- 1 What is Anonymous Bitcoin Wallet?
- 2 How to Buy Bitcoins Anonymously?
- 3 How Do Bitcoin ATM Machines Work?
- 4 Top 10 Best Anonymous Bitcoin Wallet Review
- 4.1 Ledger Nano Series Anonymous Bitcoin Wallet Review
- 4.1.1 Features of Ledger Nano Series
- 4.1.2 Advantages of Ledger Nano Series
- 4.1.3 Disadvantages of Ledger Nano Series
- 4.2 Samourai Wallet Anonymous Bitcoin Wallet Review
- 4.2.1 Features of Samourai Wallet
- 4.2.2 Advantages of Samourai Wallet
- 4.2.3 Disadvantages of Samourai Wallet
- 4.3 Wasabi Wallet Anonymous Bitcoin Wallet Review
- 4.3.1 Features of Wasabi Wallet
- 4.3.2 Advantages of Wasabi Wallet
- 4.3.3 Disadvantages of Wasabi Wallet
- 4.4 Rahakott Wallet Anonymous Bitcoin Wallet Review
- 4.4.1 Features of Rahakott Wallet
- 4.4.2 Advantages of Rahakott Wallet
- 4.4.3 Disadvantages of Rahakott Wallet
- 4.5 Electrum Wallet Anonymous Bitcoin Wallet Review
- 4.5.1 Features of Electrum Wallet
- 4.5.2 Advantages of Electrum Wallet
- 4.5.3 Disadvantages of Electrum Wallet
- 4.6 BitLox Anonymous Bitcoin Wallet Review
- 4.7 Edge Anonymous Bitcoin Wallet Review
- 4.8 Exodus Anonymous Bitcoin Wallet Review
- 4.9 BINANCE Anonymous Bitcoin Wallet Review
- 4.10 PINT Anonymous Bitcoin Wallet Review
- 5 Why are Anonymous Bitcoin Wallets Important?
- 6 Frequently Asked Questions
- 6.1 Question: Can You Have an Anonymous Bitcoin Wallet?
- 6.2 Question: How Do I Make an Anonymous Bitcoin Wallet?
- 6.3 Question: Can a Bitcoin Wallet Be Traced?
- 6.4 Question: Is Coinbase Wallet Anonymous?
- 6.5 Question: Can the IRS Track Bitcoin?
- 6.6 Question: Which is the Easiest Bitcoin Wallet to Use?
- 7 Wrapping Up!
Let’s get straight to the point. Have you any idea that one can easily track your Bitcoin transactions? Surely this can happen when your personal information and digital wallets aren’t protected.
Thankfully you can protect your assets being an anonymous Bitcoin user. The best anonymous Bitcoin wallet ensures the privacy you need. It helps you remain anonymous while handling your digital assets.
A genuine anonymous Bitcoin wallet will not let your Bitcoin address gets exposed in public. Therefore, it comes in handy when you plan to buy and hold Bitcoin for your long-term investment goals.
There are several anonymous Bitcoin wallets available online. So, which one should you opt for? Actually, it depends on the security and convenience you prefer. Besides, you should take into consideration a few things, such as;
- Are you in full custody of your assets?
- Does your IP is shown whenever you send funds?
- Does the wallet handle transaction through a VPN?
Keeping all these in mind, it becomes challenging to find the best anonymous Bitcoin wallet. But, no worries; here we’ve got you covered. This article will go through the best wallets that will help increase your financial authority and transactional privacy.
What is Anonymous Bitcoin Wallet?
An anonymous Bitcoin wallet is a secured wallet that protects your funds while ensuring privacy. It allows you to access your digital funds without leaving a trace of using them. In addition, a secure, anonymous Bitcoin wallet doesn’t ask for your personal information like name, phone number, email, etc.
While using a crypto wallet, your information, like IP, could be recognized. Therefore, it affects your privacy online. Also, you need to reveal your identity in traditional payment methods like bank account or debit card.
As well as, when you make a transaction electronically, the bank knows the details about your transaction. That is because the bank has all your personal information registered. That’s where anonymous Bitcoin wallet is different.
