> There are online crypto exchanges where you can sell your cryptocurrency for real money

Maybe slightly change a wording? How about old fashioned money instead of "real"?

> It means that they need to confirm your identity. You have to submit your ID so they can confirm your identity. The objective of KYC is to prevent banks from being used, by criminal elements for money laundering activities.

Every word of this is just wrong. Try my version (do not promise about correct grammar):

It means that they want you to confirm some identity. You ought to submit somebody's ID so they can confirm what they has been forced to be confirmed. The objective of KYC is to demonstrate to citizens that strength or US government has not decreased as well as strength of money system since Bitcoin has appeared.