Unlike the conventional Fiat currency, transactions with Bitcoin are largely anonymous as no third party is involved in the transaction process. However, Bitcoin transactions are not entirely anonymous as one can track the origin of the Bitcoin involved in the particular transaction on an open ledger mechanism. Still, compared to the conventional banking system involving online payments or purchases by credit or debit cards, Bitcoin is a far more safe and secure option for preserving the anonymity of the users.
Methods to Buy Bitcoin Anonymously
Nowadays, it is difficult to buy Bitcoin in a completely anonymous manner as government agencies and regulators across the globe have now framed legislation that requires cryptocurrency exchanges to ask their users to deposit personal identification documents before they start dealing in cryptocurrencies. This step ensures that people do not use Bitcoin and other digital currencies illegally.
Still, some workarounds can help buy Bitcoin anonymously. The easiest method to purchase Bitcoin without revealing the user’s identity is to buy the digital coin by paying the cash to the seller. The buyer can use the Paxful platform to search for the people who are willing to sell Bitcoins in a particular location. The signup process on the website can be done via an alias email address. Using cash for the buying means no documentation is involved in the process, thereby keeping the identity of parties completely anonymous.
Another convenient and hassle-free way to buy Bitcoin anonymously is through the Bitcoin ATM. Just walk into the Bitcoin ATM and purchase the digital currency by paying the required amount of cash. The only downside of this method is that many of us might not have a Bitcoin ATM in our vicinity. The use of prepaid cards to buy Bitcoin on the platforms such as Paxful and LocalBitcoins can also be conveniently used for purchasing the cryptocurrency without revealing the identity.
How and Where to Store Bitcoin Anonymously?
Different kinds of anonymous wallets are available for storing Bitcoin. If a user purchases Bitcoin using the Bitcoin ATM services, then the ATM provides an anonymous address of the Bitcoin wallet.
Besides, the users require anonymous Bitcoin wallets- a software wallet, hardware wallet, or a mobile wallet. Software wallets are trendy because of their ease of usage and operational procedures. The wallet comes with private and public keys, and to start using it, the users need to download it on their laptops or desktop devices. Hardware wallets, on the other hand, are considered one of the safest ways to store cryptocurrencies. Unlike their software counterparts, they do not have any threat of being hacked as these are entirely offline. On the downside, these are not very easy to operate, and the transfer of the cryptocurrency through them is not a very convenient process. Finally, a mobile wallet is the most convenient method of storing and transferring Bitcoin. It can be downloaded on the user’s mobile phone, and its growing popularity testifies its convenient and user-friendly nature.
However, If you want to make an investment in Bitcoin and want to make a profit from it daily then you must know about the platform like Bitcoin Lifestyle. It is an automated trading platform that can help you to earn profit from Bitcoin trading on a daily basis. Check out its official website and review to know more about this authentic Bitcoin robot.
Cryptocurrencies are a great way to remain anonymous during the transaction, but now with new regulations coming into the picture, the transactions using bitcoin and other digital currencies have not remained completely anonymous. Still, one can derive solace from the fact that cryptocurrency transactions are safe and secure. Compared to the conventional monetary and transaction systems, these digital currencies provide a higher level of safety, security, and anonymity to users.