The fundamental idea of cryptocurrencies is decentralization and anonymity. But the truth is that the more the crypto world develops, the more efforts governments around the world put in to regulate it. Moreover, this applies not only to altcoins but also to the most important cryptocurrency – Bitcoin.
Types of Cryptocurrencies
There is some truth in the actions of the regulatory authorities. With the help of the world of cryptocurrencies, illegal financial transactions and fraudulent schemes can be carried out, and this is not to mention the concealment of income from the tax authorities.
However, it is worth understanding that this situation also has a downside. Namely, restricting the financial freedom of people who want to manage their funds independently. After all, today, regulators, if they want to, can track your transactions even with Bitcoin.
Interesting fact: in some countries, you can get a real prison sentence for using and buying Bitcoin. These include Saudi Arabia, Bangladesh, Vietnam, and others. For example, transactions with the main cryptocurrency in Vietnam are punishable by up to 10 years in prison.
In our article, we will figure out how anonymous Bitcoin is and tell you how you can buy it anonymously.
How Anonymous is Bitcoin?
Many crypto enthusiasts mistakenly believe that Bitcoin is the most anonymous cryptocurrency and that the owner of “digital gold” cannot be traced through transactions. This is not at all true, and you can calculate not only the wallet address but also the location and data of the sender.
First, it is worth understanding that Bitcoin is an transparent digital currency. Anyone can track the BTC transfer they are interested in through the sender’s address, recipient’s address, or transfer hash.
For this purpose, special monitoring services are used, such as Blockchain.com. In addition, the following information is publicly available:
- Bitcoin wallet addresses;
- Information on coins stored in these wallets;
- Information about system blocks and much more.
Someone might say: “wallet addresses do not contain any personal data, so it is impossible to find a person using them.” This is another misconception that exists among crypto enthusiasts.
The truth is that revealing your data by tracking your transactions in the world of cryptocurrencies is more than possible. And there are both quite simple and difficult ways to do this.
What is a Bitcoin Mixer?
Many people believe that Bitcoin is an anonymous cryptocurrency and untraceable. This is fundamentally wrong. Yes, it is anonymous, but until it is impossible to link your wallet and your name. And as you understand, the government is trying to do this. Many in the community have started using other coins because BTC transactions are easy to track.
However, there is another solution that provides anonymity. The so-called Bitcoin mixer, or Bitcoin tumbler.
This website or app accepts coins and mixes them with many others. They were used successfully for several years and effectively covered up tracks. But recently, they have been fighting against them to prevent money laundering schemes from being implemented through them.
The principle of operation is simple – the site accepts the cryptocurrency of many people and then uses algorithms to mix and send bitcoins to different wallets. Since transactions are mixed, such a service has a name – a crypto mixer.
Once the mixing is completed, the coins will be returned minus a service fee. This fee typically depends on several factors, including the number of mixes and coins sent.
If the toggle switch was successful, the coins cannot be associated with you.
Such services are not necessarily used for illegal purposes. Sometimes, you must hide your trace and ownership of cryptocurrency from extortionists, protect yourself, etc.
How to Buy Bitcoin Anonymously: the Best Ways
Of course, if we are talking about a large purchase of BTC, then doing it anonymously today is almost impossible. However, if we are not talking about transactions worth millions of dollars, then there are several options buy BTC anonymously:
- Exchanges without KYC. All centralized exchanges (CEX), due to the requirements of governments of different countries to regulate cryptocurrencies, are simply obliged to work with users who have passed the mandatory verification procedure. Nevertheless,
There are still some sites that comply with this requirement only conditionally. A striking example is the YOBIT CEX exchange.
Other centralized exchanges allow you to buy Bitcoin without going through KYC. Still, they all require user verification in one way or another (without KYC restrictions on withdrawal amount, deposit, etc.).
- P2P exchange. These are specialized platforms where you can buy crypto anonymously (including BTC) without verification or using fiat money. In other words, you buy directly from another user, and the platform itself guarantees the transaction.
- Exchangers and Telegram bots. Neither exchangers working with cryptocurrency nor TG bots ask for your data to perform transactions. Therefore, this method can be considered for purchasing bitcoins anonymously. However, the main factor in the success of the transaction is the reliability of the chosen site.
- Payment systems. It is worth understanding that most payment systems with Bitcoin require mandatory verification. However, there are exceptions, such as Payeer. It is a mixture of a payment system, a wallet for storage, and a built-in exchange for trading.
- Crypto wallets. Some Bitcoin wallets have a built-in ability to purchase Bitcoin anonymously. The purchase occurs directly in the application through services such as Moonpay and Simplex, which act as transaction providers.
Most people associate cryptocurrency with something complicated and illegal. It is from this belief that governments of different countries’ increasing regulation of the crypto world originates.
However, it will never be possible to completely control this market because The very idea and technology of Bitcoin are built in such a way as not to succumb to any type of regulation (we are talking specifically about the main cryptocurrency, and not about crypto exchanges and other sites). And the services given in the article will help you buy bitcoins anonymously and freely.