KYC

In plain words

KYC — "know your customer" — is the law that makes exchanges check who you are: ID, selfie, sometimes more. It's how most people buy bitcoin. It also creates a permanent record tying your name to the coins you withdrew. Since chain data is public, the exchange — or whoever it reports to, or whoever steals its database — can follow those coins onward. Not a reason to panic. A fact worth knowing about your coins.

Why it matters

• Explains why "anonymous bitcoin" bought on an exchange isn't.
• Databases linking names to addresses have leaked before — the risk is real.
• Knowing what's already linked helps you decide which privacy steps matter.

Not to be confused with

• Wrongdoing — KYC'd coins are normal coins; preferring privacy isn't a crime.

Go deeper

• Chain analysis
• Custodial vs self-custody
• Nodes & your privacy