When Bitcoin creator ‘Satoshi Nakamoto‘ invented Bitcoin, he sought to build not just a financial system free of third-party middlemen but also the ability for anyone to transfer and receive payments anonymously. In this Anonymous Bitcoin Wallet tutorial, I’ll explain why we may use Bitcoin anonymously. Following that, I will demonstrate how to obtain Bitcoins anonymously.
Then, I’ll go through some of the finest anonymous Bitcoin wallets for various devices and platforms, including software, mobile, and hardware wallets. So, if you study this tutorial from beginning to end, you will have all the information you need to enter the world of Bitcoin without revealing your actual name.
So, what are you still waiting for? Let’s start by learning how to use Bitcoin anonymously!
The Anonymity of Bitcoin
In the real world, you disclose your identity several times every day, mainly when you use traditional payment methods like a debit card or a bank account. This is because the financial institution with which you can enroll has access to your personal information. Not only that, but the bank knows how much you’re transferring and who you send it to every time you send or receive money electronically.
This is where Bitcoin stands apart. When you give or receive payments, you don’t have to divulge your real-world identity since the transaction is peer-to-peer, which means it doesn’t go via a third party. Furthermore, your assets link with a ‘Bitcoin Address,’ which does not include personal information.
Here’s an example of what an anonymous Bitcoin wallet address looks like:
Although the goal of allowing users to transact anonymously was to eliminate the need for third intermediaries. Sadly, people are using it for the wrong purposes. This is because people try to conceal their identities when committing crimes. As a result, Bitcoin enables people to buy and sell illicit things online, making it impossible for law authorities to determine who is behind the transaction.
The Silk Road, an underground marketplace that allowed users to acquire various illicit things such as narcotics, weapons, and other illegal services, was one example of this. Bitcoin was the preferred money, which shielded the wrong people.
While striving to remain anonymous, an essential thing to remember is not to expose your name when purchasing Bitcoin for the first time. This is because every transaction on the Bitcoin blockchain is visible to everyone. Therefore you may track your transactions back to your original address. So, in the next portion of this book, I will explain how to obtain Bitcoins anonymously.
Anonymous Bitcoin Wallet: Buying Bitcoin Anonymously
Before I proceed any further, I’d want to point out that, due to different national rules, it is now more challenging to acquire cryptocurrency anonymously on exchanges. This is because when using fiat currencies such as USD or EUR, you must deal with various personal information.
You must also verify this information by uploading copies of your ID and proof of address (such as a bank statement). They prevent criminals from utilizing the Bitcoin network for nefarious purposes. Otherwise, people might efficiently conduct crimes like money laundering, tax evasion, and fraud without ever having to identify their identity.
You are not using Bitcoin anonymously if you supply an exchange with the abovementioned information. Although bypassing these identifying requirements is becoming more complex, there are a handful of workarounds! Don’t worry. You’re not breaking the law if you use the ways listed here! ‘LocalBitcoins’ is the first anonymous Bitcoin exchange I’d like to show you.
It was founded in June 2012 and had headquarters in Finland. They let users in over 248 countries purchase and sell Bitcoin using several payment options. LocalBitcoins, unlike centralized exchanges, are a peer-to-peer platform that allows buyers and sellers to deal directly. As a result, you can trade anonymously.
The website supports over 20 distinct real-world payment options, including local bank transfers, PayPal, cash-in-hand meetups, cash in the post, and so on. When creating an account, you don’t need to present any identifying papers to the site. Some vendors, however, will only sell to users who have confirmed their identity with LocalBitcoins. If this is the case, you may just ignore them.
Another thing to remember while acquiring Bitcoins from LocalBitcoins is that there are no fees levied to the customer. However, the seller can select the price at which they wish to sell their Bitcoin, so be sure you are not paying much more than the current market price. This is simply one method for purchasing Bitcoins anonymously, and it is the one I would suggest the most. After completing a transaction on LocalBitcoins, you may move your funds to an anonymous Bitcoin wallet.
In addition, if you want even greater secrecy when completing Bitcoin transactions on LocalBitcoins, I recommend utilizing a secure VPN connection. This will also mask your IP address and location from others. If you’re unsure where to start, here’s a list of the best VPN services to test. So, now that you’ve learned about the anonymous Bitcoin exchange LocalBitcoins, the following way I’d like to cover is utilizing a Bitcoin ATM.
Anonymous Bitcoin Wallet: Bitcoin ATM Machines
Did you know that there are Bitcoin ATMs like traditional ATMs? Instead of inputting your credit card and withdrawing cash, you enter your cash and receive Bitcoins. Because Bitcoin is digital money, you do not draw any real coins. Instead, you enter your Bitcoin wallet address into the computer, and it sends the funds to you. The Bitcoin ATM may generate one for you if you don’t already have a Bitcoin wallet address.
The first Bitcoin ATM was at a coffee shop in Vancouver, Canada, in 2013. However, Bitcoin ATMs can now be found worldwide, with new ones constantly emerging. You can find all the locations of all the machines on coinatmradar.com.
However, not all Bitcoin ATMs enable you to purchase bitcoin anonymously; some require you to scan your ID before usage. However, visiting the Coinatmradar website may limit your search to machines that let you buy anonymously. Furthermore, due to anti-money laundering legislation, you will only be able to purchase a restricted quantity if you do not provide an ID.
One of the drawbacks of utilizing a Bitcoin ATM is the hefty fees. You frequently have to pay 8% to 20% more than the current market price! This is understandable given the high expenditures for creating and operating the machine. Bitcoin ATMs, on the other hand, are not only convenient but also incredibly user-friendly.
So, now that you know how to acquire Bitcoin without disclosing your identity let’s talk about how to keep it safely in an anonymous Bitcoin wallet.
Anonymous Bitcoin Wallet: Final Verdicts
Cryptocurrencies like Bitcoin allow you to send and receive money without relying on a centralized third party. As a consequence, users may stay anonymous using the system. People should be able to transfer, receive, and save their money without revealing their identity, just as we do when we spend actual currency in the real world.
On the other hand, governments are beginning to impose new restrictions that might require every anonymous Bitcoin exchange to authenticate a unique user’s identity before allowing them to buy Bitcoin with fiat cash. So, if this regulation applies to all exchanges, you may no longer be able to acquire Bitcoin anonymously in the future.
However, for the time being, you may acquire Bitcoin privately and effortlessly. However, if you encounter any difficulties, please let us know in the comments below.