Posted On 22.05.1959
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In one of our previous articles we’ve talked about how Bitcoin is not completely anonymous. Ever since we’ve been getting emails asking how to use Bitcoin anonymously around the web. So we now bring before you the complete guide to using Bitcoin anonymously. Raising your privacy level will lower your risk of getting hacked, scammed or targeted by criminals. Once mastered, spreading the awareness of such techniques will incrementally harden the Bitcoin network against attackers of all kinds.
Although it’ll never be necessary to verify your identify yourself in order to download and use a Bitcoin wallet, for the average user this is where the system’s anonymity ends. Default Bitcoin is still far more private than credit cards but certainly less so than cash. This reality raises a number of issues for business and personal privacy. To the privacy-conscious, the above points are bad enough. Also, certain Bitcoin Core developers are working on improving privacy through the Confidential Transactions project, at this stage the fact is that using Bitcoin anonymously requires knowledge and a little extra work. It’s never too late to become anonymous Let’s assume as our starting point that all addresses within your Bitcoin wallet can be linked to your real identity in one way or another.
If you’ve bought coins from an exchange with identity verification procedures or done business under your real name, this is quite possibly the case. The good news is your privacy can be partially or fully recovered from this state. Online security is often characterised as a trade-off between effectiveness and convenience. It’s up to the users to choose on which end of this scale they wish to be one. This will then allow them to calibrate how much time, effort and money to expend on improving Bitcoin’s privacy. This guide offers several methods to boost your Bitcoin financial privacy, starting with low-effort techniques and escalating to more effective but demanding methods. One Simple Recommendation to Improve Bitcoin Privacy Whenever possible, avoid re-using addresses.
Generate a new address for each transaction you receive. There’s little point updating a static address associated with your identity, such as a Bitcoin tip address linked to a social media profile, but this is recommended practice in most other situations. Warning: if using a non-HD wallet such as Bitcoin Core, remember that only 100 addresses are contained in the initial key pool generated from the wallet’s private key. Remember to backup such wallets regularly or follow the link to learn how to increase the maximum key pool size. The information site, Prism-Break, provides a variety of recommendations for different operating systems and devices.