how to spend bitcoin anonymously

How to Spend Bitcoin Anonymously

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  • Post category:Bitcoin
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Bitcoin has many advantages as a form of currency. It uses blockchain technology to provide fast and secure payments, and the transaction fees are relatively low. Although bitcoin’s nature makes it highly secure, it doesn’t make it very private. There are many issues to be aware of if you wish to pay for bitcoin anonymously.

There are ways to make purchasing and paying bitcoin anonymously. Even if you purchased coins using an open method, there are steps that can be taken to hide their history so you can spend them in almost totally untraceable transactions.

It can be difficult to hide your identity online since you leave many digital footprints. It’s difficult to remain anonymous in Bitcoin because it is part of the digital universe. Did you know that Bitcoin transactions can be traced and are not anonymous?

A Bitcoin transaction is not linked to any person or identity. Transactions can be made public using a public Bitcoin address—alphanumeric strings that are publicly recorded on the blockchain. The transaction does not include the name, address, or email of the person. However, a person’s identity can still be tracked using IPs and public Bitcoin address information.

This is why Bitcoin transactions are pseudo-anonymous. How is that possible, if there is no name attached to the public IP address? Sometimes, the Bitcoin public address user will also declare their name. If you use a private internet connection or a virtual private server, your identity can be tracked. We usually give our proof of ID here, which can be used to match our identities with our IP.

Why You Should Use Bitcoin Anonymously

As mentioned above, it is easy for anyone to access your transaction history and obtain details about bitcoin transactions due to the lack of privacy. If someone finds out that you have a lot of bitcoin, it could make you a prime candidate for a physical attack.

This has been done all around the globe to target people in order to allow criminals access to cryptocurrency exchanges and funds. Such targeted attacks were possible, but they may not have occurred if the net worth of the victims hadn’t been revealed. These were extreme cases. However, there are many other reasons why you might want more anonymity.

  • Private medical procedures or services can be paid.
  • Donate anonymously to charities.
  • Prevent advertisers from tracking your spending habits.
  • Stop malicious hackers from gaining access to your information.
  • Keep your spending and whereabouts private.

There are many reasons that a business owner might want transactions to remain private. You might want to protect clients’ privacy, prevent competitors from seeing supplier or client lists, or keep trade secrets secret.

Another thing to remember is that privacy and anonymity are often associated with criminal activity. It is clear that bitcoin use has been linked to illegal activities. Criminals have also found ways to hide their tracks by making bitcoin anonymous. As you can see, privacy is not the only reason people may want it. It is important to remember that fiat currencies are frequently used in criminal transactions. However, this does not mean that everyone should have all of their bank statements available online for the entire world.

Although there are many ways to trace your online activity digitally, these are some tips that will help you use Bitcoin without being traced. These are some identity-hiding activities you can do when using Bitcoin.

How to Make Bitcoin Transactions Anonymous

Bitcoin Mixing

Transactions made with Bitcoin are kept publicly accessible. Anybody who can trace a public Bitcoin address will be able to determine its origin and/or destination. These bitcoins cannot be anonymized at the protocol level. A Bitcoin mixer is needed to conceal your identity.

Mixing bitcoins is a method of trying to remove traceability and linkability. Mixing is a way to break the connection between Bitcoin addresses. This can be done through temporary addresses or by swapping bitcoins for other addresses with the same value. This makes it difficult to trace the blockchain trail. It is a paid service and is sometimes called Bitcoin mixing, Bitcoin washing, or Bitcoin tumbling.

Tor-Onion Router

To connect to the Bitcoin network, you can use the Tor browser. Tor is a community of volunteers that believes in anonymity, privacy, and anonymous internet use. The Brave browser is your best choice if you’re looking for something more. The Brave browser is free, faster than Chrome, and has Tor support.

Tor nodes encrypt your internet traffic and route it to random computers on the Tor network. It becomes very difficult to identify the IP address from which the transaction or message was broadcast. Simply put, transactions and other activities can’t be traced to your IP. This helps you remain anonymous. Tor is only useful if you are using a KYC-enabled Bitcoin site like CEX, Coinmama, or any other. Use Tor or a VPN when using P2P-based websites like LocalBitcoins and Paxful.

There are many ways to use a Tor browser on different devices. However, if you have a Windows PC, you can open your Tor client and access the Bitcoin network via a localhost address using a standard Tor port.

Logless VPN

A logless virtual private network (VPN) is a network that doesn’t keep any history of your activities. It encrypts all your Internet traffic and routes it through several servers at different locations before reaching its final destination. Logless VPNs may also share an IP address with multiple users. This makes it difficult to trace an individual’s identity. Another way to increase the privacy of your Bitcoin transactions is to use lossless VPNs. However, in this instance, you must trust that the VPN service provider will not log your activities.

New Address for Transactions

The HD wallets are the most popular Bitcoin wallets. This means that you can create any number of receiving addresses and every time you receive bitcoins, you will use a different address. This can sometimes confuse new users as they wonder why the receiving address has changed.

