It is very tricky to stay hidden in the digital world. There are always some prints left behind as you do you work online.
Bitcoin is one of the best technologies in the financial sector. It came at a time when the word needed something new to work with. Its introduction made the world of financial transactions seem cheaper and better.
However, bitcoin is not anonymous and the transactions can be tracked. This causes a huge risk to Bitcoin investors where hackers can steal your information. Besides that, governments use the information to track what you are doing online.
Bitcoin transactions can be tracked
Note that Bitcoin itself cannot be tracked. It is a digital currency that does not technically exist. The only thing that exists and which by default proves the existence of bitcoins are the transactions.
And even the transactions themselves are not linked to a person or their identity. You only get the public addresses which are used for transactions.
You don’t give your name, physical address or any sensitive information. However, you need to provide your public keys to complete a transaction. This is where the loophole comes from.
Since Bitcoin transactions are recorded on a public ledger, anyone with a full blockchain can still connect the dots and get to you. There are many ways this can happen.
For instance, if the owner of the public address mentions their names in any way, they can be traced. Apart from that, using public Wi-Fi exposes you to hacker threats.
Another way is through friends and family. If you keep mentioning to them how much bitcoins you have they can get ideas. Some disclose your information without even realizing it.
The good news is you can still transact anonymously. Here are 5 ways you can do so.
1 • Bitcoin mixing
This is the best way to stay out of site. Bitcoin mixers break the link between the sending and the receiving address. It is also called bitcoin blending or tumbling.
You pay a certain percentage of bitcoins to mixing services that hold your coins for some time then give you other from another account. The services have been around for quite a while and continue to provide great services. You can mix bitcoins as many times as you want. In case you would like to try such service, we recommend Bitcoin Mixer [https://bitcoinmix.org]
2 • Use Tor –Onion Router
The Tor browser is used for accessing the dark web. It is the most secure way to connect to the Bitcoin network. The encryption it uses ensures great anonymity.
3 • VPN
Virtual Private Network connects you to the hidden from a hidden address. No one will notice your existence on the internet. But be sure to connect a logless one.
4 • Use a new address for every transaction
You can generate a number of receiving addresses to make sure no one connects you to anything. Get a new address every time you make a transaction.
5 • Use cash
A website like Localbitcoin.com allows users to do face-to-face transactions. No one will track you if you are transacting offline.
With these five methods, you are sure to stay under the radar with every transaction.