I have WhatsApp and you can deny access to your phonebook. Everything works just fine
I am doing the same boat...and was working fine until i lost & replaced my old phone. All conversations were lost, and this makes it challenging to use whatsapp for any non-group conversations (since I can't start any).
There are also some apps and webpages that helps with this process (Disclaimer: I'm the author of one of them for Android [0])
[0] https://play.google.com/store/apps/details?id=com.trianguloy...
No.