In the case of an anonymous Bitcoin wallet, the transaction happens on a peer-to-peer basis. It means when you send or receive funds, it never goes through a third party. Also, your funds are connected to a Bitcoin address, not yours.
Put simply, an anonymous Bitcoin wallet allows you to download, install and operate the wallet without needing your personal information. It implies you can send, receive and store Bitcoin without revealing your identity.
How to Buy Bitcoins Anonymously?
Some companies are offering anonymous Bitcoin wallets. Anonymous Bitcoin wallet aims to transact anonymously without needing third parties. Unfortunately, most of these companies do not provide the required protection.
When you first try to buy Bitcoin anonymously, it is essential to keep your identity private. Everyone can view each transaction that happens in Bitcoin Blockchain. So, anyone can track your transaction to access your original address.
So how to buy your first Bitcoin anonymously or how Bitcoin trading works? Well, purchase Bitcoin anonymously has become difficult due to different government regulations. In most cases, you need to provide personal information when you use USD or EUR.
They may ask to verify the information with your proof of address or uploading copies of your passport or ID. That is required to prevent criminals from using Bitcoin for criminal activities. Unfortunately, all these make the process difficult.
Luckily, there are a couple of methods for you. Follow the methods below to buy Bitcoin anonymously.
Method 1 – LocalBitcoins
LocalBitcoin is a Finland-based anonymous Bitcoin exchange created in June 2012. Currently, more than 248 countries can buy and sell Bitcoin. However, LocalBitcoins is a peer-to-peer Bitcoin exchange platform.
The buyers and sellers can trade here directly. That means it allows to trade anonymously. The best part is LocalBitcoins supports more than 20 actual payment methods such as PayPal, local bank transfer, etc.
This platform will never ask for personal information, even if you register for the first time. However, some sellers prefer to verify LocalBitcoins identity. To make a transaction, you can avoid them and find somebody else.
Moreover, there are no additional fees charged while purchasing. Overall, we highly prefer this method to buy Bitcoin anonymously. If you need more anonymity, you can use a secure VPN while making transactions on LocalBitcoins.
Method 2 – Paxful
Paxful is the easiest way to buy Bitcoin anonymously in person as well as in cash. You can find someone who lives near you to sell Bitcoin for cash in Paxful. While signing up, you can use any random email address.
Also, the verification process is not mandatory here. There is no documentation needed for the transaction. So, it is easy to remain untraceable when you buy or sell Bitcoin.
Method 3 – Bitcoin ATM Machines
Bitcoin ATMs – doesn’t it sound weird? Indeed, Bitcoin ATM is also available like real ATMs. In real ATMs, you enter your card and withdraw cash. Since Bitcoin is a digital currency, you enter your cash in Bitcoin ATMs and receive Bitcoin.
Here you can make the transaction with your Bitcoin wallet address. Then, you can go to your nearest Bitcoin ATM to buy Bitcoin with cash. Nonetheless, you don’t need an ID to buy Bitcoin anonymously from Bitcoin ATM.
There are some Bitcoin ATMs that require your ID to scan before use. You can check the Coinatmradar website to find the Bitcoin ATMs that offer Bitcoin anonymously.
However, the issue with Bitcoin ATM is, it charges a high fee. Sometimes you may have to pay around 8%-20% fees. They charge this fee as the building and operating cost of the Bitcoin ATMs.
How Do Bitcoin ATM Machines Work?
Bitcoin ATMs include a monitor, bill acceptor, QR scanner, and dispenser. All these components are connected together via software on the backend. Unlike traditional ATMs, Bitcoin ATMs are linked directly to a cryptocurrency exchange through the internet.
These exchanges make buying and selling of Bitcoin fast and secure. However, the process of buying and selling Bitcoin via Bitcoin ATMs are done in two ways;
Step – 1: Verifying User Identity
When you first use the Bitcoin ATM, you must verify your user identity. The verification is done in many ways based on the machine. For example, in some machines, such as Coin Cloud machines, you need to enter your phone number.
