Noncustodial wallets do not require KYC, he is referring to custodial wallets and custodial exchanges. Both are not even wallets, they are accounts.

KYC and Bitcoin wallet? To be sincere I do find this topic funny.

Op, you should start by researching the difference between wallet and exchanges... I guess what you read about or referring to is an exchange and not a non-custodial Bitcoin wallet.


If you don't have the amount needed to get a hardware wallet then you can download Electrum wallet and set up an air-gapped wallet, it will give you the same security as a hardware wallet would give your coins.


Read my entire post, I made mention of "non-custodial"

Same here, but I think that the Op is confused about something here. Kyc(know your customer) is mostly used by exchanges or crypto accounts and not wallets. Using kyc exchanges sometimes is a choice that depends on  the individuals goal and specific use cases eg business purpose. and such for someone new to the crypto verse, the non-custodial wallets are usually suitable since you just want to store or hodl  cryptocurrency.

Since hardware wallets are expensive, it is sometimes adviced for users to use a non custodial wallets which require no kyc, and is less expensive. you just  have to download from legit source (play store, or their original website) and then install on your device with few mobile data.
It is not advisable to use kyc required platform as it puts your identity at risk. Here is a thread that explains fully why you should avoid kyc
Why KYC is extremely dangerous – and useless

I guess you really need to be clear in your post, or try to understand different kind of wallets,

url=https://bt.irlbtc.com/view/5173370.0]Custodial vs. Non Custodial Wallets - "Not your keys, not your coin" Explained.[/url]

And as others have said, maybe you are referring to custodial wallet, like what you find in exchanges or any other services like gambling platforms.

The so called exchange accounts creation for thier users thereby being generated a custodial wallet makes it appears as if they are really wallet, but on a real sense they can be termed wallet under custodial wallets but we often refers to this categories as not wallet since they have the private keys in their custody to the assigned wallet even though the actually currency is stored on the blockc and not on the exchange account created.

Even the so called closed source crypto wallets don't ask for KYC verification unless the wallet company is also running a crypto exchange, I know about Luno wallet which is also a crypto exchange and it's centralized, since the wallet and the exchange are running in the one single app makes KYc verification important.

If any crypto wallet is asking you for KYC it's wrong, do not use such crypto wallet to store your asset, closed source wallets and non-custodial wallets are big red flags, something you must avoid at all costs.

While software wallets whose source are verifiable and open-source are entirely safe to use but on the other hand hardware wallets such as Ledger require us to do KYC to use quite a few of their features and for receiving the wallet on the customer end. Some libertarians such as Lopp has went to greater extremes to own a house to receive hardware wallets and to do the KYC. Through this way, they should be able to maximize their anonymity thereby feeling safer from hacks which has happened in Ledger at the past.

I would recommend if someone is planning to own a large sum of Bitcoin, they should be opting out the Lopp's way of hiding one's identity as we can never be sure or trust centralized companies such as Ledger, Trezor or Keepkey with our information. When Ledger's email and address database leaked, many individuals who had purchased wallets from the website were contacted by scammers and were threatened in the process. On top of that if you really want to maximize your anonymity and be safer from hacks while dealing with large amount of bitcoin, it would be better to use open source OS's such as Linux too.

Nowadays storing seed words on cloud storages has been increasingly dangerous as the company providing such services has the ability to always work towards governments and seize our digital assets.

You are definitely describing a Centralized services such as exchange and few custodial wallets that stored KYC information of user. Using this kind of service will surely danger your asset since you are not holding your wallet keys when you are storing assets on custodial wallets. Privacy is not your main problem anymore once you use services that requires KYC.


it’s very hard to be completely anonymous on Bitcoin most importantly if you are converting fiat to Bitcoin or vice versa since most the exchange requires KYC and there’s only few decentralized P2P exchange that doesn’t require KYC but with huge price spread than the regular market price. I  think you will have no problem for not being complete anonymous since no one will monitor your transaction if you are not doing illegal. Government or someone will not waste time watching someone wallet without any valid reason.

Op, I was wondering if what you said could ever exist as to one undergoing KYC for their private owned wallet. I do not think that would be feasible because any company that decides to do that would definitely use their wallet themselves but I know for sure CEX are the ones who conduct KYC as they are mandated to do so and are custodians if all wallet keys on their exchange.
So if you want to stay out of KYC then move your funds and assets out of CEX if you have them there or better still avoid CEX .