If you have ever traded on crypto exchanges like Binance you know that these transactions are not completely anonymous. Whether you use blockchain for small personal investment or participate in large million dollar transaction, it is likely that you care about your privacy. In the last year, the governments of developed countries invested much in the control of the crypto market, which resulted in the growing concern among its players about personal data safety.
People all over the world look for the solution to perform transactions without ID.
To support such demands, some companies allow you to use their services without verifying your identity. This means that no personal details need to be provided during registration.
Anonymous Bitcoin exchanges are great for people who want to enhance their anonymity when they interact with the Bitcoin network because in most cases these networks do not require registration and the customer is identified only by the wallet number. Then, no problems with trade occur.
Why do people require anonymous crypto exchange?
The intention of cryptocurrencies is financial freedom. Independence from banks and middlemen. The Bitcoin network is sufficient for this. The number One among the cryptocurrencies has not yet been able to assert itself as an accepted means of payment, let alone for all other coins.
There are plenty of reasons for the lack of acceptance. The volatility, the hurdles to the acquisition, skepticism, fear of loss, complexity, but also a lack of privacy. Yes, there is no data protection in the Bitcoin protocol. All transactions and all funds are publicly accessible. It is like a public cash book.
And at the same time most cryptocurrency owners have sufficient privacy concerns nowadays due to various reasons:
- Danger from criminals – you want to keep money safe from unauthorized access.
- A better basis for companies and private individuals in negotiations – the company, which has the insider information concerning the opponent’s funds can easily turn negotiations into their required side.
- Contaminated coins can lead to blacklisting – you can lose your money if the government decides to blacklist the coin you are using due to any reason.
- Censorship and prohibition – you can have a public coin that criminals use and you definitely do not want authorities to know about that.
- Just privacy – you might simply want to have privacy and care about it.
Also. read our article How to exchange crypto anonymously in 2020?
How to guarantee private crypto exchange?
It is clear that there are various problems associated with crypto transactions anonymity, but people keep searching for the solution fighting for their privacy.
Let’s explore several recommendations in this area:
- Use Logless VPN – A logless virtual private network (VPN) is a network that doesn’t store the history of your activities on their servers. It encrypts all of your Internet traffic and routes it through multiple servers of your choice at different locations before arriving at the final location. But in this case, you have to trust the VPN service provider not to log your activities
- Always use New Transactions Address – Keep in mind that most of the popular Bitcoin wallets are HD wallets. That means you can generate any number of receiving addresses & every time you receive bitcoins from anywhere, use a new address. This at times also confuses new users, as they wonder why their receiving address has changed. This is a good practice to ensure anonymity when using Bitcoins on a regular basis. This way, it would be hard to link to 2 or more transactions to you.
- Buy/Sell Bitcoins in Cash – Another anonymous way of dealing in Bitcoin transactions is doing face-to-face cash affairs. You can use Localcryptos for this purpose.
- Use Tor Browser – you can use a Tor browser to connect with the Bitcoin network. Tor is a volunteer community that beliefs in anonymity and surveillance-free internet usage. Tor nodes encrypt and route your internet traffic to random computer nodes on the Tor network before it reaches its final destination. It means that your blockchain activities are not related to your IP and there is no opportunity to verify the place of the transaction and personal data.
- Use GoDex or other anonymous crypto exchange – Non-custodial exchanges work a bit differently. They don’t provide wallet addresses for their users. Instead, users use their own personal wallets or those provided by custodial exchanges. This means the exchange itself doesn’t store any cryptocurrency, which makes it a much less appealing target for potential hackers.
Among these solutions, the anonymous crypto exchange 2020 seems the best possible choice. This approach has several advantages over others. In the first place, you do not have to subscribe to their networks and provide any personal information. In the second place, you can start trading right away. There is no verification process within such applications. It can be extremely important if you have in your portfolio some highly volatile coins and you plan to earn during the pump/dump periods.
Explore crypto exchanges without ID verification and make your choice
The crypto market is rather complicated. At first sign, it may be hard to master all its peculiarities without any assistance. For your convenience, we prepared the comparison of the major anonymous crypto exchange. Using this information you can easily define the one fitting your requirements.
Having investigated the main anonymous crypto exchanges available on the market today, it becomes obvious that people look for the best combination of service and anonymity. People can make mistakes and in crypto exchange, it happens quite often. Anonymity is crucial for the individual piece of mind especially when identity theft becomes common practice. We at Godex understand the importance of privacy protection for our users and do our best to guarantee its highest level.
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Disclaimer: Please keep in mind that the content of this article is not financial or investing advice. The information provided is the author’s opinion only and should not be considered as direct recommendations for trading or investment. Any article reader or website visitor should consider multiple viewpoints and become familiar with all local regulations before cryptocurrency investment. We do not make any warranties about reliability and accuracy of this information.