Anonymity with your Bitcoin Transactions

BestBitcoinBuyers

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Quote from: figmentofmyass on August 26, 2019, 02:48:44 PM

Quote from: BitHodler on August 26, 2019, 02:26:20 PM

People somehow still believe that as long as you don't have to submit your ID and other personal information to an exchange, that you are completely anonymous. People have to find out the truth the hard way I guess.

i'm not seeking anonymity so much as avoiding being low-hanging fruit. by all appearances, the people the IRS are currently shaking down are those who were in the 2018 coinbase summons and customers of exchanges who send 1099s. if a 3-letter agency really wants to nail you, it's another matter entirely, but avoiding KYC is a good way for casual users to generally stay off the radar.

Exactly! This is why Anonymous Exchanges and methods to buy and sell bitcoin world wide will always be popular.

Even in a "banned" country, traveling somewhere and buying/selling bitcoin for cash is always possible.

Artemis3

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Quote from: dothebeats on August 23, 2019, 05:54:02 PM

Before, you could easily stay anonymous by using multiple exchanges for transactions, although of course it comes with a cost (negligible entirely back then) and the process is painstaking. Along came mixers, although at the current times, governments are already looking at it with a watchful eye. Binance, like squatter said, can be pretty much an avenue to circumvent KYC laws, though the question is until when? Tor doesn't help one bit; it only changes your IPs but not mask your addresses.

Authorities from hostile (anti Bitcoin) countries need to match addresses with IPs, that is why Tor is very useful, especially when you use it with your Bitcoin wallet. But the true strength is when you use Tor's own "Hidden services", which is what the DEX Bisq does, or anyone wanting to host a more anonymous service should (ie. a .onion address).

If you DO use Tor with your Bitcoin wallet, and always use an address once and only once per transaction, you should be pretty much safe. Do you know there are Electrum servers running as hidden services in Tor?

figmentofmyass

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Quote from: BitHodler on August 26, 2019, 02:26:20 PM

People somehow still believe that as long as you don't have to submit your ID and other personal information to an exchange, that you are completely anonymous. People have to find out the truth the hard way I guess.

i'm not seeking anonymity so much as avoiding being low-hanging fruit. by all appearances, the people the IRS are currently shaking down are those who were in the 2018 coinbase summons and customers of exchanges who send 1099s. if a 3-letter agency really wants to nail you, it's another matter entirely, but avoiding KYC is a good way for casual users to generally stay off the radar.

BitHodler

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Quote from: Thirdspace on August 26, 2019, 12:52:01 PM

but once you use centralized exchanges (with KYC), you will lose it

Even exchanges without KYC are not a viable option to use. They may either be shut down by the authorities where they browse through their database, or become compliant and you still have to pay the price for your ignorance.

I recall someone on Reddit like a year ago explain how he/she found the 'perfect' method to become anonymous, which was to deposit X coin on an exchange, trade it for Y coin, send Y coin to another exchange, then trade back to X coin.

People somehow still believe that as long as you don't have to submit your ID and other personal information to an exchange, that you are completely anonymous. People have to find out the truth the hard way I guess.

Thirdspace

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bitcoin transactions are basically pseudonymous
but once you use centralized exchanges (with KYC), you will lose it
licensed exchange has to follow regulations by performing KYC and AML
so to stay pseudonymous, spend your coins or do peer to peer exchange

bryant.coleman

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Quote from: figmentofmyass on August 24, 2019, 12:39:03 AM

Quote from: bryant.coleman on August 23, 2019, 11:36:51 PM

Hmm... I wasn't aware that the limits were this large (can someone confirm that this is accurate?). And the most important thing is that they don't have any policy against multiple accounts.

you're allowed to have multiple accounts but i'm sure it's against their terms to bypass the withdrawal thresholds. if they detect that sort of behavior, you're liable to have your account(s) frozen until you complete KYC. and binance will only allow you to complete KYC for one account. i'm not sure what will happen to the others---hopefully they'll just close them and allow you to withdraw, but i'm not sure. probably best just to stick to one account.

