Are you sure that your privacy is protected when you make a transaction on the Bitcoin network? Although the blockchain allows peer-to-peer financial movements, it also values transparency. It may be decentralized, but it doesn’t mean your anonymity is guaranteed. After all, how exactly can an Bitcoin transaction be traced? And how can you safeguard your privacy using cryptocurrency payments? This article will cover these crucial doubts for those who value their privacy and their Bitcoin. Let’s dive in!
Can an Bitcoin transaction be traced?
Yes, it can. In fact, all Bitcoin addresses are publicly visible on the blockchain.
Bitcoin was designed to be a transparent, decentralized platform where anyone can build apps. And part of that transparency is that all transactions are publicly visible on the blockchain.
When you make a transaction, sending Bitcoin to an exchange or a pool, for example, your wallet address is visible to everyone.
This means that any person can see how much Bitcoin you have in your wallet and your transactions histories. How much you sent other wallets, and how much you received from who. Also, it is impossible to delete the transactions’ history from the blockchain.
And although your Bitcoin wallet may not be linked to your identity, every transaction related to it can be traced back to you.
What does this mean for your privacy?
This traceability makes it difficult to keep your transactions private. You may not want people to have all this information about your Bitcoin wallet and transactions. After all, it’s no one else’s business but yours.
But how can you keep your identity unrelated to your Bitcoin ? If you’re sending Bitcoin to an exchange or another service, they will likely require KYC (Know Your Customer) verification. This means that you will need to provide your personal information, such as your name, address, and date of birth.
Every transaction you make from that exchange will be easily traced back to you.
So it’s not that easy to find a completely private way to use Bitcoin. But there are still ways to keep your transactions more private than they would be in a traditional financial system – or even a decentralized one like Bitcoin.
Tips to keep your Bitcoin transactions untraceable
There are a few things that you can do to keep your transactions private:
1. Use TOR to hide your IP address
If you’re not familiar with TOR, it’s a free software that allows you to browse the internet anonymously. When you use TOR, your traffic is routed through a network of nodes, making it difficult to trace back to your IP address.
Once you have TOR configured, your transactions will be much more difficult to trace.
However, keep in mind that even though your IP address will be hidden, your wallet address will still be visible on the blockchain.
And if someone can link your wallet address to your identity, they will be able to see all of your transaction histories. So, while TOR can help to improve your privacy, it’s not a perfect solution.
2. Have multiple Bitcoin wallets to use
Using the same wallet address for all of your transactions will make it easy for people to track your entire transaction history.
Instead, you should generate a new wallet address for each transaction. You can do this by using a service like Electrum.
3. Use Bitcoin-Mixer services for mixing your Bitcoin transactions
Thinking that everyone should have their right to privacy guaranteed, we created a mixing service that makes your Bitcoin transactions impossible to be traced back to you.
At mix-bitcoin, we mix your Bitcoin with the Bitcoin of other users, making it much harder to track any of your transactions.
We make it possible for you to exchange your Bitcoin – whose origin you want to be hidden – for the same amount of other Bitcoin with a whole different history. That is, you receive entirely different Bitcoin that have been previously mixed by us, totally unrelated to your old Bitcoin and wallet.
This requires you to use different Bitcoin wallets and safeguard your IP address using TOR, for example.
At the end of the day, you’ll not only get to keep the same amount of Bitcoin as before but also your privacy.
Interested? Get to know more about it by reading our Manual on how to mix your Bitcoin.
Privacy is a significant concern for many people who use Bitcoin. And although it’s not easy to completely anonymize your transactions, our Bitcoin-Mixer brings this solution to this issue.
There are ways to keep your privacy and ensure no one traces your transactions back to you.
Use our mixing services to keep your Bitcoin transactions private and your identity hidden. Try it out now!