Introduction
Keeping your identity private when using Bitcoin is a challenge. It is because transactions on the blockchain are visible to everyone, which means anyone can see who sent how much Bitcoin to whom—making it simple for others to connect the public key to the actual name. To compile current crypto exchange information, viewpoints on dealing robots and systems, and information on electronic trading, For example, let’s say you make the news when donating to a political campaign or NGO by sending them some Bitcoin. Click here to find out more about bitcoin trading.
If you don’t take action immediately, it won’t be long before reporters start calling you and knocking on your door, hoping to get an interview about your support for that organization. We will look at some standard methods criminals use and how you can avoid falling victim to them.
Don’t use exchanges to buy Bitcoin.
Many of them are designed to make it easy for scammers to steal your money. Many of these exchanges are based in countries with little to no regulation. It means you cannot hold them accountable if they steal your money. For instance, suppose users wish to purchase 1,000 dollars worth of BTC. You send the money to the exchange, and they credit your account with a $1,000 value of Bitcoin.
To you, it looks like the business is holding $1,000 worth of Bitcoin for you. But in reality, they could be keeping the $1,000 value of Bitcoin for themselves and letting you think you have an account with the actual amount. It is why you should never use an exchange to buy Bitcoin. Always buy from individuals instead.
Use a VPN when using Bitcoin and when buying and selling.
Many VPNs provide Tor exit nodes, meaning they act as a Tor exit node server. It makes it easier to use Tor to access the blockchain anonymously. VPNs also make it much more difficult for people to track online activities.
It makes it much harder for anyone to link your wallet address to your real-world identity when making transactions. To keep your identity private when using Bitcoin, you should use a VPN. With a VPN, it will be difficult for anybody to determine your identity or position. It will make it much harder for people to blackmail you if they discover that you have been making large Bitcoin transactions.
Keep your identity off the blockchain.
If someone can link your wallet address to your real-world identity, they can obtain your public key. This account’s landlord’s access policy is utilized to confirm that transactions originated from them. Remember, the blockchain is visible to everyone. It means that anyone can see your public key. To keep your identity private, you must do everything possible to keep your public key off the blockchain. It means using disposable wallets and using a VPN when making transactions.
To keep your wallet address and public key off the blockchain, you need to create a new wallet with a new address each time you make a transaction. You have two options for doing this: interactively or by utilizing an automated wallet. For added privacy, you should also use a different VPN server each time you make a transaction. Thanks to this, nobody will be able to connect your public key to their authentic self.
Use Tor to access the blockchain anonymously.
Tor is a network that allows you to access the internet anonymously. With the help of the complimentary program Tor, personal encrypted data is sent to the domain you’re visiting across a middle site. This intermediary server is called a Tor exit node.
It is much harder to track your activities online and access Bitcoin and other cryptocurrency wallets anonymously. Tor is free software for Windows, Mac, Linux, iOS, and Android. You can also use a Tor browser to access the internet anonymously.
Bottom line
It doesn’t help that cryptocurrencies like Bitcoin are closely linked to online crime. If you want to keep your identity safe, you need to take some precautions. Don’t use exchanges to buy Bitcoin.
Use a VPN when using Bitcoin and when buying and selling, keep your identity off the blockchain and use Tor to access the blockchain anonymously. The best way to keep your identity private when using Bitcoin is to take action early and use as many of these methods as possible.