Bitcoin Forum

I have read that authorities are able to track the bitcoins if they are being move illegally. For example, if a wallet was hack and also most cryptocurrency exchange would require you to show ID when you sign up.

So my questions are..

1) How are the authorities able to track our bitcoins?

2) How do we continue to remain anonymous while trading bitcoins?
3) Are there cryptocurrency exchanges that does not require our ID to trade in large quantity?

They can track you if you're using exchanges, all of them require some form of verification from you. You can remain anonymous if you're using a wallet, that won't track you and buy BTC P2P.

All transactions are public because the blockchain is public and everyone has insight into every transaction that has ever happened and will happen in the future. Given that most centralized exchanges have KYC, and that there are many companies that analyze the blockchain, it is not surprising that it is very difficult to remain anonymous if you use Bitcoin the way most do. In addition, it is a well-known fact that some top secret agencies were working on detecting and analyzing bitcoin users even 10 years ago, and for that they used very specialized tools.


One of the ways is to use DEX (decentralized crypto exchanges - example Bisq) where there is no KYC, or to trade with people live (which is still a risk), or to try to find a crypto ATM that does not ask for any information about you (the downside of such trading is a large fee).


I know that there are some CEXs that do not require KYC up to a certain amount for withdrawal, but you must know that at any moment they can block you for any reason and ask you to verify yourself. There are some specific crypto exchanges in Europe where you can trade without KYC (physical stores), but this is still an exception that can be canceled at any time.

Bitcoin is a public ledger, anyone is able to track bitcoin movement, be it government or private individual. There are plenty of block explorers available. You lose you anonymity when specific address can be connected to you, so i.e. when you buy something online with btc using your real name/address or when you deposit/withdraw to centralised exchange on which you've verified your identity.

There are still exchanges that you can trade on anonymously, but usually they'll have some limits for non-verified customers.

Quick google search:
https://www.marketplacefairness.org/cryptocurrency/best-no-kyc-crypto-exchanges/

because blockchain is transparent everyone and anyone with internet can see you bitcoin transactions, so when you or a robber stole bitcoin , authorities are able to track coins where  the coins are moving and, when they transfered to an centralised exchange they can determine who is owner of this address

you can avoid this by coins mixing many sites offer coin mixing services , there you can mix you coins and authorities will get confused because of many small transactions.

Many stolen coins are mixed daily ,

And bybit is exchange where you can trade without KYC but for a certain limit

you can use decentralised exchange instead
 

To add what others already have


By analysing utxo (the actual coins moving from wallet to wallet) on the blockchain. Even you could do this if you knew the addresses and coins involved.



You can't really. You can always be identified by your wallet, your username, your IP, many things. But P2P (trading with other people rather than with companies or intermediaries) is probably your best bet. Platforms like Bisq are safe enough and don't require KYC. You could, of course, be unknowingly trading with someone who intends to track or identify you. I trade majority p2p with people I've known for years. It's still a risk for sure, but that's a sort of trust circle that, if broken, they stand much more to lose.


None I know of that you could trust enough. If they claim they do, they're not safe enough for large deposits.

Most bitcoiners can't ever be anonymous because they use and only know of centralized exchanges, and before they know that they can trade in a decentralized way, they have already given away all of their privacy to many centralized exchanges and services. Most newbies to bitcoin are introduced to centralized exchanges first before anything else, so they don't even care about privacy from the beginning of their BTC journey. I think to remain anonymous a BTC user has to first value privacy and use decentralized exchanges or trade directly with people they trust, doing this helps, and unless the government is specifically looking for you, which is rare, you may remain anonymous.

Assuming the person use an SPV wallet, using IP address with it instead of Tor. Because some use exchange for the coins and exchanges can know the person through KYC.

Use Tor with everything concerning your coins.

Use a decentralized exchange like Bisq.

1. Atleast somewhere today you must have done a KYC in your wallet which means some place has your real identity disclosed. Now if the bitcoin you hold transfer from that account or wallet for just once only government will be able to establish a trail easily.
2. Don't transfer funds to any KYC wallet
3. I think Kucoin still doesn't require any ID but it's only until 1 btc per day I think so more than that you'll have to give ID on every centralized exchange.

Get this right not all bitcoin transactions can be traced, it depends in what you use in protecting your privacy and the source to your wallet address used in saving your bitcoin, it's either a centralized KYC exchange or a decentralized no KYC exchange.


