The population of people that used blockchain wallets in 2017 has doubled with the cryptocurrency craze. With more than 1,500 types of digital tokens being traded internationally in line with the growing crypto economy.
One of the reasons why the number of users is growing steadily is due to the anonymity promised by Bitcoin and other cryptocurrencies. But are these cryptocurrencies really anonymous? Yes and no.
Yes, since digital coins give you a high level of privacy which the normal internet glitches fail to provide. No, because it is not totally anonymous since the data can be also traded. VPN is a simple solution that ensures a lot of privacy while you transact. VpnMentor provides a list of different VPN services you can choose from, some free, some paid.
You need to have basic knowledge of how the internet works to understand how your communication can be traced. The simplest and most meaningful way of data transfer is through a packet, which is further divided into components. These hold data such as your IP address and information about the destination.
The communication is carried out in the form of packets when you communicate with a website. Regardless if you’re communicating with a blockchain or attempting to access Facebook. The process is the same, more or less.
Theoretically, if anyone disturbs your packets while they are in transit, not only can they access your personal data but also trace its route.
It should be clear that your Internet Service Provider possesses access to all your packets. Thus, if you are transacting with blockchains, you should know that the ISP or any surveillance agency can gain access and can easily intercept your data.
Your address and the address of the destination and the amount connected with the transaction are sent to the blockchain whenever you transact you do not identify yourself with the transaction, but in case of disturbance and the sending address, they can eventually link a specific address to a specific person.
There is the solution of creating a new address with every transaction but it will be time consuming. There is also risk of identifying the owner of the cryptocurrencies by tracing back the IP address since the transactions are made using packets.
As mentioned earlier, your IP address can be the main source to find your transactions. You can use VPNs to protect your IP address, which would reroute your traffic to another server somewhere in the world to retain your anonymity.
VPNs have various kinds, some are for rerouting, and some give in-depth coverage and protection from backtracking, depending on whether your VPN is free or not. Regardless, a VPN will provide you with extended protection from hacks.
The tips mentioned above can always be used to make more secure transactions. But if you’re unsure of security, there are still other ways around it. An example is buying Bitcoin in person.
LocalBitcoins allows you to buy and sell Bitcoins after meeting personally with the other party. Always open the site after you’ve started a VPN application for further anonymity or use the Tor browser and use fake names and addresses so that the transactions are untraceable.
Another way is to buy cryptocurrencies through the cryptocurrency ATMs, which are popping up all over the world. These ATMs are appearing at popular spots and in offices, and you can buy crypto tokens with cash from them.