How To Purchase and Use Bitcoin Anonymously?

Paigambar Mohan Raj
Source: Slam Blockchain

Privacy and decentralization are core pillars of crypto. Nonetheless, anonymity is something that is still something that is largely inescapable. Being on the blockchain, a user’s transaction is stamped publicly. However, there are ways one can purchase and use Bitcoin (BTC) without others knowing. There are even ways to buy the original cryptocurrency without an ID.

Contrary to popular belief, BTC is not completely anonymous. It is rather simple for transactions to be traced, once they are on the blockchain. However, there are ways around this. Purchasing BTC with cash is an easy way out of being traced. Users can use services such as Paxful and Bitcoin ATMs to escape being traced. Additionally, some services, like BitQuick, only require a limited amount of identification and may not necessarily require your genuine identity.

Last but not least, users will need tools like Tor and TAILS in addition to others if they want to truly go “off the grid” and be entirely anonymous. Usually, anonymity comes at a cost that is inconvenient and vice versa. Any user is free to choose how much they are ready to give up one for the other.

How to buy Bitcoin anonymously?

Paxful: Purchasing bitcoins in person and with cash is the most convenient option if users want to do so anonymously. Find someone willing to exchange Bitcoins for cash close to your physical location with Paxful.

To register with Paxful, users can use an alias email address, and their ID verification process is optional. Using cash makes it simple to avoid detection because there is no record of the transaction.

Bitcoin ATMs: Going to the closest Bitcoin ATM and purchasing BTC with cash is another way to purchase them discreetly. Crypto ATMs have become very popular of late. They are available in many countries such as the US.

When prompted to input a Bitcoin address at the ATM, users can choose to say that they do not have one. Most of the time, users will merely get a fresh paper wallet. Later, users can send the BTC wherever they wish by importing the private key from that paper wallet. Moreover, such ATMs do not require any IDs. However, there are limits on how much Bitcoin can be purchased.

Prepaid Card: Using a prepaid credit card that users can obtain at any grocery or convenience shop is one approach to maintaining anonymity. Then, users can use this card to buy Bitcoins from sellers on LocalBitcoins or Paxful without having to provide any kind of identification.

Why the need for anonymity?

All Bitcoin transactions are public information, thus every address that becomes linked to your identity reveals 4 crucial pieces of data. First, the amount of BTC you held or still hold at that address. When exactly did you get the Bitcoins? Who provided them to you? And lastly, the address where you transfer the BTC.

People primarily seek anonymity since they don’t want to be hacked or turned into a target. Raising their level of privacy will reduce the likelihood of such activity.