Did you know that Bitcoin transactions are not anonymous and can be tracked with just a little effort?
Yes, tracked, if you don’t take proper measures. Being private isn’t possible with Bitcoin as it is a permission less protocol.
However, you can secure your privacy and become its anonymous user if you take care of certain things.
First of all, you must not let your Bitcoin address get exposed in public. For this, you should use a new Bitcoin address every time, post which you can use IP obfuscation methods. Or you can switch to anonymous Bitcoin wallets that do it for you at the backend.
Also, a genuine anonymous wallet will never ask for your personal information such as your name, Email address, phone number or postal address. A lot of new users are not aware of it, and end up using a wallet, that are not truely anonymous, and which is not idle for your privacy.
Wait, but are there any anonymous BTC wallets out there?
Well, there are.
|Ledger Nano X (Recommended)||Hardware|
|Ledger Nano S||Hardware|
|Bitcoin Paper Wallet||Paper|
5 Best Anonymous Bitcoin Wallets
1. Ledger Nano X:
Nothing beats the security and privacy of Ledger Nano X hardware wallet. In my testing, this turns out to be the best Bitcoin wallet that ensures maximum privacy. This hardware wallet is available to be purchased from Amazon or official ledger site.
Here are some of the features of Ledger Nano X wallet:
- Hardware wallet
- Create unlimited Bitcoin account
- Supports multiple cryptocurrencies
- Doesnot need your email address, phone number
- Works on any device
- Easy to use due to Bluetooth connectivity
- Most secure anonymous wallet
If you are looking for single untraceable wallet recommendation, than grab a Ledger Nano X. It takes a few days to get delivered to your doorstep, but once you have it, you never have to look for any other wallet.
2. Samourai Wallet (Mobile Wallet)
Samourai wallet is a modern ananoymous bitcoin wallet, hand forged to keep your transactions private, your identity masked, and your funds secure.
I got serious about this wallet when I read this statement from its development team:
“We are privacy activists who have dedicated our lives to creating the software that Silicon Valley will never build, the regulators will never allow, and the VC’s will never invest in. We build the software that Bitcoin deserves.”
…which shows that they know what they are doing and are serious about it.
Samourai wallet is encrypted on the device using AES-256 encryption and never communicates with any servers. Apart from that, you get robust features such as PIN code and seed word backup to store your funds safely.
More Privacy Centric USPs Of Samourai Wallet Are:
- No address reuse: Therefore, Samourai will alert you if you have sent to an address before, helping prevent unintentional address reuse.
- Protection with STONEWALL: Samourai provides, by default, a transaction that increases the difficulty of linking inputs to outputs of a transaction, making clustering wallet addresses and associated metadata more difficult. Also, STONEWALL enables Samourai transactions to produce higher entropy than standard bitcoin transactions and often resemble CoinJoin transactions on the blockchain to make it more complicated to analyze.
- Tor and VPN Support: The wallet is Tor and VPN enabled, allowing you the ability to route all transactions through an anonymous IP address.
Lastly, the wallet also comes with segwit support which naturally helps in lowering your BTC transaction cost.
3. Ledger Nano S (Hardware Wallet)
Ledger Nano S is one generation older version of Ledger Nano X wallet. Ledger is a dynamic startup company, produce high-grade Bitcoin and cryptocurrency hardware wallets.
The unique thing about this wallet is it produces a range of hardware wallets, especially for privacy-centric users. It is called Ledger Nano S and a remarkably anonymous wallet.
With this privacy set, you get the absolute best-in-class privacy solution – an unbeatable Ledger Nano hardware Bitcoin wallet
Some other features of Ledger Nano S are:
- NIST certified True Random Number Generator to secure your signatures.
- HD wallet provides over 100 wallets, each of which can generate millions of unique addresses.
- Hidden Wallets: Hidden wallet data is indistinguishable from random bytes – only YOU can know they are there.
- 24-word mnemonic backups enable recovery of all funds if your Ledger Nano X is ever lost or stolen.
These features and privacy, however, come at a price which is clear from the fact that Ledger Nano cost $119.
4. Electrum On Tails Operating System (Desktop Wallet)
Electrum is one of the oldest lightweight Bitcoin wallets operating in this space since 2011. It is also one of the most trusted Bitcoin wallets available in the market and is an open-source wallet under an MIT license.
However, if you use Electrum wallet on Tails operating system which is very privacy-centric and is Tor enabled, it can be anonymous.
Here is a simple explanation of Tails: “Tails is a live system that aims to preserve your privacy and anonymity. It helps you to use the Internet anonymously and circumvent censorship almost anywhere you go and on any computer but leaving no trace unless you ask it to explicitly.”
Apart from that, there is no other requirement for protecting your privacy as it is an HD wallet that provides you with seed and takes no personal information.
At present, it is available for Windows, Mac OSX, and Linux.
Conclusion: How To Setup An Anonymous Bitcoin Wallet
Getting your required amount of privacy with Bitcoin transactions is quite possible. You only need to take care of a few things that I mentioned in the introduction.
But if you don’t want to do that, you should use either of the wallets mentioned above. You can also set up your custom-made wallets or methods to get an anonymous Bitcoin wallet. This exclusive guide will help you: 6 Ways To Make Untraceable Transactions With Bitcoin.
That’s all from my side in this article. I hope it helps you in choosing the right wallet.
Don’t forget to share your choice with us in the comments below 🙂
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Suggested Further Readings On CoinSutra:
- Best Multi-Signature Bitcoin Wallets [2021 Edition]
- 9 Anonymous Cryptocurrencies You Should Know About
- 3 Smart Ways To Keep Your Cryptocurrency Wallet Secure
Harsh Agrawal is the Crypto exchange and bots expert for CoinSutra. He founded CoinSutra in 2016, and one of the industry’s most regarded professional blogger in the fin-tech space.
An award-winning blogger with a track record of 10+ years. He has a background in both finance and technology and holds professional qualifications in Information technology.
An international speaker and author who loves blockchain and crypto world.
After discovering about decentralized finance and with his background of Information technology, he made his mission to help others learn and get started with it via CoinSutra.
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