What is an anonymous crypto wallet? And why do we need one?

Here you will learn about the safest and most trusted anonymous crypto wallet (or wallets) that can provide you with complete anonymity for your crypto assets.

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A brief explanation of an anonymous crypto wallet

A brief explanation of a crypto wallet

What is a crypto wallet?

A crypto wallet (or cryptocurrency wallet) is a software application that stores your public and private keys. Like you need a physical wallet to store cash, you also need a digital wallet to store your cryptocurrencies. This application connects to blockchains to enable users to send and receive crypto assets, and also allows you to check your balance. 

How does a crypto wallet work?

Firstly, it’s important to understand that a crypto wallet has two elements: a public key (also known as the wallet address) and a private key.

Every public key requires a unique private key for access, allowing the key holder to manage, send or receive their crypto assets. That’s the reason you must keep your private key confidential, far away from hackers and cybercriminals. If not, your funds are almost certainly under threat.

A crypto wallet essentially works as a gateway between you and your address. It allows you to access your coins stored on the blockchain and track your account balance. 

Are crypto wallets anonymous?

If you’ve ever wondered “Is a crypto wallet anonymous?”, the answer would be “Not really”.

Public blockchains are transparent, which means all the transactions made on them are traceable. Anyone can access the blockchain and track a particular transaction, know how many coins were sent and the addresses of the sender and receiver.

It’s worth pointing out that the transparency of the blockchain is not entirely detrimental. In fact, transparency benefits the financial system, as keeping an immutable record of asset transfers helps to prevent fraud.

In any case, your cryptocurrency wallet connects you to the blockchain, and all the transactions you’ve made with your wallet are traceable. Suffice to say, standard crypto wallets are not anonymous at all.

You should use an anonymous crypto wallet if you are concerned about your privacy

However, for those who value privacy and anonymity, a common crypto wallet is not ideal. Thankfully, they can turn to an anonymous crypto wallet instead.

The importance of an anonymous crypto wallet

What exactly is an anonymous crypto wallet?

The transparency of the blockchain is not ideal for those who are looking for untraceable money transfers, and this problem gave birth to the concept of the anonymous crypto wallet.

A crypto wallet is classified as anonymous if it has two of the characteristics listed below:

1. The ownership of the private key is yours

As previously explained, your private key plays the role of your password when accessing your crypto assets. If anyone else knows your private key, your coins are under risk, even if it is a trustworthy wallet provider. 

Therefore, if you are looking for a high-security crypto wallet, a wallet that doesn’t hold your private key is the best choice.

2. You can send Bitcoin (and other assets) anonymously

Anonymous cryptocurrency wallets exist so you can send Bitcoin anonymously. They enable users to make untraceable transactions, so no one can track the financial transfers or addresses involved. 

The purpose of an anonymous crypto wallet is all of the above. Of course, it must have the functions of a common crypto wallet such as in-app trading, Dapps and the ability to stake, but anonymity and privacy must be its priority.

How to pick the best anonymous crypto wallet

Although the idea of the anonymous crypto wallet is new in the sphere, there are many choices for you to try.

Hardware wallets such as Trezor or Ledger Nano S are excellent devices that store your Bitcoin offline, so your funds can stay away from the chaotic Internet. However, hardware wallets aren’t free and can be somewhat difficult for beginners to use.

Due to the cons, you might want to consider a software wallet instead. This kind of crypto wallet is an application installed on your computer or/and your mobile phone. It helps you to store, send and receive Bitcoin whenever you have an Internet connection. Some choices that could be worth considering are Samourai Wallet, Electrum Wallet or Guarda Wallet. While these are all free, easy-to-use and help you make untraceable money transfers, there is in fact a better option available.

Allow me to introduce the most anonymous Bitcoin wallet app on the market right now: The Incognito Wallet.

Incognito Wallet – a truly anonymous mobile Bitcoin wallet 

Inconito Wallet is a typical anonymous crypto wallet. Based on the idea of ‘incognito mode’ for web browsers, the Incognito team  designed a sidechain for blockchains that provides privacy and anonymity.

Incognito Wallet is the most anonymous cryptocurrency wallet

The Incognito Wallet is their anonymous cryptocurrency wallet and helps you to store, send and receive Bitcoin in total privacy. 

Incognito turns all your favorite coins into privacy coins. One tap turns your Bitcoin into privacy Bitcoin (pBTC). Another switches it back to being public again. And that’s all you need to do to transact crypto anonymously.

With Incognito, no one can see your transaction history or how much you are holding. The only person who knows your balance and holds your private key is you. Incognito is the best solution to the privacy concern brought by public blockchains.

One more advantage is that it’s totally free. You don’t need to pay for any of its awesome features. Incognito Wallet is available on both Android and iOS, and it also has a Chrome extension. In short, the wallet meets all your needs as a multi-functional crypto wallet.

Tips to keep your coins untraceable

#Tip 1: Do not store your Bitcoin on a crypto exchange

No one can deny the fact that exchange-hosted wallets are convenient. Holding coins on an exchange helps you to trade instantly if there are price movements, and you don’t need to wait for time-consuming transaction confirmations.

However, users must trade-off their privacy for this convenience. The ownership of your private key is the exchange’s, not yours, and this is a major problem if the site gets hacked. 

#Tip 2: Always buy Bitcoin anonymously

If you want to buy Bitcoin, buy it on a peer-to-peer (P2P) marketplace such as LocalBitcoins.com or LocalCryptos.com. These platforms don’t ask for KYC, meaning that you don’t need to reveal your personal identity.

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You should buy Bitcoin anonymously, so no one can track your transactions

It’s also better to find a face-to-face seller that accepts cash. This way, no one on the Internet can track your money transfer to find out who exactly you are.

#Tip 3: Always use the anonymous crypto wallet to transact Bitcoin

As previously mentioned, anonymous crypto wallets like Incognito Wallet help you transact Bitcoin without anyone knowing. Your transactions are untraceable and private so, you can keep your funds far away from prying eyes.

#Tip 4: Use a private web browser

It is also a better idea to use privacy browsers like Tor or Brave Browser to protect yourself on the Internet. These web browsers prevent you from being tracked and keep all sensitive information like passwords and credit card details secure and private.

The final thoughts of “What is an anonymous crypto wallet?”

All in all, the cryptosphere can be a dreamland for hackers and cybercriminals who can track users’ assets and information. Obviously, we need to do whatever we can to protect our funds and personal data from potential risks. Using an anonymous crypto wallet are the safest way to protect ourselves in the cryptocurrency space now and will serve an important purpose for years to come.

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