RoboSats: P2P No KYC Bitcoin Exchange
RoboSats is an open-source, no KYC exchange that allows users to buy and sell bitcoin in exchange for any national currency without any registration at all.
RoboSats (Robotic Satoshis) is an open-source platform that enables you to buy and sell bitcoin for any national currency without the need for identification or KYC requirements. This peer-to-peer exchange uses the Lightning Network and the Tor browser, and offers a diverse range of payment options worldwide.
Benefits of Robosats
There are several advantages to using RoboSats:
- It operates on the Tor network, which provides an additional layer of privacy for you.
- No email, phone, username, or any user input is required to create an account with RoboSat. It is a non KYC echange where you can trade with an anonymous identity, and generate a new identity (a robot avatar) for each transaction, further enhancing privacy.
- RoboSat’s escrow service protects buyers by requiring sellers to deposit bitcoin into an escrow, preventing fraud.
- RoboSat supports both on-chain and lightning network transactions, which reduces transaction fees, and can also increase privacy.
- The platform has aan Android mobile application version for convenient use on smartphones.
How RoboSats Works
To ensure maximum privacy while using RoboSats, it is recommended to access the platform using Robosats Onion address, which requires the use of the Tor Browser. In order to ensure your safety and enable certain features, such as chat, it is necessary to use Tor. Without using Tor, you will be unable to successfully complete a trade. Because of Tor Browser, your location or IP address is never known to the node or your trading peers. It’s completely private. Since there’s no Robosats wallet, you need a Lightning wallet such as Muun, Blixit and Phoenix.
To buy or sell bitcoin, you need to adopt the identity of a robot. You first need to generate a token for your robot. You should store it somewhere safe because this token is the one and only key to your robot and trade. Furthermore, you will need it later to recover your order or check its status. By using a robot, you can maintain anonymity while initiating and fulfilling orders with RoboSats. It’s advisable not to reuse the same robot, as this can compromise your end-user privacy. To maximize your privacy, it’s highly recommended that you create a new robot with random characteristics after each trade. Reusing a robot could potentially link multiple orders to a single avatar, which could lead to the disclosure of end-user information.
You can (and you are advised to) trade with a different robot every single time. It is convenient and easy. No other exchange has this feature, and it is critical for privacy. In RoboSats there is no way for observers to know that several trades have been made by the same user if he used different robot avatars. Only your trading peer can get to know things about you while you chat. Keep the chat short and concise, and avoid providing more information than strictly necessary for the fiat exchange.
The trading system of RoboSats relies on fidelity bonds to encourage both the order ‘maker’ and ‘taker’ to abide by the rules and not engage in fraudulent behavior towards other robots. A maker is a user who creates an offer to either buy or sell bitcoin, whereas a taker is a user who accepts the offer made by another user to buy or sell bitcoin. To participate in a RoboSats trade, you are required to deposit a small sum known as the fidelity bond, which is then locked until the trade is successfully executed. However, failing to fulfill the terms of the agreement may result in the loss of the bond.
The default fidelity bond is set at 3% of the total trade value, but order makers have the flexibility to set their amount between 2% and 15%. Opting for a larger bond implies a greater commitment to the trade and more at stake.
To protect the buyer against fraud or default when purchasing bitcoin, a trade escrow is used. The time frame within which the escrow must be submitted (locked) is at the discretion of the order maker, who can customize it to last between 1 and 8 hours, while the default expiry timer is set at 3 hours. If the seller fails to lock the trade escrow within the allotted time limit, their fidelity bond is forfeited. Furthermore, if a dispute is raised, the satoshis held in escrow are released to the winning party.
RoboSats Payment Methods
At present, there are no limitations on the fiat payment method used for RoboSats bitcoin transactions. You are free to use any payment method agreed upon by both parties, including higher-risk options such as PayPal, Venmo, and Cash apps. Nonetheless, it’s advisable to use a lower-risk payment method whenever possible. Medium-low risk payment methods include Amazon e-gift cards, Interac e-Transfer (Canada) and Wise, formerly Transferwise.
For the fiat payment method to be effective, it should allow for instant sending and receiving, given that the “hodl” invoice has a 24-hour expiration time. If the timer runs out and the invoice expires, it could potentially result in a dispute, which may cause the loss of the fidelity bond (explained above).
PayPal is one of the widely used fiat payment methods. However, with PayPal buyer protection policy, buyers can do fraudulent action by creating a refund request in PayPal after the trading process in RoboSats is finished and therefore taking both fiat and bitcoin all by themselves. This fraud can be prevented by agreeing with the buyer to have them send money using the “send money to a friend or family member” option. This will make the buyer become the one liable for the transaction fee and make it less likely for them to request a refund.
When using RoboSats, a fee of 0.2% is charged on the entire trading amount. This fee is divided between the order maker and the order taker, with each paying 0.025% and 0.175%, respectively. It’s important to note that additional fees of 1.02% from total sats amount will be incurred, if you get paid via on-chain.
Is RoboSats Safe?
RoboSats has been around since 2021. It operates without the need for Know Your Customer (KYC) procedures. Instead, it uses Tor and robot avatars to preserve your privacy by masking your true identity. Each robot is equipped with a unique pair of PGP keys to enable secure end-to-end communication encryption for enhanced security.
In addition, RoboSats includes an Escrow system to further ensure secure transactions. The Escrow service holds the funds involved in a transaction until both parties meet their responsibilities. This approach serves to reduce the danger of fraud or noncompliance.
Robosats is a user-friendly exchange that allows you to exchange any amount of bitcoin, which is a great advantage if you are just starting to stack sats and might want to make a payment. The transactions on the platform are always smooth and fast. Additionally, the platform provides a small cashback on transactions, which is a nice bonus for you. Finally, the platform has very little downtime, meaning that you can rely on it for quick and efficient exchanges. Overall, Robosats is a great choice for anyone looking for a user-friendly, fast, and reliable cryptocurrency exchange.
RoboSats Alternatives (Exchange Without KYC)
|Type of Exchange|
0.025% Maker and 0.175% Taker