Anonymous Cryptocurrency: How anonymous is cryptocurrency?

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Anonymous Cryptocurrency

Anonymous Cryptocurrency: A decade after crypto began, it is still decentralized, which means it is not regulated by the government and is therefore anonymous.

But how anonymous is cryptocurrency?

When the digital currency, particularly Bitcoin, was invented in 2008 by an unknown group called Satoshi Nakamoto.

They introduced the unique blockchain technology that enables the anonymous exchange of cryptocurrencies that do not require identification. Instead, it uses hash-generated wallet addresses that are similar to the human eye but are different on computers. This is a series of fractions that contain both uppercase and lowercase letters.

Read More: Bitcoin: Bitcoin fees increased 198%, but Ethereum is even more profitable

Anonymous CryptocurrencyAnonymous Cryptocurrency: How anonymous is cryptocurrency? | Trending Update News

 

 

Cryptocurrency is anonymous in the sense that various transactions related to the digital currency, such as buying, selling, or exchanging currencies, use encrypted addresses. Every user has a personal and public address for their crypto wallet in which they store their digital currency.

The secret code is useful as a user’s signature when sending digital currencies. While the public key is useful in receiving changes. This makes transactions undetectable for any identity.

However, blockchain technology is like a useful universal transaction review. Which means the information is publicly available to users. Also, on many wallets, traders have to share their identity on the exchange with third parties like KYC (do you know your customers). Which means the transaction can be traced back to the user.

As long as the exchange platforms retain the discretion of the user identity. Their identity could be disclosed in cyber cases.

The ability to conduct anonymous transactions with cryptocurrencies has led to an increase in illegal activity. A common example is Wannacry Ransomware, which hit many computers around the world with attackers demanding a ransom in the form of Bitcoin to avoid detection.

The anonymity of the cryptocurrency has also been linked to black market transactions, tax evasion, money laundering, etc. Which can leave you exposed to strict government regulations in To Come.

Is it possible to buy bitcoins anonymously?

Anonymous Cryptocurrency: How anonymous is cryptocurrency? | Trending Update News

Yes, it is possible to buy bitcoins anonymously as you may want to invest or host bitcoins for future use without letting the world know. One way to buy bitcoin anonymously is to find a bitcoin provider near you and collect them for physical bitcoin exchange for your fiat currency or another asset.

But it would be better if you could find a legitimate and reliable seller. Another option is to buy bitcoins for cash at a bitcoin ATM near your physical location. While this is a digital way to conduct a transaction, you can find out that you don’t have an ID or are using a pseudo ID.

You can also buy bitcoins anonymously through a cryptocurrency exchange like godex.io, which allows the user to conduct an anonymous exchange. You can use a different identity if you want to hide your identity from the seller, which ensures complete discretion in the transaction.

Another clever way to buy bitcoins anonymously is to use different wallet addresses for each transaction. With so many Bitcoin wallet addresses, trading is not traceable to you, but with advances in technology, it will be impossible in the future.

What is the most anonymous cryptocurrency?

Anonymous Cryptocurrency: How anonymous is cryptocurrency? | Trending Update News

Currently, the most anonymous cryptocurrencies are Monero and Zcash. Zcash offers unique security features to hide transactions. However, they must be informed by the user and restricted to certain transactions.

This reduces privacy as cryptocurrency anonymity requires all transactions to be discreet. Monero, on the other hand, offers unique features for the anonymity of all transactions.

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Now that you know the most anonymous crypto in the world, you can use these platforms to create secure cryptocurrencies.

That’s all for now. If you still have doubts about encryption and anonymity, remove your questions in the comment section below.

Also Read: 5 Reasons why you should choose cryptocurrency

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