But from my noob perspective I’m a bit confused. How is it really free and decentralized if most exchanges or brokers ask for your real lnfo like some kind of official lD or documents just to get some Bitcoin?
If you are referring to bitcoin privacy, do not referr to exchanges at all. What is part of bitcoin wallet are what you should refer to and they are noncustodial wallets in this regard.
Doesn’t that mean all your transactions can be tracked and traced back to you? I’m not trying to criticize Bitcoin I’m just genuinely trying to understand.
Even if you use the IP address from ISPN on a noncustodial wallet, it is very possible that your transaction can be traced to you. You will need to always use Tor for anonymity. But for privacy, juts run your own node with Tor if possible.
Are there other ways to buy it that allow more privacy?
There are no KYC exchanges. Example is bisq.network and hodlhodl. But the problem is that people from your country may like the centralized exchanges more.
There are also no KYC instant exchanges. Also read this:
http://kycnot.me/And what about wallets, how would someone go about things if they really wanted to stay private?
You can run your wallet on Tor for anonymity. Electrum is good for it. Fir privacy, go for Bitcoin Core and run it using Tor.