How to buy Bitcoin anonymously?
Bitcoin is not anonymous
All Bitcoin transactions are recorded on a public, open blockchain that anyone can see.
There are even companies like Chainalysis that spealize in tracking and analyzing transactions on Blockchain.
Why is that a problem?
Governments have monopoly over money. They can print and spend as much money as they want. They do not want to loose their control over money.
Governments have a record of banning any alternate form of money when it starts becomming a threat to government issued money.
Crypto is a direct threat to Government’s monopoly over money. Hence most countries do not have favourable crypto laws.
Givernments exploit open nature of blockchains to analyze and track its citizens using cryptocurrencies.
Hence it is not a bad idea to keep your crypto anonymous even if crypto is not illegal in your country right now.
How are transactions tracked
Transactions on blockchains are recorded in form of addresses
Givernments link these addresses to real identies by making it compulsory for exchanges to know customer identities when they buy any crypto.
Exchanges are not allowed to operate in the country till if they do not follow KYC(Know your customer) requirements imposed by the governments.
How to get Bitcoin anonymously
One can acquire crypto anonymously if they do not reveal their true identity while acquiring the crypto.
Some ways that you can use to acquire crypto anonymously are:
Minning Crypto requires huge upfront cost for buying hardware. You will also have to use a good VPN service to hide your IP address that can be used to locate you.
Using VPN will reduce your rewards, but is the price you pay for mining crypto anonymously.
Work for someone anonymously
Setup an anonymous profile on freelance websites like fiverr or upwork and find work.
Provide your services in return for crypto without revealing your identity.
Meet someone anonymously
Find someone whom you can trade cash for crypto without revealing your identity.
You can find such people in crypto meetups or online. But this involves significant risk if large sum of money is involved.
There are some exchanges in some countries that allow you to withdraw small amount of crypto without KYC. These exchanges keep changing so search google for exchanges available in your area that do not require KYC for small amounts of crypto.
There are several peer to peer marketplace you can use to buy crypto with cash or giftcards that do not require KYC.
Make your Bitcoin anonymous
- Use mixers and coin join andf tumbler- whirlpool their drawbacks
- Make your own node
- airgap hardware wallet
Illegal in most countries – do not use lightly
They can run awaY WITH YOUR MONEY
they can reveal your identity so use more than 1 mixing services
How to keep Bitcoin anonymous
- How to store – wasabi samurai wallet, electrum
- How to pay biotcoin anonymously – give away your real name while buying shirt with bitcoin – convert to
- run your own node but on tor
- query transaction anonymously
Proposals to make Bitcoin anonymous
Clearly this a problem – will reach max pain point to change at protocol level.
If you are planning then go all the way – because selling bitcoin is a taxable event