How to be anonymous when using Bitcoin – 6 Steps

[xxjumperxx]

I have thought about this a while and found this article that seemed interesting and is quite on point.
The sentence this whole article starts off with is "Take responsibility for your privacy." and is that so true!
Newbies come into Bitcoin thinking is all private and untraceable... not really...
Bitcoin is less private than cash!

The first thing to make it not anonymous is the Blockchain which is both Public and Permanent
Bitcoin can be declared as pseudonymous not anonymous.
This means that you are operating under another identity and different transactions that you make can be tied to that identity.

Remember
A Bitcoin Address is like an email address.  You can have as many email addresses as you want.  However, once someone ties your real identity to your email address, then they know that every email ever sent from that email address came from you.  

Please weigh in if these steps are wrong or you don't agree!


The steps:

1. Assume your transactions are not anonymous --> Remember Blockchain is public and permament, it will never forget!
Do not assume your transactions are private.  The most private transactions are the transactions which never occur.  

2. Maintain different wallets, passphrases, and accounts. --> keep multiple, theyre free. Don't let a simple transaction reveal your Identity and link to all other addresses!
Remove the links between your bitcoin addresses.  If you receive bitcoin from many sources, and spend them in the same transaction, your bitcoin addresses will be linked together in that transaction.
Instead, keep a separate accounts for saving and spending.  

3. Acquire bitcoin from friends and customers. --> or buy from P2P Trading Platforms, Exchanges want to know you are!
The most anonymous way to acquire bitcoin is to buy it from a stranger, in person, for cash.  However, this may be dangerous.  
Instead, try to buy bitcoin from a friend.  Alternatively, try to earn bitcoin by selling goods or services for it.
Any regulated exchange will want to know who you are, and other details about you.  This is ok, because you can coin-join coins that come from an exchange.

4. Coinjoin your Bitcoin – “the money laundering of Bitcoin”--> Mix up your Coins, be careful lots of scam sites around!
Coin-join is a type of bitcoin transaction which creates fresh bitcoin, without a clear transaction history.
Imagine if many people each put a dollar into a hat, and randomly took a dollar out of the hat.  Then, they would each have a dollar that came from someone else.  That is the idea behind a coin-join. Coin-joining is legal, but helping another person evade law enforcement is not legal.

5. Send and receive bitcoins from a Bitcoin Core wallet.  --> Check Transactions manually, don't let cookies or IP link you to your addresses!
The most private way to obtain information from the blockchain is to verify and download the blockchain yourself.  Otherwise, you are asking someone else to check the blockchain for you.  They will know your IP address, when you asked, and which records you are requesting.

6. Use a VPN or TOR  --> Use a VPN or TOR to surf anonymously!
Tor allows you to access the internet anonymously.  Tor sends encrypted messages to many random computers, which anonymously forward the message until it reaches its destination.  

Please see link for full article, which explains it in more context.

Source and Full Article:
https://thebitcoinchain.com/how-to-be-anonymous-when-using-bitcoin-7-steps/

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[Findingnemo]

Buying and selling bitcoins via p2p trading platform gives better anonymity and its way better than buying from a stranger or a friend by giving physical cash.

BTW you just copied few parts from the article which you linked in the source and make it look like a constructive post.

[xxjumperxx]

Buying and selling bitcoins via p2p trading platform gives better anonymity and its way better than buying from a stranger or a friend by giving physical cash.

BTW you just copied few parts from the article which you linked in the source and make it look like a constructive post.

I linked the source, I wasn't trying to make it look like I wrote this all by myself.
The Link explains it in more context.
I just wanted to put this up for discussion if these are legitimate points.

[Upgrade00]

I linked the source, I wasn't trying to make it look like I wrote this all by myself.
The Link explains it in more context.
I just wanted to put this up for discussion if these are legitimate points.

I think what @Findingnemo is trying to say is; you didn't offer any original content in your post, but simply copied part of the text from an article. It's not against the forum rules, as far as you include a source, but most forum member are of the opinion that you should also add your original thoughts when linking an external article

Any regulated exchange will want to know who you are, and other details about you.  This is ok, because you can coin-join coins that come from an exchange.

This is not always okay. Releasing your personal details to a regulated exchange can pose some privacy risks. There is the risk of hack or your details being sold to a third party. As much as possible avoid leaving your details on the internet.

[xxjumperxx]

I get that, I copied some of the article because thats the article I am referencing to.
I didnt mean to just copy and paste, I added some of my own thoughts and thought Id throw this subject in for discussion.

Regarding the Exchange part, yes I agree, any personal info anywhere on the internet is bad.
Makes sense, the exchange knows you bought Bitcoin, they might not be able to trace where it went but they know you own or have owned Bitcoin.

[bdbountyon]

Trust is the big issue when transacting with face to face or with friends. In my case I always use exchange platform with low withdraw fees and no KYC requirements. Technology becomes more sophisticated. Many exchanges support crypto to fiat transfer which was not possible few months ago.

[hd49728]

What OP said are very very general. Honestly, if I am newbie, I don't know how to get started. Each step should be guided with more details for newbies. Because they are newbies, they need as more details provided as possible.

About privacy, on bitcoin network, Coin Join transaction is one of solution. theymos and gmaxwell wrote a thread about privacy.
[Guide] Decent mixing methods
CoinJoin: Bitcoin privacy for the real world

[o_e_l_e_o]

The most anonymous way to acquire bitcoin is to buy it from a stranger, in person, for cash.  However, this may be dangerous.

