Preamble:In many occasions I have seen people care much about the security of their bitcoin, security of their other assets, perhaps security of job. We most times ignorantly care less about the security of our personal data.
I am therefore going to discuss this topic in the following sub headings;
1.
My identity mistake (a motivation for this thread)2.
How your identity may be revealed through your bitcoin address 3.
How to hide your identity4.
Why it is good to hide your identity.Who will benefit from this topic?- Newbies who have not made identity mistakes
- Other users who have not prioritised identity security
- Readers, for learning purposes as no knowledge is a waste
My identity mistake (a motivation for this thread):If you have been in this forum for more than 3years, congratulations! You are the smartest among your peers. This forum is an embodiment of knowledge.
Prior my arrival to this forum, I was so careless about my identity (offline and online). I was actually seeing things from a different and wrong perspective. For instance, I regarded anyone avoiding KYC as a criminal. I believed that since I am not a criminal, releasing my data will cost me nothing because I am sure I will never turn a criminal in the future.
I was wallowing in my ignorance till I arrived this forum.
Few weeks in this forum, two things struck my consciousness;
- Why was Satoshi the bitcoin creator so concerned about privacy and identity, such that he was able to successfully remain pseudonymous and anonymous even in this information and technology era.
- Why is almost everyone against KYC that I saw as the indisputable means to fight cyber crime. Does it mean everyone in the forum is a criminal?
My quest to quenching my thirsty thoughts handed me an ample knowledge to answering the above questions.
But before I could arrive at this knowledge(before joining this forum), I had already fallen victim of KYC scam.
My mistake I was invited to buy share of a UK company in ISO stage, KYC was optional at the initial. But KYC later became a major requirement to getting the share if it matures. I was compelled to submit my international passport and even had to sign and scan my signature in lieu of my biometrics. I am convinced my identity is no longer secured, because there is a synchrony between my travel documents and my local documents. Meanwhile my official email address and phone number is with them. The climax of it was the project was a scam. Before now I had already done verification with so many non reputable exchanges. I honestly wish I could reverse my identity mistakes.
Why hide your identity:- Your identity is unique, once compromised, compromised for life.
- Your personal data can be bought and sold by and to scammers.
- If your identity is hidden, it will be difficult know the amount of bitcoin or assets you have
- Your identity can be stollen even from reliable platforms by hackers
- Your online identity can be linked or related to your real life identity
How your identity may be revealed through your bitcoin address:- If you publish your bitcoin address along side your real name, either in your website, offline shop or social media. Such address can be linked to your personal self.
- Your identity can be tied to your bitcoin address when you complete KYC in exchanges with your real data. It therefore means they are housing your personal data in their database and could be compromised knowingly or unknowingly
- By the use of Hosted Wallets: No matter how friendly or less complicated hosted wallets are, your data security is not assured. This is because your bitcoin address and even your IP address is visible to whoever that is operating the server. So, your data could be given out without your consent, especially when government is in need of it.
How to hide your identity while using bitcoin:- Avoid repeating bitcoin address: If you don't, your identity would be leaked through your address. Ensure you generate a new address for every transactions as recommended by Satoshi in bitcoin whitepaper
- Use a VPN: If you undermine this, will it interest you that with your IP address, information as zip code and your house location on map could be gotten?
- Use a stealth address for your transactions.
- You can consider mixing the coins if you do not trust its flow. There is more to this as some fees would be encured
Conclusion:I do not intend to make this topic longer than this, that is the reason I provided few points with coincised explanations. Then, remember your identity does not change, so protect it as much as you protect your bitcoin. This is because, owning bitcoin and allowing yourself to be vulnerable, you might not live to enjoy your bitcoin.
If you suspect that your password is being compromised, you can reset your password. But if your identity is compromised, it's compromised for life.