Can you hide your identity with bitcoin? (100%)

[o_e_l_e_o]

I heard there are services offered who can track Bitcoin transaction in illegal use or any cybercrimes related cases. Chainalysis can investigate and provide blockchain data that possible transactions can be tracked.

There are multiple big business offering blockchain analysis and transaction tracing/de-anonymizing services. Chainalysis, Elliptic, IdentityMind, CipherTrace, Crystal, Elementus, to name just a few. The majority of the work these companies do is not in illegal or cybercrime cases, though. The majority is for exchanges which like to spy on their customers and freeze your account if you are deemed to be doing something they don't like despite being perfectly legal, such as using a bitcoin casino or sportsbook. Some exchanges like Coinbase even have their own in-house blockchain analysis department in the form of Coinbase Analytics (rebranded from Neutrino).

Although KYC is obviously a massive no-go, if you are interested in privacy then you should not be touching centralized exchanges at all.

[coolcoinz]

Yes you can and it's very easy. You just have to use a physical bitcoin exchange. This is a normal exchange, like the ones you find at every airport where you are able to get currencies with cash. This is completely anonymous up to a certain amount (depending on the country). There are also ATMs that allow you to buy and sell anonymously.
You can also use exchanges with no KYC, connect via VPN and register using fake names.

[kryptqnick]

I was having an argument with a friend. He says that you can't be anonymous to the bitcoin's network. Both nodes and wallets use, leads to an ip address where information can be found.

I had read in this forum that you can hide it with hardware? How exactly?

I think that if there were a way to trace every identity, all those cases where hackers transferred BTC to some addresses and everyone knew the addresses would be solved very fast by agencies like the FBI. Since that is not the case, I suppose one can act carefully enough not to get caught. However, doing this might be harder than people tend to think, as Bitcoin is not made to be anonymous, it's made to offer both some privacy and transparency. Proper use of TOR and mixer might let a person stay out of trouble, I think, but that's if this person does not do anything stupid like downloading a file from TOR or using an email address without precautions to register on an exchange, a wallet or some other service related to those bitcoins.

[Becky666]

In the issue of identity when talking about bitcoin is something that is complicated, off course bitcoin is anonymous but doesn't mean that, you can't be trace on the network for dubious reasons. Bitcoin is transparent and identity are also included on this, the only means to make yourself anonymous with bitcoin in terms of transactions is with the help of mixers around the industry.

I was having an argument with a friend. He says that you can't be anonymous to the bitcoin's network. Both nodes and wallets use, leads to an ip address where information can be found.

I had read in this forum that you can hide it with hardware? How exactly?

The hardest for anyone to do is for them connecting to all the possible nodes, most of these nodes doesn't allow or accept strange or new connections or from unknown source. Even at that, anyone who intend to connect to all nodes is likely to spend almost trillions of dollars or there about to make it possible.

[BITCOIN4X]

Yes you can and it's very easy. You just have to use a physical bitcoin exchange. This is a normal exchange, like the ones you find at every airport where you are able to get currencies with cash. This is completely anonymous up to a certain amount (depending on the country). There are also ATMs that allow you to buy and sell anonymously.
You can also use exchanges with no KYC, connect via VPN and register using fake names.

All bitcoin transaction stored on the network are public and transparent except that the identity of the person behind the transaction is private. Hiding bitcoin ownership is very difficult if someone buy bitcoin on an exchange that requires traders to complete the KYC procedure. But in my opinion everyone can still remain anonymous with bitcoin if buying directly through transaction between user, for example on the forum bitcointalk.org.

Buying and selling bitcoin in cash at a Bitcoin ATM is also not completely anonymous if the area has a surveillance camera (cctv), and finally I would say that being completely anonymous is a difficult task to do and being anonymous does not guarantee that users will be forever safe with bitcoin.

[rexxarofmoknathal]

I was having an argument with a friend. He says that you can't be anonymous to the bitcoin's network. Both nodes and wallets use, leads to an ip address where information can be found.

That is not true at all since you can use a VPN to re-direct your IP address to anywhere else in the world you want. VPNs can thus be used to keep your IP address anonymous from anybody.

I had read in this forum that you can hide it with hardware? How exactly?

As long as you release your funds on decentralised exchanges where no KYC is required, technically your identity remains anonymous to the public. This can be done using a series of other tricks like the VPN mentioned above and unrelated/fake names and email.

Overall, this is not encouraged but it is one of the beauties of crypto where anybody can be anybody - just don't take it too far!

[o_e_l_e_o]

VPNs can thus be used to keep your IP address anonymous from anybody.

For the nth+1 time, VPNs do not make you anonymous. Your VPN provider can see your real IP address, your real name and address if you have paid using fiat, and all your internet traffic.

As long as you release your funds on decentralised exchanges where no KYC is required, technically your identity remains anonymous to the public.

Simply using a decentralized exchange isn't enough. If you pay using a bank transfer or PayPal, for example, then the other party can link your bitcoin to your real identity.

