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Bitcoin is a pseudo-anonymous, which means that all transactions made using the cryptocurrency can be traced. The transaction graph for BTC is public.
This means that anyone having proficiency regarding dissecting private and public cryptocurrency addresses can club them together. And link them to email, IP addresses, and social media accounts of users.
Apart from this, there are a lot of other ways to trace your bitcoin activity. But there are a few tested methods that can help you make your BTC transactions private.
Use New Addresses To Receive Bitcoin Payments
As per bitcoin.org, as a user you should always employ the use of new addresses every time while receiving BTC payments. On top of this, to maintain privacy in bitcoin transactions, you can consider using multiple wallets.
By doing this, you would effectively isolate all your BTC transactions. This would make them difficult to be associated with each other. Bitcoin.org impresses upon this method as the most important one to make BTC transactions private. Why?
Folks who send you funds through bitcoin won’t get a clue about your other BTC addresses and what you do with them.
Mask Your IP With Tor
It is quite possible to listen to the relays of your bitcoin transactions. Also, the same can lead trackers to log the IP addresses of the devices that you may have used to make your valuable BTC transfers.
There is a solutions for this. You can go private for conducting a bitcoin transaction. Preferably with a tool like Tor. This will hide your IP address and make your BTC activity less vulnerable to be tracked.
Also, you can become a full node in the bitcoin network. As a full node client, you would be able to relay all the transactions, which would make it extremely difficult to pinpoint a particular bitcoin transaction worth a particular value that you made.
Use BTC Mixing Services
A bitcoin mixer can prove immensely helpful in hiding your bitcoin transaction activity or in breaking traceable links to your BTC addresses.
How does mixing achieve this? By receiving and sending back the same value of bitcoin using independent BTC addresses. Also, there is a provision of interchanging bitcoins (BTC addresses) having the same value. The video below will explain it better.
But there are risks associated with bitcoin mixing. Listen to Andreas Antonopolous discuss them in the video below:
Never Post Your Public Bitcoin Address on Public Forums
As a responsible bitcoin user, you should refrain from making your BTC address public. Also, you must never share information pertaining to your bitcoin transactions and purchases made if any using BTC. This could lead someone to identify your bitcoin addresses.
Also never reuse the same bitcoin address again and again. Reusing BTC addresses will highlight you as an active bitcoin user and could make you a potential target for hackers and online robbers.
If you have no choice but to make your bitcoin addresses public (to receive payments) make sure to use mixing or Tor as mentioned above. To remove any trace or proof of your Bitcoin network usage.
Leverage A Logless VPN For BTC Payments
The thing with logless virtual private networks is that they don’t store your browsing history on their servers.
A logless VPN network encrypts all packets of information sent from your computer/phone and routes it through multiple servers (selected by you) situated in different locations before delivering them at the destination.
In some cases logless VPNs provide the same IP address to multiple users thereby making it difficult to pinpoint and trace the online identity of a particular individual.
However, you have to ‘trust’ the VPN service provider to not log your bitcoin transaction activities.
Also you can download the app and Start Trading Now!
Android App – Bitcoin Exchange
iOS App – WazirX
Frequently Asked Questions
How Bitcoin Works?
Bitcoin is based on the blockchain, a distributed digital ledger. As the name implies, blockchain is a connected database made up of blocks that hold information about each transaction, such as the date and time, total value, buyer and seller, and a unique identifier for each exchange. Entries are linked in chronological sequence, forming a digital chain of blocks. Blockchain is decentralized, meaning a centralized institution does not own it
How Bitcoin Mining Works?
Bitcoin mining is a crucial element of the blockchain ledger's upkeep and development and the act of bringing new Bitcoins into circulation. It's done with the help of cutting-edge computers that solve exceedingly challenging computational arithmetic problems. Auditor miners are rewarded for their work. They're in charge of ensuring that Bitcoin transactions go through smoothly and legitimately. This standard was established by Satoshi Nakamoto, the founder of Bitcoin, to keep Bitcoin users ethical. By confirming transactions, miners assist in avoiding the "double-spending issue."
How Can I Convert Bitcoins To Cash?
