What ways does your IP address come into play for holding bitcoin?

[Anonohmon]

I keep hearing about how if you're not using Tor or or VPN you can be identified as a bitcoin user by your IP address. How is that a thing?

If I have bitcoin on a wallet, what about my IP could identify me? Does it matter if you use Tor to look at transactions but just didn't have all internet traffic through Tor when you activate your wallet on your phone or computer?

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[JohnBitCo]

I keep hearing about how if you're not using Tor or or VPN you can be identified as a bitcoin user by your IP address. How is that a thing?

If I have bitcoin on a wallet, what about my IP could identify me? Does it matter if you use Tor to look at transactions but just didn't have all internet traffic through Tor when you activate your wallet on your phone or computer?

As long as you are holding bitcoin and crypto on a non-custodial wallet, no one will be able to track you. I don't think that IP address could be an issue as ISP are usually not monitoring which sites or applications you are accessing.
If you want that your ISP does not know if you are accessing bitcoin wallets or centralized wallets/exchanges, then you should use a VPN.

[Despairo]

As long as you are holding bitcoin and crypto on a non-custodial wallet, no one will be able to track you. I don't think that IP address could be an issue as ISP are usually not monitoring which sites or applications you are accessing.

False, non custodial wallet has nothing to do with privacy.
Electrum is non custodial wallet, but since it's lightweight wallet (SPV) you're connecting to someone server, not running your own full node.

Actually if you want to have 100% privacy, you must not let your ISP or government that know you're have a Bitcoin on specific address you used.

If you want that your ISP does not know if you are accessing bitcoin wallets or centralized wallets/exchanges, then you should use a VPN.

Masking your IP address via VPN is a bad idea, since VPN offer poor privacy. You need to use Tor.

Moreover most of exchanges are against of VPN usage and can't use Tor, the best way is use Bisq that run via Tor.

[bittraffic]

Who would be tracking Bitcoin users thru IP addresses?

I wouldn't be worrying so much about connecting home wifi directly without TOR or using VPN, everyone around the world I think already have been aware of BTC and people uses BTC every corner. Maybe the users involve in dark market especially if they are buying contraband.

[Apocollapse]

Who would be tracking Bitcoin users thru IP addresses?

I wouldn't be worrying so much about connecting home wifi directly without TOR or using VPN, everyone around the world I think already have been aware of BTC and people uses BTC every corner. Maybe the users involve in dark market especially if they are buying contraband.

Are you sure people already uses BTC every corner? currently only 2 countries is accept Bitcoin as a legal tender e.g. El Salvador and Central African Republic. Personally I don't know where you live, but in my countries where Bitcoin isn't accepted as legal tender, there's no businesses accept Bitcoin as an alternative payment. People also still view Bitcoin enthusiast is a rich person, so if they hear you have Bitcoin, you might got blackmail and beggars asking for money.

Privacy ≠ Dark market/ illegal stuffs, don't mix it.  

If you didn't care with your privacy, I think you're fine to tell us what is your real name, location, face, how many Bitcoin you have, etc?

[bittraffic]

Who would be tracking Bitcoin users thru IP addresses?

I wouldn't be worrying so much about connecting home wifi directly without TOR or using VPN, everyone around the world I think already have been aware of BTC and people uses BTC every corner. Maybe the users involve in dark market especially if they are buying contraband.

Are you sure people already uses BTC every corner? currently only 2 countries is accept Bitcoin as a legal tender e.g. El Salvador and Central African Republic. Personally I don't know where you live, but in my countries where Bitcoin isn't accepted as legal tender, there's no businesses accept Bitcoin as an alternative payment. People also still view Bitcoin enthusiast is a rich person, so if they hear you have Bitcoin, you might got blackmail and beggars asking for money.

Privacy ≠ Dark market/ illegal stuffs, don't mix it.  

If you didn't care with your privacy, I think you're fine to tell us what is your real name, location, face, how many Bitcoin you have, etc?

Using Bitcoin today is not likely going to make one a criminal. Not everyone is using VPN nor TOR anymore. We care about privacy but not that someone would be tracking your IP address how important could you be in this world Snowden or Assange?

These people are even using twitter accounts while publicly saying they own BTC. No one cares anymore except maybe for those people who are in the country that illegality BTC/crypto. They could be prosecuted for having BTC.

[Apocollapse]

We care about privacy but not that someone would be tracking your IP address how important could you be in this world Snowden or Assange?

Don't forget about $5 wrench attack when someone know you've hold good amount Bitcoin and know your location.

These people are even using twitter accounts while publicly saying they own BTC. No one cares anymore except maybe for those people who are in the country that illegality BTC/crypto. They could be prosecuted for having BTC.

Most of people who publicly say they own Bitcoin is a popular people who have a body guard in their home, are you have a body guard that will protect you when you're sleeping?
Of course using Bitcoin in illegal countries is break their local law, but it's a different discussion.

In your case, You are afraid about blackmailing if someone knew you are using Bitcon but the question is how will someone knew it if you are not posting online or letting them know thay you are using Bitcoin? Unless there is only few people in your country and its easy to track your daily activity. Because if a hacker will hack you through your IP then how come he will choose you as target without any basis for his attempt?

IP address is a sensitive information and if they know your full IP address without any censor, they will know the specific location where you live. Also it's not hard to find additional information to know the person is, since we're already see so many company/institutions are exposed to secure their customers data.

[franky1]

ok lets handle a few points raised.

