In the first few years of cryptocurrencies, it was believed that digital money was completely anonymous and untraceable. This was partly true, since blockchain technology was incomprehensible to the general public. For this reason, there were fears that the cryptocurrency would become a safe haven for dark personalities.
Later it became obvious that in fact the blockchain is quite transparent. Each transaction leaves a trace in the chain, visible to anyone. Moreover, all data remains in the blockchain forever, it is technically impossible to delete or change it. The only thing that remains a secret is the names of the sender and recipient.
In fact, the anonymity of the cryptocurrency is only partial. It can be used without disclosing any personal data. This can last quite a long time, but only until the connection of an address with a specific person is made public.
For example, you bought coins on a centralized exchange where account verification is required or you used a bank card. From now on, any interested person can see that these coins belong to you. Your name can also be set if you exchange 0.4 ETH to USD and withdraw fiat currency to the card.
The need for anonymity may be dictated by various circumstances. Keeping incognito is possible, but it will take some effort. Possible ways worth mentioning are:
- Use of confidential coins.
- Use of crypto wallets with enhanced privacy protection.
- Using crypto-mixers.
In addition, it is desirable to generate a new address for each incoming transaction. Almost all modern crypto wallets do this automatically.
If it is critical for you to keep your identity secret, it is best to buy digital assets using services where you do not need to provide personal data.
It can be:
- Centralized exchanges where verification is not required.
- Decentralized platforms that support stablecoins.
- Payment systems without verification
- p2p exchanges.
- Cryptomats and offline exchangers with a purchase for cash.
The same applies to cashing out cryptocurrencies. It is easier and more convenient to exchange 0.1 ETH to USD on a centralized exchange and withdraw to a card than to look for the nearest crypto ATM or offline exchanger. However, if it is a vital need to keep one’s identity secret, then it would hardly be advisable to withdraw such small amounts.
Wallets for confidential storage of coins
Most currently available over-the-counter crypto wallets do not require registration or verification. Wallets do not store personal data of users. However, many of them already have the option of buying crypto assets directly from the card. If you use this feature, your anonymity will be lost.
- MetaMask. It is one of the best browser wallets that supports access to decentralized applications and protocols. It supports the Ethereum blockchain and all ERC-20 standard tokens. The application can be integrated with some hardware wallets.
- Ledger, SafePal, Trezor and other hardware wallets that support Ethereum. These are devices for cold storage of digital assets, some of them can be directly or indirectly connected to decentralized trading platforms.
- Trust Wallet. A popular multi-currency mobile wallet from the Binance exchange. In the Binance ecosystem, it is possible to anonymously buy digital coins.
- Binance wallet. It is a browser extension for working with multiple networks, including BNB Smart Chain and Ethereum.
- imToken. A convenient multi-currency mobile wallet for Android and iOS devices that supports 12 blockchains and all coins placed on them.
- Token pocket. EOS multi-currency mobile wallet, also available as a browser extension. Supports several popular blockchains, including Ethereum, Solana, Tron.
- Jaxx. Multi-currency cross-platform wallet available in several versions
- MathWallet is a wallet that supports 100+ blockchains, works from the browser and from mobile devices.
- Atomic Wallet is a multi-platform service that allows you to store 300+ coins and tokens.
- Exodus is a convenient decentralized crypto wallet with support for 180+ crypto assets.
Anonymous storage of cryptocurrency fully complies with its basic principles. However, this also means that you are fully responsible for the safety of your assets. In case of loss of keys, device and seed phrase, it will be impossible to restore access to funds.