Up until now, I thought the only way to convert fiat to BTC is through KYC exchanges. It seems like there are alternatives such as Bysk. Did I shoot myself in the foot by purchasing through KYC exchanges?
Converting fiat to bitcoin through KYC exchanges is one of many ways to sell bitcoin.
If you are concern with your identity getting hack or sell by the exchanges, you really need to find your local sellers so you can buy or sell bitcoin without anyone knows except you and your local sellers.
Your government will also do not know about the transaction because you and your local sellers only send and receive the fiat transaction through your bank account and you send the bitcoin from wallet to wallet.
But @mk4 already gave you 3 options to buy and sell bitcoin so you can try to use one of the options or use one by one.
But I still prefer to buy and sell to the local sellers because we know the sellers and if we often make a transaction with the sellers, we can make a friend with them to be more secure for you.