One of the main reasons why cryptocurrencies are so popular is related to some excellent features like high security and the ability to remain anonymous. However, the fact that there is a possibility to hide your identity is also a big concern for many people, and the main cause why many people think that this market is perfect for money laundering and other criminal activities.
Moreover, that is also the main argument for the EU to consider implementing a new law where investing, trading, and using cryptocurrencies will have to become transparent. You can read more about this at techstory.in
Moreover, you should know that it is the most common misconception that staying anonymous is that simple these days. First of all, most people will buy crypto by using popular exchanges that require registration.
Therefore, you will need to share your data to create a profile there. The same is for many platforms and platforms that are accepting this model of payment. On the other side, there is still a possibility to keep your privacy, and we are going to analyze more about that in the following article.
Choose the Right E-Wallet
There are two main options that you can choose for storing your crypto, which are hardware and cloud wallets. It is quite simple to understand the difference. One of the main features of cloud wallets is that they provide more convenience since you can access your funds by using different devices like a tablet or a smartphone, which makes it much easier to trade or buy things with these digital assets.
However, the platforms that allow these features require higher transparency, and even though you don’t need to worry about your security, the ability to hide your identity is not possible. The chances of facing security issues are much higher as well. There were already many cases where even some of the biggest companies in this sector and popular crypto exchanges got hacked ending with millions of dollars’ worth of crypto being stolen.
In that matter, the best solution is to use a hardware option. It can be an external hard drive or some advanced version of USB where you will keep your wallet disconnected from the internet. It might seem more difficult to use this option, but there is no way for anyone to mess with your balance.
Use the Right Software
Even if you are using a hardware wallet, most platforms will need some additional data when you want to buy something. However, there is an alternative where you can only use the hash code of your wallet to make a payment. This is great when you want to secure your privacy when buying certain products or services online.
One of the best solutions is to use Tails, which is a portable software that you can carry on your USB device. The great thing is that you don’t need to deal with the installation process every time you want to make a payment. It is highly secure option where you can choose which data will be shown. For example, it can only be your email address. Also, you can set multiple identities.
Another recommended option is to use virtual protection where you will hide your IP address and location. This is very important as a way to keep your device safe while processing the payment. Also, you should always use when you are connected to some public Wi-Fi.
On the other side, it is more complicated with popular stores since most of them will require identity approval. You can try with Tor browser, but in case that you must create a profile, using your crypto and hiding the identity at the same time won’t be possible. Therefore, you should research the market and find those option where buying items does not require a registration.
Convert The Crypto
This is one of the easiest ways to keep your identity hidden when you want to spend your digital assets. Instead of risking issues with cyber-attacks or having to create a profile on some platform, a much better solution is to bring your offline device where you keep these assets, and convert them into cash on some crypto ATM.
It is a great thing that there are many of these ATMs available all over the world, especially in bigger cities. Therefore, you should not have any issues with finding the place to cash-out your cryptocurrency. Also, there is no need for making any profiles when using this option.
All you need to do is to generate a code on your device, and then enter it into the machine that will process the payment. However, you should know that most countries have certain limits on how much money you can get this way during one day, and it can be up to $10k.
There is also an option to privately sell your crypto, but keep in mind that it can be risky, and that you should avoid that if you don’t know the other person. However, if some of your colleagues or friends is interested in buying BTC or some other crypto you possess, it will be easier for both of you to make a simple trade.
The Bottom Line
The main challenge when it comes to privacy is the fact that most platforms are requiring users to create profiles so they can improve transparency. Also, that is the only way to make these transactions subjective to taxes.
Moreover, there are some other ways to hide your activities, like with certain browsers, virtual protection, and software. Still, it seems that more countries and companies will implement a more transparent model that will make it much more difficult to keep your privacy when making any sort of transactions with digital currencies.
In the end, even with the fact that you cannot keep your privacy on every platform and online store, using additional layers of protection is always recommended since that is the only way to improve your security and keep your wallet safe from any sort of cyber-attacks and scams.