill, using Bitcoin for daily purchases becomes more accessible, allowing transactions without the need for fiat money or credit cards.

Using Bitrefill in Brazil and the USA

Bitrefill in practice in Brazil

As shown in the video below, Carol demonstrated purchasing a hamburger at McDonald’s and paying with Bitcoin. She achieved this using gift cards bought through Bitrefill.

In the example, Carol opened the app, selected the McDonald’s option, and chose the amount she wanted to load in BTC.

The app automatically connected to her wallet, and the balance was used to purchase the McDonald’s gift card directly within the Bitrefill app.

Super cool, right? Watch the video below to see how it works!

Using Bitrefill in practice in the USA

In the video below, I demonstrate how to buy products and services through Bitrefill, an app available in several countries. I recorded this demonstration while I was in the United States.

I show how to make a purchase at CVS, a well-known pharmacy chain in the USA, using Bitcoin. First, I select “United States” in the app and search for CVS.

I choose a value—$50 in this case—and the app automatically displays the equivalent amount in satoshis. I add it to the cart and proceed to checkout.

At checkout, I confirm my email to receive the gift card, agree to the terms, and continue. The app offers several payment options, but I choose to pay with Bitcoin via the Lightning Network.

The app provides a 29-minute window to complete the transaction. I copy the Lightning invoice, open my wallet, and once the transaction is detected, I complete the payment.

After the payment is processed, the $50 gift card appears on the screen, ready to use. I head to the store to redeem the gift card generated by Bitrefill.

At the cashier, I open the app, click “Redeem Gift Card,” and present the $50 code. The transaction is quick, and I pay for my purchases seamlessly.

Is it worth buying gift cards with Bitcoin on Bitrefill?

Yes, buying gift cards with Bitcoin on Bitrefill is definitely worth it. The platform offers a wide variety of gift cards, making it both practical and secure to use your Bitcoin.

Bitrefill has several advantages, particularly for those looking to use Bitcoin in their daily lives rather than relying solely on fiat currencies. Its ease of use is a key feature, allowing anyone—even without technical knowledge—to use Bitcoin seamlessly through gift cards.

Another benefit of this platform is its wide range of services, covering various companies and industries such as gaming, travel, and more. This diversity expands the possibilities for users, creating a more complete and enjoyable experience.

Bitrefill significantly enhances Bitcoin’s usability worldwide. Buying gift cards with Bitcoin on Bitrefill is an excellent option for those who want to use Bitcoin in a practical and secure way.

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However, it’s important to understand that these options meet different market needs.

Some people prioritize ease of purchase and are willing to sacrifice privacy by using platforms that require personal information. Others prefer services that offer more privacy, without requiring personal data, but these can sometimes be more complicated or costly to use.

Today, we’ll explore Bisq, a P2P Bitcoin trading platform where you trade directly with another person instead of using an exchange or bank.

Let’s get started!

What is Bisq?

Bisq is a decentralized, open-source exchange that operates in a peer-to-peer (P2P) manner, enabling you to buy or sell Bitcoin directly with another person. Thus, the platform acts only as an intermediary in the negotiation.

The platform was created in 2014 by a software developer known by the pseudonym “Manfred Karrer“. 

Initially named Bitsquare, it was later rebranded to Bisq. The idea behind its creation was to provide a decentralized alternative to traditional digital currency exchanges, allowing for more private and secure transactions between users without relying on a central authority or intermediary.

As an open-source platform, anyone can review its code, suggest improvements, or even replicate it.

The project is maintained by a community of developers and volunteers and continues to evolve based on the principles of free and open-source software.

On Bisq, you can buy and sell Bitcoin using your local currency.

You can also see on the homepage which users are selling Bitcoin, which are buying, and what the minimum accepted amount is for each.

Pretty cool, right?

Is it better to buy Bitcoin with or without KYC?

KYC, or Know Your Customer, refers to procedures implemented by financial service companies to comply with legal and tax regulations in a specific country.

For example, in Brazil, when opening an account with a digital bank or exchange, it’s common for companies to request personal information such as:

• CPF (equivalent to a Social Security number),
• Residential address,
• Proof of income,
• A photo of your identity document.

These measures are part of government-mandated compliance policies aimed at preventing fraud, money laundering, and other financial crimes.

However, users may feel uneasy providing this level of personal information, often because they are unsure how these companies will handle their data. Data breaches are frequent, and personal information is sometimes shared online without adequate protection.

That’s where platforms like Bisq come in, offering decentralized services that don’t require personal information to use.

This is the primary advantage of Bisq. In a world increasingly focused on surveillance, especially when it comes to Bitcoin, Bisq provides a valuable option for users who prioritize their privacy.

Key features of Bisq

As we’ve discussed, Bisq is a decentralized exchange and an open-source platform that operates in a peer-to-peer (P2P) manner.

Below are some of its key features:

1. Software

Unlike exchanges and digital accounts that you can access directly via a website, Bisq requires you to download software to your computer.

But don’t worry—there are versions available for Windows, Mac, Linux, and other operating systems.

2. No KYC

As mentioned earlier, Bisq does not require identity verification. You simply download the software and access the platform.

No registration or approval from a central entity is needed.

3. Decentralization

You trade directly within a global P2P network of users running Bisq on their own devices, allowing for direct interactions without intermediaries.

4. Non-custodial

Bisq never holds your funds. As a P2P platform, your money is sent directly to your wallet and not held by the platform.

5. Security  

Transactions on Bisq include multiple layers of security, such as security deposits for both parties, arbitration for disputes, and a user reputation system.

6. Arbitration

Bisq has a decentralized arbitration mechanism to handle disputes. If an issue arises, a trusted third party reviews the evidence and makes an impartial decision, ensuring fair resolution without a central authority.

7. Privacy

Your data is stored locally on your device and never sent to a central server. Each Bisq node operates over the Tor network by default to maximize privacy.

8. Open Source

The platform’s code is open-source, and the project’s development strategy is transparently discussed on Keybase and GitHub.

9. Global

Bisq is available worldwide and supports various fiat currencies, including the Brazilian real, US dollar, euro, and more.

Now that you’re familiar with the features of this decentralized platform, let’s see how it works in practice!

How to use Bisq

Using Bisq is straightforward, but there are a few steps to complete before you can start trading on the platform.

First, you need to have a small amount of Bitcoin to cover security deposits and fees. Bisq recommends having at least 0.001 BTC in your wallet.

