Money Investors
  • Money
  • Business
  • Cryptocurrencies
  • Lifestyle
  • Opinion
Subscribe
Money Investors
Money Investors
  • Money
  • Business
  • Cryptocurrencies
  • Lifestyle
  • Opinion
  • Cryptocurrencies

Is Bitcoin Anonymous?

  • December 15, 2021 8:27 AM
  • Augus Curtis
Bitcoin Anonymous
Total
0
Shares
0
0
0

At first glance it seems that Bitcoin is anonymous, but if you look at the blockchain, a fundamental characteristic of this cryptocurrency, you will realize that it is not so hidden.

What happens is that people tend to confuse the concepts of incognito and pseudonym to refer to what they believe is anonymous in this crypto.

However, it is important to know that digital currencies reveal much more information about their users than you might think. Why? What is the purpose? How to protect yourself? Let’s see next.

Is Bitcoin anonymous? The address and pseudonym

Where you receive your bitcoins is like a bank account, but they are called wallets. It consists of a random series of digits and letters, the transactions of which are reflected in a Blockchain, a ledger accessible to all.

In it you can see the addresses that bitcoin uses to send and receive coins, which makes it easy to track them, addresses that are not anonymous, but a pseudonym.

That is, these wallets encode and change your real name for a code with numbers and letters.

When does Bitcoin stop being anonymous?

In the crypto ecosystem, the privacy of transactions is often talked about. The good news is that due to the proliferation of cybercriminals and/or spies, many now understand the importance of privacy and hire encrypted servers for data and voice communications.

Understanding that, Bitcoin seeks solutions to the main information leakage points:

The IP

E l Bitcoin is a P2P network: the computer or phone is always connected to others, thanks to the internet.

But if you are a victim of spies, they will be aware of when a transaction is transmitted, which they could combine with a type of database to obtain information about who you are, your tastes and preferences.

Use of web or lightweight wallet

In this type of wallets, you delegate your privacy to a third party (even your bitcoins), since your IP, browser, operating system, visited pages are exposed.

Exchanges

Some platforms for buying and selling bitcoins can share information about their users, reveal their identities, addresses and transactions.

Measurements and identification

In 2017, Bitcoin reached its all-time high, reaching almost $20,000, an increase that aroused the interest of many and led governments and principalities to discuss the anonymity of cryptocurrencies and minimize the risks involved.

One of the key regulatory points is identification. For this reason, they have asked exchange platforms (such as Cex.io and Coinbase) to ask their users for an ID before using it or trading it.

Of course, this regulation does not make Bitcoin anonymous, only that transactions can be made without using the network, making it difficult to track payments, although there are ways to investigate who made them.

Ways to improve your privacy in Bitcoin

Depending on the information you reveal, as a Bitcoin user you will have some privacy. We have selected a few ways that may have a degree of vulnerability if corrupted, but are undoubtedly much more secure.

VPN

It is a virtual private network that allows you to connect two or more computers in a secure way, you can route all communications and mask your real IP.

Mixers

They are services that mix one person’s bitcoins with those of others before they reach the destination, a service that follows identifiable patterns, thanks to blockchain analysis.

Different directions

When you divide your money in multiple directions and use a different one for each payment, you will be complicating things for cybercriminals. Normally the programs that act as a wallet generate new addresses for each transaction.

TOR

It is free software that allows you to create a distributed network and surf the Internet with a high degree of anonymity, although you should know that spy nodes can also exist here.

Exchange houses

They are an alternative that hides the trace of bitcoins from the naked eye, since they are mixed with many others and the withdrawal can be made to a new address. However, as it is a centralized service, certain information could be leaked.

Wallet with node

One of the best practices to keep your bitcoins more secure; you have control over it and add layers of complexity to the use of Bitcoin.

Conclusion

So is Bitcoin anonymous? No, and no cryptocurrency is completely cryptocurrency, what we recommend is that you protect your digital assets, since someone is always on the prowl looking to steal crypto. We also recommend using a secure wallet so that your Bitcoins are safe.

Probably wanna read:

  • Is Bitcoin Real Money?
  • Bitcoin is it good or bad?
  • Bitcoin: What is it and how to invest in it
Total
0
Shares
Share 0
Tweet 0
Pin it 0
Augus Curtis

I'm Augus Curtis the founder & editor of Money Investors. I love money, I love to make it and also to invest it. Here I share some ideas about business and money.

