How To Use Bitcoin Anonymously – A Simple Guide
Bitcoin and anonymity has ever remained a contentious issue. Enthusiasts continue pushing for a broader adoption. It is obvious that they are succeeding. In response, cryptocurrency exchanges are being forced to implement a know-your-customer procedure.
Such things are important because they protect the interests of users on cryptocurrency platforms. But there is a catch. There is another layer of bureaucracy that widens the infringement on your ability to stay anonymous. You cannot buy or sell cryptocurrency without feeling like there is someone on your back. Which enables other risks for users like database leaks. The amount of hacks and database breaches increased more than twice last year. So in case if the user’s data is leaked the hackers could have an ability to link your Bitcoin wallet with your credentials which can cause a phishing attack and wallet hack.
That is why Bitcoin remains pseudo-anonymous, despite many believing in its anonymity. To restore your privacy will depend entirely on how you use it. In this guide, we are going to share some ideas on how you can stay under the radar when using bitcoin.
Buy it from a street corner
This may sound a bit tricky, but it is how people used to trade it. If you do your due diligence, you find it not as dangerous as it sounds. Some will feel showing your actual face as counter-intuitive.
In these old-fashioned market places, holders come with their goods. They literally shout out prices and buyers will step out. The exchange took place through the hands and everyone walks homes. You can find traders one some websites using secure connections.
Buy with cash, online
If the method above is still dangerous, you can do the whole process online. You can search for sellers using sites like https://localbitcoins.com/ then do the exchange without having to meet the seller.
There are a few risks with this method as well. It will depend on how much you do your homework.
Get Bitcoin from an ATM
Buying bitcoin from ATM is not always a recommendable option. These ATMs mostly use APIs linked directly to the exchanges. In addition, the operator will add a service fee.
The good news is, they are great for anonymous bitcoin transactions. What you need is proper research before selecting your ATM.
The methods above lets you buy bitcoin without showing your identity. What about privacy when using your bitcoin…. Here are practical tips.
A better way to stay anonymous
Keep it hush hush about your bitcoins. There are people who like to brag about how much they have and the weight of their portfolio. This is the best way to get someone to put ideas into the minds of unwanted individuals.
Use private coins. Cryptocurrencies such as Monero and Zcash and made with complete privacy in mind. They are fully encrypted.
Change addresses for every transaction. Many people use the same public address to buy bitcoin as their last transaction. You can build up a list of a transaction on a single account that can be linked to a real-world identity.
Use a mixer or tumbler services. This is the method favored by those who really care about obscuring where their bitcoin came from. A service like https://bitcoinmix.org lets your bitcoins be split and send to different accounts, the back to your selected account after awhile. The services are not free, but worth your consideration.
As you can see, staying anonymous with bitcoin is not a walk in the park. You spend a lot in terms of cash and convenience. But in the end, you are untraceable.