For security purposes, both the buyer and the seller must deposit Bitcoin into a 2-of-2 multisig wallet.

Once the trade is completed, the security deposit is returned to both the buyer and the seller. The minimum security deposit is 15% of the trade amount, and the maximum is 50%, with a minimum deposit set at 0.001 BTC.

On this page, the platform itself indicates how to secure this 0.001 BTC safely.

After securing your initial BTC, it’s time to download the application to your computer.

When you visit the Bisq website from your computer, it automatically detects your operating system (macOs, Windows, etc.) and displays the appropriate download option.

Once installed, you’ll receive your private keys when opening the program. Be sure to write them down and store them in a safe place.

The next step is to create a payment account, which will allow you to start trading on Bisq.

How to create your payment account and send BTC on Bisq

Bisq provides a detailed tutorial on how to create your payment account on the platform:

Once your payment account is set up, the next step is to transfer your guarantee bitcoins to your Bisq wallet.

To do this, go to “Funds” > “Receive Funds”:

You should see your wallet address under the text “Fund your wallet”. Simply copy this address and send your BTC directly to your Bisq wallet.

After funding your wallet, you’re ready to start trading privately on Bisq by selecting the ideal trading partner from the trading homepage.

Are Bisq’s Trading Fees Expensive?

Because Bisq is a decentralized, non-KYC platform, its fees can be slightly higher compared to other exchanges.

The total trading fee for BTC is 1.3% (0.15% for the maker and 1.15% for the taker).

Is it worth buying Bitcoin on Bisq?

Yes, Bisq is a great option for those who prioritize decentralization and privacy in their transactions.

However, the decision to buy Bitcoin on Bisq ultimately depends on individual preferences. While the platform provides enhanced privacy and decentralization, it also comes with higher fees and requires security deposits, making it less accessible for beginners.

So, it all comes down to your priorities. Some Bitcoiners are willing to pay a higher fee for complete transaction privacy, while others may not find it as important.

Advantages and Disadvantages of Bisq

So, is Bisq really the right platform for buying Bitcoin?

Not sure yet? Don’t worry! To help you decide, here’s a table outlining all the advantages and disadvantages of this decentralized exchange:

Conclusion

As we’ve discussed, there are many ways to buy Bitcoin, and Bisq offers one of the most private methods available today. However, it may not be the most user-friendly option for beginners seeking a simple and quick way to purchase BTC.

The requirement to have Bitcoin beforehand and the need to understand multisig wallets can make Bisq less accessible to newer users.

Since Bisq is a P2P and decentralized platform, custody and key management are entirely the user’s responsibility. Each method of buying and selling Bitcoin has its own trade-offs, so it’s important to consider your own preferences.

If you value privacy and security and don’t mind taking a few extra steps, Bisq could be a great platform for you.

I hope you enjoyed this article! See you next time, and feel free to share it with a friend—it helps us a lot!

FAQs about the platform

How is Bisq different from other exchanges?

As discussed throughout this article, Bisq is a P2P trading network, not a centralized website or app. It’s a program that runs on your own PC, connecting you to others using the Bisq software to facilitate trades.

Is Bisq safe and reliable?

Yes, Bisq is a secure platform. All Bitcoin is traded through a 2-of-2 multisig address, requiring both parties to pay security deposits that are returned once the trade is successfully completed.

How much BTC can I buy and sell on Bisq?

It depends! Trading limits vary based on the chosen payment method.

Check here for all the available payment methods.

How long does a transaction take at Bisq?

At Bisq, the deposit transaction needs to be confirmed once before the buyer can send the payment. Bitcoin transactions usually take about 10 minutes to confirm, so with quick traders and an efficient payment method, a trade can be completed in just a few minutes.

The post Is it worth buying Bitcoin through Bisq? appeared first on Area Bitcoin.

One of the most common methods is through exchanges. Another option is using Bitcoin ATMs, which allow direct purchases with cash.

Additionally, there are peer-to-peer (P2P) platforms where users can buy directly from others, negotiating the price and terms of the transaction. Finally, Bitcoin can be acquired through financial apps and digital wallets, allowing for instant purchases with just a few clicks, often linked to bank accounts or cards.

That said, one financial app that has been standing out in the Bitcoin world is Strike.

In this article, you will learn how Strike works, discover what features it offers, and find out how to set up your account and buy Bitcoin no matter where you are in the world.

Let’s go!

What is the Strike app?

Strike is a financial app that simplifies instant payments using the Lightning Network, without exposing users to the complexities of Bitcoin. With it, you can send and receive international payments almost instantly, with low fees, and without needing to understand or directly interact with Bitcoin.

In other words, people can use traditional currency (fiat) and enjoy the benefits of the Lightning Network without needing to buy Bitcoin.

Who created the Strike?

Strike was created by the American company Zap Solutions, founded by Jack Mallers. It started operating in the United States in 2020 and is now available in over 65 countries, including Argentina, Brazil, several African countries, and the United Kingdom.

Since 2020, Zap has raised over $80 million in various investment rounds, with support from companies like Ten31 and universities such as the University of Wyoming and Washington University in St. Louis.

Additionally, among Strike’s initial partners are big names in e-commerce, such as Shopify and Blackhawk, along with the payment integration company NCR.

Strike also has a partnership with Prime Trust, which helps keep users’ bitcoins secure and ensures compliance with anti-money laundering regulations.

What are the main features of the Strike app?

Now that you know a bit about the Strike app, here are its main features:

1. International remittances

The “Send Globally” feature in the Strike app allows you to send money anywhere in the world using the Bitcoin Lightning network.

With this tool, your funds are converted directly into local currency and can be transferred to bank accounts or other wallets. This makes sending money, both internationally and domestically, faster and cheaper, eliminating unnecessary intermediaries.

How does it work?

The process is quite simple: once you have money in your Strike account, just add the recipient’s bank account details, enter the amount you want to send and click “Confirm.”

Automatically, the amount is converted into Bitcoin, which is sent via the Lightning network to a global partner. This partner converts the Bitcoin into local currency, and then the funds are deposited into the recipient’s bank account.

The entire process is automated and takes place within seconds. Therefore, neither you nor the recipient ever directly possess Bitcoin.

2. Bitcoin services

When it comes to Bitcoin, Strike is a complete ecosystem providing various services in a single app.

