Bitcoin is often regarded as an anonymous currency because Bitcoin can send and receive Bitcoin without providing any personally identifiable information. However, Bitcoin itself is not 100% anonymous in most cases. Sending and receiving Bitcoin is like an author publishing a work under a pseudonym. If an author’s pseudonym is linked to their identity, anything they have ever written will be linked to them. For Bitcoin, your anonymity is the wallet in which you receive Bitcoin. Every transaction involving that address is permanently stored in that blockchain. If your address is linked to your real identity, then every transaction will be related to you, but achieving reasonable anonymity can be done.
Buy bitcoins anonymously
The first thing you can do is buy bitcoins anonymously.
The first option is to buy them with cash to avoid completely online transactions. Most online transactions are similar, and it requires you to upload an ID. You can buy bitcoins with cash from an ATM or meet the seller in person. There is more information on how to buy bitcoins with cash in the “We Buy Bitcoins with Cash” section.
The second best option is to buy them on the VirWox website. This is not really completely anonymous because you need to reveal some information, but this is still a bit better than most bitcoin transactions that require providing the required bank account and personal documents.
Here you don’t need anything, you just need a free account to make virtual transactions. Using this account it is possible to buy another currency – Second Life Linden Coin (SLL). You have different options to buy Linden Coin, such as PayPalandSkrill. But a good option considering anonymity is paysafecard payment, with paysafecard you can buy bitcoin in any store. With paysafecard, you can cash out and your Virwox anonymous funds even without ID, bank account or credit card. Then you can easily exchange your Second Life Linden Coins for Bitcoin without verification.
Finally, you can also get Bitcoin through anonymous Bitcoin loans.
In our experience, it is impossible to buy Bitcoin anonymously with a credit card.
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Mix your Bitcoin
If you already own your Bitcoin, it is especially important that Bitcoin users can mix each other’s transactions with other users by using a mixer, so Bitcoin mixers are also known as Bitcoin “tumbling” or “laundry”. It is the server that breaks the connection between you and your Bitcoin account. Mixers mask the flow of your Bitcoin from one address to the next. Although it is impossible for Bitcoin Mixers to guarantee 100% anonymity, it provides a very high level of anonymity.
We recommend that you use high-quality online mixing services such as Bitcoin Mixers or Currency Mixers, which allow regular Bitcoin transactions for users who cannot link with the originals. To further strengthen the security of transactions, they provide the opportunity to use two or more forwarding addresses and an appropriate time delay to immediately delete all archival log related transactions. You can also use SharedCoin as it is free but a bit complicated. Also, if using the anonymous Tor browser, you might try Bitcoinfog.
It is important to note that there are a lot of fraudsters in the provision of Bitcoin mixing services.
Bitcoins are usually stored in a software program called Bitcoin Wallet. If your wallet is identifiable with your personal information, then the above information will not help you. If you want to remain fairly anonymous when using Bitcoin, such as paying adult websites, then you should register an anonymous account and a one-time email address with at least one wallet.
It is also possible to use a different wallet for each transaction to avoid being traced to you due to multiple transactions. It’s like maintaining multiple independent identities. A simple way to maintain multiple wallets is to use a simple and lightweight software wallet – MultBit, which allows multiple wallets to be managed on a single software program.
If you want to be more anonymous, we recommend that you make a bitcoin wallet, and perhaps an easier way is to use code on bitaddress.org.
The Open Source Bitcoin Privacy Project (OpenBitcoinPrivacyProject) has released their first complete report on the privacy levels of non-bitcoin wallets. The best and most hidden bitcoin wallet is darkwallet, followed by armory and mycelium.
Anonymous Bitcoin Debit Card
E-coin is a UK company that has launched a virtual and physical VISA debit card that can store Bitcoin. There is currently a small fee to use this debit card.
You can order a credit or debit card designated in USD, EUR and GBP. All it requires is a valid email address and basic personal information to register. Once you request to register the debit card, it will be sent to your email address. But currently E-Coin does not offer bitcoin debit card services to the United States.
You can use your E-coin credit card until you reach the limit. You can get an unverified card and use up to $2,500. Once the limit is reached, you will have to verify your identity – a proof of scanning your ID or passport and address, or order a new card. If you prefer MasterCard, BitGold and Advancedcash debit cards are also available.
Bitcoin transaction records
Bitcoin transactions are never truly anonymous and can be queried through the blockchain (the blockchain is a comprehensive database for recording Bitcoin transactions).
Almost all transactions require you to verify your identity by sending scanned personal proofs, as well as reporting large transactions to government authorities. When you pay for goods and services in Bitcoin, you need to provide your name and address to the seller multiple times. This means that someone has the heart to track your transaction activities, and he can use your ID information to track your future transaction activities or study your previous transaction activities. In conclusion, this has compromised your security and privacy.
