Hello, I want to ask that people often think that transactions through crypto will be decentralized and anonymous, but I see that when we trade, all of our transactions have a transaction code that can look up the history of money transfers from one wallet to another, so it is no longer anonymous, it is the same as transferring money through a bank, there is a transaction code. But why do people say it is anonymous and decentralized, or did I misunderstand?
Is crypto anonymous?
- Thread starter wakamin
- Start date
TheJackofTrade
Regular Member
- May 19, 2020
- 214
- 67
Cryptocurrencies are decentralized and pseudonymous, not fully anonymous. Transactions are recorded on a public blockchain and linked to wallet addresses, not personal identities. While traceable via transaction codes, they don’t reveal your identity unless linked to it (e.g., through exchanges). Unlike banks, crypto operates without central authority, offers global access, and allows for greater privacy with proper tools like privacy coins.
I understand unless you transfer to the exchange and sell and transfer money to your personal account then it will be no longer anonymous
- Jun 16, 2022
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Identity may be revealed in some cases like when you use a kyc exchange. But if you use platforms like trust wallet, they do not have any KYC. I do not know how safe are they?
nzushi
Newbie
- Aug 17, 2023
- 15
- 11
Crypto is pretty much the opposite of anonymous - every transaction a wallet has ever done or received can be traced back forever, if any of these transactions involve withdrawals of deposits into KYCd exchanges then the wallet can be considered effectively doxxed.
There’s privacy oriented coins out there to specifically counter this though, XMR being the most popular one.
- Aug 12, 2024
- 1,248
- 397
Some coins are more anonymous than bitcoin, you can try them.
RobberyADS
BANNED - Failed to resolve a dispute
- Sep 22, 2024
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You are anonymous unless you make transfers between the exchange and your cold wallet.
21KSuccessStory
Regular Member
- Oct 6, 2024
- 365
- 297
People think crypto currency are anonymus. No it's not. It's still can traccable even if you transfer those into multiple valuts.
seothatranks
Power Member
- Nov 28, 2023
- 675
- 189
There are authorities which can track crypto transactions if necessary. So it is not completely anonymous. But in general other people cannot associate a crypto wallet with your identity .
xReminisce
Elite Member
- Dec 29, 2012
- 7,333
- 36,785
not quite
While the bc doesn't actually contain any useful information to garner IP addresses, it can still be monitored to obtain those information especially if it was done thru a third party website.
There are specialized companies that actually do that such as Chainalysis or CipherTrace.
@wakamin, it's a pretty common misunderstanding that crypto is anonymous.
Just like the general non-crypto public would either think it's a scam or fad and not trustworthy.
While crypto/wallets can be very hard to trace and decipher when necessary precautions are taken or certain cryptos are invovled, but for the general public use, it's pretty much an open ledger.
natsuko
Banned - Multiple Rules Violations
- Aug 21, 2023
- 2,379
- 1,166
The 'anonymous' aspect comes from wallet addresses not being tied to personal information by default. However, if your wallet is linked to your identity (e.g., through KYC exchanges), it’s no longer private. Decentralized refers to no central authority controlling the system, unlike banks. If you want true anonymity, privacy-focused coins like Monero or using mixers can help, but they come with their own risks
- Aug 12, 2024
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It is much more anonymous that other payment mediums like paypal. That is the reason why some guys want to pay with bitcoin because they do not want to reveal their identity.
All tranactions can be linked to exchanges? Or I am wrong ?