Topic: Are Crypto Transactions Traceable? - page 2. (Read 606 times)

Some security are still saved and can be traced through a system and it is only opened when it is very necessary. Those are private transaction that needs the approval of the owner and the government before accessing it. Mostly, it is used in some cases like an evidence against someone who committed a violation while trading in cryptocurrency. Criminals are caught by this traceable transactions because maybe they scammed someone. People should become more careful and secured during transactions.

In trading or making some transactions like sendings funds into different wallets or to other people all of those are recorded that is the reason why most of the time when we want to use a new cryptocurrency wallet they needed all of our accurate information, and we called this as the KYC or knew your custumer. After we created the accounts we want to use, they are now tracing all of our activities like if we are deposit, some funds came from external websites or any platforms, and also sending it into other addresses. Like today many countries now are accepting the use of cryptocurrency, and it is an extensive database of information that came from different users. However, still, they need to record those to make sure the history of the transactions of the users. One of the essential things that a system must-have is the history of the transactions of cashing in and cashing out the money also to monitor the user if that money is still safe.

Major exchanges have made KYC as mandatory because of the various rules and regulations from various nations and also most of the nations have stopped allowing their citizens to transact with the virtual decentralized currency which might only make few countries able to trade and in this case KYC verification is a must.

Also once we upload the documents for KYC verification onto those exchanges, our documents are stored in a secure server which would not give access to our credentials without our permissions. This might be something which the exchange violates if they ever leak our information without us been informed. In case of a fraudulent act which might include huge figure of money than the exchange might perhaps consult a legal adviser which might not be good for the user considering the fraudulent act.

Tracing of cryptocurrency transactions isn't as much related to IP as opposed to inputs and outputs. One disadvantage of cryptocurrency in terms of privacy is the lack of frangibility.

Think of it like this, if you throw a handful of one cent coins in a tub full of one cent coins, the original coins would be hard to tell apart from the other coins.
Now, if you are the recipient of 0.02 USD via bank wire, there's no way to tell what the origin of those two cents was if the sender had more than 0.02 cents in his account. Electronic money is fungible. Meaning that the origin of money can't be traced back in history. Once they reach an account sum, they're all bundled together as a net sum, rather than a set of sub-sums depending on their origin.

With bitcoin however, every satoshi that makes up the balance of the address is traced through transactions. Inputs in the address make the total balance. If for instance an input is unspent, an output using this specific input can only be confirmed when the proceeding input has also been confirmed. This example illustrates how the origin of BTC can be traced.

Exchanges can utilize this aspect of bitcoin to know, at least approximately, where youc transactions come or go to. Other than that, crypto is pseudonymous. And aside of people being able to identify that many transactions are coming to and from you, if you are not attaching your ID to your addresses, tracing your person via BTC transactions isn't easy.

I think it can't be, because in cryptocurrency we can make our every transactions in anonymous way, they cannot trace it and we cannot trace others as well, not unless when you join in a campaign and you pass your KYC in that case it could be traceable. But through IP? I doubt it, I cannot say that they can get your IP through your transactions.

You can't be tracked by your IP if you have done any transaction in cryptocurrency (For what I've known) most of the cryptocurrency have their own blockchain let's say the blockchain is a public log of all the transactions that's happening but the difference is that the name isn't available only the (Address) which might be what we call your name so through it anyone can be able to track you down and all your transaction but the good thing is that they don't know who the owner of that address is (Not unless you tell them)

Perhaps, this is the safest and most appropriate way to avoid user data security threats. Regarding sensitive data, we must all be careful and still consider security so that undesirable things do not happen.

KYC has been a long debate because of the pros and cons of its effectiveness and usefulness. But it would be better to avoid KYC with just a few dollars because in my personal data security more than money that might not be worth the risk that will come.

There's no guarantee that those dexes (if they ever exist) did not record anything sensitive to your 'identity' such as IP address, transaction history, etc. Some of them even go as far as doing a soft-KYC such as IDEX or Binance DEX. Who knows what's running behind them, an intelligence agency might even set up their own DEX or mixer.

In short, don't ever feel you're safe. Take precautions if anonymity is important for you and if possible never do KYC just to sell some tokens.

If you are using a centralized exchange that you have verified your account through KYC, then your crypto transaction can be traced to such exchange and if the reason for this is because of fraudulent activities, you can easily be caught when the exchange reveal your identity. This is the part of the reason why Centralized exchange conducts KYC especially for users that transact heavy amount of crypto in USD in order to comply with AML act of the country in which the exchange company is located. DEX is free of this and I do not think your identity can be traced on DEX platform.

All Bitcoin transactions are open, discernible, and for all time put away in the Bitcoin network.

authority can trace the transactions if they ask that exchange about the movement of your coins. however, it is only limited to what the exchange info has. if you are using several exchanges and bitcoin addresses, i don't think it will be easy for someone to track all your btc transactions. and by the way, what is the main reason of the OP to avoid possible tracker for his bitcoin address? is it to avoid taxes or what?

Bitcoin is anonimous unless you use centralized exchanges

Although Bitcoin is called untraceable, I think it can be traced during Bitcoin transactions. Because when an account is opened on an exchange, KYC verification is required. From there, it is possible to get all the information. But it is not possible to trace only with bitcoin transaction wallet

There are some ways on how you can trace crypto transactions, first you can trace crypto transactions if the one you are doing the transaction is submit kyc form in which you can know his identity and etc.
And blockchain or crypto has own way to manage and track different transaction inside their websites.
But I don't think that the crypto transactions can be traced through IP address because many people are trying to use some tools to block their ip address so that they will not track by anyone else, for some IT people it would be very easy to block their own IP address in order to make an transactions.

For me, transactions are traceable because blockchain has a record of all bitcoin transactions, and these transactions are in public that anyone can see. Also, all miners will confirm your transactions to another miner to confirm it. That's why its called peer to peer. But except names, you are given a bunch of code/ address so that you have a unique name. But most of the local exchange has KYC and gives you only one address, so if you transact using their wallet, they can identify you.

It is almost impossible for someone to track your IP when you are conducting a cryptocurrency transaction but your ISP. Your internet service providers could easily track what you are doing online from watching Youtube videos to chatting on Facebook. so it is very likely for your ISP to track a cryptocurrency transaction.

These are enough to OP to understand it will how the transaction of bitcoin works, either anonymous but traceable.
Let's consider because OP is a newbie and might probably he did not know yet. All of the transactions can be trace unless if you will not transfer into fiat or in mixing service. Because when you are transferring your Bitcoin into the custodial wallet it means that it is required KYC wallet and possible you will be traced.

You can refer to these threads to get more answers :



How traceable is bitcoin


How Traceable Are Bitcoin Wallet Addresses?


Can a bitcoin transaction be traced from one wallet to another?


Are Bitcoin Transaction Traceable? 

This is repetitive questions that will popping up every year , makes sure you read more before deciding to create a topic that has been exist several times in the past.

I don't think that transactions can trace the IP. We can just see a transaction been happening but its not can trace the IP .I think its totally a anonymous way to make a transaction by crypto .

This is sadly true. The KYC stuff has spoilt the anonymity of what Satoshi initially set out to do. Without a KYC, it's really difficult to trace a transaction to anyone physically. But that's the reality of the time we live in now.