Cryptocurrency users are becoming increasingly aware that it is more difficult than never before to have their privacy protected, even using digital assets. As cryptos expand all over the world, regulatory agencies and governments try to impose Know-Your-Customer (KYC) and Anti-Money-Laundering (AML) policies to exchanges and other platforms in the space.
These KYC and AML policies have been established to protect users from crypto scams and other situations. However, they clearly make it difficult for users to remain anonymous while trading cryptocurrencies.
It is important to emphasize that digital assets such as Bitcoin (BTC) are not anonymous but they allow users to have pseudonymous.
One of the best ways to do remain anonymous while trading digital assets is by selling and buying them with other individuals on the street, meetings or groups. This is how virtual currencies started to spread and how Bitcoin was traded back at the beginning.
While buying virtual currencies online on websites such as Localbitcoin.com, the best is to use VPNs, Tor, fake names and fake email addresses. This would allow users to remain anonymous and avoid the site to track who you are.
Of course, this is not the best thing to find the cheapest BTC price. In general, these sites have commissions and users tend to sell their coins for a higher price.
Another way to acquire digital assets preserving users’ privacy is to do it using a Bitcoin ATM. In general, they have high fees and use exchanges to purchase the coins, but in general, they are good for those that do not want to give information about themselves.
It is also important for individuals not to talk about the investments in digital currencies that they have. This would not raise concerns from regulatory agencies or other individuals.
Using privacy coins is also a good way to protect users’ data and information. Some of these coins are Monero (XMR) or Zcash (ZEC). Users should create new addresses every single time they perform a transaction if they do not use privacy coins.
Furthermore, it is possible to use mixers and other tumbler services that allow users to increase their privacy. However, these are expensive services that take a small percentage of the funds transacted.
It is difficult to remain anonymous in virtual currencies, but there are some ways to increase privacy.