Then, a verification code will be sent to your mobile by text message. Next, you have to enter the code into the Bitcoin ATM. When the verification is confirmed, you can continue the transaction.
Step – 2: Buy or Sell Bitcoin
After you logged into the machine, it’s time to decide whether you want to buy or sell Bitcoin. You can sell Bitcoin through your digital wallet. To sell Bitcoin, you have to send BTC to the provided QR code. Some ATMs will give out the cash to the user immediately, while others may take time.
Moreover, you can buy Bitcoin by feeding cash into the machine. Then generate a QR code from their cryptocurrency wallet to your mobile device to buy Bitcoin. Now scan the code to receive your purchased Bitcoin.
Top 10 Best Anonymous Bitcoin Wallet Review
Finding the best anonymous wallet is troublesome when you have a few options. Luckily, you can get many alternatives in the cryptocurrency market. Some wallets come with better privacy features. But, they may not be a good fit for your needs.
The anonymity of a Bitcoin wallet depends on how you use it. Here we’ve assembled a list of top anonymous Bitcoin wallets. These wallets will surely increase your transactional privacy while handling Bitcoin.
Ledger Nano Series Anonymous Bitcoin Wallet Review
Our very first suggestion for anonymous Bitcoin wallets is Ledger Nano. It is best suited for people looking to invest a massive amount in Bitcoin and hold Bitcoin for many years.
Features of Ledger Nano Series
Ledger Nano includes a range of hardware wallets that allows users to store their Bitcoin securely. It gives you security like hardware wallets, but with the anonymity you need. Unlike other wallet types, it offers security safeguards.
This physical wallet is the same as a conventional USB stick. Besides, Ledger Nano requires a one-time setup that generates a 12-word seed phrase. During the first-time setup, you’ll need to choose a PIN of between 4-8 digits.
After then, the user can make the transactions using the PIN on the same device. The Ledger Nano utilizes an overarching concept. It means the Leader device remains offline except you perform a transaction.
Since it doesn’t stay connected with an online server, there is no threat of an external hack. Moreover, it includes two variants called Nano X and Nano S. You can use both from a desktop, while Nano X can be used with mobile devices.
Above all, the sleek design and user-friendly dashboard make it easy to manage all your assets. Moreover, it comes in a compact body, so you can take it anywhere you go. Though you need to pay for the service, it worth the money you spend.
Advantages of Ledger Nano Series
- It doesn’t require private information to get started
- No risk of virtual attacks
- It provides similar security to a hardware wallet
- Sleek and user-friendly design
- Easy to use because of Bluetooth connectivity
- Compatible with desktop and mobile devices
- Ledger Nano supports tons of other digital assets.
Disadvantages of Ledger Nano Series
- Lack of convenience as you need to enter the PIN every time you perform a transaction
- Ledger Nano will cost you around $60-$120
Samourai Wallet Anonymous Bitcoin Wallet Review
As the name implies, the Samourai wallet is as powerful as its name. However, it is best known for its reliable privacy features. This anonymous wallet makes sure all your transactions remain private.
Features of Samourai Wallet
Samourai wallet includes the most advanced built-in privacy features. The privacy features include no reuse of address, Tor, and VPN support. In addition, it ensures the exchange does not blacklist your assets.
Generally, exchanges restrict the user’s funds if they find anything suspicious. However, that’s not the case with the Samourai wallet and uses a stonewall that prevents third-party companies from identifying you.
Thus, it protects your assets while sending and receiving funds. Samourai uses advanced techniques like PayNym to keep your funds safe all the time. In addition, PayNym helps the user to defend against any surveillance attacks.
Moreover, the PayNym system generates a unique stealth Bitcoin address. Only you and the receiver can see the address while you send the funds. Also, the Samourai android-only wallets have no address reuse features.
It makes sure you don’t reuse the address anymore while making the next transaction. You can get this anonymous wallet for free on the Google play store.
