How to Send Crypto Anonymously
1. Use Bitcoin ATMs
One of the most reliable ways to buy or sell crypto for cash without revealing your identity is to use a Bitcoin ATM. You can use this link to find the nearest Bitcoin ATM at your current location in the world.
A crypto ATM will usually require you to enter your Bitcoin address. To stay anonymous, specify that you do not have one so that the machine can create a new paper wallet that you can use. Import the private key from your new paper wallet to send Bitcoin later.
In case you are unable to find a Bitcoin ATM near you, do not worry. There are other options you can try, which are outlined below.
2. Purchase crypto with cash
Even though many countries are trying to do away with cash and go fully digital, the current level of digital transformation in banking and cross-border payments is not uniform worldwide. Hence, creating a cash-free global economy remains a complicated task.
Despite the revolutionary introduction of digital currencies over the years, cash is still generally the most anonymous payment method, even for crypto transactions. There are crypto-friendly banks and P2P exchanges that allow people to use cash when buying and selling cryptocurrencies like BTC, ETH, and LTC. So, always try to use cash for your crypto transactions.
3. Use P2P crypto exchanges with no KYC
Identity verification, which is often in the form of KYC checks, is a legal requirement for fintech startups, electronic money institutions, traditional banks, neobanks, crypto exchanges, and other types of regulated financial establishments. It is carried out as a measure to prevent fraud, money laundering, terrorist sponsorship, and other illegal financial operations. While this is good, it has, however, become a topic of worry because it deprives people of their privacy.
Thankfully, there are many P2P crypto exchanges that do not require KYC checks. Examples of them are LocalBitcoins, Bisq, Bybit, BitQuick, and CoinCorner. You can use these digital platforms to maintain your anonymity while carrying out your crypto transactions. They will allow you to find someone near you who has or needs BTC, ETH, or any other digital coin that they are willing to exchange for cash.
4. Hide your IP using Tor Browser
The Tor Browser enables you to access the internet without revealing your location or browsing activity. It was designed to offer anonymity and secure online communication by encrypting your traffic, making it very difficult for your IP address to be known.
You can use Tor to connect with your crypto exchange or the Bitcoin network and perform your transactions without exposing your online activity to the public. Nonetheless, we must add that the usefulness of Tor in providing anonymity has limits. For example, if you use Tor to access a crypto exchange or digital wallet that requires you to pass KYC verification, your identity is not protected. Therefore, it is better to use Tor with a non-KYC digital platform.
5. Use a VPN
Using a Virtual Private Network (VPN) is quite similar to using Tor for your connection to crypto platforms. They hide your true location and encrypt your internet traffic.
With a good and reliable VPN, such as TorGuard, NordVPN, and ExpressVPN, you can rest assured of many security and privacy benefits as you send and receive crypto. They include strong encryption, compatibility with multiple devices, stealth mode for protection against VPN blockers, and no storage of usage data (a “no logs” policy).
6. Avoid SPV and hosted crypto wallets
The crypto wallet you use can affect your privacy, and that is a fact that cannot be overemphasised. There are different types of wallets, and if you want to maintain anonymity in your crypto transactions, you should avoid using SPV wallets.
What are SPV wallets? SPV means “Simplified Payment Verification.” So, SPV wallets are crypto wallets that use few resources to work quickly. An SPV wallet is a lightweight client for easily verifying transactions on a blockchain.
Avoiding SPV wallets and hosted crypto wallets is a way to prevent the exposure of your addresses. If you use them, they will submit your Bitcoin address to their respective SPV servers.
7. Do not reuse Bitcoin addresses
We strongly advise you not to reuse Bitcoin addresses or send payments to the same address more than once. This is good practice for crypto holders who are concerned about their digital privacy and payment security. You should use a new Bitcoin address for every crypto transaction. Thankfully, modern crypto wallets have the capacity to use a single seed to generate numerous public addresses.
For more information on Private Bitcoin Exchange look at our own website.