Cryptocurrencies are just like any other asset. Though it's not something anyone can steal, like money, it doesn't mean losing such is impossible. For this reason, you probably wonder how you can buy and hide such an asset. Thus, you may ask:
How to buy and hide cryptocurrencies. In general, you'll need an online wallet that can hold your cryptocurrency. Once you do, you can place some money and buy crypto in exchange for such. However, if you intend to hide it after purchase, you may need to do something slightly different.
In this article, we'll give you a walk-through in hiding the cryptocurrencies you bought. This way, you'll have an idea of how it will work.
Without further ado, let's get into it!
Can you buy crypto anonymously?
Cryptocurrencies like Bitcoin are pseudo-anonymous. However, the fact remains that transactions you made are traceable back to you.
Further, centralized exchanges have that know-your-customer information. With this in mind, cryptocurrencies would still be a doorway for your identity.
Thus, if you want to remain anonymous as you buy your cryptocurrency, you can do so through:
- Peer-to-peer exchanges
- Bitcoin ATMs
- Dark web tumbler services
Where is prohibited to own cryptocurrencies?
Although cryptocurrencies make quite a trend to most countries, some deemed it otherwise. As a result, such countries prohibit or ban all or a few of such currencies.
Below is a list of countries that prohibits, at least partially, the ownership and legality of cryptocurrencies:
- Macedonia
- China
- Russia
- Vietnam
- Bolivia
- Columbia
- Ecuador
- Kyrgyzstan
- Bangladesh
- Iran
- Nepal
- Thailand
- India
- Denmark
Of course, for some countries, there are exceptions and some special prohibitions. For this reason, it would be best to do your research, mainly if you belong in any of these countries.
How to hide cryptocurrency?
Since cryptocurrencies continue to increase their value over time, hiding them turns out to be a necessity nowadays.
If you're looking for ways to hide your cryptocurrency, you may want to check out any of the following:
Security Practices
Security practices play an essential role when securing your crypto holdings. It won't be enough to have any old two-factor authentication (2FA).
If you chose, it would be best to go for two-factor authentication instead of a phone number. Thus, permanently disable SMS 2FA on sensitive accounts like the ones managing your cryptocurrency. When a phone number can serve as a key to your crypto safe, hiding bitcoins behind such info is a bad idea.
Further, details like account passwords, usernames, pseudonyms, and other info should be unique.
If you can't trust yourself in remembering such complicated passwords, you can use password managers.
Social Awareness and Anonymity
As far as anonymity is concerned, make sure all records, memos, or information tying your identity is encrypted.
Further, you shouldn't give phone numbers out in public. Always remember secure virtual number service is traceable to route public calls to your device.
In short, you need to secure sensitive information so it won't be a doorway for hackers to access your crypto.
Another simple way to do so is to keep quiet. As long as you're the only one around you who's aware of your assets, it will less likely be susceptible to criminals.
Cold Storage
The term refers to keeping bitcoins and their private keys offline for better security.
If your private keys get exposed to the internet, the security brought by cold storage offers a better option.
One of the best ways is to use hardware wallets such as Trezor and Ledger. Such wallets enable you to spend funds without private keys.
Leveraging DEXs
Centralized exchanges like Coinbase, Binance, and Kraken make getting into cryptos easy. However, if you aren't trading, it would be best to stop storing your crypto.
With this in mind, it would be best to use decentralized exchanges with open source code. Such places have software and network data stored locally.
Trust lesser people
While trust is an awesome thing between every person, it's not the same when cryptocurrency and other assets get involved.
Thus, if you hide your crypto, it's always best to remember why you hide it in the first place.
The lesser people you trust with your assets, the safer it will be as you hide it.
How to hide cryptocurrency transactions?
If you want to hide cryptocurrency transactions, you can do any of the following ways to do so:
Bitcoin Mixing
Bitcoin Mixing refers to the process that tries to break likability or traceability.
Since transactions get recorded on a public ledger, anyone who traces a public address can identify the origin or destination.
Mixing solves such a problem by breaking the link between addresses. Below are some services that provide Bitcoin mixing are:
- BitMix
- Wasabi Wallet
- Samurai Whirlpool
Tor browser
Another way would be to use a Tor browser to connect with the network. It is a volunteer community believing in anonymity and surveillance-free internet usage. You can also use the Brave browser if you want something fancy.
Logless VPN
A log-less virtual private network doesn't store the history of your activities on the servers.
Instead, it encrypts every traffic and routes it to multiple servers. Further, some of these VPNs maintain a shared IP, making it difficult to pinpoint and trace one's identity.
Different address for every transaction
Most Bitcoin wallets can generate any number of receiving addresses. Thus, every time you receive bitcoins, you can use a new address.
It is a good practice to ensure anonymity. This way, it would be hard to link two or more transactions to you.
Buy or Sell Bitcoins in Cash
Another way to keep your anonymity would be to make Bitcoin transactions face-to-face using cash. Services exist for these transactions, such as Localcryptos.
Summary
Cryptocurrencies fall nothing short of value like our other assets. Thus, we can all agree on how crucial it is to know the ways to secure it. Whether by hiding it or keeping our transactions anonymous, it's all for the sake of securing our assets.
As of the moment, technologies have advanced, giving us several options to make such security possible. Still, it requires diligence and comprehensive understanding to maintain such security.
In the end, it's worth taking note of since it's all for our assets.
Published: 04/20/2021