Privacy is one thing that all Bitcoin users are concerned about nowadays. If you’ve ever wondered how to send Bitcoin anonymously, this article is here to answer your question.
Is Bitcoin private?
The answer is “No”. As an application of Blockchain, a technology that enhances transparency, Bitcoin doesn’t come with privacy or anonymity. Instead, all Bitcoin transactions are recorded on a public ledger and viewable to the whole network. Therefore, anyone can see the transacted amount and wallet addresses of the sender and recipient.
However, these transaction details don’t link to any real identity so they couldn’t reveal who the users are. That’s why Bitcoin is considered as pseudo-anonymity or pseudonymous.
Although personal information can’t be exposed through Bitcoin transactions, it is possible to track down the origin of these activities. When trading on licensed exchanges, users often have to provide information for KYC authentication, which will link their identity to Bitcoin addresses. If hackers attack these sites, they can also access the data stored.
For the above reasons, it is highly recommended that Bitcoin users seek ways to send Bitcoin anonymously.
Reasons to send bitcoin anonymously
Even though “anonymous crypto” is often associated with criminal activities, there are a number of legitimate reasons to keep your crypto transactions untraceable. Whether you’re an individual or an organization, it is beneficial to spend your assets without anyone knowing. Here are some advantages of anonymous Bitcoin transactions:
As explained earlier, by design, all Bitcoin transactions are stored on a public ledger, which means anyone can see where your transactions go to and how much you hold in the account balance. If you don’t take any step to improve privacy, hackers can track the spending habits to get access to your funds. From there, they can even figure out who you are and steal your personal data. Therefore, to prevent your identity from being exploited, you need to know how to send bitcoin anonymously.
2. Business confidentiality
If you’re an employer, you may consider keeping your payment to employees private. By sending Bitcoin with anonymity, you can keep your company’s budgets and expenses details from disclosure. Also, when doing business, you might have a list of private partners and investors who don’t want their identity to be revealed. That’s when you have to seek privacy solutions like untraceable Bitcoin transactions.
3. Peace of mind
When you have the full control and ownership of your crypto asset, you don’t have to worry about your financial status being revealed. Another perk of sending bitcoin anonymously is that you can keep your transaction history totally private as there are many kinds of purchases you just want to keep for yourself, for example, a surprise gift for your loved one or special medical treatment.
So how can you make untraceable bitcoin transactions? Take a look at below methods!
Ultimate ways to send bitcoin anonymously
As privacy becomes more and more crucial to individuals and organizations, private transaction methods also emerge. For cryptocurrency and especially Bitcoin, it’s not difficult to look up the term “send bitcoin anonymously” on Google and find out numerous ways to transact with anonymity. However, each method has its own pros and cons so you’d better research carefully before giving it a try.
1. Bitcoin Mixing
Bitcoin mixing, known as coin tumbling or laundering, is a process that tries to break the connection between sender and recipient’s addresses. The process goes through a couple of steps:
Step 1: You submit the amount of coin you want to be tumbled.
Step 2: The laundering service will mix it up with someone else’s cryptocurrency to release a fresh batch of coins under a new address.
If done properly, this method can make your transaction almost impossible to trace and you don’t have to leave any personal information at all. There are solid options for Bitcoin mixing on the market such as Smart Mixer, Wasabi Wallet and Samourai Whirlpool. To ensure you’re completely anonymous, remember to access these services with an encrypted VPN and private browsers like Tor or Brave.
If you’re an experienced crypto user, you can try coin tumbling to send bitcoin anonymously!
2. Using a new Bitcoin address every single time
You can break the link between the sender and recipient’s addresses by using a new address whenever making a Bitcoin transaction. With this method, hackers cannot trace your spending pattern and find out your original address. Therefore, your identity will be masked. Moreover, as your fund is divided into small portions and stored in different places, no one can calculate how much you actually have in your account.
Some digital wallets such as Trust Wallet, Cobo Wallet and Blockchain Wallet allow you to generate as many addresses as you want. However, this method is not easy for beginners because you have to manage all the addresses and their private keys.
3. Privacy wallets
This term has yet to become familiar with mainstream users, however, private crypto wallets appear to be a superior solution to untraceable Bitcoin transactions. Similar to normal Bitcoin storages, these wallets allow users to send, receive and store crypto assets. Moreover, they integrate privacy features to keep transactions from being tracked.
If you need to send bitcoin anonymously and effortlessly on a daily basis, the options below are what you’re looking for.
Despite being a new name in the crypto sphere, Incognito Wallet is up on the list of best privacy wallets. If you’re looking to send and buy crypto anonymously, this app is highly recommended for you.
With a built-in “incognito” mode, you can turn any cryptocurrency of your choice, including Bitcoin, into its privacy version and shield your funds from public exposure. Then, you can spend or sell bitcoin anonymously.
As a sidechain for privacy coins, Incognito connects with Bitcoin blockchain via a trustless portal. Using smart contracts and trustless custodians, Incognito allow users to obtain privacy bitcoins (and other cryptocurrencies) issued at a rate of 1:1. When you need to switch these privacy coins to normal, you can do it easily without involving any third party.
A paper wallet is a perfect option for gifting. It is basically a piece of paper that has your Bitcoin address and private key printed out. Whenever making a transaction, you will need to scan the QR-codes and add the keys to a software wallet. Paper wallets can be generated for free using an online service like Bitcoinpaperwallet.com.
So how paper wallet helps you send bitcoin anonymously? The main purpose of paper wallet is to keep your assets offline and away from the chaotic Internet as it is created uniquely and doesn’t contain your identity. Therefore, if you insert the private key to a digital wallet and make a transaction, it’s almost impossible to track down the origin. Furthermore, if you give this document in-person to someone, no one except you and the recipient could know about the fund.
Electrum is known as the oldest and most established bitcoin wallet on the market. It is a software wallet that is available for Windows, iOS and Linux.
Electrum is well-recognised by its high-security feature. The wallet gives you a password seed which helps recover your assets once the private key is lost. You also have full ownership of your funds and keys since Electrum is a self-hosted wallet.
When operating on Tails system, Electrum allows users to keep their transactions anonymous. According to the development team, Tails works as a live system to preserve users’ privacy and anonymity. It helps you to censor personal data whenever using the Internet unless you turn it off.
If you prefer an option to send bitcoin anonymously for desktops, Electrum might be a solid choice.
As you’ve learnt various ways to send bitcoin anonymously, try to take advantage of them and you’ll see how Bitcoin lives up to its potential. You may have different purposes when seeking a solution to untraceable bitcoin transfer but high privacy and convenience should be the top priorities. Whether you want to keep all your transactions private or not, Incognito Wallet is a useful app for your everyday use.