Cryptocurrencies such as Bitcoin are based on the blockchain, which is a fast, secure technology. But that doesn’t necessarily mean that cryptocurrency mining is private and anonymous. As such, one needs to make deliberate efforts to be able to use cryptocurrency anonymously. With the right steps, it is possible to conceal your history and spend your cryptocurrencies in transactions that cannot be traced back to your IP address.
The bottom line is that you do all it takes to secure yourself in crypto (how to use crypto currency anonymously). In the process, you will be able to stop hackers from accessing your details. After all, one only needs to track your spending habits to know how much you have in your cryptocurrency wallet. Here are some steps you could take:
1. Have a Cryptocurrency Wallet
Here is where you will be able to securely store your cryptocurrency. You need to be careful about the type of cryptocurrency wallet you choose. The best wallets for securing your private keys are those that are operated offline. Unlike their cloud-based counterparts, they are harder for hackers to access. Even though more expensive, hardware wallets are the most secure.
2. Buy Your Bitcoins Anonymously
There are various methods you can use to buy your cryptocurrency. The most common is through a cryptocurrency exchange, which is less anonymous. The reason is that a third-party is able to access your payment details. That’s why you should try buying from a private seller. Only that this method is less secure. Lastly, you could buy directly from a Bitcoin ATM which requires no personal identifiable information (PII).
3. Engage In Non-Traceable Transactions
To avoid falling prey to the most popular schemes of fraud, you should be careful about the kind of goods you pay for using cryptocurrencies. As such, paying for physical goods is a no-no. For the goods you bought to reach you, they have to be sent to a physical or postal address. That’s in no way anonymous. Thus, most anonymous transactions are those involving digital goods like games, software, movies, and music.
4. Buy Cryptocurrencies from Multiple Sources
It doesn’t matter if your cryptocurrency is Bitcoin. Mixing involves breaking the connection between you and the source of the coins in an effort to render transactions untraceable. Comparitech.com recommends that you use the Tor browser and Bitcoin Blender. Mixing involves creating two wallets and transferring your coins from the original one successively to the third one. That makes your transactions virtually untraceable.
The Most Popular Schemes of Fraud
If you are not careful, you could fall prey to one of the most popular schemes of fraud including the following:
- Fake Initial Coin Offers (ICOs). People lose their hard earned cash by buying into these fake ICOs. So don’t subscribe to any hurriedly arranged ICO.
- Shady cryptocurrency exchanges. Depositing your coins into fake exchanges could lead to loss of your money. In fact, Bitcoin.com (https://coinsutra.com/bitcoin/) has a whole list of such exchanges.
- Fraudulent wallets. Randomly picking a cryptocurrency wallet is a no-no. Always carry out due diligence before depositing your money in a wallet.
- Pyramid schemes. Beware of projects they encourage users to recruit new investors. That’s a Ponzi scheme and you are likely to be scammed.
- Phishing scams. This scheme involves s scammer stealing your login credentials including username, seed keys or password. He or she then logs in and steals your money.
As you can see, protecting yourself from possible fraud is a must. Failure to do so could mean losing all of your hard earned cash to various scams online. So be careful what you do both online and offline.