With it, you can:

• Buy and sell Bitcoin;
• Use Bitcoin to pay for goods and services, including a partnership with Bitrefill to exchange Bitcoin for gift cards;
• Withdraw your Bitcoin to your own custody either on-chain or via the Lightning network;

Additionally, Strike offers an interesting feature called “pay me in Bitcoin,” allowing you to deposit your salary directly into your Strike account. 

With this feature, you can choose what percentage of your salary you want to convert into Bitcoin and what portion you want to keep in traditional currency (fiat).

Cool, right?

3. API for developers

Strike provides developers with access to its Lightning API infrastructure, enabling the creation of innovative products and services that utilize the Lightning Network. This access paves the way for groundbreaking solutions and opens up opportunities for new business ventures.

Having explored the key features that Strike offers, let’s now proceed step by step to set up your account.

Setting up your Strike account

First, it’s important to know that the Strike payment app is free and available to everyone. You can download it for both Android and iPhone, and it’s also accessible via a Chrome browser extension for desktop users.

To download, simply click here. Once the app is downloaded, you’re ready to set up your account.

Step 1: Open the Strike app, and you’ll see the options to “Sign Up” or “Log In.” Since you’re creating a new account, click “Sign Up” and enter your email.

Step 2: Check your email for a code sent by Strike. Use this code to proceed with setting up your username.

Step 3: Select your country from the list where Strike is available. After selecting your country, you’ll begin the Know Your Customer (KYC) process, where you need to enter your first name, last name, and date of birth.

Step 4: The next screen will explain that to access all features of the app, such as buying Bitcoin with a debit card, sending money to your bank account, and accessing higher limits, you must complete identity verification (KYC).

Step 5: For verification, you’ll need to enter your details including your name, government registration number, date of birth, and full address.

Step 6: Submit your document for processing. Once validated, your account will be fully active.

Step 7: Now it’s time to connect your payment method on Strike. To do this, follow the steps below:

1. Access the profile icon at the top of the screen.
2. Tap “Payment Methods”.
3. Select “Add Method”.
4. Follow the on-screen instructions.

After these steps, you’re all set to start buying Bitcoin on Strike! Note that the available payment methods may vary depending on your location.

How to buy Bitcoin on Strike? (Quick and easy step-by-step)

After setting up your payment method, you’re ready to buy Bitcoin directly within the app.

Depending on your location, you might have the option to link a bank account, but in most countries, adding a debit card is the available method.

Once your debit card is added, follow these steps:

Choose the amount of Bitcoin you want to buy:

• In the bottom menu, click on “Bitcoin” and then on “Buy.”
• Enter the amount in dollars you want to buy. For this example, I’ll buy $10. Then, just click “Next.”
• Notice there’s a $10,000 limit for buying Bitcoin, which is a weekly limit.

Confirm the purchase:

• Now, you’ll confirm your purchase. The total cost, the Bitcoin price you’re paying, and the fee will appear on the screen. If everything looks correct, just click “Confirm.”
• In a few seconds, the purchase will be processed, and the amount of satoshis will be deposited into your Strike account.

Congratulations! You’ve just completed your Bitcoin purchase.

Besides this option, Strike also offers two other Bitcoin buying options:

1. Recurring Purchases

Set up automatic Bitcoin purchases to occur at daily, weekly, or monthly intervals.

2. Target Orders

Specify a target price to buy or sell Bitcoin. Your order will execute only when Bitcoin reaches the price you’ve set.

What are the fees Strike charges?

Strike charges fees for some operations. Let’s break it down:

Bitcoin buy and sell fees

Initially, buying Bitcoin on Strike was advertised as “fee-free.” However, this has changed, and now there’s a small trading fee ranging from 0.79% to 1.29%. Even so, these fees remain competitive compared to other exchanges.

When you buy or sell Bitcoin on Strike, a fee is applied based on the trade amount. This fee is divided into different levels, called “tiers,” ranging from 0.39% to 1.29%, depending on your monthly trading volume. The more you trade, the better your fees.

For those using a Dollar Cost Averaging (DCA) strategy with recurring purchases, no fees are charged after the first week.

Watch out for international purchase fees!

Non-US users should be aware of additional costs when making international purchases. These include fees from the debit card issuer and possible taxes.

Therefore, this purchase of Bitcoin through Strike may be more expensive than on other platforms and local exchanges, due to this overlap of fees.

These fees vary from country to country, so be aware of them if you decide to buy Bitcoin through Strike.

Bitcoin withdrawal fees

When you withdraw Bitcoin on-chain, you can choose between different transaction speeds:

• Priority or Standard options: These are faster but come with a fee.
• Flexible send: This option has no on-chain fee and offers a slower transaction speed.

For withdrawals over the Lightning Network, a minimal routing fee is charged to cover network costs, though it is almost negligible.

Remember, fees vary from country to country, so it’s important to check the specific fees applicable to your location before proceeding with transactions on Strike.

Advantages and disadvantages of the app

As we have seen throughout this article, Strike offers a series of features and is a very complete application for bitcoiners.

However, since everything in life has its pros and cons, we list both below.

Advantages:

• User-friendly app: Strike is designed with simplicity in mind, ensuring even users with no prior Bitcoin experience can easily navigate the app. Its intuitive interface facilitates sending and receiving payments, checking balances, and managing transactions.
• Global: Strike is available to users in various countries, including Brazil, Argentina, El Salvador, the United States, the UK, Europe, and more. Check the complete list here.

Disadvantages:

• Custodial: Strike is a custodial solution, meaning both your fiat and Bitcoin balances are held by Strike while in your account. Remember, your Bitcoin is truly yours only when you have custody of it. Avoid leaving large amounts with third parties.
• KYC: Strike is a US-based company that follows government regulations to operate. Therefore, a KYC process is required to use the app, even if you only want to use the Bitcoin and Lightning services.
• Language: The app is entirely in English and doesn’t offer other language options, which could limit its usage by more people.
• Values in dollars: The app displays amounts only in dollars, without allowing conversion to other currencies. This may confuse users when entering the desired amount, as it’s not in their local currency.
• Extra fees: As shown in this article, depending on the country you’re in, there may be extra fees and taxes when buying Bitcoin, making the purchase more expensive than local platforms and exchanges.

Is it worth buying Bitcoin via Strike?

Buying Bitcoin via Strike can be a worthwhile option due to its competitive fees, which range from 0.79% to 1.29%. These fees are relatively low compared to other exchanges.

However, for users outside the US, additional costs such as currency conversion fees can significantly increase the overall expense, potentially making local platforms more cost-effective.

Is the Strike app safe and reliable?

