Bitcoin is a digital currency that is created and used electronically. There is no physical aspect involved. Bitcoin is a decentralized form of currency in the fact that no one controls it or no one country or government has sole discretion over its use and distribution. Bitcoin is transferred electronically and uses high levels of encryption for security purposes. There are instances where you may want to buy Bitcoins anonymously to protect your identity or personal data. Listed below are the main ways in which you can buy Bitcoins with an increased degree of anonymity.
The easiest and most sure-fire way to buy Bitcoins anonymously is to pay with physical cash. This completely avoids any online exchanges and there is little verification required or identification checks. You can buy Bitcoins with cash either through an ATM or face to face with a trusted Bitcoin vendor - Ensure you explicitly trust your vendor to prevent any illicit transactions or fraud.
Another fairly straight-forward method is to get a Bitcoin loan - As a Bitcoin loan will deal exclusively in the currency itself and not involve any financial providers, third parties or bank accounts, this gives a great deal of anonymity.
Generally Bitcoins are stored in a virtual wallet and this is linked back to you via your personal information. If you want to buy or use Bitcoins anonymously then consider creating a specific Bitcoin wallet that uses a disposable email address that you will not use for anything else. To further the anonymity, you can use different wallets for each transaction.
Similar to using an anonymous Bitcoin wallet, you can use a Bitcoin Debit Card too – There are businesses who provide these cards and allow you to use them anonymously up to a certain set amount (A common limit is $2500).
To dilute the possibility of your bitcoins being traced you can mix your own credit with other users. There are Bitcoin laundry services that mix your bitcoins in various different funds and accounts which cuts the link between yourself and your currency and allows a great level of anonymity. Image putting 10 coins into a jar, with 10 of your friend’s coins - If you shake the jar and then pick 10 coins, you will have no way of knowing if they were originally yours!
While there is no single method that guarantees complete anonymity, the above ideas are all tested and will provide great results if you want to purchase Bitcoins privately.
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