How do you make crypto untraceable?
It’s an important question if you want your crypto to be safe.
The question becomes even more important when considering how the government can use the technology to their advantage. There’s a lot of money at stake, so it’s important to know how to hide your tracks.
No matter what anyone says, there is no way to make your bitcoins completely anonymous at the protocol level. So the question is, ‘how do you make these transactions anonymous’? Here is one solution: Bitcoin mixing.
What is a Bitcoin Mixer?
A bitcoin mixer is a service that mixes different streams of cryptocurrency that could be used to identify them. This makes it harder to track bitcoin, which makes transactions more secret.
The problem with traditional cryptocurrency transactions is that they can be traced back to the sender and receiver. This means that if someone wanted to find out who sent money to your wallet address, they could do so by examining the blockchain (the public ledger of all bitcoin transactions). This also means that if you’re trying to hide your identity from people trying to track you down, using a mixer would be helpful.
What kinds of Bitcoin mixers are there?
There are two different kinds of Bitcoin mixers:
centralized and decentralized. Centralized mixers are companies that take Bitcoin and send back other Bitcoin for a fee. This is a simple way to tumble Bitcoin.
Decentralized mixers are more complicated than centralized but provide greater anonymity and privacy.
In a decentralized mixer, you send your coins to an address made by the network instead of a centralized service provider.
When you make a transaction on the blockchain, it’s broadcasted to all nodes on the web, but no one knows who is sending or receiving coins at any given time.
Is it illegal to “tumble” Bitcoin?
People trying to hide their cryptocurrency may be using “tumblers” to mix their coins. Tumblers are services that take your coins and combine them with other people’s coins. The tumbler then sends back the same number of coins, but they are not the same ones you sent in.
A tumbler makes money by charging a fee for this service. It can range from 1–3 percent of all the mixed coins at any given time.
Tumblers usually work by breaking up your transactions into smaller ones, making it harder for observers to determine where your money came from or where it is going next. This protects your privacy and helps hide the source of money that was obtained illegally (such as through drug sales or ransomware attacks).
However, there are laws against structuring, which is when you make many small transactions to avoid having to report them.
This could make mixing large amounts of money illegal in some circumstances.
How to choose the best BTC tumbler service?
Always choose a reputable tumbler that has been around for at least two years. Many scams will steal your money — even if they promise not to keep any logs or track user information!
Do not use an anonymous payment method like cash or gift cards when sending funds to your tumbler account.
Tor-Onion Router to hide your identity
If you are worried about being spied on when you use the internet, Tor is a great option. Tor is a group of volunteers who believe that people should be able to use the internet without being watched.
You can connect to the Bitcoin network with a Tor browser. Tor is a group of volunteers who believe that people should be able to use the internet without being watched. You should use the Brave browser if you want something fancy. It is free, faster than Chrome, and has a Tor built-in.
Before your internet traffic reaches its final destination, Tor nodes encrypt it and send it to random computers on the Tor network. Because of this, it becomes very hard to pinpoint the IP address or system where the message or transaction came from.
There are different ways to use Tor on other devices. Still, if you have a Windows PC, you can run your Tor client and connect to the Bitcoin network using the localhost address 127.0.0.1 and the standard Tor port 9050.
Buy bitcoin on a decentralized exchange.
The first step is to buy bitcoin on a decentralized exchange. If you live in an area with no exchanges and the only way to acquire bitcoin is by buying it from someone else, make sure that person is not connected to you. If they are, then there’s a chance that the transaction will be tracked.
The second thing you can do is use multiple wallets through TOR or another anonymity service. You should never reuse addresses when sending or receiving cryptocurrencies because this makes it easier for someone else to track your activity.
It also lets customers know how much money was transferred into each wallet by looking at the address history and values sent out of that wallet in the previous 24 hours (usually).
So if someone were trying to track me down using my public keys from my Bitcoin Core client software (which keeps records of all transactions), they could see that I have received over 8 BTC worth about USD 100k since December 2018 but haven’t sent anything out yet which means I may still have access to some funds somewhere else maybe even on another exchange account?!
Don’t reuse addresses.
If you’re using a cryptocurrency that supports reusing addresses, you’ll want to avoid reusing them whenever possible. The blockchain is public, and anyone can see your transaction history. So if someone knows an address is yours, they can track down all the associated transactions and figure out what you’ve done with your coins.
The best practice here is to always generate new addresses for each transaction or group of related transactions (for example, a series of payments from one person or organization). This way, if somebody wants to track down one of your transactions, they’ll only be able to see one instance where something was sent from that particular address—not everything that’s ever passed through it.
Don’t use bitcoin if it was a gift.
It would help if you never used bitcoin. That was a gift. If you were given some bitcoins by a friend, family member or stranger, don’t use them. This can be traced back to the person who gave you those coins because they will be linked to their wallet address and name.
It’s best to buy your bitcoins with cash on an exchange like Coinbase so that no one knows what you’re doing with your cryptocurrency.
The first five will make you untraceable, but the exit node or ISP may still monitor you.
- The first five steps will make you untraceable, but the exit node or ISP may still monitor you.
- Exit nodes are used to connect to the internet and can be used by anyone who has access to them. They can see where you are connecting from and what you are connecting to. They might also have been compromised and monitoring your traffic for other parties.
- ISPs keep logs of your browsing history for a limited period, which is why VPNs like NordVPN have strict policies on keeping no records at all so as not to compromise their users’ privacy in any way possible.
The above advice for users looking to make untraceable Bitcoin transactions should prove useful.
It is important to remember that these methods are easy to get away with. Still, people who use them should also be aware that there is a chance the police or other interested parties could catch them.