Overall, this is not encouraged but it is one of the beauties of crypto where anybody can be anybody - just don't take it too far!

What? Why would privacy not be encouraged?

[yhiaali3]

In my opinion, identity can be largely hidden but not completely hidden, there is always the technique and counter technology, for example bitcoin mixers work to hide tracking the impact of bitcoin dramatically, but recently a technology has emerged to detect mixes where platforms have become able to know the addresses that come from mixers and thus reject Bitcoin From mixers, this also costs a lot of money, meaning you need money to hide the effect of bitcoin and you also need money to reveal that.
The main problem is that you always need third-party services to deal with bitcoin and here is the problem where the third party is able to know your IP address or may request KYC and thus will be able to reveal your identity.
In order to maintain your privacy you must use the Tor or proxy software and avoid third-party services that require KYC.
In the end, I can say that privacy can be largely maintained, but not 100%.

[Asuspawer09]

I was having an argument with a friend. He says that you can't be anonymous to the bitcoin's network. Both nodes and wallets use, leads to an ip address where information can be found.

I had read in this forum that you can hide it with hardware? How exactly?

I think somehow you can hide your identity by I guess it's not possible to hide you identify 100%.

Every transaction is recorded in the blockchain, third party websites, the wallet you are using also records every transaction.

Talking about VPN? somehow the VPN you are using could also see your IP address. If you own a BTC wallet, VPN network, etc. it would not still become 100% hidden.

[BlackHatCoiner]

We're talking about VPNs and blablabla. What if you make a transaction, using cafeteria's free Wi-Fi? I think you would be covered...

[Yamifoud]

We're talking about VPNs and blablabla. What if you make a transaction, using cafeteria's free Wi-Fi? I think you would be covered...

Simply we can't hide anything with this. That is why I'd never used free-wifi when accessing my wallet and for security reasons.
We can hide identity in crypto but not the numbers of Bitcoin we are holding in a certain wallet. Once we have a record in the blockchain technology, everything is traceable even we use a VPN or whatever it is to bypass IP. But does it give the interest of everybody? Not at all, Maybe if we are holding a lot and that will get attention especially for the hackers/scammers. But for those ordinary Bitcoin holders, I don't think so.

[Sadlife]

Bitcoin is pseudonymous every transaction made, is transparent in Blockchain network that can be seen by anyone just by searching the address from there you can see where funds was sent. And yes, nodes can reveal IP addresses but not accurately.
One thing your friend forgotten is mixer that mix your every transaction to other user and sending to multiple different address, it might be a solution but not 100% guaranteed

[famososMuertos]

According to previous interventions;
Identity may have the option of being hidden for those who try to discover it without having advanced knowledge, for other types of users with an advanced level, there are alternatives mentioned, some questioned, but with the consensus that despite their weaknesses, somehow In its proper use they "can" offer to keep you anonymous.

Perhaps what is most named in the possible weakness of losing your anonymity, is the IP, by the way it is very easy to access this information for a large majority of people, but those who know how to give it "good use" for their benefit in the prejudice of another. Really very few. Consequently, it seems obvious, but what can keep you anonymous the most is the amount of bitcoin assets you own.

Can you hide your identity with bitcoin?⁽¹⁾

I think an immediate question arises, to whom? Then the second question, what amount are we talking about?

Actually, the second question defines all this, how much can be a significant amount in BTC to invest * in that your identity remains hidden.

* define "invest" here (post) as: time, money, knowledge and the inclusion of third parties.

The reality is that 0.5 BTC can mean a lot of money or it can mean a tip, that brings us to the first question (1).

Alternatives, suggestions from me to answer the question, to whom ?:
A family member, friend, partner: A key on the PC, basic online and offline security rules are sufficient, but the most important, never comment with anyone who has assets in cryptocurrencies, with that I guarantee anonymity with any of my public keys , at least from my basic environment.

We always want to protect ourselves from the online world, but sometimes we lose our hidden identity, precisely from offline bad practices.

So add to the above, basic good security practices such as those mentioned, but if I read it correctly, it is good to know that they are not infallible and always leave a trace.

Someone already told us something important about security in 2 words, and in fact it is the greatest asset that bitcoin has, S N.

In the theoretical reality, the anonymity of the person who makes the transactions is a right of the bitcoin network, but not of its transactions.

In practice the same good sense of making an open book all the transactions of the blockchain, results in a prejudice in the world in which we live, because either because there is always the misfortune of those who want to take advantage of the information they end up taking advantage of the weaknesses of users in the management of their assets and in general of the basic principles of security. We may ask, is it the fault of the bitcoin network?

A public key on the bitcoin network should only let third parties know what movements it makes. If they discover your identity, I assure you that as long as SN remains anonymous, it is their fault.

[michellee]

We're talking about VPNs and blablabla. What if you make a transaction, using cafeteria's free Wi-Fi? I think you would be covered...

You can use VPN after you connect to the free WiFi, so at least, you can hide your identity, and the cafeteria's WiFi doesn't know which one of their customer who use their free WiFi. But I think we can not hide the number of bitcoin that we send or receive because the transaction will appear to the blockchain transaction. The other people will only know the amount without knowing who is the sender and the recipient.

