In today’s digital world, you reveal your identity many times a day, particularly when you make a transaction with a credit or debit card. This is because the financial institution or bank with whom your account is linked has all of your information and is monitoring you to see if you are engaging in any unlawful activity.
Bitcoin transactions differ in this regard. The Bitcoin transaction mechanism operates differently since there is no third party monitoring your transactions. Furthermore, each transaction has a unique anonymous bitcoin wallet address, which, surprisingly, does not contain any information about the bitcoin’s owner. The notion was mainly adopted to provide people freedom by removing any third parties involved, but this has a negative effect given that many people are involved in illegal activities.
Starting with the process—buying and storing Bitcoin anonymously
With the government becoming increasingly concerned about such exchanges, the regulations governing the acquisition of Bitcoins from exchange platforms have been more stringent in recent years. When purchasing Bitcoins through exchange services, one needs to supply some sort of personal information because the exchange is conducted with fiat currency like USD/EUR/IND.
Though purchasing bitcoin anonymously has been difficult in the recent past, there are a few options available. And don’t worry, you’re not breaking any laws by using the methods outlined below. In general, there are two techniques for purchasing bitcoins anonymously:
- LocalBitcoins
- Bitcoin ATM machines
After you have purchased Bitcoins anonymously, the procedure does not end there; you must keep them in an anonymous Bitcoin wallet. This part appears to be simple, but it isn’t. Because Bitcoins run on a decentralized network, if you lose the private key, you will lose access to all of your funds. We will now look for several anonymous Bitcoin wallets.
- Software wallet: This is probably the simplest form of anonymous Bitcoin wallet. All you need to do is install the wallet on your desktop or mobile and the rest is done. You can now easily transfer your Bitcoins in and out anonymously quite easily, and the best software wallet to look for is Electrum.
- Mobile wallet: Just like a software wallet, you have to install the software on your mobile, and you are ready to go. The best deal in mobile wallets is Bread wallet.
- Hardware wallet: These are one of the safest ways to store Bitcoins offline, as there is never a risk of being hacked. The Ledger Nano S and Trezor are the two most popular hardware wallets on the market.
Final thoughts on Anonymous Bitcoin Wallet
Cryptocurrencies, like Bitcoin, are an excellent way to transmit and receive money without relying on a centralized third party. As a result, users can stay anonymous using the system.
Governments, on the other hand, are beginning to impose new restrictions that might require every anonymous Bitcoin exchange to authenticate a new user’s identity before allowing them to buy Bitcoin with fiat currency. So, if this regulation is applied to all exchanges, you may no longer be able to acquire Bitcoin anonymously in the future.
However, for the time being, you can acquire Bitcoin privately and effortlessly
