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5 Ways to Keep Bitcoin Transactions Private

By September 23, 2020March 28th, 20223 minute read

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, 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.

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By doing this, you would effectively isolate all your BTC transactions. This would make them difficult to be associated with each other. 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 To Invest In Bitcoin?

Bitcoin may be invested in two ways: through mining or exchanges. Bitcoin mining is carried out by high-powered computers that solve challenging computational arithmetic problems that are too difficult to complete by hand and complex enough to tax even the most powerful computers. WazirX, a Bitcoin exchange, is another alternative.

What Is Bitcoin?

Bitcoin is a decentralized digital currency that may be purchased, traded, and traded without intermediary like a bank. Bitcoin is built on the blockchain, which is a distributed digital ledger. Wei Dai suggested a new kind of money that relies on cryptography rather than a central authority to oversee its production and transactions on the cypherpunks mailing list in 1998. Bitcoin was the first application of that notion. In 2009, Satoshi Nakamoto sent out the first Bitcoin specification and proof of concept to a cryptography mailing group.

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.

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.

What Are The Chances Of Bitcoin Crashing?

Two Yale University economists (Yukun Liu and Aleh Tsyvinski) produced research titled "Risks and Returns of Cryptocurrency" in 2018. They looked at the possibility of Bitcoin crashing to zero in a single day. The authors discovered that the chances of an undefined tragedy crashing Bitcoin to zero ranged from 0 percent to 1.3 percent and was around 0.4 percent at the time of publishing, using Bitcoin's history returns to determine its risk-neutral disaster probability. Others claim that because Bitcoin has no intrinsic value, it will inevitably crash to zero. On the other hand, Bitcoin advocates argue that the currency is backed by customer confidence and mathematics.

How Many Bitcoins Are There?

There are 18,730,931.25 Bitcoins in circulation as of June 2021. The total number of Bitcoins that would ever be there is just 21 million. On average, 144 blocks are mined every day, with 6.25 Bitcoins per block. The average number of new Bitcoins mined every day is 900, calculated by multiplying 144 by 6.25.

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 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.

Is Bitcoin Mining Free?

Bitcoin mining isn't free, but it can be tried on a budget. Bitcoin mining is an essential part of the blockchain ledger's upkeep and development and the act of issuing new Bitcoins. It is accomplished by the use of cutting-edge computers that tackle complicated computational arithmetic problems. The effort of auditor miners is rewarded. They're in charge of ensuring that Bitcoin transactions go off without a fuss and that they're legal.

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.
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