How to buy cryptocurrency

Looking to buy research chemicals anonymously? Hate providing your photo ID to different Bitcoin exchanges? In this guide I will attempt to answer all of your questions on the best way best to buy Bitcoins and stay completely anonymous when using it.

Buying Bitcoin Anonymously Summary

Despite its reputation, Bitcoin is not entirely anonymous; With every transaction publicly revealed on the Blockchain and identity verifications required by sellers, it’s easy to see how your Bitcoins could be traced back to you in theory.

You will find methods to purchase Bitcoin anonymously with cash such as Paxful or Bitcoin ATMs. What’s more, there are places that require minimum identification and not automatically your authentic identity, like BitQuick.

Finally, to really get’off the grid’ and be anonymous you may require solutions such as Tor and TAILS, coin mixers, a VPN provider and more.

The price for anonymity is usually annoyance, and vice versa. It is all up to some user to decide just how much he or she is willing to forfeit for another.

That’s how to remain anonymous in summary. If you’d like a deeper comprehension of this procedure continue reading, here’s what I’ll cover:

  • Is Bitcoin Anonymous?
  • The Way to Use Bitcoin Anonymously? (Basic Guide)
  • The Way to Become Anonymous? (Advanced Guide)
  • Anonymizing Your Bitcoins
  • Frequently Asked Questions

No it isn’t. While Bitcoin is still a lot more personal than credit cards, it is still much less anonymous than hard cash. The way Bitcoin works, all Bitcoin trades are kept in a public ledger known as the blockchain.

The information stored in each of those transactions includes a bitcoin payment sum, the Bitcoin addresses of the sender and the Bitcoin address of the recipient. Since every transaction uses the bitcoins in the prior transaction, and the blockchain is general data, every Bitcoin payment includes a traceable history which may be viewed by anybody.

While speeches are 100% traceable they can not be linked to some person or entity. That is why Bitcoin is often called pseudonymous or pseudo-anonymous. But a person’s identity could be related to a Bitcoin address through other ways. Once the association has been made, somebody with sufficient determination, time, and assets can examine the blockchain and determine how many bitcoins someone gets, how they get themand how they pay them.

To use Bitcoin anonymously, precautions need to be taken to stop your authentic identity from being connected with your trades and addresses.

3. Easy Methods to purchase Bitcoin Anonymously

Note: On June 2019, the popular website LocalBitcoins removed its option for in person cash transactions.

Strategy 1 — Paxful If you’re looking to buy Bitcoins anonymously then the easiest way would be to purchase Bitcoins in money and in person. Use Paxful to find someone who’s willing to sell Bitcoins for money next to your physical location. It is possible to use an alias email address to sign up to Paxful along with the confirmation id process they’ve is discretionary. When you use cash it’s easy to remain untraceable as there is not any documentation for the transaction.

Keep in mind that most sellers on Paxful do not like to conduct business with anonymous buyers, however as you’re paying cash it ought to be less of an issue.

Strategy 2 — Bitcoin ATMs Another way to purchase Bitcoins anonymously with money would be to go to your nearest Bitcoin ATM and buy Bitcoins in the ATM using money. Purchasing Bitcoins through an ATM is probably the best way to begin purchasing Bitcoins anonymously however not everyone has an ATM alongside them.

When asked to enter your Bitcoin address in the ATM simply specify you don’t own one — in many cases this will just generate a brand new paper wallet for you and you are good to go. Later on you can import the private key from that paper wallet and send those Bitcoins where you like.

No. Bitcoin ATMs don’t require identification but they’re limited in the amount of Bitcoins you can buy. Do Bitcoin ATMs charge a fee? Yes. In the event the fee isn’t stated explicitly it is”hidden” inside the exchange rate.

After that you can use this card to purchase Bitcoins without needing to supply any sort of identification through vendors on LocalBitcoins or even Paxful.

3. Buy Bitcoin Without Verification / Photo ID The following places permit you to purchase Bitcoins without the need to verify your identity, but they don’t accept money.

BitQuick
BitQuick functions as an escrow for Bitcoin transactions via money deposits at tens of thousands of banks across the united states. The concept is simple — seller and buyer agree on a level. The vendor deposits the Bitcoins at BitQuick. When the buyer deposit the money to the seller’s account the coins are published. A mobile phone number is needed for this process but no id verification is required. Unlike a picture ID, a cell phone number is easily purchased with an anonymous email via Skype for instance.

