Protect your identity by making anonymous bitcoin transfers
Bitcoin and other digital coins are regrettably not as private as people presume. The truth is that bitcoin and almost all the commonly used digital coins are public ledgers, this means that they can be easily accessed by anyone with data connectivity or a copy of the latest bitcoin history in the state.
Then how are bitcoin users adversely affected by this? It is significant to note that the public nature of bitcoins makes the transaction history of bitcoin users easily accessible to anyone. In other words, the more bitcoin transfers you make, the higher your chances of exposing your transaction records.
Globally, financial regulators are enforcing stricter laws on digital properties including bitcoin. Exchanges are being compelled to carry out thorough verification procedures before any customer can be permitted to buy bitcoin. Now, tax agencies may even request to see a customer’s financial bitcoin records. There is an exponential decline in the number of anonymous bitcoin service providers due to regulatory restrictions and mandatory verification of identity.
Additionally, intensive efforts are being made by blockchain analysis networks to link online transactions to the offline identity of users. Their sole aim is to uncover the identity of bitcoin users so that your personal information can be sold to regulatory bodies such as authorities and tax agencies. It is not unusual for this information to be transferred to fraudsters as well.
Bitcoin records are publicly available
Following its invention in 2009, bitcoin has developed exponentially and regulatory bodies continually put in place measures to monitor the activities of bitcoin users for the purpose of imposing taxes on them. The seemingly anonymous nature of bitcoin is simply a deception, and many people may not be aware of this. Your transaction history can easily be accessed by anyone with background knowledge of bitcoin analysis.
It works in a simple way. The content of your wallet address include publicly available transaction history as well as the data contained in the wallet used in past transactions. You can imagine how devastating this may be for users whose anonymity is a top priority. The available options for ensuring anonymity are gradually reducing.
Although reputable financial institutions like Goldman Sachs are planning toward being bitcoin retail distributors, and in the nearest future, it is projected that bitcoin will be a widely accepted medium of exchange, similar to a gift card, which would be highly convenient. The downside is that this system would then be operating similarly to the traditional banking system and may result in the restriction of the activities that can be carried out by bitcoin users since their identity and bitcoin portfolio can be accessed by anyone.
Tax agencies like the IRS have been known to employ blockchain analysis firms to extract the data containing the identity and wealth of bitcoin users. The initial blueprint of a peer-to-peer network for bitcoin transactions has been corrupted since the digital properties of bitcoin users can now be accessed by financial regulators and authorities.
How to protect your blockchain wealth and transfer bitcoin anonymously
To conceal your bitcoin dealings from financial regulators and tax agencies, the best available option is by using a reliable bitcoin mixer from Tumbler.io. Presently, the blockchain technology of bitcoin is designed in such a way that bitcoin cannot be transferred anonymously. Before transfers can be made anonymously by using bitcoin tumblers.
Bitcoin mixers typically sever the connection between your old bitcoin wallet address and the new one. The tumbler acts as an intermediary between both bitcoin addresses.
To increase the anonymity of your bitcoin:
- You must make sure to download a VPN since the mixing website may be monitored
- Visit Tumbler.io and start processing your order.
- The mixing engine on Tumbler.io will provide you with a non-reusable deposit address where you can transfer the value of bitcoin you are looking to mix.
- The result of this is that you will be sent a mixture of the bitcoin owned by other users. It is important to note that your bitcoin will not be sent back to you at all. Once the tumbling process is complete, you will receive fresh, untraceable bitcoin that can be used for anonymous transfers.
The logic behind the effectiveness of this method is quite simple. Using a bitcoin tumbler like Tumbler.io ensures that your previous bitcoin blockchain data cannot be connected to the new bitcoin address.
Using bitcoin anonymously means that your identity and bitcoin holding is being safeguarded. If the details of your bank account are not a public record, it is only logical that your bitcoin holdings should be kept private too. Since your previous history has been erased, you can start your bitcoin transactions on a clean template allowing you to make transactions without any restrictions or fears that your details will be assessed by a third party, whether government affiliates or blockchain analysis corporations in the nearest future.
How to store bitcoins after the tumbling process is complete
After the process of mixing is completed, it is necessary that you do not transfer your fresh, untraceable coins to a bitcoin address which you may have used before. Otherwise, your identity will be easily discoverable by a third party, including blockchain analysis firms.
Hardware wallets like Ledger and Trezor remain the most trusted locations to transfer your bitcoins. By using these wallets, you can be completely assured of the safety and anonymity of your bitcoins.
Disclaimer: This article is not intended to provide financial advice or promote the use of Bitcoin and other cryptocurrencies. Its main purpose is to inform, explain, and educate. Readers must make their own decisions regarding the use of such services.