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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
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.
What Type Of Currency Is Bitcoin?
Bitcoin is a type of digital currency or cryptocurrency. In January 2009, Bitcoin was established. It's based on Satoshi Nakamoto's ideas, which he laid out in a whitepaper. The name of the individual or people who invented the technology remains unknown.
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."
Can Bitcoin Be Converted To Real Money?
Crypto exchanges, Bitcoin ATMs, Bitcoin Debit Cards, and Peer Peer Transactions are all options for converting Bitcoin to cash. This can be accomplished by using Bitcoin exchanges such as WazirX. A Bitcoin ATM is a real place where you may purchase and sell Bitcoins with cash, unlike standard ATMs that allow you to withdraw money from your bank account. Many websites provide the option of purchasing Bitcoin in return for a prepaid debit card that works similarly to a standard debit card. Through a peer-to-peer marketplace, you may sell Bitcoin for cash faster and more privately.
Who Created Bitcoin?
Bitcoin is the first application of the concept of "cryptocurrency," first articulated in 1998 on the cypherpunks mailing list by Wei Dai, who proposed a new form of money that relies on cryptography rather than a central authority to manage its creation and transactions. Satoshi Nakamoto published the initial Bitcoin specification and proof of concept on the cryptography mailing list in 2009. Satoshi exited the project in late 2010, with little information about himself available. Since then, the community has evolved, with numerous people working on Bitcoin. Satoshi's anonymity has sparked unfounded fears, many of which may be traced back to a misunderstanding of Bitcoin's open-source nature.
How Does Bitcoin Work?
The blockchain, a distributed digital ledger, is what Bitcoin is based on. As the name suggests, blockchain is a linked database made up of blocks that store information about each transaction, such as the date and time, total amount, buyer and seller, and a unique identifier for each exchange. Entries are linked in chronological order to form a digital blockchain. Entries are linked in chronological order to form a digital blockchain. Blockchain is decentralized, which means any central authority does not control it.
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
What Is Bitcoin Used For?
Bitcoin was created as a means of sending money over the internet. The digital currency was designed to be a non-centralized alternative payment system that could be used in the same way as traditional currencies. Bitcoin is being used by an increasing number of businesses and individuals. This includes establishments such as restaurants, apartments, and law firms.
How Does Bitcoin Technology Work?
The blockchain is the foundation of Bitcoin. It is a decentralized, distributed ledger that tracks the provenance of digital assets. The data on a blockchain can't be changed by design, making it a real disruptor in industries like payments, cybersecurity, and healthcare.
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.