HodlHodl  Website is https://hodlhodl.com HodlHodl is a global P2P Bitcoin exchange, that permits users to trade directly with one another. The site does not hold user’s funds that lets it avoid KYC and ID confirmation processes. HoldHold locks user funds in multisig escrow which minimizes the chance of Bitcoin assets thieving and reduces trading time.

Bisq
Bisq is a open-source, peer-to-peer application that permits you to purchase and market cryptocurrencies in exchange for national currencies. Bisq does not hold any bitcoins. Much like HodlHodl all of cryptocurrencies are stored in multisignature addresses instead of a Bisq-controlled wallet. Fiat is transferred directly from 1 dealer to the other.

4. Before we go deep to the’the best way to stay anonymous’, we will need to understand why is it important to become anonymous in the first location. The principal reason most often is that you don’t wish to get hacked or become a possible target. Raising your privacy level will lower your risk of these activities. Bitcoin’s blockchain is built on rock-solid cryptography which prevents counterfeiting and other kinds of fraud, but the human element in Bitcoin trades is always the”weakest link.” Using an online pseudonym (e.g. Satoshi Nakomoto) will enhance your privacy but bear in mind that a competent investigator may identify you within a normal online connection.

Most Bitcoin pockets broadcast your actual IP address, which can then be easily related to your address(es). As all Bitcoin trades are a matter of public record, any speech that becomes connected with your identity reveals 4 significant pieces of information:

How many Bitcoins you hold or held within that speech Exactly when you received these bitcoins Who you received these bitcoins from (unless they use effective privacy methods) The address to which you send these bitcoins (that, like 3, may identify its owner).

Bitcoin wallets with coin control features allow you to make payments from pick addresses (technically called UTXOs) giving you some control over what addresses you expose. On the other hand, the manner that most Bitcoin wallets manage change frequently contributes to various addresses within the wallet getting connected.

As a result, one identity-associated address under your control can”flow” information about your other,”unknown” addresses.

5. The Way to Use Bitcoin Anonymously? (Basic Guide)

As I suggested, it is possible to assume as a starting point that all addresses inside your Bitcoin wallet could be linked to your identity in 1 manner or another. If you’ve purchased coins from an exchange with identity verification procedures or done business under your real name, this is very possibly the case.  The good news is that your privacy can be partially or completely recovered from this condition.

Improve Bitcoin Privacy Whenever possible, prevent re-using addresses. Create a new address for every trade you receive. While there’s very little point updating a static address associated with your identity, like a Bitcoin suggestion address connected to a social media profile, but that is recommended practice in most other situations.

It is best to use HD wallets if possible which allow a virtually infinite amount of addresses to be connected to a single private key. Improving Your Online Privacy If you browse the net from precisely the same computer or device you use for Bitcoin, you’ll definitely want to upgrade your privacy and security attributes. The information website, Prism-Break, supplies many different recommendations for various operating systems and devices. At a minimum, look at installing advertisement and JavaScript blockers, in addition to denying or regularly clearing cookies. HTTPS Everywhere can be suggested to encrypt and secure online surfing. Remember — when picking privacy / security / encryption applications, mature and open-source alternatives are usually preferable. Instead, they query a single SPV server for the trades that involve the speeches on your wallet. While this operation is far more efficient and fast compared to parsing the blockchain locally, the trade-off is that every Bitcoin address you have is filed to the SPV server. Almost all SPV pockets (also known as thin or light pockets ) leak which addresses you own to whatever SPV machine they relate to. Some SPV pockets possess the capacity of using bloom filters to help hide which addresses you have by requesting extra transactions which don’t involve your wallet. Electrum, for example, doesn’t use bloom filters in any way, so any server you connect with knows every address that you have. Exotic customers (wallets handled by a 3rd party like Coinbase) are much worse in terms of anonymity. All of your private and public keys reside on 3rd party servers, so it is trivial for the operator to understand which Bitcoin addresses you have. Furthermore, any other info you have submitted to the service is connected with your Bitcoin addresses and can be easily obtained by the agency’s operators. These kinds of wallets make it simple for a SPV server operator or support administrator to not just understand which Bitcoin addresses you have, but also connect them with your IP address. The operator could escape the information, lose it, or expose it if subpoenaed or NSL’d to supply logs to law enforcement or government agencies. One of the principles of Bitcoin is not needing to trust any single party. Concerning anonymity, it’s best to use a complete Bitcoin customer like Bitcoin-Qt or even Armory, and save the entire blockchain locally. Managing Passwords Human-memorizable passwords are normally weak. This problem and its solution are best demonstrated by the subsequent XKCD webcomic: Using your own variant on”correct horse battery staple” for multiple accounts is also a bad idea, from a security and privacy perspective. Attempting to memorize another password for tens of thousands or even hundreds of accounts is likewise a recipe for failure. The remedy would be to use an excellent, random-word password along with a password manager. Password managers create strong, lengthy and random passwords that you do not need to memorize. Your passwords become accessible only when you input your master password into the manager (which should be memorized rather than composed ).

