Your Bitcoin transactions are traceable – protect your privacy by checking out this guide and learning some ways to send Bitcoin anonymously.
Bitcoin’s traceability and why it is not ideal for privacy
By design, all Bitcoin transactions are listed on its blockchain, meaning that there’s a public ledger that records every single transaction. As a result, anyone can see the balance associated with an address, every transaction it’s been involved in and they can follow the path of coins wherever it may lead.
We cannot deny that traceability makes Bitcoin special and different from other assets. While cash is an ideal tool for money laundering and other nefarious financial activities, Bitcoin, as a transparent currency, certainly is not.
However, this facet of a Bitcoin makes it a double-edged sword. Transparency and publicity have a downside, especially when it comes to privacy.
Through increasingly sophisticated Blockchain analysis techniques, it is possible to link addresses to identities more and more efficiently. As a result, your real identity has a high probability of being found out or revealed by a hacker, which could easily have serious real-life consequences.
This is not just scare tactics, either. In the history of cryptocurrency, there are so many cases where bad guys targeted a victim online, used some techniques to track their information, found who they were in real life and managed to steal all their crypto assets.
With this in mind, there’s no reason to take any risks online when it comes to your identity and privacy. Hence, you should find other ways to obscure your transactions, starting with learning how to send Bitcoin anonymously.
How to send Bitcoin anonymously – The Ultimate Guide
To remedy the traceability of Bitcoin and to preserve privacy, many techniques have surfaced over the years. Some break the link between Bitcoin addresses, others swap assets into a privacy version. Either way, these methods have their pros and cons.
Let’s find out in the section below.
How to send Bitcoin anonymously: Buy and sell Bitcoin for cash
As previously explained, cash is the most untraceable asset – so if you buy and sell Bitcoin for cash, you can easily obscure your identity and remain anonymous.
Let’s take a look at some of the ways to do this.
Method #1: Bitcoin ATMs
ATMs are the first thing people think of whenever they need money to buy something – Bitcoin is no exception.
If you want to buy and sell Bitcoin for cash, find a Bitcoin ATM near you. These machines accept fiat currency and send Bitcoin directly to your wallet address.
There is also an increasing number of Bitcoin ATMs that let you sell Bitcoin for cash. Check out Coin ATM Radar map to see what options are available in your area.
One downside, however, is that many Bitcoin ATMs nowadays require KYC information, which means you might not be able to obscure your purchase perfectly; that’s why you should continue looking for other ways to send Bitcoin anonymously.
Method #2: Face-to-face purchasing
Face-to-face purchasing means that you deal with the seller/buyer directly and offline. For example, if you want to buy Bitcoin but not by using a Bitcoin ATM, you might be able to find a seller on the Internet that lives near you.
After agreeing on a suitable price, you can arrange a face-to-face purchase where you pay cash and the seller sends you the Bitcoin. This method makes it hard to track any information back and figure out how much you paid for your coins.
However, the issue here is finding a trustworthy partner. There is always the risk that you could be scammed or robbed when bringing cash to deal with strangers in public.
In short, although there are some pros, face-to-face purchasing is still not the best way to send and buy crypto anonymously.
How to send Bitcoin anonymously: Private cryptocurrency wallets
Common crypto wallets are like digital wallets that store your coins; they are portals connecting users to the Bitcoin network. With a crypto wallet, you can see your balance, send and receive coins and sometimes, trade them for other assets.
To meet the needs of those who want to preserve their privacy, private crypto wallets have surfaced. Thanks to technological innovation, a private wallet can help users to send Bitcoin anonymously. If a hacker targets your assets, he still has no idea about how much was sent, or whose addresses were involved. As a result, your funds are safe and your identity is protected.
Method #3: Incognito Wallet – The best crypto wallet when you want to send Bitcoin anonymously
If you are looking for a convenient and flexible privacy-preserving crypto wallet, let me introduce you to The Incognito Wallet.
Based on the idea of a privacy sidechain for all blockchains, The Incognito Wallet turns your cryptocurrencies into a privacy version of themselves, which means you can store and send Bitcoin anonymously, and do the same with other coins.
For instance, you can turn your Bitcoin (BTC) into privacy Bitcoin (pBTC) at a conversion rate of 1:1 and then send it to other addresses with total anonymity. Moreover, you can switch it back to the original version at any time at the touch of a button.
Although privacy is its top feature, the Incognito Wallet also has other awesome functions. The wallet includes:
- The pDEX: a decentralized exchange so you can trade coins in total privacy
- The pApp store: a collection of the first privacy-focused blockchain applications
- A staking function, so you can earn more coins directly through the wallet
- An issuing function, so you can create your own privacy token
In short, this is the wallet that provides you with all the features you need. It’s the best crypto wallet for total privacy.
How to send Bitcoin anonymously: Break the linkability between addresses
The link between Bitcoin addresses is what makes your transactions traceable. Therefore, if you are able to obscure the details surrounding this transaction, you can break this linkability.
Method #4: New addresses whenever transacting Bitcoin
Hot wallets such as Trust Wallet, Blockchain Wallet or Cobo Wallet allow you to create as many new addresses as you want.
Using a new address whenever making a transaction will help you to break its links. With this method, the bad guys cannot trace the transaction back and find out the origin of your coins and will also not be able to uncover your real identity. Moreover, no one can calculate the total amount of your funds as you’re using many different addresses to store them separately.
However, the issue here is that it’s difficult to manage all your coins and private keys effectively, especially compared to the Incognito Wallet above.
With this in mind, if you just want to buy Bitcoin sometimes and then store them, you can use a new address whenever you make a transaction. But if you trade frequently, the Incognito Wallet’s more convenient way of preserving privacy will make your life a lot easier.
Method #5: Bitcoin mixing services
Bitcoin mixing is a service offered by a third-party. Typically, the providers of this service take users’ coins and for a small fee, will give you assets in return that have no link to those originally sent.
These services are sometimes called tumblers or mixers.
That sounds great, doesn’t it? However, Bitcoin mixing has more cons than pros. Those are:
- No guarantee that service providers won’t store your IP or browsing history.
- You must trust the providers totally when you send your coins.
- The fees add up. Though individual fees may seem small, it’ll cost a lot of money to use this service frequently.
In conclusion, Bitcoin mixing is worth trying, but it isn’t a great everyday method when you are looking for ways to send Bitcoin anonymously.
Closing thoughts on “How to send Bitcoin anonymously”
A lot of people are starting to realize that obscuring the details surrounding your Bitcoin transactions is a safety precaution; it’s not for money laundering purposes or anything illegal.
In the digital world, your personal data should never be public knowledge unless there’s a really good reason. With all the hacking, illegal data use and information trafficking on the Internet these days, it is a terrible idea to put yourself at risk.
All this goes to show that it’s important to find and share the best ways to protect our data and assets. Always keep up-to-date with the latest methods of how to send Bitcoin anonymously, use the best ones for you and stay as well-protected as possible.