Yes, the Strike app is considered safe and reliable for buying Bitcoin.

It is a regulated platform that employs robust security measures to protect users’ data and transactions.

However, since Strike operates on a custodial basis, it is advisable not to store large amounts of Bitcoin in the app. Instead, learn how to manage your own Bitcoin keys for better security.

If you need assistance, there are numerous articles and workshops available to guide you.

Conclusion

As we’ve seen, the Strike App is a tool that makes using Bitcoin easier for everyone. It offers a simple platform where you can buy Bitcoin and use it for daily payments quickly and easily. This makes Bitcoin more accessible to those who want to use it as money, even for beginners.

With Bitcoin becoming increasingly important as a form of payment and financial asset, Strike plays a relevant and important role in making Bitcoin more popular and integrated into people’s lives.

I hope this article has helped you in your Bitcoin journey and to better understand this app.  

Until the next one, and Opt Out!

The post How to Buy Bitcoin on the Strike App? appeared first on Area Bitcoin.

Many of these on-ramps, or entry points for Bitcoin, require KYC (Know Your Customer) compliance.

But what exactly is KYC?

KYC involves providing data to the platform to register and perform transactions with Bitcoin, such as your name, address, phone number, email, and often even proof of income.

However, this requirement has frustrated many bitcoiners who prioritize privacy. That’s why new solutions like Robosats are emerging.

In this article, you’ll learn about Robosats, a P2P exchange dedicated to privacy in Bitcoin transactions on the Lightning Network.

Additionally, we will guide you through a step-by-step process on how to purchase Bitcoin privately and securely using this platform.

Let’s get started!

What is Robosats?

Robosats is an open-source, peer-to-peer (P2P) platform that enables the buying and selling of bitcoins using the Lightning Network.

P2P stands for “Peer-to-Peer,” meaning point-to-point or “person-to-person.” Thus, P2P transactions are those made directly between individuals without needing a third-party intermediary.

Essentially, P2P platforms connect buyers and sellers directly. Therefore, at no point does a P2P platform store funds or receive fiat money in exchange for Bitcoin. Instead, they simply facilitate the interaction between two parties to negotiate directly.

Additionally, since a P2P platform doesn’t hold your balance, you receive the value directly into your wallet. This eliminates the need to transfer your satoshis from the platform to your wallet, thereby avoiding potential withdrawal fees.

Robosats is a P2P marketplace that allows users to trade Bitcoin directly with others from anywhere in the world. However, it’s important to note that P2P services may have higher buying and selling fees compared to traditional methods, such as exchanges.

To use Robosats, no personal information is required during registration, and access is only through the Tor browser to ensure privacy.

But, don’t worry; we’ll guide you on how to use the tool practically later in this article.

Using the Lightning Network

Since Robosats leverages the Lightning Network—a second-layer solution built on top of Bitcoin—transactions between users can be completed in as little as five minutes, provided both parties are online.

Additionally, Robosats is a global platform that connects users from different countries and accepts virtually all fiat currencies and payment methods.

Privacy with ‘Robots’

Robosats, short for “Robotic Satoshis,” derives its name from its privacy features. When you create an account on the platform, you’re assigned a robot avatar and a random name.

You can generate a new robot avatar whenever you like, and it’s recommended to do so to protect your privacy, as reusing robots can compromise it.

Upon registering, a robot is generated along with a unique token. This token acts as a password, allowing you to access ongoing orders or active disputes (which we’ll explain shortly).

Therefore, in summary, it’s advisable not to reuse robots, and your token should only be used to recover your current robot if you have any ongoing operations.

Key Features of Robosats

Robosats is built on three main pillars: privacy, speed, and security.

Let’s explore each of these!

Privacy

Privacy is a foundational pillar of Robosats, integrated into all of its functionalities by default. The platform’s design and access methods are crafted to reinforce this principle.

To ensure robust privacy, Robosats adopts four main mechanisms:

1. No Data Registration: When accessing Robosats’ site, no email or other information is required for registration. Additionally, pseudonymous robots are your identity on the platform, and there is no way they can be linked to your real identity.
2. Encrypted Communication with Auditable PGP: Each robot receives a PGP key to encrypt end-to-end communication, which you can easily verify in any PGP application. During negotiation, an encrypted chat between the two parties is initiated on the platform.
3. Use of the Tor Network: Access to Robosats is only possible through the Tor browser, ensuring that your IP is not shared with network nodes or your trading partners.
4. Multiple Identities: Robosats encourages the use of different identities (robots) for each transaction, maximizing user privacy. This feature is unique to this platform.

Speed

Another main feature of Robosats is speed. Since the platform is based on the Lightning Network, all transactions are conducted on this second-layer Bitcoin network.

The Lightning Network is not only faster but also incurs lower fees, enabling users to complete trades swiftly—often within just five minutes, assuming both parties are online.

Additionally, the absence of a personal registration approval process allows for rapid access to the trading panel. Users can quickly find a trading pair and begin negotiations.

Security

As mentioned in the privacy section, Robosats employs various mechanisms that enhance not just privacy but also security for its users.

Transactions are conducted directly between two users, minimizing the risks associated with third-party interference. However, to protect against potential malicious actions by a user, Robosats implements a security feature.

So, before any negotiation begins, a security deposit equivalent to 3% of the negotiated amount is held.

If an issue arises during the transaction, either party can initiate a “dispute.” This feature calls for the intervention of a third party from Robosats to evaluate and resolve the matter.

The team behind Robosats manages these disputes, analyzing the situation and ensuring protection for the user affected by any misconduct.

What are disputes on Robosats?

Disputes on Robosats arise when there is a disagreement or conflict between trading partners. In such instances, either party can initiate a dispute, prompting the Robosats team to step in. The team then reviews the negotiation details to ensure fairness and prevent harm.

Additionally, in the rare cases where there is an attempt at fraud, a dispute can also be initiated to address and resolve the issue.

To request a dispute, traders can use the chat feature available on Simple X, accessible via the main RoboSats group.

Also, it’s important to note that Robosats does not have access to private chats between traders. Therefore, in the event of a dispute, it is necessary for the involved parties to provide a detailed account of the events and, if possible, screenshots to support their claims.

How are trades conducted on Robosats?

Starting a trade on Robosats is straightforward, but there are important requirements you need to be aware of during the transaction process.

Upon accessing the platform, you’ll encounter the offers page. Here, you can view listings from individuals looking to sell Bitcoin as well as those aiming to buy.

