Apple picker Commercial message: Cryptocurrency is slowly but surely spreading across the planet and entering everyone's life. Many companies are introducing cryptocurrency payment options and offer their customers to buy goods and services from them with digital money in addition to cash or electronic payments. Although many people do not trust cryptocurrency, others appreciate it as a great opportunity to hide their transactions.
Cryptocurrency owners who want to remain incognito and not reveal information about themselves are looking for a solution. They are looking for an anonymous way to exchange virtual coins for real money. An online cryptocurrency exchange will provide you with specialized assistance in this matter, where you can choose a variety of cryptocurrencies.
How crypto exchanges work
As previously mentioned, cryptocurrency transactions are considered anonymous because cryptocurrency wallet addresses are usually not linked to a specific person. However, the chain of transactions carried out from a specific wallet is no longer anonymous. If necessary, each chain of transactions can be analyzed with a high probability to identify the person who owns this crypto wallet. How can a cryptocurrency exchange help in this case?
A Google search will give you a full list of exchange offices. But only a few of them will allow you exchange cryptocurrencies without identifying the user. Providing anonymity is not easy today as cryptocurrency regulation plays an increasingly strong role. But still, these services manage to use state-of-the-art methods that make it possible to partially or completely hide the person making the transaction. They usually use a technology called atomic swap and other methods that do not collect user data. It can also be a unique one-time wallet address for each new transaction or use of the VPN server. These methods increase the likelihood that your cryptocurrency transactions will remain anonymous.
Types of anonymous exchanges
In general, there are three types of platforms that allow you to hide your data:
- Completely anonymous cryptocurrencies. These services do not require you to provide any personal information. However, they usually set limits on the amount of the transaction.
- Semi-anonymous exchanges. Here you will need to register and provide your phone number to go through several stages of checks. However, even these services have limits on the amount you can exchange.
- Peer-to-peer (P2P) exchanges. These services do not require your personal information, except for the email address used to create a profile.
Advantages of anonymous services
There is currently a heated debate in the crypto community about whether online exchanges can be anonymous or whether they should require user identification. In fact, there are many positives for anonymous clients. Cryptocurrency enthusiasts also point out that the original idea of digital money was to allow its holders to maintain confidentiality. Other benefits include:
- Anonymity primarily protects your funds because others won't know what and how much you have. This will reduce the risk of you becoming a target of various online threats and cybercriminals.
- You don't have to spend time on various KYC and AML verification procedures and tests. Very often these approvals take weeks and more and more information is required. In addition, you can easily fail and your money can be stuck for an unknown length of time.
- Many people do not have identification documents for various reasons. And anonymous exchanges still allow them to exchange cryptocurrencies.
Disadvantages of anonymous exchanges
It would be unfair not to talk about the disadvantages of anonymous crypto services. Governments have sound arguments for transparency in cryptocurrency transactions. Many unidentified transactions are used for money laundering, crime financing or tax evasion. The requirement to provide personal information can be a serious deterrent for cybercriminals, as it provides a chance to expose them in case of illegal activity.
Although more and more exchanges are implementing some KYC and AML requirements, you can still use those that allow you to exchange crypto without giving away your personal information. The only negative is that you have to act within the monthly limits set by the particular service.
Finally
Although the number of anonymous exchanges is decreasing, you can still find several sites for exchanging your crypto assets without verifying your identity.
You should be aware that there are still more sophisticated methods of tracking your transactions. Try to never transmit your Bitcoin address or cryptocurrency wallet address online through channels that can identify your IP address. You should also use a private Wi-Fi network with utmost caution to avoid possible hacking. Before choosing a cryptocurrency exchange service, carefully evaluate all the pros and cons and in any case monitor your own activity.
Jablíčkář magazine bears no responsibility for the text above. This is a commercial article supplied (in full with links) by the advertiser.
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