OK.. So you are allowed to have more than one account with Binance, but you are not supposed to withdraw a combined amount of more than 2 BTC with all these accounts. Sounds fine for me. I have withdrawn over 0.1 BTC from exchange wallets only 2-3 times during the last 7 years. With the exchange rates increasing every month, $20K looks more than enough for now.

I don't have multiple accounts with any of the exchanges. I have accounts with at least a dozen exchanges (including defunct exchanges such as BTC-e/Wex.nz and Cryptopia), but in none of these exchanges I have more than one account. And the only exchange in which I had undergone KYC was Cryptopia, after they flagged me for withdrawing 0.7 BTC in 2018.

Kakmakr

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I would really want to encourage people to use more than one Mixer service if you are really serious about your anonymity, because none of us know if any of these Mixers are backed by some 3Letter agency. I do not care if the authorities get logs of my Bitcoin addresses, because I do not use Mixer services to hide criminal activities, but I do not want every Tom, Dick and Harry to know how many coins I have and what I spend it on.

So my advice would be to use more than one Mixer and to stick with the Mixers like the one in my signature, because they have a good reputation for protecting people's financial data. Wink

Potato Chips

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Quote from: muslol67 on August 24, 2019, 08:15:52 AM

Quote from: BestBitcoinBuyers on August 23, 2019, 01:40:42 PM

You do not need any of these. Just buy bitcoin somehow. And deposit your BTC in one exchange (which doesn't need any KYC process) and trade your BTC with any other cryptocurrencies. Then withdraw your wallet or buy Bitcoin again from another exchange and keep it safe.

Mixer's is another solve off course.

I hope you only mean in terms of mixing when you said: "You do not need any of these" as some of them are vital and doesn't just concern bitcoin alone, its more of a general thing.

About mixing using exchanges, bear in mind that they keep logs which can be used to trace your transactions. Pretty sure they would hand those data to authorities if they're asked to.

BestBitcoinBuyers

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Quote from: muslol67 on August 24, 2019, 08:15:52 AM

Quote from: BestBitcoinBuyers on August 23, 2019, 01:40:42 PM

How to Keep Big Brother from your Bitcoin is our new article for bitcoin anonymity

https://www.bestbitcoinbuyers.com/2019/08/16/keeping-big-brother-away-from-your-bitcoin/

Topics covered:

1. VPN's/TOR

2. Multiple Bitcoin Addresses

3. Browsers, search engines, operating systems

4. Securing Email

5. Encrypted Messaging

6. Anonymous Bitcoin Exchanges

7. Coinjoin/Mixing Bitcoin

You do not need any of these. Just buy bitcoin somehow. And deposit your BTC in one exchange (which doesn't need any KYC process) and trade your BTC with any other cryptocurrencies. Then withdraw your wallet or buy Bitcoin again from another exchange and keep it safe.

Mixer's is another solve off course.

Some people want increased security with their internet browsing and bitcoin funds.

Internet service providers store all of your internet activity, what if an employee wants to steal your data? Your banking data, emails, sms data... there are tons of ways that hackers steal from people that can be easily avoided.

The need for security increases for people that want to take control of their money and their data. If you dont want to do that then dont.

BestBitcoinBuyers

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Quote from: drwhobox on August 23, 2019, 04:27:53 PM

How Binance is anonymous? Yeah for certain amount of withdrawal, you will not need to provide them your identifications data but if you want to withdraw more than the limit then you will need to verify your account.

You answered your own question and screen shot where it says under 2 bitcoin no KYC? That is over $20,000 in USD funds you would be moving in or out of an exchange, so yes it does require KYC for that large of amount.

Most people do not have the need to move that amount of bitcoin in and out of an exchange though...

Quote from: drwhobox on August 23, 2019, 04:27:53 PM

A centralized exchange will always have the pressure from the authority.

They moved company location to Malta when Japan and Hong Kong legislation started becoming draconian towards crypto.