Related Topics
  • Bitcoin
  • Cryptocurrencies
  • Investing
  • Investments
  • Money
Editor
Augus Curtis
I'm Augus Curtis the founder & editor of Money Investors. I love money, I love to make…
Featured Posts
  • What is LVMH 1
    What is LVMH: Owner of luxury brands
    • January 15, 2023 6:20 AM
  • Google Business tools 2
    5 Google Apps for your online business
    • December 30, 2022 7:15 AM
  • Wordpress work 3
    10 Advantages of Using WordPress
    • December 30, 2022 6:43 AM
  • Servers hostings 4
    What Operating System to use in my VPS?
    • December 30, 2022 6:26 AM
  • Best Pets For Children 5
    What are the best pets for children?
    • December 26, 2022 7:41 AM
Recent Posts
  • Breeds Dogs
    How the different breeds of dogs arose
    • December 26, 2022 7:20 AM
  • nato-logo-1200x675
    These are the countries that are in NATO
    • December 17, 2022 7:11 AM
  • Biography of Giorgio Armani
    Biography of Giorgio Armani The Founder Of Armani
    • December 5, 2022 11:05 AM
Categories
  • Business (85)
  • Cryptocurrencies (32)
  • Lifestyle (42)
  • Money (99)
  • Opinion (74)
  • Travel (2)

ABOUT:

Money Investors is an economic and financial blog that wants to be a source of development of knowledge of the latest advances in studies related to the economy. Analyzing the various most relevant international opinion sources such as The Wall Street Journal, The Guardian, Market Watch, Market Times, BBC News, The New York Times and El País from Spain, we will provide diverse and eclectic approaches for understanding the economic panorama in depth, with a social and critical perspective of the various market players, as well as the institutions and structures that condition the behavior of these markets.

PRIVACY:

We will never disclose or sell your email address or any of your data from this site. We do highly welcome posts and community interaction, and registering is simply part of the posting system.

DISCLAIMER:

Money investors is an independent, advertiser-supported website and may receive compensation for some links to products and services throughout this website. Opinions expressed on this site are the author’s alone, not those of a third-party entity, and have not been reviewed, approved, or otherwise endorsed. Offers may be subject to change without notice. Money Investors exist to thought provoke and learn from the community. Your decisions are yours alone and we are in no way responsible for your actions. Stay on the righteous path and think long and hard before making any financial transaction! Disclosures.

Money Investors
  • About Us
  • Cookies Policy
  • Privacy Policy
  • DMCA
  • Term Of Use
  • RSS
  • Sitemap
  • Contact
© 2022 Money Investors LLC. A Curtis Times Company. All Rights Reserved.

Input your search keywords and press Enter.

We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. By clicking “Accept”, you consent to the use of ALL the cookies.
Do not sell my personal information.
Cookie SettingsAccept
Manage consent

Privacy Overview

This website uses cookies to improve your experience while you navigate through the website. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may affect your browsing experience.
Necessary
Always Enabled
Necessary cookies are absolutely essential for the website to function properly. These cookies ensure basic functionalities and security features of the website, anonymously.
CookieDurationDescription
cookielawinfo-checkbox-analytics11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Analytics".
cookielawinfo-checkbox-functional11 monthsThe cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Functional".
cookielawinfo-checkbox-necessary11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookies is used to store the user consent for the cookies in the category "Necessary".
cookielawinfo-checkbox-others11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Other.
cookielawinfo-checkbox-performance11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Performance".
viewed_cookie_policy11 monthsThe cookie is set by the GDPR Cookie Consent plugin and is used to store whether or not user has consented to the use of cookies. It does not store any personal data.
Functional
Functional cookies help to perform certain functionalities like sharing the content of the website on social media platforms, collect feedbacks, and other third-party features.
Performance
Performance cookies are used to understand and analyze the key performance indexes of the website which helps in delivering a better user experience for the visitors.
Analytics
Analytical cookies are used to understand how visitors interact with the website. These cookies help provide information on metrics the number of visitors, bounce rate, traffic source, etc.
Advertisement
Advertisement cookies are used to provide visitors with relevant ads and marketing campaigns. These cookies track visitors across websites and collect information to provide customized ads.
Others
Other uncategorized cookies are those that are being analyzed and have not been classified into a category as yet.
SAVE & ACCEPT