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How Anonymous Is Cryptocurrency?

Cryptocurrency

Cryptocurrency emerged as a solution to many problems fiat posed for people. One of them was the traceability of transactions, and crypto seemed like the perfect alternative. But are cryptocurrencies indeed untraceable?

If you use digital coins, you won’t need to provide your private and banking data to buy various products or services. However, you should consider several aspects if you want to make your crypto transactions anonymous.

1. Opt for Private Cryptocurrencies

Take into consideration that not every digital coin offers the possibility to keep the information about your transactions under wraps. For example, the well-known Bitcoin was used for different illegal purchases right after its launch. 

Even now, many people believe that this cryptocurrency is impossible to track due to the specific addresses that include many numbers and letters.

However, the truth is that BTC, as well as the majority of other cryptocurrencies, are pseudo-anonymous. They include information about the wallet’s owner. Moreover, even Bitcoin creators recommend using a new wallet address for each transaction if you wish to remain anonymous.

The good news is that some privacy coins can help you avoid various problems related to crypto transactions. All in all, there are 6 attractive options that are worth your attention:

  • XMR
  • ZEC
  • DASH
  • XVG
  • ZEN
  • Beam

Each of the mentioned digital coins can boast a built-in privacy feature. It means you can use these cryptocurrencies for purchases without revealing your identity. 

Unfortunately, you should also take into account that some of these digital coins will ask you to pay additional fees for the usage of their privacy features. Always check this aspect before you confirm the transaction.

2. Choose Anonymous Exchanges

Crypto investors often have to exchange their digital assets. Unfortunately, many popular crypto exchanges ask their users to provide information about their place of residence and private data. It means that you won’t be able to use your digital coins anonymously.

At the same time, such crypto exchanges as Binance and Bitfinex offer the possibility to convert your digital coins anonymously but with some limits. For example, Binance will allow you to withdraw only up to 2 BTC if you haven’t provided the platform with your private data and passed KYC.

Fortunately, there are reliable decentralized crypto exchanges that may soon change the entire game. These platforms allow you to conduct anonymous exchanges without compromising your personal data. 

However, you should be extremely careful when choosing such an exchange. Always check the users’ reviews before you start using a platform.

If you don’t want to spend hours analyzing different services, you should visit an anonymous cryptocurrency exchange that has already proved its reliability. Godex.io accepts 201 cryptocurrencies, including the mentioned privacy coins such as ZEC, XMR, and DASH. 

The website has a friendly UI and an awesome navigation system. Its built-in calculator will help you find out the amount of the desired digital coins you will get after the exchange process is complete.

In addition, Godex.io offers a noteworthy affiliate program. In case you decide to create an account, you will get 0.005 BTC as a welcome bonus. Also, the users get up to 0.6% of every transaction made by their affiliates.

The exchange has already become popular with crypto investors that appreciate their privacy. It has hundreds of positive reviews on such trustworthy websites as Trustpilot.

Godex.io Basic Facts
Exchange time 5-30 minutes
Accepted cryptocurrencies 201
Protection methods SSL encryption, protection from DDoS attacks, physical server protection

3. Use Mixers

If you want to use cryptocurrencies anonymously, you can also use additional security measures, like coin mixers. They allow you to remove the connection between the receiver and the sender of the coins, which makes it impossible to determine the origin of the transaction. 

There are many tools you can use for mixing your coins, and all of them work essentially the same — they take your digital money, shuffle it with other coins, and send you back small portions that are equal to the original amount in total. These services usually take a 1-3% fee.

Conclusion

As you can see, the anonymity of cryptocurrency depends on different aspects. First of all, you should remember that only several digital coins guarantee the possibility to use privacy features. Remember that you may need to pay additional fees to use them.

Also, you shouldn’t forget that only an anonymous crypto exchange will ensure that no one can track your transactions. It’s important to opt only for reliable services in case you don’t want to get scammed. 

Godex.io is an ideal option, with its powerful platform, impressive security level, and the possibility to exchange almost all popular digital coins.

Finally, you can take measures into your own hands and use specialized programs to hide your transactions. Apply coin mixers to your crypto assets to make them untraceable.

About the author

Brian Altman

Brian Altman is with us for the last 10 years and manages technology-related newsletters, blogs, reviews, and weekly opinion articles. He is a passionate writer and is the chief of content & editorial strategies. He writes articles on artificial intelligence, Blogging, SEO, Technology, and cryptocurrency. Brian Altman is a professional writer from the last 8 years in this industry and, in leisure time, he likes to be connected with people via social media platforms.

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