You can still generate as many Bitcoin addresses as you like if you use an HD wallet such as Ledger nano X, Saamourai wallet, or Trezor. This is a great way to keep your anonymity when you use Bitcoins regularly. It would be difficult to link more than one transaction to you.

You might think that bitcoin’s blockchain is secure, so why not re-use the same address? What’s the threat? Yes, you can reuse the same address if you aren’t concerned about your privacy.

BTC blockchain, as you may know, is public and transparent. Anybody who has access to your address can see what you spend and check your balance. These are just a few examples of how reusing the same BTC address can cause you problems and compromise your financial privacy.

Example 1

  • Let’s say that you store your wealth in a Bitcoin Paper Wallet.
  • You purchased some BTC as cash from Paxfu and then transferred it to your paper wallet.
  • Your address trail on blockchain shows who you bought BTC from.
  • He also found that you had $ 100K in bitcoins stored on your paper wallet address.
  • This is what he mentions in public, and word spreads. Although the chances of this happening are low, it is possible.
  • The next day, a kidnapper kidnaps you or your family member and knows how much ransom to demand.
  • Maybe he will raid your house and take the Bitcoin paper wallet, which contains the private keys, at gunpoint.

Example 2

  • Imagine that you are a merchant selling electronic goods.
  • You have begun accepting bitcoins as a payment.
  • Have a QR code for public address displayed in your shop so customers can see it.
  • Imagine a gang of robbers coming to your home with guns and threatening you.
  • You say that you haven’t done enough business in the month and you don’t have enough cash to give.
  • If they are tech-savvy, they will only need to check the Bitcoin public address displayed.
  • The robbers checked the address on the blockchain and discovered that you had 100 BTC.
  • You are caught lying and your earned Bitcoins for the month are lost.

Although you might feel I am discouraging or scaring you with these examples, I am not. I’m just trying to help you understand some of the unfavorable situations that can arise. It is important to maintain anonymity and take care when handling your BTCs.

We have a quick tip for you:

  1. You can stop using your Bitcoin public address if you have accidentally or willfully made it public.
  2. You can use HD wallets such as Ledger Neo X, Trozor and others to generate as many Bitcoin receipt addresses as you like.
  3. Don’t transfer money to an address that you have previously made public. )
  4. When using Tor or VPN, remember to use the new public address. When you want to spend funds from the new address, you can access Tor or VPN and then to your Bitcoin network. Your IP won’t be tracked.

Rule of thumb: Do not publicly reveal any address or associate any address to your true identity. It becomes very difficult to find you.

Buy & Sell Bitcoins in Cash

Face-to-face cash transactions are another anonymous method of transacting Bitcoin transactions. To remain unknown in such transactions, follow these certain dos and don’ts:

  1. Always access your account via Tor or VPN.
  2. Register using burner email like Protonmail or Guerrilla Mail. Don’t share your email address or real identity.
  3. LBC can help you find a trustworthy seller/buyer to trade cash with. You are safer if sellers/buyers have positive feedback and a solid reputation.
  4. To coordinate the meeting, use a burner or public phone.
  5. Pick a public space to host a meeting that offers free Wi-Fi access.
  6. Reach the venue, place your order, and wait for 2-3 confirmations.
  7. Avoid using your personal car for commutes. Your vehicle number may expose your identity.


Let’s assume you want to be careful and don’t trust a centralized administrator to anonymize your coins. JoinMarket is another option.

This is not software or service. It’s a marketplace. JoinMarket brings together market makers and takers to create special transactions called “CoinJoin transactions.” This marketplace arranges the correct amount of coins at just the right time and in the right place. This market allows you to take your coins and pay a nominal fee to the maker who is willing to mix them. CoinJoin allows for the mixing of coins without Escrow or central parties. In this specific transaction, private keys are almost always under the user’s control.

The market isn’t as popular right now and doesn’t have a lot of traffic. It takes a lot of knowledge and time to install the JoinMarket App. You can still give it a try if you visit this link for more details.

Making Bitcoin Transactions Untraceable

Bitcoin, by design, is not anonymous. But if it is used safely, it may provide you with more than enough privacy. These are temporary solutions to anonymize Bitcoin. This technology is still in its infancy and has much to learn. Bitcoin is also being challenged by peer currencies such as Dash and Monero, which offer anonymity as a core feature at the protocol level. As cryptocurrency matures, anonymity will become more common. For the moment, we need these solutions.

Is Bitcoin Untraceable?

The short answer to that particular question is both yes and no. It all depends on how anonymous you were at the time of the transaction. You can purchase Bitcoin on a non-KYC exchange by using an anonymous Bitcoin wallet. To hide your IP, you should also use a VPN. Your bitcoin transactions will be available for public access on the blockchain. However, as long as they cannot be traced back, you are safe.

It is difficult to maintain anonymity in Bitcoin. Transparency is key to all transactions. It takes expertise and hard work to remain private. While it may not be possible for most users to hide their financial records from government agencies, the majority of users just don’t want the rest of the world to see their spending habits, income, and assets. It is our responsibility to use good practices to protect our privacy.

Thankfully, provides fast and secure servers and 24/7 technical support, making it easier for you to achieve the high level of privacy you’re looking for.