Bitcoin transactions are not really anonymous but may be tracked, in case you didn’t know. Transactions made using Bitcoin are anonymous and cannot be traced back to a specific user. The blockchain stores public addresses, which are alphanumeric sequences used to send and receive payments.
Information such as a buyer or seller’s name, postal or electronic address, or telephone number is not included in the exchange. Public records and IP addresses may still be used to determine an individual’s true identity.
This is why Bitcoin transactions are said to be pseudo-anonymous. The lack of a human identifier in conjunction with a public IP address begs the question: how is this even possible?
Actually, there are occasions when the Bitcoin public address owner also discloses their identity. If you are not utilizing a public Wi-Fi network, it may be possible to track your identity. In this section, we often include identification information that may be used to correlate with our IP addresses.
While there are many digital trails that may be followed, you can use Bitcoin anonymously with a few tips and tactics.
If you want to use Bitcoin anonymously, you can do a few things to protect your privacy.
1. Bitcoin Mixing
In the case of Bitcoin, all trades are publicly accessible. A public address may be traced by anybody to reveal both the sender and receiver. Because of the lack of a protocol-level process to anonymize these Bitcoins, a Bitcoin mixer is necessary for privacy purposes.
To reduce the possibility of tracing or linking Bitcoin transactions, a mixing technique is used.
Bitcoin addresses may be “mixed” by generating new, temporary addresses or by exchanging coins with other addresses that have the same value. Because of this, the chain of custody is difficult to trace.
2. Tor-Onion Router for Anonymity Protection
Bitcoin users who utilize the Tor browser to access the network may benefit from its anonymity features. Tor is a group of volunteers that share a commitment to online privacy and freedom from government monitoring. The Brave browser is the one to use if you want to appear nice. It’s quick, free, and integrated with the anonymous browsing service Tor.
If you use the Tor network, your data will be encrypted and sent via a series of random computers. This makes it very difficult to identify the specific computer or IP address from which the message or transaction originated.
The inability to link online behavior to IP addresses protects financial privacy. TOR is great in some situations, but not with a KYC-enabled Bitcoin exchange like CEX.
Among the many platforms and devices that may utilize Tor, Windows PC users can launch the Tor client and connect to the Bitcoin network via the local host address 127.0.0.1 on the default Tor port 9050.
3. Use an Anonymous Bitcoin Wallet
If you require an anonymous cryptocurrency wallet that ensures complete anonymity for any business, including a casino, exchange, or dating service, BitHide is deserving of your time and consideration.
At best, bitcoin wallets are pseudonymous since the majority of them currently utilize cloud storage. The most private and secure cryptocurrency wallet currently on the market is BitHide.
Get to know BitHide and enjoy your newfound anonymity because the VPN and TOR technologies hide all the data saved on your servers and the specifics of your transactions. Your IP address can be concealed using a Virtual Private Network (VPN) or the Onion Router (TOR), and by storing your transactions on private servers, you can evade Know Your Customer (KYC) and Anti-Money Laundering (AML) checks.