Bitcoin may be converted to cash in various ways, including crypto exchanges, Bitcoin ATMs, Bitcoin Debit Cards, and Peer to Peer Transactions. You may do this by using Bitcoin exchanges like WazirX. You may also sell Bitcoin for cash faster and more anonymously through a peer-to-peer marketplace.
What Is Meant By Bitcoin?
Bitcoin is a digital currency that was initially released in January 2009. It is based on ideas offered by Satoshi Nakamoto, a mysterious and pseudonymous figure, in a whitepaper. The name of the person or individuals who invented technology has not been revealed. Bitcoin promises lower transaction fees than other online payment systems, and unlike government-issued currencies, it is decentralized.
How To Make Bitcoin?
Bitcoin mining is not just the process of putting new Bitcoins into circulation, but it is also an essential part of the blockchain ledger's upkeep and development. It is carried out with the assistance of highly advanced computers that answer challenging computational math problems. Miners are rewarded for their efforts as auditors. They are in charge of ensuring that Bitcoin transactions are legitimate. Satoshi Nakamoto, who is the founder of Bitcoin, innovated this standard for keeping Bitcoin users ethical. Miners help to prevent the "double-spending problem" by confirming transactions.
How To Convert Bitcoin To Cash?
There are many ways of converting Bitcoin to cash, such as crypto exchanges, Bitcoin ATMs, Bitcoin Debit Cards, Peer to Peer Transactions. You can use cryptocurrency exchanges such as WazirX for this. Unlike typical ATMs, which allow you to withdraw money from your bank account, a Bitcoin ATM is a physical location where you may buy and sell Bitcoins using fiat currency. Several websites provide the option of selling Bitcoin in return for a prepaid debit card that may be used just like a standard debit card. You can sell Bitcoin for cash through a peer-to-peer platform in a faster and more anonymous manner.
How Many Bitcoins Will Ever Be Created?
The source code of Bitcoin stipulates that it must have a restricted and finite quantity. As a result, only 21 million Bitcoins will ever be generated. These Bitcoins are added to the Bitcoin supply at a predetermined rate of one block every ten minutes on average. The supply of Bitcoins will be depleted once miners have unlocked this number of Bitcoins. It's possible, however, that the protocol for Bitcoin will be altered to allow for a higher supply.
How Can I Get Bitcoin?
To begin, go to the WazirX website and register. After that, you will receive a verification email. The link received by verification mail will only be available for a few seconds, so make sure you click it as quickly as possible. This will successfully verify your email address. The following step is to set up security, so choose the best solution for you. After you've set up the security, you'll be given the option of continuing with or without completing the KYC process. Following that, you'll be sent to the Funds & Transfers section, where you can begin depositing Bitcoins into your wallet. You may also use INR to fund your WazirX Bitcoin wallet and then use it to purchase Bitcoin.
What Is The Meaning Of Bitcoin?
Bitcoin is a type of cryptocurrency that was first introduced in January 2009. It is invented based on the key concepts and notions presented in a whitepaper by Satoshi Nakamoto, a mysterious and pseudonymous figure. The name of the individual or people who invented technology is yet unknown. Bitcoin promises reduced transaction fees than existing online payment methods, and a decentralized authority controls it, unlike government-issued currencies.
Is Bitcoin Legal In India?
In India, Bitcoin is not illegal. Because of cryptocurrency's rapid evolution, policymakers and regulators seemed to have recognized the chance to accept the new technology early. From the infamous 'RBI ban' in 2018 to reports of an impending bill banning cryptos in 2021 that has yet to develop, India has seen its fair share of ups and downs when it comes to Bitcoin regulation. Last year, the Supreme Court Of India approved the use of Bitcoin throughout the country. According to the Supreme Court, the existence of Bitcoin or any other cryptocurrency is unregulated but not unlawful.
Disclaimer: Cryptocurrency is not a legal tender and is currently unregulated. Kindly ensure that you undertake sufficient risk assessment when trading cryptocurrencies as they are often subject to high price volatility. The information provided in this section doesn't represent any investment advice or WazirX's official position. WazirX reserves the right in its sole discretion to amend or change this blog post at any time and for any reasons without prior notice.