Advantages of Samourai Wallet
- No address reuses
- Advanced protection with stonewall
- It is Tor and VPN enabled
- It avoids linking previous change outputs
Disadvantages of Samourai Wallet
- Samourai wallet only supports the blockchain cryptocurrency
- It is exposed to inherent risks related to a mobile app
- It may charge extra fees if you use premium privacy features
Wasabi Wallet Anonymous Bitcoin Wallet Review
The next, Wasabi wallet, previously identified as HiddenWallet, is a synonym of privacy. It’s a desktop-only solution for people looking for ultimate privacy.
Features of Wasabi Wallet
Wasabi Wallet is an open-source, privacy-dedicated, and non-custodial Bitcoin wallet. It is one of the best anonymous Bitcoin wallets you can have and use. However, it utilizes a CoinJoin technique which is a coin shuffling method.
CoinJoin transactions take place over the anonymous Tor network. It allows users to combine many transactions into one large transaction using multiple inputs and outputs. That makes the transaction more encrypted.
The blockchain network is unable to determine which output refers to which input. Wasabi doesn’t use third-solution, so your funds are private and protected. You can use the wallet on Windows, Mac OS, and Linux.
Advantages of Wasabi Wallet
- It’s an open-source, privacy-oriented, and non-custodial Bitcoin wallet
- Implements a trustless Bitcoin mixing technique, named CoinJoin
- No third-party solutions included
- Transactions become difficult to track
Disadvantages of Wasabi Wallet
- Wasabi Wallet is not available in the Android and iOS version
Rahakott Wallet Anonymous Bitcoin Wallet Review
Rahakott wallet is a web-only anonymous Bitcoin wallet. It allows creating a new wallet in under 15sec. Also, you don’t need any user data such as email or phone number to set up a new wallet.
Features of Rahakott Wallet
The best thing about the Rahakott wallet is its built-in mixer feature. It operates in the background to make your transactions anonymous. Additionally, there is an optional “Strong Mixing” feature.
This feature breaks the loop of sending and receiving addresses. Thus, your transaction becomes untrackable. You’ll need 10-times the network minimum fee to use the strong mixing feature.
Moreover, Rahakott wallet supports many other cryptocurrencies such as Litecoin, Bitcoin Cash, Dash, ZCash, etc. You can withdraw mixed digital currency into one fiat currency with this wallet.
Advantages of Rahakott Wallet
- Hassle-free registration without email and phone number
- Two-factor authorization increases the protection against hacking
- A new address is generated for each transaction
- Transfers occur instantly
- It supports tons of other cryptocurrencies
Disadvantages of Rahakott Wallet
- It is only available on the web
Electrum Wallet Anonymous Bitcoin Wallet Review
Electrum wallet is the oldest wallet on the list. It’s an open-source wallet that effectively recovers your Bitcoin.
Features of Electrum Wallet
Electrum wallet generates a new address for each transaction. It makes sure you do not use a wallet address twice while making a transaction. All you have to do is to keep your private keys safe on your computer.
Furthermore, it can be combined with other hardware wallets like Ledger Nano Z. When you use Tails OS, Electrum wallet gets a privacy boost. Here, all the transactions are routed through Tor to make your transactions more secure.
Advantages of Electrum Wallet
- The oldest yet most secure Bitcoin wallet
- Quite easy to use
- Software-based wallet
- Generate a new address for each transaction
- Electrum utilizes two-factor authentication
Disadvantages of Electrum Wallet
- It supports the only Bitcoin
- Masking IP address using Tor sacrifices some security
BitLox Anonymous Bitcoin Wallet Review
Here is another hardware wallet like Ledger. BitLox is a highly secure, privacy-grade hardware wallet that offers a Tor-compatible web tool. So, you can remain anonymous while transacting.
Features of BitLox
BitLox comes with an extreme privacy set for people looking for anonymity. There are three BitLox designs including; BitLox advanced, BitLox ultimate, and BitLox extreme privacy set. Among all, BitLox extreme will enhance your privacy.
It offers best-in-class privacy through a combination of BitLox ultimate hardware Bitcoin wallet and Bitcoin military-grade USB vault. Both include Tails OS preinstalled to protect your IP address.