Within these offers, some information is important to understand what is involved in your trade, such as premium, bonds, and trading guarantee.

Premium

The premium represents the price difference (above or below) of the current Bitcoin rate relative to fiat currencies as found on conventional exchanges. 

On the homepage, order prices are automatically adjusted to reflect the corresponding premium.

Typically, the premium is set at +5%. This amount is strategically chosen to compete with other robots and to encourage market liquidity.

Generally, they work like this:

• Positive Premium: Trade BTC at a price higher than the average price on centralized exchanges.
• Negative Premium: Trade BTC at a discount to the average price on centralized exchanges.
• Zero Premium: Trade BTC without any price difference compared to the average price on centralized exchanges.
• Relative Pricing Method: Allow the premium price to adjust according to the Bitcoin market rate.
• Explicit Pricing Method: Set a premium price using a fixed amount of Sats.
• Premium Ranking: Show how your order premium ranks among all public orders in the same currency, ranging from 0% (lowest premium) to 100% (highest premium).

Bonds

Bonds on Robosats act as fidelity guarantees. They represent a small deposit that is locked by the user and released only after the transaction is successfully completed between trading partners.

These bonds are designed to encourage users to adhere to the platform’s rules. They are implemented through invoices held on the Lightning Network, which is Robosats’ native network.

By default, bonds are set at 3% of the traded amount, though users have the flexibility to adjust this percentage anywhere from 2% to 15%.

Therefore, to trade on Robosats, you need to have some bitcoins. If this is your first experience buying Bitcoin, there are various ways to acquire a small amount to serve as a guarantee on the platform.

Robosats suggests earning satoshis through apps like Stacker News, Fountain, Bitcoin Magazine App, and THNDR. Anyway, it’s important to note, however, that Robosats has no affiliation with these platforms.

Alternatively, you can purchase satoshis through Azteco vouchers.

Trading guarantee

When selling Bitcoin on Robosats, a trading deposit is required as collateral and is issued through invoices generated on the Lightning Network. This system is designed to protect the buyer against fraud or default by their trading partner.

The person issuing the order sets the expiration time for the order, which can range from 1 to 8 hours, with a default setting of 3 hours. So, if the seller fails to secure their trading deposit within this specified time frame, they will forfeit their fidelity bond.

How do Robosats fees work?

The platform charges a fee of 0.2% of the total trade amount. This fee is shared between the order creator and the taker, paying 0.025% and 0.175%, respectively.

In addition to these fees, there may be Lightning Network fees or on-chain network fees if the transaction is conducted on the main chain.

What do you mean by on-chain network?

Although Robosats primarily focuses on transactions conducted on the Lightning Network, trading on the on-chain network is also possible.

After the taker locks their bond, you will see options for a Lightning or an on-chain invoice under “Waiting for buyer’s invoice.”

However, on-chain fees can vary significantly, ranging from 1% to 10%. These rates can be checked by using the “%” button on the homepage.

On Robosats, users also have the option to convert satoshis to on-chain bitcoin or vice versa. To perform this conversion, navigate to the end of the coin drop-down menu on the homepage, select the desired network for the trade, create an order, and wait for a trading partner.

Using Robosats: A Practical Tutorial

Now that you’re familiar with how the platform operates and its main features, it’s time for some hands-on experience!

In this tutorial, we’ll guide you step-by-step through using the Robosats website to make your first purchase.

Step 1: Access Robosats

• First, you’ll need the Tor browser to access Robosats. If you don’t have it, you can download it here.
• You will also need a Lightning wallet and some satoshis as a guarantee on Robosats.

Step 2: Set Up

• After installing Tor and setting up your Lightning wallet, navigate to the Robosats website.
• Upon arrival at the homepage, click on “start” to generate your random robot token.
• Remember to save this token securely in case you need to recover your robot.
• After generating the token, your random robot avatar will be created.

Step 3: Browse Offers

• Click on “offers” to view available orders. Use filters at the top to specify your preferred currency and transaction type (buy, sell, swap, etc.).
• Select an offer and the amount you wish to buy. Verify all the information and click on “take order.” (A red or green dot next to the seller’s avatar indicates their online status.)

Step 4: Secure the Trading Bond

• After confirming the order, you’ll need to secure a trading bond, which will be held until the negotiation is finalized. This amount will then be returned to you.
• Then, an invoice will be displayed for you to lock the amount.

Step 5: Complete the Transaction

• Pay the invoice using your Lightning wallet and generate another invoice with the indicated amount, pasting it into the provided space.
• Wait for the seller to lock the trade amount. Once they do, Robosats will open a chat window between you two. During this chat, encrypted with PGP, ask the seller for the fiat payment details.
• After making the fiat payment, confirm it on Robosats.

Step 6: Finalize

• Once the seller confirms receipt of the payment, Robosats will release your satoshis to the provided address.
• Upon completion of the transaction, the initially locked amount is released, and you can review a summary of the transaction.

Recommended Lightning Wallets by Robosats

Robosats recommends several Lightning wallets that you can use for your trades, including:

• Alby
• Blink
• Blixt
• Blue
• Electrum
• Mash
• Muun
• Phoenix
• Wallet of Satoshi
• Zeus

Conclusion

There are numerous options available for buying Bitcoin, each catering to different preferences.

While traditional and custodial platforms often provide a more user-friendly experience, as we’ve demonstrated in this article, using Robosats is straightforward.

So, if you’re looking to use Bitcoin in its most authentic form, P2P platforms like Robosats are an excellent choice. They allow you to acquire satoshis while protecting yourself from widespread government surveillance.

However, it’s crucial to familiarize yourself with the platform and understand how self-custody works since you will be fully responsible for managing your assets.

I hope you found this article helpful. Feel free to share it with friends who are also interested in buying Bitcoin without undergoing KYC procedures!

Until next time, and OptOut!

The post How to Buy Bitcoin on Robosats appeared first on Area Bitcoin.

In the last articles here on the blog, we showed you some platforms to buy Bitcoin with more security and privacy, such as Azteco. However, this time, we are going to show you a non-custodial exchange platform, Boltz!

Boltz Exchange is an ideal platform for anyone who wants to exchange bitcoins between the existing layers:

• On-Chain
• Lightning
• and Liquid

We often want to transfer BTC from one network to another, but exchanges and wallets offering this service are still rare today. Therefore, Boltz Exchange appears precisely for this purpose.

In this article, you will better understand Boltz and its workings.

Why transition between layers?

One of Bitcoin’s biggest evolutions was that it scaled in layers.