IP addresses change, people can have dynamic addresses and such. (which some ISP's are too lazy to tag a true geo-location too.)

heres a few things to remember though
there is not a man sat at your ISP(internet service provider) watching your every move.
however your ISP has an algo to store your internet history at their end too. and they keep it for a few years.

so although you may not be a criminal now, and bitcoin may not be banned, restricted or licenced now in any/all. things may change in a few years.

even just knowing that certain wallets use certain ports, an certain packet lengths of messages is enough for someone to work out you use bitcoin..

authorities can then ask for a copy of your history/metadata from your ISP backdated X years and see what block explorer site you kept checking and see if there was an address that you kept looking at more then once.
or
what packet data of certain ports was sent/received to work out what apps/software you use

usually if you are checking random people, you have different addresses being requested in blockexplorers for each day/session. but if your checking your own balance still has coins on it or the value of them coins every few weeks or months then you end up checking the same address more then once.. then they will put 1and 1 together and believe the address you often look for is your own stash

..
as for IP addresses. even this forum logs IP addresses, and if it were hacked they can associate your forum name with an IP address. and then do what hackers do best with an IP address.. hack the IP user

other things like if you use tor. they can get to you via your IP entry point into tor

obviously hackers can do other things too, such as send you spam PM's advertising some trojan software.

. the list goes on

[PrivacyG]

So long story short, if you want privacy you have to switch up your online behavior and accept that there will be multiple costs implied.  Because if you want privacy, you have to start using burner phones and SIM cards, you have to stop using Java Script at all, you have to even have a computer particularly for holding and using your Bitcoin wallet.  Then if you do not have a full node then you need to use disposable Operating System sessions such as Tails without Java Script and reboot after every address lookup and so on.

This is just like looking for privacy when going to the store to buy a burner phone without being identified.  There is not just the store and the surveillance camera.  There is so much more 'meta data' that can lead to you such as the way you walk, your face, your ears, your eyes and eyebrows.  Say you get to cover everything.  Then you get to another issue.  The surveillance cameras from your home to the store.  What do you do about your voice when you are talking to the employees in a surveillance camera filled store.  And much more.

Maybe in the 90's it was easy to cover yourself and get a burner with high levels of privacy.  Today though, it is hard and you basically have to change your life style to keep your privacy levels up.  It gets worse when we are talking about online privacy.  As you say, I doubt there is a man sitting at the ISP spying on you.  But if the Government decides to check up on you, good luck because every small mistake can lead to your identity and it is insanely hard not to make mistakes at all.  Sometimes, it is easy for a Government to track you down even when using Tor just through correlations and preliminary investigation.  All they need is a good reason to check up on you and enough resources to spend on doing it.

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Regards,
PrivacyG

[NotATether]

The IP address cannot do much to identify you (particularly if it is IPv4) since ISPs use NAT to assign many customers to an IP address. But the ISP can monitor the traffic coming from your computer to port 8333 to your public IP address and from there, where in the rest of the world it goes to [Bitcoin P2P traffic is not encrypted].

[Leviathan.007]

That totally depends on the ISP you are using some ISPs won't give you a real external IP address and they are using nat, so the IP you see on the internet is not actually your real IP address however the isp and the governments can trace you and have access to your real IP address, and check if you visited the bitcoin-related websites or used the cryptocurrency wallets. that's very easy for them to trace people like that. But some other people will use VPNs while this cannot guarantee your privacy because after they trace your IP address they will understand that you are using a VPN service, as far as I know, they can use AI to get your real IP address, but if you use the tor network there is less possibility for them and if you use a trusted VPN and tor network this will be a pain for everyone to trace your activities and the wallets you use.

[franky1]

So long story short,

these days phone apps dont just take a geo location. but a "device ID" or even a "mac" address so even if you change isp's every few months or whatever. they can stil link you.
EG if you use different wi-fi hotspots with your laptop. they can still find your MAC address (ID of your laptop hardware)

long story short.
if your not doing anything criminal then just expect your data to be logged somewhere but no physical person looking at it to inspect/investigate it and after a few years it gets deleted

however if you start to do weird things that trigger flags, then expect to get surveilled.

EG walking down the street..
if you start wearing a mask and hiding behind bushes, expect even the general public to make a call to the cops saying there is a person on their street acting odd.. and expect to get noticed more by your out of the ordinary behaviour.. so sometimes just walking down the street like a normal person is a better "hide in plain sight' method

if your a criminal.. definitely expect to put some time effort and costs into covering your tracks, else expect to put some time inside a prison.

take using a mixer to hide 'normal' non criminal activity when then using an exchange..
the mixer in-of itself IS LAUNDERING. so expect to get red flagged for using a mixer and getting highlighted that your exchange account needs a human eye investigating your account.

trying to hide actually ends up with being noticed more.

you need to ask yourself. what and why are you trying to hide and ask yourself what info are you giving away for free that you dont want given and if its really needed or not to hide it or reveal it.

which takes effort on your part to think about your actions and consequences of actions.
EG a non-criminal using a mixer means they are sacrificing their clean coins for someone elses coins (most probably dirty) meaning you end up with dirty coins and needing to explain how you got them and why you got them.

[hd49728]

To make transactions, you must broadcast your transactions on the network and through the process, your IP address can be leaked by Bitcoin nodes.

You don't know what they will do with data they have. Same with Bitcoin block explorers when you enter your address or transaction hash to check.

IP address is not enough but it is still data.