They got your information through the address you used and from the centralized exchange you're using, the government agency which is anti money laundering agency take hold of the centralized exchanges in tracking your information such as your address from then and trace it to your blockchain transactions since it's an open distributed ledger.


Run a full node, make use of the layer 2 transaction protocols, use bitcoin mixing service, and finally get yourself a decentralized wallet


Yes they are called the decentralized exchanges

decentralized exchange
https://bisq.network/
https://localcryptos.com/
https://hodlhodl.com/

No KYC exchanges
https://bitcointalk.org/index.php?topic=5414539.0

Bitcoin is a public ledger. Anybody can track bitcoins.

The hard part is knowing the owner of the coins and that's a job for the police. Also, exchanges are going big on KYC lately and that's making the cops' job easier. If you mine your coins yourself, nobody can possibly know that you have any bitcoins. If you somehow purchased your coins from an exchange or some other person than they will know about you if they want to.

That's why people say bitcoin is semi-anonymous.

If you want full anonymity then use monero.

It is not rocket science for the authority to track our Bitcoins because the blockchain is fully transparent.  The Bitcoin transaction is displayed publicly.


If we don't access centralized exchange or any centralized services.  The government is able to connect the dot when we use centralized exchanges.  P2P is the way for us so that government will have  a hard time tracking our Bitcoin transaction.


You can try decentralized exchanges.

If you click on the site now, you will see this:


No Localcryptos again.

Mostly through public data which is provided by blockchain, but we also have to keep in mind we don't know every tools authorities have on their hands. They have technology under their disposal that isn't available for another sectors of society yet, only for the intelligence services of the most powerful countries.

Well, it seems there are coins mixers services which allow you to shuffle the final destination of your coins, being harder for authorities to track it. By doing this and using another tools like VPN and avoiding KYC you must be able to remain anonymous, although nothing is for sure on this matter when using internet.

Go for P2P transactions if you want to transact like this.

One way authorities can track bitcoins is through analyzing the blockchain, the public ledger of all bitcoin transactions. By tracing the flow of funds through different addresses, it is possible to identify patterns that may indicate illegal activity. Additionally, some exchanges and other bitcoin-related companies may be required to comply with government regulations and share transaction data with authorities.

To maintain anonymity while trading bitcoins, you can use a mix of different methods such as using a VPN or Tor to hide your IP address, using a new address for each transaction, and using decentralized exchanges that do not require personal information.

Some decentralized exchanges do not require personal information or ID to trade, but the trade-off is that they may have lower trading volumes and less liquidity compared to centralized exchanges. Additionally, there are some centralized exchanges that claim to provide greater privacy, but it is important to do your own research and be aware of the risks.

They hire companies that have developed specialized software to analyze blockchain tranasctions and trace the funds. Governments don't track every single users, generally they do it for high-profile criminals.


If you want to be 100% anonymous, you have to trade Bitcoin for cash. Using any sort of payment methods that are tied to your real world identity makes it possible and often easy for your government to find out about your trades.


Even if an exchange doesn't ask you ID, your bank already has it. Your bank will always provide information at the request of your government.

1. Bitcoin is not a privacy coins so it natural for others to track anyone's transaction especially if the transaction is published in public and the address is connected to a centralized exchanges.  Remember bitcoin does not offer full anonymity but a pseudo-anonymity.

The government are able to track the transaction because they have the authority to make a request to centralized exchanges in order to uncover a certain public key if it is found out to be connected to a centralized exchange.

2.  We can use p2p or decentralized exchanges and never connect our Bitcoin to any platform the we have our identity on it.

3.  P2P as stated can do, also decentralized exchanges.

This is a clear proof that most of us that are used to centralized exchanges are in big problems. This means that there should be more awareness on the need to use decentralized exchanges. Because the truth is that some people were introduced to bitcoin by these centralized exchanges because of their huge spendings in publicity and advertisement.

We always think that these centralized platforms offer more convenient services but the truth is that they are distorting the true beauty of bitcoin. The advantages of using DEX outweighs the benefits of dealing with CEX. If not for government restrictions, I am sure we would have had some robust P2P platforms that would have really dropped the influence of these centralized platforms in my location.

Well authorities has been seeking help of blockchain analysis companies like,

a: https://www.chainalysis.com/
b: https://ciphertrace.com/

You can used Decentralized exchange, or P2P

I don't think that there are Centralized exchange that will not require you to do KYC with large quantities. They are mandated by authorities now to ask for personal information.

