Using Bitcoin Anonymously: Introducing third‐party anonymity

Ways to stay anonymous when using bitcoin do exist, though
none of these methods is very user‐friendly at this time. Generally
speaking, those who are interested in anonymity may have something
to hide. It could be that they are seeking to avoid paying
taxes or that they are purchasing illegal goods or services in their
jurisdiction. Using services such as an online wallet, you can “mix
up” coins and extract them from a completely different address,
without the addresses being linked together in any way. This technology
is developing even as we type. But using such services
involves a few risks, and if your coins are lost in the process, there
is no way to get them back. Don’t worry too much about losing
your coins though — we explain more on how to manage them and
your wallet in Chapter 5.
Always do your own research before using any external service
and ask yourself whether or not anonymizing your BTC balance is
really that important to you or not.
One of the biggest issues concerning external services is the fact
you are relying on a third‐party to anonymize your coins. Bitcoin
and digital currency were created to remove any middleman from
the equation and put the users in control of their funds at all times.
Trusting a third party with your money essentially goes against
bitcoin’s core values. Plus, using an anonymity service for bitcoin
raises suspicion of money laundering. Considering that you are
already semi‐anonymous by only exposing your public bitcoin
address, taking things one step further could raise suspicions
around your possible intentions. Chapter 5 covers more on how to
manage your funds and the most appropriate ways to do this.