But how so?

Well, we know that Bitcoin in its main layer (on-chain) has some limitations: transactions occur in an average of 10 minutes, fees are usually higher, and often, the main layer does not meet all the needs of users.

However, this in itself is not a problem, in fact, it is what makes the network so secure. Cause the layer one, on-chain, was made to be secure and decentralized. Fast and cheap transactions take place in other layers of the protocol. 

For those who need to transact small amounts on a daily basis, some satoshis (fractions of bitcoin), using the main network can be costly and time-consuming. Furthermore, it is a bit complicated to insert other financial instruments directly into the main Bitcoin layer.

Other layers were created to meet the demands of these users and bring them to Bitcoin, such as the Lightning network, which allows you to transact Bitcoin quickly and with fewer fees on a daily basis, and the Liquid Network, which serves as a way to use various financial instruments based on Bitcoin.

That said, the importance of transitioning in layers is precisely to provide this flexibility so that the user can take advantage of everything that Bitcoin has to offer. However, although today there are several wallets for each functionality, not all of them have integrations for exchanges between networks. 

That’s where Boltz comes in, as a non-custodial way for users to transfer bitcoins between layers super easily, through atomic swaps.

Oops, a new term came up here! But don’t worry, I’ll explain it.

What are Atomic Swaps?

Atomic Swaps are direct exchanges between different layers, without the need for intermediaries, using scripts (smart contracts on Bitcoin) to guarantee the secure and simultaneous execution of transactions.

Generally, when exchanging one currency for another, the parties involved in the negotiation must trust a third party, which is usually the broker or wallet where the exchange is being made.

In an exchange of bitcoins between different layers, it is also common to trust a third party to act as an intermediary. In practice, if you want to exchange Bitcoin on-chain for satoshis on Lightning from a Lightning wallet, what happens is that you send Bitcoin to the wallet and it gives you satoshis back. Therefore, in this case, there is a trusted third party mediating the process. 

This may be practical, but from a privacy perspective, we have a problem. 

Through atomic swaps, which also means “atomic exchanges”, what happens is a completely peer-to-peer exchange, without the intervention of third parties.

Thus, an atomic swap works to ensure that both sides of the negotiation comply with all pre-defined conditions before it is even concluded. Conditions are defined through smart contracts, the same ones created by Nick Szabo.

An atomic swap works with HTLC contracts (Hashed Timelock Contract). In this type of contract, the amount is “locked” in a two-way channel and a time restriction is introduced, where, if the transaction is not completed within a certain period, the balance returns to the depositor. And it is this mechanism that the Boltz platform uses.

What is the Boltz Exchange?

Boltz Exchange is a platform that facilitates Atomic Swaps between different layers of Bitcoin, without the need for intermediaries. Also, it is non-custodial, it is not necessary to create an account and there is no custody of Bitcoin balances.

The way Boltz exchanges between Bitcoin on-chain and satoshis on Lightning is through submarine swaps. Basically, this mechanism is based on atomic swap, however, it is only suitable for Bitcoin networks.

How did Boltz come about?

The Boltz platform emerged in 2019, precisely to mitigate the problem of exchanges between Bitcoin layers. This solution is particularly interesting for new users and traders using Lightning, as you often need to open a Lightning channel and add liquidity to this channel to start using it.

In this case, Boltz is a safe alternative to use Lightning conveniently, without having to open your own channels or having to request the opening of a channel for a Lightning node.

How does Boltz work?

We have already mentioned here that Boltz’s modus operandi is through atomic swaps, so the exchanges are truly peer-to-peer, without the need for a third party, and to use the platform it is not necessary to open an account or enter personal data.

Thus, Boltz serves the three layers of Bitcoin:

• On chain: main layer of the Blockchain, where all transactions are recorded. 
• Lightning Network: A second-layer scaling solution that facilitates faster and cheaper Bitcoin transactions. 
• Liquid Network: another second layer Bitcoin solution, which allows for more privacy, faster settlement, and financial solutions involving Bitcoin, such as loans and others.

What is the minimum and maximum amount to transact on Boltz?

The maximum and minimum amounts to transact on Boltz depend on the chosen pair, but the overall maximum is 25 million sats (0.25 BTC).

Additionally, Boltz charges a service fee ranging from 0.1% to 0.5%, in addition to network fees. Typically, the fee falls between 0.1% and 0.25%.

Using Boltz in practice!

The Boltz platform does not have a mobile app and is only used on the web. However, for more privacy, it can be used on the Tor browser as well.

So, here are some important links to start using this platform:

• Onion Address (Tor): http://boltzzzbnus4m7mta3cxmflnps4fp7dueu2tgurstbvrbt6xswzcocyd.onion/ 
• Official website: https://boltz.exchange/

In this example, we will use the Tor browser for privacy reasons, but you can choose whichever browser you think is best.

Once you have chosen your browser, enter the Boltz website and it will open directly to this page:

Now, select which network (Bitcoin, Liquid or Lightning) you want to receive from, and which network (Bitcoin, Lightning or Liquid) you want to send to:

In the bottom left corner of the exchange box, you can select how you want to see the values, whether it is in BTC or in Satoshis:

Enter the amount you want to exchange and you will see how much you will receive and the fee charged (both the network and the platform). At the time of this simulation, the network rate was high, as can be seen below:

After entering the amounts, you must enter the address to which you want to send the amount.

In the example, since the exchange is from a Lightning to On-Chain address, we will enter an On-Chain address here, and the option to perform the exchange will appear automatically.

Now just click on “create atomic swap” and you will be taken to the final page:

On this page, the payment invoice for the requested exchange will be shown; that is, you will send the satoshis you have in Lightning and receive them in Bitcoin On-Chain.

Pay the invoice and your exchange will be complete. Now, just wait for the amount to arrive in your wallet at the On-Chain receipt address you indicated.

Boltz Pro

In December 2024, Boltz launched Boltz Pro, a service that allows you, as a user, to help it balance liquidity between the Bitcoin blockchain and Lightning channels. Plus, you can earn small amounts of Bitcoin (sats) in the process!

Here’s how it works: as more people use Boltz to swap between Bitcoin and Lightning, the balances in the platform’s wallets and Lightning channels are constantly shifting. With increasing transaction volume and speed, Boltz may occasionally need a little help to rebalance its liquidity. That’s where Boltz Pro comes in.

The concept is simple: when Boltz’s balances run low on one side of the equation—whether it’s Bitcoin on the base blockchain or in Lightning—you can step in to provide liquidity.