[Lorence.xD]

Bitcoin is pseudonymous every transaction made, is transparent in Blockchain network that can be seen by anyone just by searching the address from there you can see where funds was sent. And yes, nodes can reveal IP addresses but not accurately.
One thing your friend forgotten is mixer that mix your every transaction to other user and sending to multiple different address, it might be a solution but not 100% guaranteed

I think that bitcoin is anonymous as long as the other party does not know how to do an IP trace, the degree of protection that bitcoin offers in my opinion is enough to prevent low lifes from using it as a front for illegal activities and on the other hand, the privacy of the user is guaranteed as long as there is no questionable actions done in that address.

[Kakmakr]

technically you can. why? 2 words: Satoshi Nakamoto.

It's arguable that the things that Satoshi has never actually implicated his real life identity. His likely use of a VPN/Tor has probably made it much more difficult for people to trace him. His involvement in Bitcoin was primarily on the development and his use of obfuscation techniques probably helped his anonymity tremendously.

I doubt that would be the use case of an average joe when they use Bitcoin.

You cannot say NO and then say it is NO only for the average Joe.    The answer should be ...YES, but you have to apply strict measures to be 100% anonymous. You are also looking at this from the angle of someone hosting a node and not the average Joe that learnt how to make a secure Paper wallet.  

Throw Paper wallets and Mixers together and you have a better chance to stay anonymous... until you use those bitcoins at a regulated exchange or a third party service where your real identity is linked to your payment or delivery of goods.  

[ranochigo]

You cannot say NO and then say it is NO only for the average Joe.    The answer should be ...YES, but you have to apply strict measures to be 100% anonymous. You are also looking at this from the angle of someone hosting a node and not the average Joe that learnt how to make a secure Paper wallet.  

Throw Paper wallets and Mixers together and you have a better chance to stay anonymous... until you use those bitcoins at a regulated exchange or a third party service where your real identity is linked to your payment or delivery of goods.  

It definitely isn't absolutely impossible but it is in a sense still fairly hard to ensure 100% anonymity. Bitcoin in the first place is not designed around the concept of anonymity but rather to enhance anonymity.

Sure, moving coins around mixers would help your cause but it doesn't mean chain analysis isn't totally out of the picture, the mixer won't go rogue and reveal your origin and destination addresses. There are just too many points of failure as compared to the cryptos that were specifically designed to focus on privacy. Unfortunately, no matter how much one values its privacy, Bitcoin is probably not the best crypto for the job.

[Latviand]

Both nodes and wallets use, leads to an ip address where information can be found.

Nodes knows the IP addresses of each other and it is possible for a node to predict the IP address for which a transaction has originated from but it is nowhere near accurate. For someone to be able to track this accurately, one has to connect to all the nodes within the network and that is impossible.

If that's possible for anyone, we could findout who is Satoshi Nakamoto and thus all the doubts about the creator/creators of Bitcoin might be revealed. As you say that one has to connect to all the nodes which is really impossible. But china produces the most of the hashrates of bitcoin networks, so it might be little possible to them to check/watch our transections, IMO. Also , it's just an hypothesis from myside.  

We don't have really any idea if Satoshi Nakamoto is a person or a group or just an alias to hide his identity. We are still not that good at looking for the real creator of this bitcoin, his anonymity is very effective and is hard to find out. Nodes can really track a person that do the transaction but that's not that easy, you also need to undergo other process to really find the exact person behind the transactions.

If that's the case? Is it still safe to make a lot of bitcoin transactions?

Once people are engaging in bitcoin and they read this thread, hoping that they improve their security and become aware about the safety of their account every time they engage in bitcoin transactions.

[Natalim]

I'm not an expert here but I believe it would be hard to trace our IP though the blockchain is very transparent, we can still be anonymous as long as we don't use a centralized platform like an exchange where we need to comply with the KYC requirement.

one proof that IP cannot be trace is the fact that we can't trace who owns the biggest holders of bitcoins or what we called the whales.

[Chrystora123]

technically you can. why? 2 words: Satoshi Nakamoto.

It's arguable that the things that Satoshi has never actually implicated his real life identity. His likely use of a VPN/Tor has probably made it much more difficult for people to trace him.

IMO.. satoshi is an anonymous group, not a real person.  if he is a real person we can track him because even if he uses VPN or Tor network when he exchanges his Bitcoin for fiat money on the exchange, his identity will be found out because on average the exchange tracks the identity of the owner of Bitcoin who has a large amount..

We're talking about VPNs and blablabla. What if you make a transaction, using cafeteria's free Wi-Fi? I think you would be covered...

you are wrong, the wifi network at the cafeteria is a favorite place for hackers because there are tens or even hundreds of internet activities going on.  always on guard, do not use a free wifi network in a cafe if you frequently make payment transactions through your laptop or smartphone.  the safest way to fatherly protect yourself is to use Modems, Modems really make a new IP..