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Buying cryptocurrency anonymously: where to start?

Once you have decided on the cryptocurrency type, you should consider choosing an anonymous crypto wallet to store it. To understand why it is needed and what functions it performs, you need to know how cryptocurrency appeared and its connection with blockchain technology.

We are accustomed to the fact that money always has a real expression. Any banknote can only be owned by one person, who will be the owner. With cryptocurrency, the situation looks different. At its essence, cryptocurrency is a digital record stored on the Internet. The crypto wallet is a unique code that is the key to obtaining this entry. That makes it even more essential to take care of your anonymity while buying crypto.

Digital money is created by using blockchain technology. In simple terms, a blockchain is a shared database permanently stored on the Internet. To obtain a digital coin, users from all over the world exchange information among themselves by uploading it to this database. Information is “compacted” into many data blocks arranged in a specific sequence. When the blocks have formed a set sequence, like an assembled puzzle, a digital record of it appears- a digital code that continues to be on the Internet.

To become the owner of this record, the unique code of the cryptocurrency wallet must match the created record. With such a match, a record about the coin appears in the crypto wallet, and the user becomes the record owner. Therefore, when purchasing anonymous cryptocurrencies, there is no actual exchange of coins, but only the owner of the computer code changes. The block of information continues to be stored on the Internet in a single database, and the owner of this block is updated.

Therefore, cryptocurrency could not have appeared without blockchain technology – without a database and encrypted blocks of information based on a compiled record of the generated computer code. Likewise, receiving digital coins with a crypto wallet is possible since you will not be assigned a unique code. Therefore, when wondering where to start buying crypto anonymously, the first step is to create a crypto wallet. Today, there are several types of such wallets. Their essence is the same – assigning a unique code and storing a record of the cryptocurrency. They differ only in the method of use and level of reliability.

Types of crypto wallets

Digital wallets, first of all, differ in the number of currencies stored in them and are divided into single-currency and multi-currency.

  • Mono-currency wallets are designed to store one type of digital money. The developers of the cryptocurrency platform almost always create them but function exclusively within the framework set by users. The developers do not store user passwords, so they cannot be recovered through support. This is one of the manifestations of decentralization. Such wallets are created for many popular cryptocurrencies, including Bitcoin and Ethereum. Digital money will be sent to such a wallet regardless of the method of purchasing anonymous cryptocurrency.
  • Multi-currency ones are used for purchasing bitcoins anonymously and storing several types of cryptocurrencies, including fiat ones (a digital analog of regular government currency). To work, you generate an access key stored on your computer and enter the wallet using the specified PIN code. Thus, initially, only the user has access to the wallet.
  • Computer programs. They are installed directly on your hard drive, and after the first activation, all information about the existing cryptocurrency is downloaded. Thus, the history of transactions with the digital currency you own is stored on your computer. During subsequent launches, only newly created blocks are loaded. Subject to security rules, such wallets are the most secure to purchase Bitcoin anonymously – all data and access keys are stored on your personal storage media.
  • Smartphone applications work according to the following scheme: you download the official developer application to your phone, access keys are generated and stored on your device, and data on your digital coins remains on a secure server. Despite the high security of data storage servers, smartphones themselves do not have sufficient protection against hacking and the effects of malware. Therefore, such a digital wallet is reliable but not the most secure.
  • Online platforms. You use exclusively the resources of the wallet developer through the built-in web interface. On the one hand, such a wallet is very convenient: there is no need to download and install applications. But on the other hand, if the developer’s server is hacked, you can lose all your savings.

Buying bitcoins anonymously is easier than ensuring their safe storage. To avoid losing all funds due to the actions of attackers, try to use:

  •  encryption of physical media;
  •  minimal synchronization cycles from protected network segments;
  •  computer virtualization systems;
  •  regularly updated antivirus programs with protection against targeted attacks and behavioral analysis, antispam against phishing emails;
  •  always running firewall;
  •  complex keys and passwords;
  •  multi-signature and two-factor authentication;
  •  strength of character, restraint, and laconicism – to protect against social engineering techniques.

The second layer of crypto anonymity is the Bitcoin mixer. It has to be used daily to prevent any kind of deep analysis. No one wants to share their fund with strangers. So owning anonymous bitcoins does not equal using them anonymously. That is where crypto mixers make their job the best. They hide any trail that could lead to you,

And, of course, don’t keep all your eggs in one basket – have several wallets and cryptocurrencies, and distribute their storage geographically and between several services. To make transactions or purchases, it is better to use a Bitcoin mixer – these are special services that mix the bitcoins of different users during a transaction, thereby “confusing” the traces from the sender to the recipient.

For conscientious users, the crypto mixer can be a way to maintain anonymity.

 

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