I was wondering what the proper way is for hiding or masking your nameserver from WHOIS? How do people do it?

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Could you give an example?

In order for the domain to work, either an IP or a domain must be the nameserver. If you didn't have one, you wouldn't know what IP the domain resolves to.

for example if you have hostgator hosting and you change your DNS to ns1.hostgator.com ns2.hostgator.com

WHOIS will show that and everyone can see. I would like that hidden or masked in some way for example to ns1.randomsomething.com

ask your hosting provider for their NS Ip.
And set that in your registrar cpanel.

ok ill give that a shot

Ok so I got the NS Ip's from my host.

My domain is hosted through godaddy so I just wanna make sure I'm doing the process right.

1. Under Host Summary I click Add and add a NS1 with the NS1 IP from my Host

2. I repeat the above step for NS2

3. Then I go to Set Nameservers and set it to this new NS1.MYDOMAIN.COM and NS2.MYDOMAIN.COM

Is that correct?

as of right now it wont let me add NS1.MYDOMAIN.COM or NS2.MYDOMAIN.COM it says "Nameserver not registered." im assuming I have it give it a few hours after I add the two Host Summaries. Is this right?

(I have a shared account with my host not a reseller, don't know if that makes a difference)

Its so simple dude if u are using namecheap then simply they are allowing their users this service for free you just have to forward the ips to ur dns server from the admin panel of namecheap or else one more thing you are able to do if u arent using namecheap, forward ips to ur subdomain and name it ns.subdomain.com, and use those ips as a nameserver

If your intent is to not let people know who you are hosted with, hiding name servers will not do you any good. They can still find who you are hosted with by getting your site IP using dig, ping or tracert.