Anonymity and privacy are two of the pillars of cryptocurrencies, many people have criticized that “anonymity” that bitcoin offers its holders.
This anonymity in bitcoin is usually associated with money laundering and other criminal acts.
These are crimes that have existed long before bitcoin and cryptocurrencies, so they are not exclusive or propitiated by their use or existence.
For people who know bitcoin, they know that this anonymity is not entirely real, since any transaction in the bitcoin blockchain is traceable.
That is why the bitcoin blockchain is considered a pseudo-anonymous network, since the transactions that occur in it are fully accessible and transparent to all, but the author in most cases is anonymous.
This anonymity would be totally lost if the holder of a bitcoin address is identified, since anyone could monitor and control each of the transactions made from that address.
In addition, you would know the amount of BTC that you have (at least in the tracked direction), which provides information to third parties that can become dangerous, which is why you have to act with caution.
On the basis that privacy is one of the fundamental rights, this control or that someone can know this data, is something that nobody would like.
Thus the fear of the anonymity in cryptocurrencies by people who do not know this technology should be dispelled, and people who own cryptocurrencies should be aware of the risks of poor management of their assets.
How to protect anonymity in BTC?
The first step to not lose the privacy of our bitcoin funds or any other cryptocurrency is to be careful and cautious.
The owner of a cryptocurrency is in charge of putting all the means at his disposal to protect them. Here are some tips that you should follow to avoid losing anonymity in your BTC:
You should not talk about the amount of bitcoin that you have in a conversation even with trusted people, since you never know where that information can go and could end up being the target of a robbery, extortion or other criminal act against you.
Do not use a single wallet to save all of your BTC funds. You can have the amount of bitcoin addresses you want, so saving the funds in a single Wallet is a mistake, because if that address is compromised all your funds and your privacy will be compromised.
Not only should you protect your wallet, the device you use to make transactions can also be attacked. Use a VPN on your computer or mobile phone to prevent your IP from being tracked, use decentralized browsers that don’t save your data, and do not use the same PC to save your cryptocurrencies with the one you use on a daily basis. Hereby you will increase the security of your assets and your privacy.
Do not use the same email for all registrations in exchanges, wallets and applications, since if that email has unwanted access your funds may be in danger.
You also have to be careful with the wallets of the exchanges where a KYC has been made, since it is not known if the regulations can make our data shared.
But … What happens if after taking all these precautions my BTC address has been compromised or I have doubts about it?
What can we do if our bitcoin wallet is compromised?
If your BTC Wallet has been compromised or if you want to make sure it is not, you can use different wallets that will return your bitcoin anonymity using Coinjoin.
How does Coinjoin work to return anonymity and privacy to bitcoin?
Understanding how Coinjoin works is simple, basically follow this process:
The first step to follow would be to send the amount of BTC that you wish to anonymize to one of the platforms that offer this service. Two wallets that offer this service are Wasabi wallet and Whirlpool Samourai.
Once we have sent the funds, we can carry out the MIXED process, where what is done is a transaction with the amount of BTC that the user wishes to anonymize.
This shipment goes to a “Pool” where it is mixed with the transactions of other users who are executing the same process.
After mixing, the BTCs are returned to the owners at a new address that has no relation to the one used in the initial shipment, so the anonymity of your BTC will be back.
Bitcoin and cryptocurrencies struggle to return financial independence, but it is the users who must protect both their funds and their anonymity, which is why following the steps indicated above is essential.
In the same way that even a bank requires high security measures to protect our money, with cryptocurrencies we are our own Bank and we cannot allow savings to have poor security.
Using transaction mixers is a perfect solution if you want to make sure your BTCs are anonymous.