We can use blockchain explorers to check transactions, UTXOs.
List of useful Bitcoin block explorers (https://bitcointalk.org/index.php?topic=5197909.0)

You can use https://www.walletexplorer.com/ for address grouping and wallet labeling.

Services like Chainalysis too.

Exchanges have to fulfill requirements from governments nationally and regionally about KYC, AML so they have internal metrics and tools to detect wallets, addresses, UTXO movements. If exchanges have these tools, governments have them too. If governments require officially, exchanges will give them reports too.

Bitcoin can be tracked by anyone but your identity can only be known by using centralized exchanges and third party services that require KYC, so there has been a lot of talk recently in the forum and also on various social media that we should move away from centralized exchanges and use decentralized exchanges that don't require KYC.

It is best and safest to keep bitcoins in wallets that have their own keys, but if you want to trade it is better to use the part that you want to trade only in central exchanges and whenever you get some profits you can send them to the wallet.

Bitcoin transactions (https://cryptohardware.be/En/blog/blog.php?post=are-bitcoin-transactions-anonymous) are pseudonymous rather than truly anonymous. Because of this, the recipient of a bitcoin payment will be able to identify your bitcoin wallet address.
They can also learn more information about your bitcoin account once they have this information. Nobody wants the specifics of their bitcoin account to be known to others. You can utilize a bitcoin mixer to genuinely maintain your anonymity (https://bitcoinmagazine.com/guides/what-are-bitcoin-mixers).
Using a bitcoin mixer (https://cryptotalk.org/topic/25517-bitcoin-mixer/), then, will allow your transactions to continue to be untraceable. Users can hide the connections between their Bitcoin addresses and real-world identities by mixing their bitcoin.
They can utilize Bitcoin more privately as a result of this (https://bitcoinmagazine.com/guides/is-bitcoin-anonymous).

Yeah just like everyone were saying Bitcoin transactions are can be tracked in the blockchain, as it serves like a huge ledger that records each and every transactions, but your identity remains kept, it was only your Btc address are visible, but not until you use a centralised exchange that requires KYC.
If your transaction ends up to that specific CEX Btc address, then that's the time you'll going to be identified and that your anonymity are completely lost.

If they are a centralized exchange but luckily there are still decentralized exchanges that we can use if we want to attain anonymity. I understand why some governments do that. It's not that they want to control bitcoin but they are only concerned of the growing scams and frauds happening in the bitcoin world. With the help of KYC, the identity of those scammers and fraudsters will be identified easily so it will now be easier to catch and punish them accordingly.

I know that the KYC system of the exchange isn't 100 percent perfect at the moment and some criminals can still get away with their crimes but let's hope this will be improved soon and they will tighten their securities more for the safety of the users.

Anonymity does not work that way. An address would be surely found in the blockchain but knowing who's behind that address would be a different thing in which for me shows the true anonymity in this industry unlike with centralised payments wherein online wallets are registered. If you're a daily consumer, you won't that much be able to appreciate this aspect of this technology. But if you are a big consumer, importing and wxporting gooda, then you'd be able to escape huge taxes to the government. It is more of an smuggled transaction if I would be asked. You're still safe even if people would determine or emphasize a certain one, but they won't easily be able to know the owner of the address.

we can know all transactions that occur in Bitcoin. but as long as you don't store your Bitcoins in a wallet that requires KYC, you will remain anonymous.
conversely, when you send your Bitcoins to a centralized exchange that asks for KYC, of course, the authorities may know you made a wrong transaction.
although some centralized exchanges do not ask for KYC when you withdraw a certain amount. if you want to remain anonymous, you can use it as suggested by some of the other members above.

Cryptocurrency exchanges are not the only place you can sell your bitcoins, it can be done in completely p2p way and fiat transferred physically means that is not going to be connected with exchange.

1. Every exchange made KYC mandatory to sign up so whenever someone hack someone's money and move it to any of the exchange's wallet then it will be connected with that identify.

2. Don't use centralized exchange.

3. There is no exchange which says we will never ask for KYC.

I get that some people like this, but for me it was never the point to be honest. I never hid the fact that I owned bitcoins and I never hided how much neither. Maybe that is because I never became rich, which means that the tiny amount I have is not really a big deal, most people I know have more money than me overall, even if not in liquid cash form, they have more assets than me so that means nobody really cared about me being in crypto since I wasn't rich.

If I made like millions of dollars out of this, then maybe that would have changed some things and in that situation I may have wanted to hide my wealth, but I do not know about this, since it never happened.