Bitcoin is not 100% anonymous. How to achieve reasonable anonymity?

Bitcoin is often referred to as an anonymous coin because it allows sending and receiving Bitcoins without providing any personally identifiable information. However, Bitcoin itself is not 100% anonymous in most situations. Sending and receiving Bitcoins is like an author publishing under a pseudonym. If an author's pseudonym is tied to their identity, everything they have ever written will be tied to them. With Bitcoin, your anonymity is the wallet where you receive Bitcoins. Every transaction involving that address will be permanently stored in that blockchain. If your address is linked to your real identity, then every transaction will be associated with you, but it is possible to achieve reasonable anonymity.

Buy Bitcoin Anonymously

The first thing you can do is buy Bitcoin anonymously.

The first option is to buy them with cash to avoid doing it online completely. Most online exchanges are similar and require you to upload your ID. You can buy Bitcoins with cash at an ATM or by meeting the seller in person. There is more information on how to buy Bitcoins with cash in the "Buy Bitcoin with Cash" section.

The second best option is to buy them on the VirWox website. This isn't really completely anonymous, as you'll need to reveal some information, but it's still better than most Bitcoin exchanges that require bank account and personal ID.

You don't need anything here, you just need a free account to make virtual transactions. With this account it is possible to buy another currency - Second Life Linden Dollars (SLL). You have different options to buy Linden Dollars, such as PayPal and Skrill. But a good option considering anonymity is paysafecard payment, with paysafecard you can buy Bitcoins in any store. With paysafecard you can cash out and your Virwox anonymous funds even without an ID, bank account or credit card. Then you can easily exchange your Second Life Linden Dollars for Bitcoins without verification.

Finally, you can also get Bitcoin through anonymous Bitcoin loans.

In our experience, it is not possible to purchase Bitcoin anonymously with a credit card.

Mix your Bitcoins

If you already have your Bitcoin, this is especially important because Bitcoin users can mix each other's transactions with other users by using mixers, hence the name Bitcoin "tumbling" or "laundry". It is a server that destroys the connection between you and your Bitcoin account. Mixers obscure the flow of your Bitcoins from one address to the next, and while Bitcoin mixers cannot guarantee 100% anonymity, they provide a very high level of anonymity.

We recommend you to use a high-quality online mixing service such as Bitcoin Mixer or Currency Mixer, which allow regular Bitcoin transactions for users who cannot be linked to the originals. To further strengthen the security of transactions, they provide the opportunity to use two or more forwarding addresses and an appropriate time delay to immediately delete all archive logs of related transactions. You can also use SharedCoin, as it is free, but a bit complicated. Alternatively, if using the anonymous Tor browser, you might try Bitcoinfog.

It is important to note that there are many scammers offering Bitcoin mixing services.

Bitcoins are usually stored in a software program called a Bitcoin wallet. If your wallet is identifiable with your personal information, then the above information will not help you. If you want to remain fairly anonymous when using Bitcoins, such as paying for adult sites, then you should at least register an anonymous account with a wallet and a disposable email address.

It is also possible to use a different wallet for each transaction to avoid being tracked across multiple transactions. This is like maintaining multiple separate identities. An easy way to maintain multiple wallets is to use a simple and lightweight software wallet - MultBit, which allows managing multiple wallets on a single software program.

If you want more anonymity we recommend making a Bitcoin wallet, but perhaps an easier way is to use the code at bitaddress.org.

The Open Bitcoin Privacy Project has released their first complete report on the privacy levels of various Bitcoin wallets, with the best and most private Bitcoin wallet being darkwallet, followed by armory and mycelium.

Anonymous Bitcoin Debit Card

E-coin is a British company that has launched a virtual and physical VISA debit card that can store Bitcoin. To use this debit card, you currently need to pay a small fee.

You can order a credit or debit card in USD, EUR and GBP. All it takes is a valid email address and basic personal information to register, which will be sent to your email address once you request the debit card. E-Coin does not currently offer Bitcoin debit card services to the US.

You can use the E-coin credit card until you reach a limit. You can get an unverified card and use it up to $2,500. Once you reach the limit, you will have to verify your identity - a scan of your ID or passport and proof of address, or order a new card, or if you prefer Mastercard, BitGold and Advanced cash debit cards are also available.

Bitcoin transaction records

Bitcoin transactions are never truly anonymous and can be tracked through the blockchain (the blockchain is a comprehensive database that records Bitcoin transactions).

Almost all transactions require you to verify your identity by sending a scanned personal identification card, and large transactions need to be reported to government authorities. When you use Bitcoin to pay for goods and services, you need to provide your name and address to the seller many times. This means that if someone is interested in tracking your transactions, he can use your ID information to track your future transactions or study your previous transactions. In short, this has compromised your security and privacy.

As mentioned above, this is why if you want to remain anonymous, you must both earn and spend Bitcoin anonymously.

Original text: https://plusbitcoin.net/bitcoin-anonymity/
Translator: slieta5
Reward address: 1CrCnYDtpYB7vYxXCpDw6joMvKE64XVxUQ
Editor: printemps
Source (translation): Babbitt Information