If you are already using cryptocurrencies such as Bitcoin or Ethereum, then security and privacy are things you probably care for. After all, crypto is great to avoid many bureaucracies tracking and other invasive policies commonly found in major banking institutions and governments. For instance, many banking institutions don’t allow you to play games at a brand new online casino and might even report all transactions you make to the authorities or other banks without your consent. In this case, cryptocurrencies should be the best option for you.
Nevertheless, if you already studied a bit about bitcoin, then you should know that all transactions are recorded in a public ledger that everyone has access to, and many individuals and companies dedicate their time and have even created software that tries to track all wallet transactions, an information that can be used to trace back the bitcoins to its original owner. In this article we will give you some tips on how to make this tracing harder and further protect your identity when you use bitcoin.
The first and most famous anonymization method is through the so-called Bitcoin Mixers, which is a service that attempts to break the previously mentioned linkability in the blockchain ledger. For a small fee it takes your coins, mixes it with a number of other transactions both from individuals and exchanges, then sends it back to your wallet via multiple sources. This takes time and might not be worth for small amounts of bitcoin, since many require a considerable minimum deposit amount.
Using the Tor network is also great to keep all your internet activity – including your cryptocurrency transactions – encrypted and untraceable. The Tor network is based upon multiple layers of connection in global servers that will be invisible to your ISP and other websites. However, your own actions can ‘deanonymize’ yourself, such as logging in a platform with KYC policies.
Using a reputable VPN that does not keep activity logs is also great for browsing with less concern. A VPN encrypts all your Internet traffic and creates a tunnel through multiple servers anywhere in the world before connecting to the other end. Many logless VPN providers also use shared IP addresses for multiple users, meaning that it is even harder to identify a single user in the network. Needless to say, this provides extra security to your Bitcoin transactions, however always read reviews and check the latest news about the VPN provider you are using to not have any surprises.
Lastly, you should create the habit of always using new addresses for all transactions you make. There is no extra cost to this and will ensure anonymity to your wallet, as it would make it harder to link it to two or more transactions. Keep in mind that using the same address over and over will enable others to see your balance and make you a possible target, especially if you are holding large amounts that you don’t want everyone to know, especially someone with the wrong intentions.