Why Crypto Users Aren't Anonymous

[Suba]

When transacting cryptocurrencies like Bitcoin, Ether, Sol, ADA, USDT, etc., we don't reveal personal data like names, phone numbers, addresses, etc., so many of us assume crypto transactions are anonymous, as only the public address is disclosed during transactions.

Although many crypto traders on the black market and the dark web use private coins to avoid being tracked, they can also use crypto mixers to make their transactions difficult to trace. However, in general, for standard crypto transactions that we frequently engage in, there are methods that can be used to track crypto transactions, such as:
Through centralized crypto exchanges.
Using blockchain tracking software, especially for tax purposes, crime, hacking, illicit transactions, etc.
Finding the IP address of a crypto user by combining several nodes on the blockchain.

 

[gwolf666]

Although transactions with cryptocurrencies like Bitcoin or Ether don't reveal personal data such as name or address, they are not completely anonymous. They can be tracked using blockchain explorers that display all public transactions on the chain, combined with data from centralized exchanges that require KYC verification, or with advanced analytics software that aggregates wallets and usage patterns to identify users. It's also possible to link users' IP addresses by examining network nodes, which helps identify transactions for tax, legal, or security purposes. However, users seeking greater privacy can use specifically designed coins or mixing services to hide their transactions.

 

[Fidelia]

I know that crypto users are not completely anonymous when they do transactions on the crypto exchange. That's a well established fact.

 

[Suba]

Crypto uses a public blockchain, so every user transaction is recorded and easily visible to other users. Furthermore, almost all crypto exchanges implement KYC, which is linked to the owner's crypto address.

 

[Webster]

When transacting cryptocurrencies like Bitcoin, Ether, Sol, ADA, USDT, etc., we don't reveal personal data like names, phone numbers, addresses, etc., so many of us assume crypto transactions are anonymous, as only the public address is disclosed during transactions.

Cryptocurrency’s Myth of Anonymity

This week on 'Gadget Lab,' we talk to 'Tracers in the Dark' author Andy Greenberg about how authorities are catching crypto criminals by following the money.

www.wired.com

That article's a good primer on the supposed myth of crypto anonymity.

 

[riberet19]

This depends a lot on the purchasing methods you use and the cryptocurrency you buy; if you buy XMR, Zcash, Bitcoin Cash, or Litecoin on P2P exchanges, you can be completely anonymous.

 

[Webster]

This depends a lot on the purchasing methods you use and the cryptocurrency you buy; if you buy XMR, Zcash, Bitcoin Cash, or Litecoin on P2P exchanges, you can be completely anonymous.

Even with those, once you know the identity of one person on the blockchain, you can trace where they're crypto goes, then trace those crypto items....go back and read the Wired article that I posted; that's how the authorities busted open a CSA (child sexual abuse) case back in the 2010's - they arrested one person and then followed that person's crypto purchases of CSA material to others, then arrested them and traced their illicit purchases.