The diverse ways of using bitcoin anonymously

The diverse ways of using bitcoin anonymously

Bitcoin happens to be one of the safest means of carrying out online financial transactions since its inception. It has become a trend for most people not to go to the bank anymore; they only use bitcoin to carry out all their transactions. In many countries when using bitcoin, there are no requirements for you to verify your identity, but yet the issue of privacy always arises. Most people using the bitcoin are conscious of their wallets because they don't want third parties to know how much they have or be aware about their transactions. But the question is, are they able to hide their information?

Bitcoin is considered to be pseudo-anonymous because you can have a bitcoin address without revealing your identity, you can also own various bitcoin addresses, and there will be no link to prove that it is yours.

However, that doesn't make bitcoin transactions private, because everything that happens in the world of bitcoin is traceable. It is traceable because every transaction you carry out is logged in the blockchain algorithm.

The blockchain is used because it leads to the level of transparency that was promised by the founders of bitcoin, and because it is also a public service. Basically, anyone who has access to bitcoin can trace your transactions and know what your bitcoin balance is. The world has gone digital, and everyone longs for privacy for any transactions carried out online; hence, bitcoin has come up with ways you can use it anonymously. Read further to discover the various methods you can utilize to comfortably carry out every of your bitcoin transactions anonymously.

A VPN network for privacy

One of the safest ways of using bitcoin without leaving a digital footprint is through a VPN network. The VPN network doesn't store any of your online activities on their server. How does it work? When you have the VPN software installed on your PC, it automatically redirects your transactions through various servers and locations before it eventually gets to the final destination. It offers you complete anonymity in the sense that no one can trace your IP address. The VPN makes sure your IP address isn't traced to you because it will come through a different router, and in most cases, it usually comes from another country. So anyone trying to trace your transactions will be tracing your IP address to country A, while you are in country B. This way your privacy can be assured, and your operations will be carried out swiftly and anonymously.

New address for new transactions

For the sake of privacy and anonymity, you are advised to use a new address for every new transaction you wish to carry out. You are free to generate as many addresses as possible, especially if you use bitcoin regularly. Due to the blockchain algorithm that allows for transparency, every one of your transactions are stored. Hence, if you continue using the same address all the time, then your transactions will be traced thereby, exposing you to cyber-criminals. But when you have multiple addresses, your privacy is guaranteed, and none of your transactions can be traced back to you. However, you can always use any of those old addresses because they will still be active.

Bitcoin mixer

The bitcoin mixer, which can also be referred to as bitcoin tumbler, is another guaranteed way of carrying out your transactions anonymously. Knowing that the bitcoin service uses a public address to maintain their level of transparency, it means your transactions are also made public. But using the bitcoin tumbler breaks every link between your bitcoin address, and anyway it can hardly be traceable as it mixes your coins of the same value from addresses other than yours. The bitcoin mixer is no doubt a safe way to make transactions anonymously, but, when thinking of using the services, make sure you carry out thorough research on the bitcoin tumbler you want to use. There are various mixing services available, but not all are genuine - they may be out to either steal your coins or scam you in multiple ways. The mixing services happens to be one of the best; hence, using this service will ensure the safety and anonymity of your transactions.

Use Tor

Tor is another way of using your bitcoin anonymously. It is similar to VPN; Tor is a browser that is known for its anonymity, it doesn't need any private information from you, which makes carrying out your bitcoin transactions through the browser safe and private. The Tor browser uses an end-to-end encryption mode to send messages or carry out transactions, thereby making it impossible for a third party to trace your transactions.


Now the picture is more precise, and it is evident that because bitcoin offers transparency, it does not promise you any degree of privacy. If you want your transactions to be anonymous, then you need to follow some necessary steps. For every step you take to use bitcoin anonymously, challenges might occur, but at the end of the day, it is worth the stress because it becomes beneficial to you. You can decide to combine all of the steps listed above to ensure swift and anonymous transactions, and you can choose to go with anyone that seems comfortable to you.

The fact remains that the above steps will guide you in the right direction to maintain your privacy while using bitcoin services.

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.

Further reading

Preserve your bitcoin wealth by protecting your identity

The enforcement of stricter regulatory measures has made it hard to conceal your identity from financial regulators who may be trying to impose taxes on your bitcoin earnings. In reality, bitcoins are not as private as they may seem.

Using bitcoin anonymously

It is important to understand the importance of anonymously using bitcoin. Otherwise, there is a likelihood that your identity may be discovered and your bitcoin transaction records may be available for all to view.

The diverse ways of using bitcoin anonymously

The bitcoin mixer, which can also be referred to as bitcoin tumbler, is another guaranteed way of carrying out your transactions anonymously. Knowing that the bitcoin service uses a public address to maintain their level of transparency, it means your transactions are also made public.