6. The Way to Become Anonymous? (Advanced Guide)

Online safety is often characterized as a trade-off involving convenience and effectiveness. It’s your responsibility to select on that end of this scale you wish to be. In this chapter I will review methods that require more effort, but also make your measures less traceable. Disguising Your Own IP Address using Tor The initial step to be anonymous is utilizing Tor, a effective anonymity instrument. Stop by TorProject.org to download and then set up Tor (short for The Onion Router ). Once activated, Tor opens as a different, Firefox-based online browser that disguises your own IP address. Tor works by routing your connection through several other participating computers. The ultimate effect is that whichever website you get will see your request as coming from an entirely separate server, usually at another state or nation. Although it masks the IP address and specific possibly identifying browser attributes, Tor is undoubtedly a comprehensive privacy option. Using your real name, obtaining your regular email or registering into social media via Tor will have precisely the same de-anonymizing impact as doing so through a regular browser. For a more private email address, make a dedicated darknet email account for Tor use, like a Mail2Tor account. Note that Tor also disables JavaScript by default; sure websites won’t load properly without JavaScript but re-enabling it could be potentially de-anonymizing. As soon as you’re surfing through Tor, you could also get into the darknet to research online anonymity further without undue concern within prying eyes. Caution: There’s a known attack in which malicious exit nodes in the Tor network function a fake version of LocalBitcoins which phishes log-in information. Running Bitcoin via Tor Once you feel comfortable enough with Tor, it’s time to make your Bitcoin addresses anonymous. To accomplish this you want your wallet to connect through Tor. 1 solution can be using Bitcoin heart, which as of release 0.12 automatically connects through Tor in case it finds its presence. To force this behavior, follow these instructions on Bitcoin’s GitHub. Below are some further tips on Reddit. Consider installing a new wallet which only ever connects through Tor. To do that, disable the internet connection and configure the new wallet to run entirely via Tor before launch it. You will then re-enable your online connection and make it possible for the wallet . When using a complete wallet, then copying an existing cubes folder (make sure that you don’t also replicate your wallet.dat folder) into the”Tor wallet’s” data directory will considerably speed the syncing process. Directly transferring bitcoins from the old pocket to the new one will somewhat obscure the possession of these coins. However, there are far more sophisticated procedures of transferal (covered later) that is effective at distributing this flow of funds. Consider Joining a Virtual Private Network (VPN) According to Tor doesn’t guarantee 100% privacy. An adversary who owns both the first and final machines you join through will see your IP as well as the sites you get. If you’re willing to cover a little additional piece of mind, contemplate a VPN service. Rather than accessing the Web — or Tor — directly, your link will be routed via the VPN’s servers. In reality, the majority of VPNs allow you to spoof the viability of your IP address (which can be helpful for accessing location-specific data). VPNs also provide security benefits. They act to display your device from malware through firewalls and proxies. Unlike certain sites which block access from known Tor routes, VPNs generally afford unlimited accessibility and higher bandwidth compared to the Tor network. It’s entirely feasible to access Tor via a VPN for another layer of obfuscation. Disk Encryption Leaving traces of your activity on your hard disk or removable media reflects another way in which anonymity may be compromised. Disk encryption software enables you to encrypt a document, folder or entire drive such that it can no more be accessed without a password. Encrypting your own Bitcoin wallet file and some other sensitive data stored in your computer is good practice. With decent disc encryption software, you can create multiple, secure copies of your most important files and information and distribute them on USB memory sticks and the like. Wikipedia provides a fantastic contrast of the available disk encryption software options. Do not rely on the Windows BitLocker app; unlike open source alternatives it isn’t provably secure. Caution: If you forget or lose your encryption password, you are going to eliminate access to some encrypted files. No recovery! The Amnesic Incognito Live System (TAILS) Ultimately, if you are serious about your privacy, you’re going to want to bring all of the above approaches together in a secure operating environment. Regrettably, standard operating systems don’t prioritize solitude. Windows, for example, is known because of its attempts to track users. It therefore makes sense to boot into a secure, privacy-respecting operating system before trying to ship Bitcoin anonymously. The best possible option here’s TAILS, a variant of the Debian-based Linux operating system, which by design leaves no trails. Don’t worry if you’ve never used Linux before, TAILS comes with an interface that will be familiar to any Windows or Mac user. TAILS can even mimic the appearance of Windows so that casual onlookers won’t detect anything unusual about your computer use. To boot into Tails on start-up, the USB drive must be formatted as bootable via a program like Universal USB Installer or Rufus. Be aware that installing and maintaining Tails updated will need two such USB devices. If you wish to begin using TAILS it is possible to use this simple online tutorial. Shifting your Bios set up to booting from TAILS in contrast to the hard disk permits you to use untrusted computers and networks securely. This means you can anonymously send Bitcoin from a public, monitored computer, like those in a library or online café, without any traces of your individuality or action. While TAILS does easily conquer any software-based data logging, remember that Tails can not protect against hardware keyloggers or hardware screen capture. Fortunately, TAILS includes a virtual keyboard along with other mouse-driven text entry software. TAILS shops no information regarding applications you use, websites you visit (via its built in Tor browser) or anything else. But, TAILS does allow you to make an encrypted, steady quantity inside your USB stick. Any data placed in the continuous volume will be preserved between sessions. It is advised to keep your password supervisor data file within this volume.

