Cryptocurrencies and anonymity are more debated than ever. As enthusiasts push forward to reach mass adoption, so the governments, banks, and lawmakers started to implement know-your-customer (KYC) and anti-money laundering (AML) regulations.
While AML and KYC are implemented in the interest of protecting crypto users, we get another level of bureaucracy that further jeopardizes our ability to stay anonymous while using cryptocurrencies.
Despite the general impression that crypto coins are anonymous by design, in fact, it is pseudo-anonymous. The level of anonymity you can achieve really depends on the way you use it. Let’s see how can a person stay anonymous while buying or selling cryptocurrencies.
Buy it in person
Now, this strategy may seem counter-intuitive, as you show your actual face while buying crypto, but it doesn’t need to be. In the early days of cryptocurrencies, this is actually how people traded it. Cryptocurrency meetups were held, like old-fashioned markets — where sellers would shout out prices and buyers would approach them. Once the price was agreed on, crypto and cash would exchange hands.
Using websites such as Localbitcoins.com, meetup.com or any other website which enables you to arrange a meeting with sellers nearby. Naturally, it would be good to use VPN, Tor and one-time profiles to stay anonymous when signing up for such meetups.
Buying crypto online
While Localbitcoins.com enables you to meet face-to-face, you can also keep the entire process online.
You can easily search for sellers in your area, agree on the price and make the exchange. LocalBitcoins.com then acts as an escrow service ensuring that both buyer and seller are protected. The escrow service keeps the cryptocurrencies until the payment has been cleared and then releases crypto to the buyer.
One thing to note — localbitcoins.com can sometimes ask people to confirm their identity if they suspect some fraudulent activity is going on.
This also involves bank transfer, which can jeopardize your chances of staying anonymous. Use a burner email address, Tor and VPN to keep your anonymity.
Buying it from crypto ATM
Buying crypto from an ATM isn’t always the best choice if you are looking to keep your privacy. The ATMs use APIs directly linked to the cryptocurrency exchanges and they also have high service fees.
However, they can be useful, if you carefully choose one. Simply put some money in, get some crypto out on a paper wallet. You can then send this crypto to your other address through a mixer service to keep your identity protected.
Naturally, buying and selling cryptocurrencies privately is one thing, and how do you use them is another. What you do with crypto can also implicate your identity.
Please stop talking about crypto, how much you have on your balance, and how much your portfolio weights. Keep your privacy and stay safe. You can get robbed, get in trouble with IRS (because crypto is still not regulated), or simply get yourself too exposed to the public eye.
Use privacy coins. Not all cryptocurrencies are equal. Some are more anonymous than others. QURAS aims to become the leader in the privacy-protection sector by implementing all the latest technologies that can keep our identities safe.
Make a new address for each transaction you make. People tend to be lazy when paying for something in crypto. Over time, each address you own will build a list of transactions that can be tied to your wallet. With enough digging, transactions could be associated with a real-life identity.
Keeping your privacy becomes harder and harder as time passes. Mass adoption of cryptocurrencies is coming at a cost of privacy, and that could be a problem in the future. Still, we can stay anonymous with a bit of an effort. If you have any questions feel free to reach us at any time. We are here for you.