17:23
How to buy cryptocurrency anonymously?

The title of the article and its main thesis are quite interesting for participants in the crypto industry. Modern realities are such that the anonymity of cryptocurrencies is becoming less and less with each passing day. Software that tracks transactions is already in full use, the only good thing is that they are not available for mass use, but government services do. In addition, crypto exchanges are increasingly focusing on KYC / AML procedures. We will not go far - the BitMEX exchange, which initially did not require an identity verification procedure, but in 2020 voluntarily and compulsorily obliged its clients to address this issue. The management of crypto exchanges can be understood, no one wants to have problems with government regulators. However, this does not negate the fact that people want to remain anonymous when buying cryptocurrency, 

Through decentralized exchanges


Decentralized exchanges became a real discovery in 2020. Although Vitalik Buterin first spoke about DEX in 2018, they have only now managed to fully realize it. By the way, a similar description and principle of operation can be read here .

A decentralized exchange is a platform that does not have any centralization. Simply put, it operates through blockchain and smart contracts, and the company's management can not influence its activities. Quotes, liquidity, adding new trading pairs - all this is the responsibility of exchange users. 

Let me tell you right away, the exchange does not guarantee you complete anonymity, but it does not require you to verify your identity, which greatly simplifies the task. To buy cryptocurrency, you do not need to register on the exchange: you only need to synchronize your e-wallet with the site. There is only one disadvantage of this method: you cannot buy cryptocurrency for fiat on decentralized platforms. This assumes that you have a crypt that you would like to change to the one you want. Next, I will describe step by step how to purchase a crypt through these sites:

For starters, you need some kind of crypt. You can buy it not completely anonymously, but without revealing your identity, you can either by physical exchange (give a Fiat, your crypt is transferred to your wallet), or use an online exchanger. There are some services that do not require verification and can exchange a small amount of cryptocurrency for you. However, you will still have to specify a bank card, but simply de-anonymizing you by card number is much more difficult. 

You received a cryptocurrency and put it in your wallet. Choose a decentralized exchange that is interesting for you. There are many, but the most popular of them is Uniswap, an overview of which can be read here .

After selecting an exchange, you need to synchronize with the exchange wallet. I'll point it out at once - synchronization does not mean that someone from your wallet will be able to transfer cryptocurrency without your knowledge. Synchronization is only needed for real-time currency conversion, using smart contracts. 

After connecting the wallet, select the desired cryptocurrency and exchange.

 

This method is the most optimal because:

The risk of disclosing your identity will be only with the initial purchase of cryptocurrency;

When interacting with decentralized sites, you do not need to confirm your identity, provide e-mail, etc.;

When working with decentralized exchanges, you can use a VPN, which increases your chances of remaining anonymous;

In fact, only your e-wallet will be used everywhere, which can only be created using e-mail. 

Buy anonymous cryptocurrency
If you do not want to bother with moments of anonymity, you can immediately buy an anonymous cryptocurrency, whose principle of operation is based on this factor. The three most popular anonymous coins:

Money. Fork Bytecoin, which is not weak so surpassed in popularity of his parent. Ringed signatures and invisible addresses are used to encrypt transactions within the network. Ring signatures hide the real inputs of transactions, which makes further determination of the transaction path extremely problematic. 

Zcash. A coin feature is the use of a zero-proof protocol: one of the two parties involved in the exchange can check the transaction for mathematical correctness, but any other information will be hidden from each party.

Dash. The coin is based on the X11 encryption algorithm. The algorithm itself is 11 different encryption methods, so if someone decides to track your transactions, they will have to deal with each of them. 

 

It may seem that this is a panacea, but not everything is rosy. The fact is that anonymous cryptocurrencies have a rather complicated relationship with various government regulators, namely the SEC. Representatives of the regulator say that they are used to sponsor terrorism and money laundering, so they are actively fighting against them. Over the last couple of years, anonymous coins have often been distributed from different exchanges. Initially, Monero was the most anonymous coin, but according to the SEC, there is already special software to track transactions within the coin's network. And of course they have this program and they actively use it. Therefore, buying anonymous coins will not be a 100% correct decision. 

Purchase from proven miners
A good option, but only if this miner inspires at least a little confidence. What are the advantages of this method:

You meet the miner in person and give him the money only after at least one confirmation appears on the transaction sent to him. 

He always has cryptocurrency in stock, because this is his main type of earnings. 

When buying cryptocurrency for cash, you are more likely to get a discount because cash miners need it to pay for operating expenses. 