Advantages of BitLox
- Highly-secured and reliable anonymous wallet
- The hardware wallet is compact and portable
- It includes a backup and restore feature in case of damage or lost
- There are no hidden charges
- Easily accessible from any web browser
Disadvantages of BitLox
- There is a chance of sensitive data being hacked while transmitting across the internet.
- It is somewhat expensive compared to other hardware wallets
Edge Anonymous Bitcoin Wallet Review
Edge wallet is designed for iOS and Android devices. Certainly, having an anonymous wallet on your phone makes it more convenient. You can make a transaction with a click of a button.
Features of Edge
Edge features special client-side encryption. Besides, the wallet is built with zero-knowledge security architecture. As a result, it makes sure no software provider has your information related to your IP and digital assets.
Edge offers multi-asset support so you can have different wallets for your crypto. The best thing is the wallet is so easy to use that a beginner can also remain secure. However, it allows users to backup their wallets using a username and password.
Advantages of Edge
- Client-side encryption keeps your wallet key secure
- All your information is encrypted on your mobile device
- Users can backup their wallet easily with username and password
- Edge can be used on multiple mobile devices
Disadvantages of Edge
- There is no desktop or cloud-based version
Exodus Anonymous Bitcoin Wallet Review
Exodus is one of the best anonymous Bitcoin wallets for desktops. You can store and use your Bitcoin on your desktop or laptop as well as your mobile device.
Features of Exodus
Exodus comes with a fully-fledged mobile app. It allows storing Bitcoin and many other digital currencies. While setting up the Exodus wallet, you don’t need to provide any personal information.
You also don’t have to provide information while sending or receiving funds. Thus, you remain anonymous all the time. However, you cannot utilize this wallet to purchase Bitcoin, and it is somehow hampering your ability to use the wallet anonymously.
Exodus is well-known for its clean portfolio display. You can keep an eye on the cryptocurrencies you are holding. Also, it shows the real worth of the funs in real-time. Then, Exodus makes sure your private keys are stored on your device.
Advantages of Exodus
- You get absolute control over the funds
- Easy to use
- Multiple cryptocurrency options
- Most secure software-based wallet
- Automatic fee adjustments
Disadvantages of Exodus
- Since it’s a software-based wallet, there is a chance of being hacked
- Limited security features
BINANCE Anonymous Bitcoin Wallet Review
BINANCE is a Tokyo-based anonymous Bitcoin wallet. It comes with enough security features to keep your Bitcoin safe.
Features of BINANCE
Let’s talk about its anonymous side at first. BINANCE doesn’t require any personal information while opening a wallet. With the wallet, you don’t get full control over the funds. Instead, it remains in full control of your private keys.
It means the transaction must come via a request. Moreover, BINANCE is known for crypto-to-crypto trading, meaning that trading between two cryptocurrency pairs.
BINANCE is also known for its low transaction fees, additional discounts, and high liquidity. Then, it allows setting up 2FA via Google authenticator. There is cold storage to hold the bulk of client funds.
Advantages of BINANCE
- BINANCE does not charge any fees for each transaction
- It supports multiple payment methods as well as fiat currencies
- The bulk of client funds are held in cold storage
- It includes Whitelisting and anti-phishing features.
Disadvantages of BINANCE
- It doesn’t allow depositing funds using traditional payment methods
PINT Anonymous Bitcoin Wallet Review
The last one, PINT, is a multi-currency HD mobile wallet. It is a highly efficient and secure wallet to store, send, receive and manage six blockchain assets.
Features of PINT
PINT allows blockchain assets like Bitcoin, Ether, Litecoin, Bitcoin Cash, Dash, and Dogecoin. Also, it’s a self-hosted wallet. You can control your private keys by backing up the seed.
Additionally, it doesn’t require your personal information like email, phone number, etc. The cherry on the cake is it has an in-built Tor feature. It helps you make a transaction in Bitcoin and other assets.
