Untraceable Bitcoin: Are BTC Payments Anonymous And Transactions Really Private?

    Untraceable Bitcoin: Are BTC Payments Anonymous and Transactions Really Private?

    Bitcoin (BTC), the largest and most popular digital currency in the world has been used to perform transactions that allow users to remain anonymous. Privacy is something that many individuals are trying to protect in times where data moves at all times on the internet. Bitcoin was able to offer a new method for payments that are in charge of protecting users’ information. The main question is whether Bitcoin is as anonymous as we suppose.

    Bitcoin And Its Anonymity Features

    Bitcoin is now on the media after being able to surpass $7,000 a few hours ago and leave a bear market behind that started in January 2018. The cryptocurrency market is now very excited about the future of the cryptocurrency and how it could keep expanding.

    Bitcoin has been growing as a digital currency that can be traded and that users can use without being experts. One of the main features that Bitcoin has is that it provides users with a string of letters and numbers that protect the identity of those transacting with it.

    Although many individuals think that Bitcoin is anonymous, the digital currency is pseudonymous. That means that transactions can be linked with a specific address in certain circumstances. People with knowledge would be able to know from where and to where a Bitcoin was moved.

    At the same time, companies that allow users to buy and sell digital assets require personal information for the firms to be compliant with Know Your Customer (KYC) and Anti Money Laundering (AML) regulations. That means that the firm is in control of the user data and who perform a transaction. Additionally, funds are not as safe as if they were in hardware or cold storage wallet.

    Nonetheless, if the digital currency is used directly with another user, individuals are not required to provide any data per se.

    There are other digital currencies that offer better privacy features than Bitcoin. Some of these digital assets include Monero (XMR), ZCash (ZEC) and in the future eventually Litecoin (LTC), among others. These digital assets use different systems and implementations that obfuscate transactions and allow users to have their privacy protected.

    Users that want to keep using Bitcoin can activate a VPN that will provide them with more privacy and protection. Moreover, Bitcoins can always be mixed in different websites, making the digital currency less trackable for blockchain analysts.

    Although Bitcoin is not completely anonymous, it is very useful for making international transfers and storing value.

    Get Free Email Updates!

    *Action* Enter Best Email to Get Trending Crypto News & Bitcoin Market Updates

    I will never give away, trade or sell your email address. You can unsubscribe at any time.

    Carl T
    Carl T
    Carl is a legend in cryptocurrency space for his long-storied experience, history and insights. He is a digital nomad who fell in love with bitcoin and its offspring for many years now and prides himself on delivering quality perspectives in the emerging world of crypto-assets and blockchain technology.

    [Alert] Use the author's self-conducted information at your own risk, do you own research, never invest more than you are willing to lose.

    [Disclosure] The published news and content on BitcoinExchangeGuide should never be used or taken as financial investment advice. Understand trading cryptocurrencies is a very high-risk activity which can result in significant losses. Editorial Policy \\ Investment Disclaimer


    Please enter your comment!
    Please enter your name here


    Live Bitcoin Price & Latest BTC Charts

    Today's Latest Crypto News

    Cash is King in Coronavirus Ravaged Economy But Bitcoin is “Next in Line to the Throne”: Hedge Fund Manager

    Mark Yusko, the CEO at Morgan Creek Capital Management says coronavirus is unleashing a once in a lifetime downturn. Yusko appeared on CNBC’s “Trading Nation”...

    Bitcoin’s is Gold 2.0; Billionaire Chamath Palihapitiya Lays Out BTC’s Path Forward in Macro Backdrop

    In the latest episode of The Pomp Podcast, host Anthony "Pomp" Pompliano had Chamath Palihapitiya, the CEO of Social Capital as a guest who...

    Binance ‘Leak' Signals Possible Bitcoin Options Trading Launch On The Exchange

    The competition across cryptocurrency exchanges in the crypto derivatives markets is heating up to a boiling point as yet another big player hints at...

    BTC Isn’t a Hedge Against Stock Market’s Poor Returns or Coronavirus But US Dollar & Inflation: BitGo CEO

    In 2020, Bitcoin has been following stock markets religiously, so much so that their correlation went to a new high. But now, the flagship...

    Netflix's ‘Tiger King' Villian, Carole Baskin at The Big Cat Rescue Accepts Crypto Donations

    With the Coronavirus (COVID-19) running rampant in the United States, Americans are drooling over the hot new docuseries on Netflix; “Tiger King: Murder, Mayhem...

    BitcoinExchangeGuide is a hyper-active daily crypto news portal with care in cultivating the cryptocurrency culture with community contributors who help rewrite the bold future of blockchain finance. Subscribe on Google News, see the mission, authors, editorial links policy, investment disclaimer, privacy policy. Got News? Contact us, we are human too. Note: nothing here is financial advice, do your own research thoroughly.