Home Crypto Currency Are Crypto Transactions Fully Anonymous?

Are Crypto Transactions Fully Anonymous?

by Matthew Harris

Paying for something using Bitcoin or other cryptocurrencies is the best way to get reasonable anonymity but it might be impossible to stay completely anonymous. Bitcoin provides an acceptable privacy level but cannot compete with cash, which provides complete anonymity. Unfortunately we have not made it to the point where cash on its own can be used to purchase anything on the Internet so remaining 100% anonymous is not achievable.

Pseudonymous vs Anonymous

When you send and receive cryptocurrency it will travel under a pseudonym. If your name is ever linked to that pseudonym then everything you do including making transactions will be linked to you. The pseudonym used with Bitcoin is the address where you get your currency. The blockchain stores the transactions made under this address forever.

Some users attach the transactions they make to a new address every time so that the different transactions can’t be linked to the same owner. It’s much the same as writing various books with a different pseudonym for each one. If somebody ever links the author to the person’s real name, the other books won’t be linked in the same way.

Even in this method, however, does not ensure an anonymity since multi-input transactions, which pull the currency from many addresses will indicate that all of the addresses belong to the same wallet. A multi-input transaction occurs when you send out a payment from your wallet. Once your identity is linked to even just one address in the wallet, all of the addresses will have lost their anonymity.

Crypto for Gambling Websites

Many people are finding a no ID casinos here on the Internet in order to remain anonymous. While you may end up playing with a pseudonym, your address and your identity will still have been established to a certain degree. This is, however, the best way to play if you do want to remain as anonymous as possible. Just like other casinos, gambling websites will only let you play if your identity can be established first. While you won’t have to send in any form of documentation at many of the sites, they do need to establish who is registering to play.

In order to further hide your identity when making transactions online you can use a VPN. This hides your IP address while at the same time encrypting your traffic. The websites that you end up visiting won’t be able to know your location or your IP address. You’ll need to use a paid VPN for this purpose, however, since free VPNs have been known to sell your personal information to third parties.

When staying anonymous is important to you, paying with cryptocurrencies is by far the best method of payment right now for you. While the cryptocurrency platform cannot guarantee anonymity 100%, it does allow you to make transactions through a pseudonym. Many businesses are allowing payments to be processed using this new currency, including online casinos and other online betting sites.

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