On your wallet you receive cryptocurrency from another wallet, that is, you do not need to shine your identity in digital space.

 

The only downside to this method, which I see - no one bothers to give you a head and take the money. After all, we live in Russia, so this option can not be discounted. Otherwise, the method is quite suitable. It is pointless for the same miner to disclose your identity to anyone, especially if you are a regular customer. 

Use cryptocurrency mixers
If you already have a cryptocurrency, you bought it with the help of a fiat gateway on one of the centralized exchanges, you can "replace the traces" with the help of cryptomixers. From the name it is clear that these services mix cryptocurrency, as a result of which it is much more difficult to trace its origin. Precisely because of this factor, state regulators have actively taken up crypto-mixers, because it has become much easier to hide cryptocurrency extracted in a dishonest way. But in any case, there are plenty of them in the vastness of the network, so it will not be difficult to choose the most optimal one. This process is as follows: 

The only downside to this method, which I see - no one bothers to give you a head and take the money. After all, we live in Russia, so this option can not be discounted. Otherwise, the method is quite suitable. It is pointless for the same miner to disclose your identity to anyone, especially if you are a regular customer. 

Use cryptocurrency mixers
If you already have a cryptocurrency, you bought it with the help of a fiat gateway on one of the centralized exchanges, you can "replace the traces" with the help of cryptomixers. From the name it is clear that these services mix cryptocurrency, as a result of which it is much more difficult to trace its origin. Precisely because of this factor, state regulators have actively taken up crypto-mixers, because it has become much easier to hide cryptocurrency extracted in a dishonest way. But in any case, there are plenty of them in the vastness of the network, so it will not be difficult to choose the most optimal one. This process is as follows: 

The service provides you with the address where to send the cryptocurrency.

Your cryptocurrency is mixed with other users' funds. Next, various encryption methods are used for the total amount, and then it is all sent to one-day wallets. 

After the whole process, your cryptocurrency is returned to your wallet, minus 1% to 3%, depending on the service and the amount. 

If the whole operation goes smoothly, then your cryptocurrency will be very difficult to track. Let's say you can de-anonymize it only if you want to have special software for this, which is not yet available for public use. 

 

It is worth mentioning that the address provided by the service can be sent to the cryptocurrency only within 24 hours, after which it becomes invalid. There is a risk of using such services:

 

If the mixer is suddenly going to appropriate your crypt to itself, then you are unlikely to get it back, because its main task is to properly cover the tracks. 

There were cases when the service simply sent cryptocurrency to customers after a while, without mixing it. In addition to paying the commission, the client also did not receive services.  

 Use this method only at your own risk. It is recommended to use the services of only proven services: yes, there will be more commission and less risk. 

Conclusion
It will be good for the whole event to use mail with end-to-end encryption. Emails from such mail cannot be read without a password code, which the sender must tell the recipient. In addition, the IP address is not tracked when using this mail, which will only help in this difficult matter. 

 

There is another option that will completely save you from the problems of maintaining anonymity - the use of drops. A drop is a fictitious person in which personal data belongs to a real person. But I will warn at once: it is necessary to use this method with all care. I don't think you should explain what will happen if you are caught in this case. Drops are collected by placing ads for high-paying jobs, where you initially need to send scans of your documents. In 100% of cases, then people get the answer: "Sorry, but you do not suit us." After that, the person's personal data will be used for various schemes and he will be very lucky if one day the relevant authorities do not come to him. Also, human data can be sold by any unscrupulous company, such as a cryptocurrency exchange, which plans to close and wants to make the most of this event. In short, there are plenty of options.

Using drops will help you remain anonymous, because you can even be verified on an exchange and safely, under a false name, buy and sell cryptocurrency. However, this case is criminally punishable, so if you are going to use this method - prepare properly. 

You can also create a virtual personality. There are many services that will create your name and surname, come up with a resume, provide a one-time phone and e-mail, even create your photo - there is a place to turn. The only problem is that they will not make the documents for you, so you will not be able to use the services that provide proof of identity. 

 

Every year there are fewer and fewer ways to buy cryptocurrency anonymously, but they are there and they work. The main thing to remember here: none of the above methods guarantees you 100% preservation of your anonymity in the digital space. As I said, the best way now is to exchange through decentralized sites. It is not yet clear what will happen to them in the future. Maybe the SEC will also take care of their activities and cover up the most suitable option.  
Source:cryptochief.net

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Category: News | Views: 122 | Added by: andryvrozhkov | Tags: #Bitcoin #Bitcoin markets #BTC | Rating: 5.0/1
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