And the best part? You get rewarded for your help!

A Practical Example

Let’s say Boltz is running low on liquidity in its Bitcoin wallet on the blockchain. In this case, it adjusts its dynamic fee to -0.15% for swaps from Bitcoin to Lightning. This means that instead of paying a fee, you earn 0.15% for making the swap.

Once enough volume flows in this direction and the Bitcoin wallet is replenished, the fees return to normal.

The best part? You don’t need to sign up to use the service. Simply monitor the website for negative fees and take advantage of the opportunity.

And remember: Boltz never takes custody of your funds. This means you can earn satoshis securely and in a non-custodial way.

Is Boltz a safe platform?

Yes, Boltz Exchange is safe. It is a non-custodial platform, which means users maintain full control over their bitcoins during transactions, reducing the risk of losses due to security breaches.

Furthermore, the exchange also emphasizes privacy, operating without requiring personal identification from users.

Conclusion

See how simple it is? Boltz’s solution is precisely to deliver this simplicity to users who need to exchange between layers, all without having to create an account and with a super-friendly interface.

The fact that it is non-custodial and presents a fast mechanism for exchanges makes this platform an ideal option for users and its use tends to grow more and more, mainly because people are using the second layers of Bitcoin more.

I hope you enjoyed this article and it helped you understand more about Boltz. 

Send this article it to a friend who can also discover and benefit from this platform.

Until next time and opt out.

The post What is Boltz Exchange and how does it work? appeared first on Area Bitcoin.

As of now, Binance operates in over 180 countries and accepts 15 fiat currencies, including the Brazilian real, the US dollar, and the euro.

However, in November 2023, the narrative took a dramatic turn toward crime when Changpeng Zhao, the then-CEO, faced allegations from the American federal government. Accusations included money laundering, sanctions violations, and a series of tax offenses that led to his arrest, subsequent bail posting, and a record US fine of $4 billion.

So, grab your popcorn and prepare to delve into the tumultuous history of Binance. Learn how it transitioned from a “shitcoin” casino to a regulated bank through what some call regulatory capture, and discover whether Binance is a reliable platform for purchasing Bitcoin.

How did Binance come about?

The story of Binance began in China in 2017 when Changpeng Zhao, known globally as CZ—a developer with extensive experience in finance and technology—founded the platform.

Zhao conceived the idea for Binance upon recognizing the need for a more efficient Bitcoin and cryptocurrency trading platform. Prior to establishing Binance, he was part of the team that developed Blockchain.info and also served as the CTO at OKCoin, another digital currency exchange.

Initially based in China, the exchange quickly relocated its servers and headquarters to a confidential location in Japan due to a ban on trading digital currencies imposed by the Chinese government.

By April 2018, just eight months after its inception, Binance had already made a significant mark on the market. It had introduced its own currency, BNB, and achieved a record global daily trading volume of US$24 billion.

As the exchange expanded, the need to move its headquarters became more pronounced due to increasing regulations in the countries where it operated. The plan to establish a new base in Malta was announced in 2018, driven by tightening government regulations.

That year, Binance also signed a Memorandum of Understanding (MoU) with the government of Bermuda and a similar agreement with the Malta Stock Exchange.

The expansion into Europe continued with the establishment of a headquarters in Jersey—a tax haven under the British Crown but not part of the United Kingdom.

How did Binance become the largest exchange in the world?

One key factor to consider is that Binance began operating during a critical moment in the market, coinciding with the altcoin boom.

Binance capitalized on this opportunity, leveraging assets created from strategies like pre-mining and pump-and-dump schemes. It quickly became the platform with the largest altcoin listings in the market, drawing speculators from around the globe.

From the outset, the platform was geared towards speculation, trading, futures, leverage, and various strategies to “maximize profit.” Binance has also consistently offered competitive fees, maintained lower than those of other exchanges, and engaged with its user base through giveaways and community initiatives, like the Binance Angels.

With substantial financial resources and by navigating around regulations in several countries, the company adeptly rode the market waves. It expanded its offerings to include “decentralized finance” (DeFi—though this is debatable 😂), initial coin offerings (ICOs 🤮), and even launched a highly centralized blockchain, the Binance Chain, which concentrates decision-making power within the company.

Additionally, Binance acquired companies and data aggregators, such as the CoinmarketCap website and the Trust Wallet digital wallet, seeking to be present in the market’s main access, trading, and information points.

This strategy has attracted thousands of customers around the world, and Binance currently serves more than 167 million users on its platform. However, this also gave the exchange a lot of power, attracting the attention of banks and fiat institutions.

CZ and Forbes

CZ achieved a prominent position on the Forbes billionaires list and even graced the cover of the magazine in 2018. He entered the top 20 richest people in the world, with a fortune estimated at around $65 billion.

Interestingly, years later, Binance became one of the main shareholders of Forbes, having invested $200 million in the American publisher with the goal of using the media as a channel to demystify blockchain technology and emerging digital assets.

In other words, they acquired one of the largest media outlets in the world, much like banks do, to promote tokens and create biased narratives in the market—similar to their acquisition of Coinmarketcap.

The Rise of Binance US

Until 2019, Binance was not authorized to operate in the United States. However, this changed when the company committed to adhering to the stringent requirements set by US regulators, ensuring a “safe and reliable” operation for Americans.

Consequently, Binance US, a version of the global platform, was specifically created to cater to the US market. This operation, managed by BAM Trading Services Inc., based in San Francisco, launched in September 2019.

Catherine Coley

BAM Trading Services has appointed Catherine Coley as CEO, who previously held an executive role at Ripple. Her primary responsibility was to launch and expand Binance.US in North America.

Before venturing into the digital currency market, Coley worked as a foreign exchange analyst at Morgan Stanley in Hong Kong and London. Later, she served as a foreign exchange advisor at Silicon Valley Bank from 2016 to 2017.

Indeed, a remarkable fiat resume!

Interestingly, her tenure at Binance was short-lived. Catherine Coley held her position for less than a year and departed without leaving any clues as to why.

To this day, her departure remains shrouded in mystery. What could have motivated Catherine to leave one of the most coveted positions in the US at that time?

Did she uncover something that could jeopardize her reputation and personal integrity? We may never know. However, subsequent events might offer some clues.

American government on Binance’s trail

In 2020, the US Department of Justice and the Securities and Exchange Commission (SEC) initiated an investigation into Binance and its American affiliate, Binance.US.