If you are going to do this, then you should use a platform like Bisq which will provide additional security for your money. It also provides guidance on taking additional security steps for your physical safety. See here: https://docs.bisq.network/trading-rules#face-to-face-f2f-trading

This is ok, because you can coin-join coins that come from an exchange.

Until the exchange decides they don't like you using CoinJoin and blocks your account and seizes your assets. Centralized exchanges should be avoided at all costs.

Use a VPN or TOR to surf anonymously!

VPNs do not make you anonymous.

[LeGaulois]

Trust is the big issue when transacting with face to face or with friends. In my case I always use exchange platform with low withdraw fees and no KYC requirements. Technology becomes more sophisticated. Many exchanges support crypto to fiat transfer which was not possible few months ago.

You don't trust your friends? Maybe they're not real friends so...

You can use an exchange without KYC verification it doesn't mean you're anonymous. Exchange platforms have your IP, MAC address, and other things.

Imagine the case you're laundering money or anything shady and the police investigates your case, find an address connected to the site ABCD, and contact the platform. Do you think the site won't give details saying "No because we are service without KYC?" They will snitch everything. The next thing then is to contact the ISP provider to get your name, address, and boom

Low withdraw fees are not relevant and no need to say a platform without KYC is at its own discretion...

[Chikito]

5. Send and receive bitcoins from a Bitcoin Core wallet.

Don't forget to use Coin Control feature for more privacy, you can use your unspent output for the next transaction, On Bitcoin core wallet, Settings > Options > Wallet > (tick) Enable coin control features.

[joniboini]

Coin-join is a type of bitcoin transaction which creates fresh bitcoin, without a clear transaction history.
Imagine if many people each put a dollar into a hat, and randomly took a dollar out of the hat.  Then, they would each have a dollar that came from someone else.  That is the idea behind a coin-join. Coin-joining is legal, but helping another person evade law enforcement is not legal.

While the analogy is more or less right, the definition is a bit misleading. Coinjoin does not create a fresh bitcoin, it simply mixes the output so tracing which sender pays which recipient gets more difficult. A better explanation is on the wiki page https://en.bitcoin.it/wiki/CoinJoin.

A fresh coin (which is not linked to any of your previous owned address) is probably possible to achieve if you use a mixer like Chipmixer, or use anonymous instant exchange by exchanging multiple coins in a different timeframe.

[Henri Cartier]

3. Acquire bitcoin from friends and customers. --> or buy from P2P Trading Platforms, Exchanges want to know you are!
The most anonymous way to acquire bitcoin is to buy it from a stranger, in person, for cash.  However, this may be dangerous.  
Instead, try to buy bitcoin from a friend.  Alternatively, try to earn bitcoin by selling goods or services for it.
Any regulated exchange will want to know who you are, and other details about you.  This is ok, because you can coin-join coins that come from an exchange.

I don't think buying from a stranger is safe! Instead of buying from a stranger or at a P2P trading platform (which is not safe), we can trade at decentralized exchanges that support trading anonymously. You can trade at exchanges that do not require KYC and hold the coins in your wallet, which would be safe.

[20kevin20]

~
2. Maintain different wallets, passphrases, and accounts. --> keep multiple, theyre free. Don't let a simple transaction reveal your Identity and link to all other addresses!
Remove the links between your bitcoin addresses.  If you receive bitcoin from many sources, and spend them in the same transaction, your bitcoin addresses will be linked together in that transaction.
Instead, keep a separate accounts for saving and spending.
~

Unless you have a HW, having different wallets is going to be a pain in the ass. Even with a HW, a reset of the Live app for Ledger means a longer initial wallet loading time. Electrum with coin control is a much better choice if someone wants their addresses not to be linked (although I don't use it as I am used to somehow always making stupid mistakes with big consequences such as revealing my identity).

I don't think buying from a stranger is safe! Instead of buying from a stranger or at a P2P trading platform (which is not safe), we can trade at decentralized exchanges that support trading anonymously. You can trade at exchanges that do not require KYC and hold the coins in your wallet, which would be safe.

Peer-to-peer exchanges are decentralized exchanges and you are going to buy from a stranger when using them. So they are the safest imo (there's no 100% safe way, but it is much safer than trading on a centralized exchange), especially if you're willing to preserve your identity through Tor and your trading history.

[Findingnemo]

Buying and selling bitcoins via p2p trading platform gives better anonymity and its way better than buying from a stranger or a friend by giving physical cash.

BTW you just copied few parts from the article which you linked in the source and make it look like a constructive post.

I linked the source, I wasn't trying to make it look like I wrote this all by myself.
The Link explains it in more context.
I just wanted to put this up for discussion if these are legitimate points.

I didn't say that you copy-pasted the article but the way you wrote the post makes me things in that way.Privacy and anonymous is not more important for every transaction and every individual.

[sunshinelegit]

Does coin blenders still actual?

[1miau]

Does coin blenders still actual?

Do you mean the mixing service "BitBlender"?

If you meant it, they are gone unfortunately: Bitblender shutting down?

You can find a list of recommended mixing services here: 2020 List Bitcoin Mixers Bitcoin Tumblers Websites

[Charles-Tim]

2. Maintain different wallets, passphrases, and accounts. --> keep multiple, theyre free. Don't let a simple transaction reveal your Identity and link to all other addresses!
Remove the links between your bitcoin addresses.  If you receive bitcoin from many sources, and spend them in the same transaction, your bitcoin addresses will be linked together in that transaction.
Instead, keep a separate accounts for saving and spending. 

This does not mean your are completely anonymous, it can only reduce how you can easily be traced. The fact still remain that if using crypto wallet does not mean you can be completely anonymous.