In the crypto community, there are often discussions about the anonymity of Bitcoin. Some users consider it anonymous and ideal for shadow operations, while others claim that anyone can be calculated in a distributed network.
What is anonymity based on? The main reason for considering Bitcoin anonymous is that the user can always enter a new address for transactions. In this case, there is no need to indicate information about yourself, and the address is just a string of numbers and letters, in which no personal data is encrypted. In fact, the entire distributed Bitcoin network is a series of transactions between addresses, where no one knows the owners hiding behind them.
But the owners are sometimes indicated. To do this, there are several ways to help determine the relationship of the address with a specific person or company:
Hardware and technical method. The network nodes exchange data and the node that receives the transaction from the user's computer can write down his IP address. The more nodes someone has, the more data on transactions and IP addresses he can collect. In addition, an Internet provider can receive data, which stores logs, and, if necessary, can share them with law enforcement agencies.
The user himself leaves traces about himself. When sending and receiving Bitcoins, buying goods for them, exchanging them for altcoins, the user is forced to disclose some data about himself. When paying for some goods in online stores, the buyer is forced to provide his address for delivery. By exchanging Bitcoins through the exchange for fiat money or altcoins, the user reveals himself again due to the verification that all serious exchanges require.
Cluster analysis. In the blockchain, all transactions are stored in the public domain, which means that anyone can trace from which addresses the Bitcoins came to a particular user and where they were sent to them. Further, the analysis of the links between these addresses takes place and the entire web of transfers is unraveled.
How to increase privacy of transactions on the blockchain
Despite the seeming impossibility of remaining truly anonymous, there are some steps you can take to make it harder to try to identify a user and increase their security:
The most obvious and basic way to increase anonymity is to hide the IP address. Various anonymizers, VPN, TOR will help with this. They will make it difficult for those who collect full site link information and other users with whom direct transactions are to be made to detect user addresses.
Using different addresses. This is another obvious and one of the most affordable ways to secure your data and cryptocurrency. An unlimited number of free addresses are available to users and this opportunity should not be neglected.
Conceal real identity. This will be helped by the habit of not specifying cryptocurrency addresses on websites where the user posts his real data, for example, in social networks. Also, you should not use nicknames on cryptocurrency sites that contain any personal information, such as, for example, name and date of birth.
Using wallets with a high degree of anonymity. Cryptocurrency holders who need to cleanse their Bitcoins are advised to conduct transactions using such wallets, one of which is Electrum.
Using a cryptocurrency mixer. This is a special service that accepts multiple transactions from different users, mixes these coins and distributes them to new addresses, thus making it difficult to calculate connections. At the same time, it is worth choosing a mixer that, when making transfers, has several options, such as a different number of inputs and outputs, a variable commission, a time delay and some others.
BitMix.Biz secure cryptocurrency mixing service
Due to the distribution of funds through different wallets, it is impossible to establish a connection between the sender and the recipient. It is also possible to split transactions into several parts to hide the real amount of transferred coins.
Usually, for the services of crypto mixers, they take a fee of 0.5-5% of the transferred amount. But it is worth remembering that by sending coins to the address of someone else's wallet, there is often a chance of not getting them back. To reduce risks as much as possible, use a service that has proven its worth and honesty.
By sending coins for mixing to BitMix.Biz, you will receive Letter of Guarantee with the key 1BitmixQRMUHYYEi11KBRhSfACa1BtcZrZ, which will help you make sure that the addresses used exactly belong to this service. This letter will also help you prove that you are transferring funds to BitMix.Biz addresses in case something suddenly goes wrong.
This cryptocurrency mixing service supports Bitcoin, Litecoin and the recently added Dash. There is an affiliate program, a simple API available for connect to your services and many other functions - read more in the FAQ.
BitMix.Biz uses a crypto cleaning fee that can be changed manually or automatically, with a minimum of just 0.4%. If you go to the service website using Tor mirror, then a random fee collection will greatly slow down the analysis of transactions, and if you apply a transfer delay, those who want to spy on your cryptocurrency will have almost no chance to track the movements of your digital currencies.
To transfer and clear a large number of crypto coins, BitMix.Biz has a built-in option of increased randomization with a different number of addresses at the entrance and exit. The security of large transfers is ensured by guarantee deposits on various forums (links to which you can find in support).
Website: https://bitmix.biz/en