People's money isnt at risk with a company like Binance as much as the fly by night exchanges popping up everywhere.

muslol67

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Quote from: BestBitcoinBuyers on August 23, 2019, 01:40:42 PM

How to Keep Big Brother from your Bitcoin is our new article for bitcoin anonymity

https://www.bestbitcoinbuyers.com/2019/08/16/keeping-big-brother-away-from-your-bitcoin/

Topics covered:

1. VPN's/TOR

2. Multiple Bitcoin Addresses

3. Browsers, search engines, operating systems

4. Securing Email

5. Encrypted Messaging

6. Anonymous Bitcoin Exchanges

7. Coinjoin/Mixing Bitcoin

You do not need any of these. Just buy bitcoin somehow. And deposit your BTC in one exchange (which doesn't need any KYC process) and trade your BTC with any other cryptocurrencies. Then withdraw your wallet or buy Bitcoin again from another exchange and keep it safe.

Mixer's is another solve off course.

dkbit98

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I am hoping to see some second layer solution in future that will give us more privacy (if we want)
but for now you can use something like Samourai or Wasabi wallets.

Along with using TOR (like Satoshi did) or VPN
and no KYC will give you some Anonymity...

o_e_l_e_o

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Quote from: BitMaxz on August 23, 2019, 06:25:56 PM

They also collecting cookies:
"We use the IP address and unique identifiers stored in your device’s cookies to help us authenticate your identity and provide our service."
So we can not call it full anonymous unless if they are not collecting any of the data from our devices.

Every exchange collects this data. Pretty much every site, this forum included, collects IP logs and leaves a cookie on your device. It's not really a big deal since you can easily avoid this by using a VPN and is disallowing cookies.

Quote from: pooya87 on August 23, 2019, 11:13:06 PM

they can at any moment decide to force you to reveal your true identity even if your trading volume was less than 0.001BTC

This. There are plenty of exchanges in the past, including large ones like Bittrex, which have sprung unannounced KYC on their customers, essentially holding their coins hostage. "Give us your info or we keep your coins" is the message. Don't trust any exchange to hold your coins.

Quote from: bryant.coleman on August 23, 2019, 11:36:51 PM

Hmm... I wasn't aware that the limits were this large (can someone confirm that this is accurate?).

2 BTC a day for unverified accounts is correct. See:

Quote from: https://www.binance.com/en/support/articles/115003670492

If you have not finished your personal verification, your withdrawal limit is 2 BTC every 24 hours.

figmentofmyass

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Quote from: bryant.coleman on August 23, 2019, 11:36:51 PM

Hmm... I wasn't aware that the limits were this large (can someone confirm that this is accurate?). And the most important thing is that they don't have any policy against multiple accounts.

you're allowed to have multiple accounts but i'm sure it's against their terms to bypass the withdrawal thresholds. if they detect that sort of behavior, you're liable to have your account(s) frozen until you complete KYC. and binance will only allow you to complete KYC for one account. i'm not sure what will happen to the others---hopefully they'll just close them and allow you to withdraw, but i'm not sure. probably best just to stick to one account.

bryant.coleman

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Quote from: squatter on August 23, 2019, 04:39:17 PM

Quote from: drwhobox on August 23, 2019, 04:27:53 PM

How Binance is anonymous? Yeah for certain amount of withdrawal, you will not need to provide them your identifications data but if you want to withdraw more than the limit then you will need to verify your account.

The threshold is 2 BTC per day. That's $20,000 per day at current prices. How many people do you know that need to withdraw more than that? Cheesy

Plus, you can have multiple unverified accounts at Binance to circumvent the KYC thresholds. Binance support told me a couple months ago that they have no explicit policy against multi-accounting.

Granted, Binance accounts are not fully anonymous. You need to provide an email address, and they are logging various data like IP address and browser information. But this is miles apart from some exchanges who require SSN/Passport #, ID and selfie, etc.

