This is a big question that everyone interested in Bitcoin needs an answer to. And without mincing words, the answer is YES. Yes, your Bitcoin address can be traced by exchanges, criminals, and the government.
So, what can you do to stay untraceable? Does your Bitcoin address put you at risk? Can leaving your data out there make you lose your coins or get you in trouble?
In reality, Bitcoin doesn’t guarantee complete anonymity. Some companies actually specialize in breaking down the blockchain technology and gathering a list of addresses used for carrying out transactions.
With this knowledge, it becomes expedient that you choose alternatives which provide 100% anonymity as well as security. Bitcoin Mixer is a tumbling service which mixes your coins so that your address cannot be traced. The automation and no log system ensure that your data leave their servers as soon as your transaction is done.
Let’s get more detailed.
How is a Bitcoin Address Traced?
In recent times, it has become known that the addresses which Bitcoin users receive when they get coins aren’t as anonymous as people like to believe. Wallet addresses may be unique but not less detectable.
While many people previously believed that Bitcoin transactions were fully anonymous, recent stats show otherwise. Wallet addresses on exchanges can be assessed. And when this is done, hackers (or whoever) can easily create a link between the address on the exchange and the wallet which made the transfer.
Interestingly, companies such as Chainalysis and CipherTrace have commenced analysis which traced certain wallets to criminals and other notable real life figures. This is one major reason why some people have turned to private coins such as Monero and Zcash.
Now, with tracking technology becoming more popular, you want to do everything to protect your Bitcoin address. What steps can you take?
Steps to Keep Your Bitcoin Address Untraceable
Protecting your privacy while using Bitcoin requires being intentional about the policies you adopt. Since all Bitcoin transactions remain on the Bitcoin network and are public, all your transactions are at risk.
Hence, below are suggestions which work effectively:
1. Hide Your IP Address with Tor
Tor comes in handy when considering hiding your IP address to prevent your browsing history from being tracked. Through the logging of your transactions, your IP address can be traced and your identity may get blown.
But Tor provides solid anonymity which ensures that your Bitcoin address remains intact.
2. Consider Using Multiple Wallets
Every Bitcoin wallet comes with its unique address. To prevent your address from being traced, you could use many wallets. The perk of this is that your many addresses leave your spies wondering and guessing.
You only need to be careful to never publish any of your addresses on any social media or online platform.
3. Try Mixing Services
Tumbling services which specialize in Bitcoin anonymization mix your address with those of other users, thereby making it difficult for snoopers or hackers to identify you.
Here’s the thing: mixing coins disrupts the link between your personal wallet and the receiving address. As a result, any criminal trying to trace you will be disappointed. And Bitcoin Mixer neither collects your personal data nor keeps logs of your transactions.
The Bottom Line
It’s a reality that Bitcoin addresses can be traced. What steps are you going to take to keep your address safe? How much does privacy mean to you?
Consider the three ideas discussed in this article and you’ll be glad you did!