Protecting your identity and holdings on the blockchain network
In the same way that the internet has made a global impact on various sectors, it is common knowledge among investors that bitcoins would be just as influential. As a result of the advancement in technology, it is now possible for people to send funds in the absence of boundary restrictions or middlemen. The bitcoin technology is beneficial in both financed and under financed transactions, making it a widely acceptable exchange medium.
At the same time, there are some downsides to this technology. Bitcoin records are publicly available, and this implies that your bitcoin transaction history leaves a trail that can be easily tracked. Every bitcoin dealing is recorded, and in spite of the fact that there is no name listed for each address, it is becoming simpler for bitcoin users to be identified by bitcoin analysis firms.
How are identities uncovered on the bitcoin network?
The most popular method of purchasing bitcoin is from a major exchange like Coinbase. Although the exchanges make it very easy to purchase bitcoin, your privacy is at risk. Right from the day your account was registered on a bitcoin exchange provider, a connection is created between your identity and your bitcoin. You will be required to provide all the necessary information including your mobile number, social security number, bank details, and driving license. It is common knowledge that the IRS works in collaboration with some exchanges to get a hold of the financial records of many bitcoin users, implying that the private details of customers are not safe from the surveillance of tax agencies.
Most bitcoin users store their bitcoin in this manner:
- Bitcoin is purchased from an exchange like Coinbase.
- Bitcoin is sent to the customer’s wallet.
- A blockchain.info wallet is created and customers can transfer the bitcoin to the newly opened bitcoin wallet.
Many bitcoin users may erroneously presume that the steps listed are sufficient enough to conceal their earnings, but this is not the case at all. Bitcoin transactions leave trails which can be traced easily by bitcoin analysis firms employed by regulatory bodies and tax agencies.
How can financial history be concealed? Using a bitcoin mixer is the only proven method of concealing your bitcoin transactions can be accessed only by you. However, you may also take preliminary steps of purchasing your bitcoins with cash.
How to purchase and transfer bitcoin anonymously
Owning bitcoin is the first step to using bitcoin anonymously. The most reliable places to purchase bitcoin with cash is from peer to peer operators like LocalBitcoins.com. Before visiting the website, make sure to download a reliable VPN.
After signing up for an account, find the available bitcoin vendors in your region. Check properly to ensure that the vendor you select is tested and trusted and with numerous positive reviews. If you are using a debit or credit card for payment, escrow services are available on LocalBitcoins, however, there is a limitation of liability particularly for transactions done in person.
If your first bitcoin is bought with cash, matching your bitcoin wallet to your identity will be almost impossible for bitcoin analysis firms. Although this method may be quite stressful, it is still the safest way of purchasing bitcoin.
How a bitcoin tumbler increases your anonymity
Even though you have completed the process of buying bitcoin with cash, your identity is still not completely concealed. This is attributed to the fact that almost everyone owns a bank account, and before you were able to make the payment in cash, you must have withdrawn the money from a bank. In the event that you withdraw a substantial amount of money, it becomes easier for you to be traced by blockchain analysis firms and tax agencies.
The bitcoin mixer must then be used here. The mixing service provided by Tumbler.io totally severs the connection between your bitcoin address and your identity. Once this connection has been severed, then you will be able to transact anonymously using bitcoin.
Tumbler.io works by mixing your coins together with other bitcoins in a pool. The shuffling of your bitcoin creates a completely untraceable bitcoin.
The guide to using a bitcoin mixer
The first step is to select the most reliable bitcoin mixer. Visit the Tumbler.io website. Then you will be provided with a non-reusable address where you can deposit your bitcoin, this address will only be valid for 24 hours and after the period expires, you will be unable to make deposits.
Then you have to select a duration of delay to conceal your tracks further from being found by anyone. Then an exclusive code will be provided so that you can confirm the legitimacy of the new bitcoin to know if it is actually anonymous.
Following the division and thorough reorganization of your bitcoin in your selected pool, fresh and untraceable bitcoins will be sent to you. Once this straightforward process of tumbling your coins has been completed, your transactions will now be undetectable. Then you can complete bitcoin transactions without any fears that your bitcoin holding may be traced by any regulatory authority.
Transacting anonymously with bitcoins
Since your bitcoin has been anonymized and sent to you, you may choose to store it or use it for whatever purpose you desire. It is significant to note that the anonymized bitcoin must not be sent back to an address that you may have used before.
Bear in mind that using a VPN is mandatory to conceal your identity when making bitcoin transactions. Your name and address must not be supplied to the seller you are making a payment to. If you have to ship your purchased item, then ship it to a mailbox address. Although preserving your anonymity may require some effort, it is beneficial in the end since you will be protected from regulatory authorities who may want to rip you off of your well-deserved bitcoin.
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.