How to Buy and Use Bitcoin Anonymously?
Privacy and decentralization are the core pillars of crypto. Nevertheless, anonymity remains something that is largely unavoidable. Once on the blockchain, a user’s transaction is publicly stamped. However, there are ways one can buy and use Bitcoin (BTC) without others knowing. There are even ways to buy the original cryptocurrency without an ID.
Contrary to popular belief, BTC is not completely anonymous. It is fairly easy for transactions to be tracked once they are on the blockchain. However, there are ways around this. Buying BTC with cash is an easy way out of being tracked. Users can use services like Paxful and Bitcoin ATMs to avoid being tracked. In addition, some services, such as BitQuick, require only a limited amount of identification and do not necessarily require your real identity.
Last but not least, users will need tools like Tor and TAILS in addition to others if they really want to go “off the grid” and be completely anonymous. Usually, anonymity comes at a price that is impractical and vice versa. Any user is free to choose how much they are ready to give up one for the other.
How to buy Bitcoin anonymously?
Paxful: Buying bitcoins in person and with cash is the most convenient option if users want to do it anonymously. Find someone willing to exchange Bitcoins for cash near your physical location with Paxful.
To register with Paxful, users can use an alias email address and their ID verification process is optional. Using cash makes it easy to avoid detection because there is no record of the transaction.
Bitcoin ATMs: Going to the nearest Bitcoin ATM and buying BTC with cash is another way to buy them discreetly. Crypto ATMs have become very popular recently. They are available in many countries such as the United States.
When asked to enter a Bitcoin address in the ATM, users can choose to say they don’t have one. Most of the time, users will just get a new paper wallet. Later, users can send BTC wherever they want by importing the private key from that paper wallet. Such ATMs also require no ID. However, there are limits to how much Bitcoin can be purchased.
Prepaid card: Using a prepaid credit card that users can get at any grocery or convenience store is one way to maintain anonymity. Users can then use this card to buy Bitcoins from sellers on LocalBitcoins or Paxful without having to provide any form of identification.
Why the need for anonymity?
All Bitcoin transactions are public information, and therefore each address associated with your identity reveals 4 important data. First, how much BTC you held or still have at that address. When exactly did you get your Bitcoins? Who gave them to you? And finally, the address where you transfer BTC.
People primarily seek anonymity as they don’t want to be hacked or turned into a target. Raising the level of privacy will reduce the likelihood of such activity.
