The world’s first cryptocurrency, Bitcoin offers many benefits to its users. Among these benefits is the use of blockchain technology, a secure method of fast payments, low transaction fees, and so on. These features make blockchain technology very secure. But it isn’t very private. If you want to buy Bitcoin anonymously and you are tired of the process of verifying your identity in various exchanges, I will help you to remain completely anonymous when using Bitcoin.
Buying Bitcoin Anonymously
This is recommended for those who care about their data. Although transactions are recorded on the blockchain network, your authentication in exchanges makes tracking you easier. So Bitcoin is not anonymous but it is much more private than cash and other payment methods. There are several ways you can buy Bitcoins anonymously. One of these methods is the use of ATMs.
The following is a list of Bitcoin Anonymously buying methods:
Bitcoin ATM
You can easily buy your Bitcoin anonymously by having cash and visiting the Bitcoin ATM. (There are a number of ATMs in different parts of the city) You do not usually need an ID or verification to buy from an ATM, and you can easily buy Bitcoins with a fee (7% -10%). You must enter your cash and enter the address of your Bitcoin wallet. If you do not have a Bitcoin wallet, this device can create a new paper wallet for you and you can get its private key. You can then receive your bitcoins in your wallet.
Disadvantages of this method:
Bitcoin ATMs are not available everywhere.
Bitcoin purchase amount is limited
These devices probably have cameras, and this is not good for your anonymity.
Prepaid Card
These cards are available in most stores. With this prepaid credit, you can buy Bitcoins. Given that no identifiable information is identified from you you can buy from sellers in the peer-to-peer Bitcoin marketplace like LocalBitcoins. Examples of such cards include the GreenCard Dot and the Bluebird Card.
Paxful
With Paxful, you can also buy bitcoins in cash and in person. There is also no need for authentication in Paxful and you can use an alias email address to open an account. In Paxful you can find people who are close to you and want to sell Bitcoins in cash. As long as you pay the seller’s cash, there will be no documents and you can easily buy Bitcoins using cash.
Buy Bitcoin Without Authentication
You can buy Bitcoins using the following, without the need to verify your identity and personal information:
- BitQuick: The buyer deposits his cash into the seller’s account.
The seller will also deposit Bitcoins into BitQuick. After confirmation, amounts are released. - Coincorner: Ability to buy bitcoins without the need for any authentication.
- HodlHodl: A P2P Bitcoin exchange that does not require authentication.
Using Bitcoin Anonymously
There are many ways to use Bitcoin anonymously, which we will explore in order:
Create a new address
Create a new address for each transaction. Although this may seem simple, it can be very effective in protecting your privacy.
Coins Mixers
Using Coins Mixers can be another great option for anonymizing your Bitcoins. Click here for more information about Bitcoins Mixers.
Hosted Wallets
Avoid Hosted Wallets. For example, if your assets are stored in exchange, all private and public keys will be available to this third party. So your wallet address and the information you provide to the service are easily accessible. However, these services claim that they do not have access to any of the user information and all of them are encrypted. But the main purpose of Bitcoin (not having to trust any single party) shows the importance of this issue.
Using Tor (The Onion Router)
Tor is one of the best and most powerful anonymity tools that you can use to hide your IP Address. You can get started by downloading Tor, which is Firefox-based and at the same time, Tor disguises your IP address. Also, Tor disables JavaScript by default. But note that if you use the email address, mobile number, etc. to enter some sites, the Tor effect will be lost.
Virtual Private Network (VPN)
Your connection to VPN servers could be a better solution than Tor or your direct internet access. Using a VPN keeps your IP address secret and offers several benefits. Examples of these benefits are protection through firewalls or proxies, more bandwidth than Tor, unlimited access to sites, and more.
TAILS
TAILS or The Amnesic Incognito Live System is a Debian-based Linux operating system that can offer you good privacy which you can run on USB. The Windows Operating System may include permissions for Microsoft. So if you are concerned about your privacy and want to send Bitcoin anonymously, TAILS is a good option for you. This operating system has an Electrum light Bitcoin wallet and has created privacy, security, data encryption, etc for users.
Use Altcoin
You can convert your Bitcoin to Monero (XMR) in different exchanges. Monero is one of your best options for increasing your privacy. Once you have converted your Bitcoin to Monero, transfer it to your Monero wallet. Now you can convert Monero to Bitcoin and now you have an anonymous BTC.
Disk Encryption Software
Disk encryption software helps you to encrypt file/folder/drive and only by entering the password, you can access it. One of the uses of this program is to encrypt the Bitcoin wallet file and important information on your computer. Installing this program can be a good option to protect your sensitive data.
Conclusion
In this guide, we explored several ways to buy Bitcoin anonymously and each of these methods will create a certain level of privacy and anonymity for you. Bitcoin gives you more privacy than other payment methods. But if you are looking to buy Bitcoin without disclosing identity information, IP Address, id, etc, the introduced methods are the best options for you.