7. Anonymizing Your Bitcoins

in case you have bitcoins that have already be in some way tainted with a link that could identify you, it’s possible to break that link and effectively anonymize the coins again. If done correctly, future transactions from that point forward will not be linked to you . Tumbling Coins through Mixers For anonymizing purposes you will find mixers (also called tumblers). The fundamental idea is that you send the coins you want anonymized to the mixer, which in turn sends back the same amount minus a fee to a new address you provide. The coins you get back are out of a significant pool maintained by the mixing service and should ideally not have any connection to your original coins. The significant flaw of the concept is its centralized character. You have to trust that the mixing service to provide back your coins and additionally you have to trust that they do not maintain any records of those performed mixing transactions. Especially the latter point is tricky, since you can never know for certain what they are doing with the information. In case the mixer really doesn’t keep any transaction records, they have no way to prove it. On the other hand, if they do not or are even forced to deliver their information, you have no way to know. BitMixer works fairly fast, mixing through Helix sometimes takes a few hours. A trust less, decentralized method of mixing can be discovered in JoinMarket; an execution of a privacy-improving technique first suggested by heart developer, Greg Maxwell. This infographic provides a gentle introduction to the workings of JoinMarket. Although a fairly easy idea, in the present state of development, JoinMarket represents a more complicated undertaking than sending coins via a mixing website: If you’ve got a good understanding of Bitcoin and you’re prepared for a more hands-on approach, JoinMarket is highly suggested. Aside from giving you back control over the mixing procedure, it also reduces your risk and transaction fee. JoinMarket even lets you earn a little money by helping others mix their transactions. Another way to implement coin shuffling readily is to utilize Wasabi wallet. Obscuring the Path through Altcoin Shifting Why stop at blending between Bitcoin addresses? This method requires maybe a little less confidence than using a centralized mixing support. The very best altcoin to use for this objective is likely Monero (XMR). This short manual covers purchasing Monero with Bitcoin (tl;dr you can use Binance). To anonymize your bitcoins, only convert them to XMR, forward them to a new Monero speech under your control then convert them back into new, anonymous BTC. Another example for a Website for converting between Bitcoin and Monero is XMR.to. Don’t forget to get it through Tor and don’t worry about sign-up.

9. Conclusion — Anonymity comes with a price

To sum things up, it’s up to you to choose how much anonymity you truly need online. The more anonymous you’ll want to be, the more effort you’re going to have to have in order to navigate across the net. This guide brought you the main tools and techniques at your disposal so that you may mix and match whichever function best for you. If you’re just looking to purchase a couple coins without being tracked, just use cash — it’ll solve most of the difficulties. However, If You Would like to get real serious about using Bitcoin anonymously round the web, then there is no other way than going through the trouble of becoming truly and totally anonymous… If you have had some experience with purchasing Bitcoins anonymously I’d love to hear it from the comment section below — do not worry, you can use an alias