El Salvador just declared Bitcoin as a legal tender after the rapid growth of that cryptocurrency. Perhaps cryptocurrencies are becoming more popular because of the anonymous and untraceable payment methods, but how secretive is Bitcoin really?
Bitcoin and other cryptocurrencies are more revealing than you think, even if you use an app to buy them.
Bitcoin buyers are not always anonymous as cryptocurrency wallets are not fully anonymous. You can track bitcoin transactions with them.
Bitcoin and other cryptocurrencies use fake names to encrypt wallet addresses. Since it's encrypted, your wallet address is easy to track; they appear quite easily.
Cryptocurrency exchanges require you to verify your account with a copy of your identification, which could be a driver's license, passport, or ID.
Get a bitcoin wallet and be safe.
You can be tracked to find out your bitcoin address, how much you have, and when you bought it just by asking the company that you made the purchase.
How to buy bitcoin anonymously
Having anonymity for Bitcoin is hard and expensive to maintain. To hide the origin of a bitcoin transfer, a special protocol must be configured. After making your bitcoins anonymous, they need to constantly change hands, or else they are no longer hidden.
One way to buy bitcoin anonymously is by mining it yourself. This, however, is an expensive practice and only profitable in countries with low electricity costs.
There are a variety of ways to buy Bitcoin anonymously. One way is to use a Bitcoin ATM and wait for your BTC deposit to be confirmed on the blockchain, which takes around ten minutes or so. You can also purchase this cryptocurrency with cash in the field of view of CCTV cameras without face-to-face contact by physically meeting the seller, who will have its cash in hand. However, this means that you need to transfer a lot of physical notes for such purchases.
Some cryptocurrencies are not as anonymous but offer better means of hiding a user’s wallet address. Bitcoin is one such cryptocurrency, as is Monero, Dash, and Zcash.
Well, that’s just a start to the topic. Sure, Bitcoin may not be anonymous, but it has been able to continue without being hacked in the past because of its encryption. And there are a ton of apps on Android that want to steal your cryptocurrency. To find a secure crypto wallet, we recommend researching!