Advantages of PINT
- It gives full control of your digital asset, which makes it safe and secure
- No information is needed for account setup
- It’s a SegWit wallet
- PINT is a simple to use, fast, and economic wallet
- PINT allows multi-currency swap
Disadvantages of PINT
- No web-version is available, only for mobile device
Why are Anonymous Bitcoin Wallets Important?
To start with, an anonymous Bitcoin wallet ensures untraceable transactions. Others cannot track the transactions that take place here. There are many reasons why you should use an anonymous Bitcoin wallet.
The first reason is that an anonymous wallet doesn’t let you get hacked or become a target. It helps to increase your privacy level to minimize such actions. As you know, Blockchain surveillance companies generally control the transaction that occurs on a different network.
They let governments and other third-party companies connect a Bitcoin wallet address to the user’s identity. Then, when you make repeated transactions without changing the wallet address, you share your IP address.
It means you are providing private information that can be used against you. There are a lot of hackers and attackers in the crypto market. They are always trying to hack your wallet to steal money.
That’s why; using an anonymous Bitcoin wallet is essential to protect your information. Besides, it will become difficult for government and others to detect your transactions. Moreover, since your funds and information remain secure, you can handle your funds with ease.
Frequently Asked Questions
Question: Can You Have an Anonymous Bitcoin Wallet?
Answer: Absolutely, you can have an anonymous Bitcoin wallet. Many people say doing anonymous Bitcoin transactions is tough. But, in reality, it is not. These days you can have an anonymous Bitcoin wallet without installing a lot of VPN or Tor setups. The best part is you don’t need to provide your personal information to use an anonymous Bitcoin wallet. Instead, you can safely use the anonymous Bitcoin wallet above.
Question: How Do I Make an Anonymous Bitcoin Wallet?
Your first step when making an anonymous Bitcoin wallet is to protect yourself. You can protect yourself by removing the hard drive from your laptop or computer. Then, connect to the Tor network using TAILS. Now at this point, you can make an anonymous wallet. There are several ways to do it. The best and easiest way is using the code at bitaddress.org. Here is how you can do it;
1. Save bitaddress.org.html to your computer and close the browser.
2. Then, inactivate the WiFi in your device and open the address in your browser.
3. Create an address and record the private keys.
4. At last, close the browser window, and your anonymous wallet is created.
Question: Can a Bitcoin Wallet Be Traced?
Answer: Yes, because the Bitcoin network makes all Bitcoin transactions public and traceable. Anyone can see all the transactions of any address. That’s because the users have to provide their identity to receive service from Bitcoin. Each transaction has a traceable history, and anyone can view it. However, Bitcoin addresses are absolutely traceable, so they cannot be related to the user. That is why; Bitcoin is also known as pseudo-anonymous.
Question: Is Coinbase Wallet Anonymous?
Answer: No, the Coinbase wallet is not anonymous as it requires their customer’s identity. Coinbase provides an address to the customer to receive cryptocurrencies. However, Coinbase allows the users to send crypto to outside wallets. You can send or receive funds without knowing the person’s identity. Also, the person will not get your identity while making a transaction. But, Coinbase will know about the transaction take place.
Question: Can the IRS Track Bitcoin?
Answer: The IRS can track your Bitcoin transaction if you get a Form 1099-B or Form 1099-K from a crypto exchange. In such cases, they are informed that you have a reportable Bitcoin transaction. A copy of this form is sent to the IRS. Hence, you must report your Bitcoin transaction for tax purposes.
Question: Which is the Easiest Bitcoin Wallet to Use?
Answer: Without a doubt, Coinbase is one of the easiest Bitcoin wallets to sell, buy and store cryptocurrencies. It allows connecting to a bank account to transfer funds in and out of the Coinbase network. Moreover, you can use a standalone Coinbase wallet for mobile.
When you own digital assets, your main concern is to keep your funds and personal information secure. That’s what an anonymous Bitcoin wallet does but more securely. It’s a must-have for privacy-conscious users. These days, data surveillance has become a threat to personal freedom. So preserving personal financial data using the best anonymous Bitcoin wallet should be your prime step.