How to Exchange Crypto Anonymously: Quick Guide
Cryptocurrencies are quite versatile assets that can be used for a wide variety of reasons.
A big portion of the crypto investing community acquires tokens to trade them for one another and make profits by speculating on their prices.
That said, there’s a general misconception about crypto and blockchains that the transaction information is anonymous and untraceable.
This is far from being the case, as most blockchains offer a transparent ledger where all transactions are made public.
Those that value their privacy should do whatever is in their power to make their transactions anonymous.
In this article, we explain why conducting anonymous crypto swaps is vital. More importantly,
we provide some of the best methods to achieve total anonymity by using the anonymous crypto exchange Godex, among other solutions.
Why Exchange Crypto Anonymously?
There are many reasons why one would wish to exchange cryptocurrencies anonymously.
First, as we previously mentioned, cryptocurrency holdings can be easily traced back to their owners.
Data breaches and cryptocurrency exchange hacks have occurred many times in the past, exposing crypto holders’ real names and linking them to their crypto addresses.
Because cryptocurrencies are continuously appreciating, even smaller investments can skyrocket in value.
This could incentivize malicious actors to get access to your funds and rob you of your money.
If they can link it to your real address and name, it becomes even more dangerous. As the sole custodian of your funds, criminals might be tempted to attack you personally and harm you or your close people to get ahold of your private keys.
Furthermore, if you are a business owner, you might want to hide your crypto deals from your competitors.
Finally, many investors prefer not to share any of their private data on the internet, especially when cryptocurrencies are concerned.
This limits their exposure to data breaches and hides their transactions from governmental agencies.
How To Swap Cryptos Anonymously
If you are convinced about the benefits of exchanging cryptocurrencies anonymously, follow the guide below.
1. Obfuscate Your Transaction Data
The first thing you will want to do is hide your personal data before making any crypto transactions.
You see, most cryptocurrency wallets will broadcast your IP address together with the transaction. This, in turn, can help hackers and government agencies detect you easily.
Consequently, you should have a VPN installed if you are serious about conserving your privacy when transacting with crypto.
With a VPN, you can obfuscate your IP address by bouncing it all over the world.
As a bonus, it can also help you access some crypto wallet or exchange services that might be blocked in your region.
Good VPNs will cost you a subscription fee, and you should pay at least $15/month for such a service on average.
2. Find a Reliable Anonymous Exchange
There are different options to make anonymous cryptocurrency transactions. Let’s see what they are.
Option 1 – Anonymous Crypto Exchanges
Your first, and generally the most reliable option, will be to use an anonymous crypto exchange like Godex.
On this platform, you will be able to swap over 300 cryptocurrencies for one another, including ETH to XLM. Moreover, this exchange offers more advantageous rates compared to the competing platforms, and it provides limitless swaps.
All of this is available without having to create an account, go through know-your-customer (KYC) or even provide your email address. Just choose your tokens and sign the transaction with your wallet. That’s it!
Option 2 – Peer-to-Peer Exchanges
Still want to exchange crypto anonymously? Then, you can also use another option, including P2P exchanges.
They act as an intermediary between different users that wish to exchange their cryptocurrencies. They are the “trusted middleman” that will help sign the transactions in a multi-sig wallet.
Here, users provide an alias so that their identity remains hidden. That said, you will need to go through a verification procedure to prove your identity to the exchange platform. However, transactions remain anonymous.
Option 3 – Decentralized Exchanges
Finally, your last option to exchange crypto anonymously is decentralized exchanges. These crypto swaps do not need an intermediary but are instead powered by smart contracts.
You will, however, need to link your Ethereum wallet, which still doesn’t provide 100% anonymity.
Moreover, you will be limited to exchanging Ethereum-based tokens for one another, which can be quite annoying in case you wish to swap tokens that aren’t on Ethereum.
Conclusion
If you are remotely serious about your crypto investments, you should start thinking about making all of your transactions private from now on.
By exchanging crypto anonymously, you will be shielding yourself from criminals that could otherwise trace back your crypto address to your person.
Hopefully, the three different methods we provided will be a good starting point for learning how to conduct crypto transactions anonymously.
As a last resort, you could even exchange all your holdings for a privacy-focused cryptocurrency such as Monero, and withdraw it from there.