Hmm... I wasn't aware that the limits were this large (can someone confirm that this is accurate?). And the most important thing is that they don't have any policy against multiple accounts. That virtually removes the 2 BTC daily limit. During the last 2-3 years, I was mostly using Cryptopia for trading and they had much lower limits. If I remember correctly, they asked me for KYC after I tried to withdraw 0.7 BTC. I had to send them a scanned copy of the passport and other documents. The limit for unverified users was 0.2 BTC or something in the vicinity.

It is not much surprising that so many cryptocurrency users prefer to use Binance, despite all the recent scandals. The 2 BTC daily limit means that the vast majority (99%+?) of the users may not require KYC. But then I have heard about user accounts getting frozen for "suspicious activity". These accounts will be unfrozen only after the completion of the KYC process.

pooya87

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Quote from: BitMaxz on August 23, 2019, 06:25:56 PM

If binance is anonymous they should allow TOR browser to trade.

that wouldn't change a thing. as long as your money is hostage in the pocket of a centralized exchange, they can at any moment decide to force you to reveal your true identity even if your trading volume was less than 0.001BTC. so even if they allowed TOR, ... they could still force their users to comply with KYC and submit their documents.

BitMaxz

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Quote from: squatter on August 23, 2019, 04:39:17 PM

Quote from: drwhobox on August 23, 2019, 04:27:53 PM

How Binance is anonymous? Yeah for certain amount of withdrawal, you will not need to provide them your identifications data but if you want to withdraw more than the limit then you will need to verify your account.

The threshold is 2 BTC per day. That's $20,000 per day at current prices. How many people do you know that need to withdraw more than that? Cheesy

Plus, you can have multiple unverified accounts at Binance to circumvent the KYC thresholds. Binance support told me a couple months ago that they have no explicit policy against multi-accounting.

Granted, Binance accounts are not fully anonymous. You need to provide an email address, and they are logging various data like IP address and browser information. But this is miles apart from some exchanges who require SSN/Passport #, ID and selfie, etc.

I think it's not safe if you continue to trade without KYC(If you don't have documents) if you can reach the 2BTC daily withdrawal it will look suspicious. I'm sure if they found something suspicious from your binance account they will lock or freeze the account and ask for KYC verification. it's likely the same as what happened from this man: So Binance locked my account unless I provide them with ID's, images, videos of me

If binance is anonymous they should allow TOR browser to trade.
They also collecting cookies:
"We use the IP address and unique identifiers stored in your device’s cookies to help us authenticate your identity and provide our service."
So we can not call it full anonymous unless if they are not collecting any of the data from our devices.

dothebeats

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Before, you could easily stay anonymous by using multiple exchanges for transactions, although of course it comes with a cost (negligible entirely back then) and the process is painstaking. Along came mixers, although at the current times, governments are already looking at it with a watchful eye. Binance, like squatter said, can be pretty much an avenue to circumvent KYC laws, though the question is until when? Tor doesn't help one bit; it only changes your IPs but not mask your addresses.

squatter

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Quote from: drwhobox on August 23, 2019, 04:27:53 PM

How Binance is anonymous? Yeah for certain amount of withdrawal, you will not need to provide them your identifications data but if you want to withdraw more than the limit then you will need to verify your account.

The threshold is 2 BTC per day. That's $20,000 per day at current prices. How many people do you know that need to withdraw more than that? Cheesy

Plus, you can have multiple unverified accounts at Binance to circumvent the KYC thresholds. Binance support told me a couple months ago that they have no explicit policy against multi-accounting.

Granted, Binance accounts are not fully anonymous. You need to provide an email address, and they are logging various data like IP address and browser information. But this is miles apart from some exchanges who require SSN/Passport #, ID and selfie, etc.

drwhobox

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Quote from: BestBitcoinBuyers on August 23, 2019, 01:40:42 PM

6. Anonymous Bitcoin Exchanges

How Binance is anonymous? Yeah for certain amount of withdrawal, you will not need to provide them your identifications data but if you want to withdraw more than the limit then you will need to verify your account.

A centralized exchange will always have the pressure from the authority.

Topic: Anonymity with your Bitcoin Transactions (Read 298 times)