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Following the wake of the crypto trials that saw many people taken to court over illicit Bitcoin transactions that they assumed were anonymous, the issue of anonymity when making cryptocurrency transactions became a hot topic amongst the crypto community, especially amongst those using the native token of Ethereum, Ether.
Put simply, Ether transactions are effectively classed as pseudo-anonymous because you need to conduct intense chain analysis and mine a lot of data to properly trace the identification of a person who owns an Ethereum wallet or who has recently received funds.
The Ethereum blockchain is completely open and transparent; this means that all transaction data that takes place upon it is publicly accessible. It’s exceptionally straightforward for someone to use a tool like Etherscan to trace and track the movement of funds. They only need to know the exact Ethereum wallet address or the ID of the transaction in question.
Sounds easy? Well, hold your horses! If you want to join the dots and connect an ETH wallet with the real person using it, you’ll need more than that. You’ll need to conduct a complex chain analysis to discover where the Ether was originally bought.
Most Ethereum is bought on popular exchanges and platforms, but the crypto scam platforms are lurking around the corner as well. To set aside these two types of platforms is crucial for the future of your crypto adventure. Having said that, Immediate Bitmasters is an exemplary platform that is verified and an actual trader heaven in terms of interface and tools. Because many of these platforms require users to buy crypto with a bank transfer, Paypal payment, or bank card, it’s possible to find out the owner’s identity that way. Plus, even those extra craft buyers who avoid exchanges and brokerages to buy crypto can still be traced through their IP address.
Alongside a user’s IP address, online sleuths can use methods like social engineering and triangulation to identify a person’s identity behind a particular wallet.
How Do You Send Ethereum Anonymously?
Ok, at this point, you’re probably wondering how to send Ethereum anonymously. Fear not! That’s where I come in.
Sending ETH anonymously is actually pretty straightforward once you know what you’re doing. In this section, I will show you the most straightforward way of sending Ethereum anonymously. And don’t worry if you’re not the most tech-savvy person; this is very beginner-friendly.
- Create and utilise a crypto wallet
- Hide your IP address
- Use a reputable exchange or platform to send ETH anonymously
How to Hide Your IP Address
You need to hide your IP address in order to lay the foundations of solid online security. Sadly, many people are blissfully unaware of how vital it is to mask your IP online, not just for sending ETH! (But it certainly does help for that, too!)
Put simply; if someone wants to find you online, they don’t have to look far if you’re making no effort to hide your IP address. Thankfully, you don’t need to be a computer genius to do so, either. It’s actually very simple and can be done in several ways, such as:
- A VPN
- a proxy server
- Tor browser
Personally, my go-to choice for masking my IP address is to use a good ol’ VPN. A VPN connection serves to reroute and anonymise all traffic you send over a network you’re using, whether it’s your home internet router or public wifi. With a decent VPN, you’ll be amazed at the level of features available to anonymise yourself.
In contrast to a VPN, a proxy server can only redirect web requests.
A TOR browser is a more hardcore version of a VPN and is best reserved for those who are more well-versed in cyber security. The downside? It can be laggy and slow for a lot of users.
There is a huge demand for well-made VPNs, but all of them generally work in the same format, so I’ll provide a general guide on how to set one up so you can complete the most important step; making an anonymous ETH transaction!
How to Set Up a VPN
Whatever VPN you decide upon, most must be installed on your browser for it to work properly. Install the proper software through the verified VPN site, then click on it to sign up. The best VPNs naturally require payment, and you really get what you pay for here.
Once you’ve signed up for a VPN and installed it, it’s time to get it moving! A good VPN will give you a decent selection of countries for you to switch your IP address, simply connect, and you’re good to go!
All of the traffic on your network is now being masked. Congratulations!
A solid tip for using a VPN is to turn on the auto-connect feature because you can easily forget to switch it on and leave your traffic exposed.
Final Thoughts
And so, to sum up, this guide to making Ethereum transactions anonymously has shown that Ethereum transactions are traceable, but only if you let it be like that. There are a few tried-and-tested ways to carry out Ethereum transactions anonymously successfully.
After all, it should be a human right to keep your financial history as personal and private as possible. However, you need to play a part and be responsible if you truly wish to retain your anonymity online and offline.
As we round off, I just want to remind you to always remember to turn on your VPN whenever you’re online and, when dealing with cryptocurrencies like ETH, always ensure you use beginner-friendly and straightforward platforms like Bitcoin 360, eToro, or Binance.
