What Is KYC

Know your customer (KYC) as the name implies is the process of in which the crypto exchange tries to literally know the user of the platform. Though cryptocurrency is supposed to make users anonymous but KYC is the opposite. You will be asked a lot of personal questions that will include proof.

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Most crypto exchanges are required to known their customers to prevent illegal use of bitcoin or prevent money laundering. Through KYC crypto addresses will be able to tell informations about the crypto user. Most people prefer to use decentralized wallets because that does not require KYC. But using centralized wallets you need to do KYC and it comes with a lots of restrictions. The methods centralized crypto exchanges use on KYC, are :

1. Asking your name, date of birth and address.
2. Asking for means of identification and telling you to take a picture with your means of identification along with the date boldly written on a blank sheet of paper
3. Some also go that far by asking you to provide your bank statement or utility bill proving where you lived .

If you don’t want to go through the KYC process is best you don’t create an account with a centralized crypto exchange. You can use a decentralized wallet or rather use a cold wallet.