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Topic: Is sending coins from exchange wallet pseudo-anonymous? (Read 123 times)

hero member
Activity: 1834
Merit: 759
Does this mean you can send coins from the exchange as a way to protect your anonymity from  simple transaction tracing?

Yes. How some exchanges work is that you are assigned a receiving address, and possibly a sending address. There are exchanges that let you request as many of either as possible, so for as long as you do not reuse any of them, you'll be anonymous as far as third party snoopers are concerned. These addresses don't necessarily reflect the amount that's in your actual account either, so they won't know how much you have stored in the exchange if you request addresses liberally.

Do note that they may be able to determine what exchange you are sending to and from by using wallet explorers though.
legendary
Activity: 1652
Merit: 1483
yes. you can use exchanges as a way to mix your coins, although it depends on the exchange and how they are doing things, when you send your coins to an exchange that is very active the coins will be moved and when you withdraw you will be paid from a different address down the line which will make it impossible for the average Joe to trace where your funds went. but the authorities will be able to trace it so easily.

that depends on a few factors. for instance, there are exchanges and brokers that don't enforce KYC. you can connect to them through a no-log VPN and in some cases through TOR. 1broker is one example; withdrawals are automatic, don't come from your deposit address and there is no KYC nor IP restricting. WEX (formerly BTC-E) is another example.

when withdrawing, time delay and incremental withdraws can help to disassociate coins from your deposit. on top of that, there are legal issues regarding jurisdiction and cause that may prevent subpoenas from being effective.

I notice when sending coins for  a currency such as ETH from an exchange such as Binance, Bittrex, Bitfinex etc that the coins are sent from the exchanges wallet and not your personal receiving wallet on the site. Does this mean you can send coins from the exchange as a way to protect your anonymity from  simple transaction tracing? I'm not talking about anything illegal where the exchange would rightfully be subpoened and your details revealed, but just simple trading transactions where you'd rather remain anonymous to other traders?

yeah, but in the interest of avoiding third party trust, i don't keep funds in their custody. i just use them to get untainted outputs for my personal wallets.
legendary
Activity: 3472
Merit: 10611
yes. you can use exchanges as a way to mix your coins, although it depends on the exchange and how they are doing things, when you send your coins to an exchange that is very active the coins will be moved and when you withdraw you will be paid from a different address down the line which will make it impossible for the average Joe to trace where your funds went. but the authorities will be able to trace it so easily.

there is also the risk of using the exchange itself which you may get hacked or scammed by the exchange and lose all your funds. and also there is the issue with verification that some exchanges have which you may not want to give your documents to these unknown people who run an exchange! there is also the issue with limitations on how much you can withdraw per day that some exchanges apply. and also for smaller amounts you will face problems with the high withdrawal fees that exchanges charge you.
copper member
Activity: 70
Merit: 1
I notice when sending coins for  a currency such as ETH from an exchange such as Binance, Bittrex, Bitfinex etc that the coins are sent from the exchanges wallet and not your personal receiving wallet on the site. Does this mean you can send coins from the exchange as a way to protect your anonymity from  simple transaction tracing? I'm not talking about anything illegal where the exchange would rightfully be subpoened and your details revealed, but just simple trading transactions where you'd rather remain anonymous to other traders?
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