The goal was to evaluate the extent of Binance’s control over Binance.US, particularly concerning access to US customer data. The investigation involved the issuance of subpoenas and included statements from informed individuals. This could lead to regulatory actions against the exchange if it was found to have full control over its US operations.

Regulatory scrutiny of Binance intensified following the collapse of the FTX exchange, which was the second largest in the world at the time, in November 2022.

The FTX fall

The downfall of FTX, founded by the now-incarcerated Sam Bankman, began with media reports that the young ex-billionaire had used clients’ funds to support his own investment fund, Alameda Research.

Fearing the loss of their investments, clients of the brokerage rushed to withdraw their money. However, lacking sufficient dollars to cover all the withdrawals, FTX declared bankruptcy and filed for judicial recovery.

FTX’s bankruptcy left Bankman-Fried, who once amassed a fortune of $26 billion, penniless. He was found guilty on all seven charges against him. The trial, lasting a month, not only led to substantial financial losses but also resulted in the founder receiving a prison sentence of over 100 years.

This incident raised concerns that Binance might be engaged in similar practices and could face the same fate.

At that time, there was a widespread panic, with customers rushing to withdraw Bitcoin and altcoins from various exchanges, fearing a domino effect in the market.

On Binance alone, customers withdrew R$60 billion following the collapse of FTX.

Historic fine

In 2023, the US Treasury intensified its scrutiny of Binance transactions, levying even more severe accusations against the exchange.

According to US Treasury Secretary Janet Yellen, “Binance neglected its legal responsibilities in the pursuit of profit. Its intentional oversights enabled money to flow to terrorists, criminals, and child abusers via its platform,” as detailed in The Wall Street Journal.

Consequently, a settlement reached between Binance, CZ, the US Department of Justice, the US Treasury Department, and the Commodity Futures Trading Commission (CFTC) culminated in a fine of $4 billion, according to reports from the American newspaper, concluding the investigation against the company.

The charges included:

• Money laundering,
• Bank fraud
• and transaction violations.

This fine was the highest in US history.

CZ steps down as CEO of Binance

On November 21, 2023, Changpeng Zhao (CZ), the CEO and founder of Binance, stepped down from his position at the company after posting bail and paying a billion-dollar fine. Richard Teng, who previously managed Binance’s operations in regional markets, succeeded him as CEO.

CZ announced on his social media that he would remain available for consultations with the team as necessary and in accordance with the framework established by US regulatory agencies.

The fraud allegations and accusations of terrorist financing and other crimes have not proven any misuse of customer funds by Binance, but they have certainly damaged its reputation as the “good guy” among brokers.

Is Binance trustworthy?

Binance is considered trustworthy as it is one of the largest cryptocurrency exchanges in the world and has been established in the market for several years. However, it is advisable never to leave your bitcoins on any exchange!

Despite Binance’s apparent reliability and established market presence, in this sector, nothing is too big to be immune to problems.

Who could have predicted that FTX, valued at approximately $32 billion and the second-largest exchange at the time, would go bankrupt in just two days?

It’s important to remember that exchanges serve as intermediaries and should only be used as such. They are platforms that facilitate Bitcoin transactions, but you should never leave your Bitcoin in their custody or that of any third party, regardless of how secure these platforms may appear.

Exchanges may intentionally restrict withdrawals, are vulnerable to hacker attacks, and can go bankrupt due to poor management, or worse, be run by fraudsters and scammers who might execute a “rug pull” and vanish with your bitcoins.

The key takeaway is that while these platforms are viable for purchasing Bitcoins, you should never store your Bitcoins in the custody of exchanges. Always buy and promptly transfer your Bitcoins to your own cold wallet, maintaining personal custody of your assets.

Is it worth buying Bitcoin on Binance?

Yes, buying Bitcoin on Binance poses no issues. However, it is crucial that you transfer your coins to your own custodial wallet, such as Jade Wallet.

The fee to withdraw Bitcoin from Binance to another external wallet is 0.0005 BTC, which amounts to approximately R$100 based on the current Bitcoin price of $40,000. This rate is considered mid-range compared to other platforms.

It’s worth noting that Binance supports withdrawals via the Lightning Network, which incurs negligible fees. However, using this option requires a deeper understanding of transactions on Bitcoin’s layer 2.

Additionally, it’s important to remember that the Lightning Network is not ideal for storing large amounts for long-term purposes; it is better suited for day-to-day transactions. Thus, exercise caution when selecting your Bitcoin withdrawal method on Binance.

Conclusion

Binance’s rise as a platform that facilitates speculation through “shitcoins”, casino-like behavior, and the promotion of various “pump n’ dump” schemes, coupled with its evasion of country regulations, has rapidly propelled the company’s growth on a global scale.

For instance, in Brazil, Binance has not reported customer transactions to the IRS, even though national brokers are mandated to do so. This non-compliance has long made Binance a favorite among many users.

However, the same characteristics that allowed the brokerage to stand out in the global market have also made it a target, particularly drawing scrutiny from regulatory bodies in the United States.

Regulatory capture and future

The future of Binance remains uncertain, as regulatory capture has been a long-anticipated scenario by Bitcoiners. This scenario is now intensifying, with banks aiming to transform into exchanges and exchanges facing pressures to morph into banks.

The institutionalization of cryptocurrencies underscores the significance of open-source platforms and genuine decentralization—not merely as a marketing tool but as a means to withstand attacks from the traditional financial system.

Binance tried to please Greeks and Trojans, regulators and users, it sought to remain outside the fiat system but was unsuccessful. His trajectory is proof that governments will use their weapons, such as regulations, violence, and fear marketing, to maintain the fiat status quo.

This scenario will intensify more and more, especially with technologies like Bitcoin, which represent a threat to fiat structures, gaining increasing adoption and social validation.

What we can conclude is that the downfall of Binance marks the end of an era. It signifies the end of the period in which governments viewed Bitcoin as trivial, ushering in the phase of active confrontation.

Companies will face regulatory capture, decentralized protocols will be challenged, and self-custody will become essential for preserving generational wealth for you and your family.

Do your self-custody!

While exchanges like Binance may seem trustworthy and offer convenient services, nothing compares to the assurance of knowing that your bitcoins are secure in your own possession, unaffected by external actions.

Therefore, safeguard your keys and prioritize self-custody!

Until next time and opt out!

The post Is buying Bitcoin on Binance worth it? Is it trustworthy? appeared first on Area Bitcoin.