Top Tools to Remain Anonymous in the Crypto Market | Bitcoinist.com

Bitcoinist

Anonymity in the cryptocurrency market is an important safety element. Refusal to provide third parties with personal data safeguards users from data leakages and their consequences. At the same time, anonymity in the crypto market conflicts with regulators’ interests. Let’s discover how businesses can help clients in remaining anonymous while transacting in cryptocurrencies without breaking a law.

Why is it important to remain anonymous?

Short answer: to safeguard your personal data from fraudsters that can use it against you, for example by stealing your money.

How To Get Free Crypto  
5 BTC + 300 Free Spins for new players & 15 BTC + 35.000 Free Spins every month, only at mBitcasino. Play Now!

In the modern world, information is a valuable resource. Among others, fraudsters hunt for it because personal data can be a key to money.

To assess the scale of the problem from the point of view of business and its clients, let’s dive into statistical data on leakages in 2021:

  • 45%. It is the percentage of American companies that faces leakages at least once, according to the Thales Data Threat Report.
  • 28%. It is the percentage of leakages that are linked to small businesses, shared The Verizon analysts.
  • 4 million. It is a number of data leakage victims. The USA became a leader by such incidents, shared Surshark analysts. The second top country by the number of data leakages is Iran.
BitStarz Player Lands $2,459,124 Record Win! Could you be next big winner?
Get 110 USDT Futures Bonus for FREE!

2021 Data leakages world map. Source: Surfshark

Analysts highlight that leakages are growing in scale. The more personal information is in the fraudsters’ hands, the higher the crime rate.

Anonymity from the regulators perspective

By far not every company can offer anonymity to its clients. In fact, from the regulators’ point of view, confidentiality opens up plenty of opportunities for illegal activities. For example, anonymous users can unchallengedly finance terrorism.

Coinbase Banner  

To prevent the inflow of confidential accounts in the market, governing agencies came up with the KYC (Know Your Customer) procedures. Following the procedure serves to verify the user’s identity. This approach allows regulators to get information on the person of interest, should the specific incident appear.

Is it possible to remain anonymous with cryptocurrencies?

Upon attempting to “stretch” KYC over the crypto market, the dilemma appears. On the one hand, digital assets by their nature are anonymous. This is the way the creator of the first cryptocurrency BTC, Satoshi Nakamoto, envisioned it. On the other hand, anonymous instruments on the financial market contradict the regulators’ interests.

It appears that governing agencies can not allow anonymous transactions with cryptocurrencies because it entails the risks of illegal activities. At the same time, “stretching” KYC over the digital assets can be a tradeoff for both parties:

  • Regulators will be able to monitor transactions due to the deanonymization of the instrument.
  • Cryptocurrency users will be able to continue transacting in digital assets.

This way the crypto community has to put up with deanonymization. This being said, the digital assets market has already come up with some solutions to this problem.

FreeBitcoin Banner  

Top tools to remain anonymous in the crypto market

The participants of the digital assets market can remain anonymous while transacting with cryptocurrencies. Here are three popular solutions for the crypto community members that wish to guard their confidentiality.

1. Operating via anonymous platforms

Pros:

  • Easy registration

Cons:

  • Low level of security
  • In case of disputes, a user will not be able to prove ownership of funds or the developer’s fault

There are plenty of anonymous and pseudo-anonymous platforms in the crypto market. Usually, such platforms offer registration via email or phone number.

But the payment for working on such a platform has high risks. Should the funds disappear, a user would not be able to prove that it was theft because the transaction was anonymous.

2. Mixers

Pros:

  • Easy registration

Cons:

  • Low level of security
  • No regulation at all
  • Often, high fees

Crypto mixers are platforms that help to anonymize transactions. For that, the platforms “mix” the assets of the users to dissolve the direct link between a sender and a recipient.

For example, users N, M, and V decided to use a crypto mixer platform. Each wants to send 1 bitcoin. They have a need to transfer cryptocurrencies to addresses 1, 2, and 3 accordingly. In a normal situation, the transactions will look in the following way: N –1, M – 2, and V – 3. Instead, the mixer allows erasing the footprint. The platform “mixes” the cryptocurrencies and the transactions go, for example, in the following way: N – 3, M – 1, and V – 2.

Users of such platforms should be ready to spend on fees and agree to the risks associated with such platforms that offer full confidentiality. While using crypto mixers, as well as other anonymous platforms, users are not able to defend their rights, in case of disputes.

3. Registering the NFT passport Hashbon Pass

Pros:

  • The NFT passport Hashbon Pass offers a “non-anonymous anonymity” scheme that safeguards users from data leakage while fully satisfying the regulators’ demand for waiving confidentiality among the cryptocurrency market participants.
  • Quick registration
  • One fits all solution

Cons:

  • Developers have not yet launched the Hashbon Pass. The market launch is planned for the end of June 2022

The NFT passport Hashbon Pass is a one-fits-all solution for solving the “non-anonymous anonymity” problem in both the crypto industry and the traditional financial market. Here is how it works:

  • A user shares the KYC data with the tried-and-tested Hashbon verifiers. They investigate the data and, if all is accurate, confirm the authenticity and issue the Hashbon Pass. The digital passport comes in a form of non fungible token (NFT). The information is being stored on a blockchain. Therefore, it is impossible to falsify such a passport.
  • The owner of the NFT passport Hashbon Pass presents the digital document to the platforms that ask to follow KYC procedure, be it a crypto exchange or a regular bank. But instead of getting personal data, third parties get the confirmation of the person’s identity in the token format. When necessary, governing agencies can request the personal data register from verifiers.

The NFT passport issuance and use cases

In that way, the NFT passport Hashbon Pass eradicates the problem of third-party personal data leakages. At the same time, the digital ID helps to save time upon registration on various platforms.

The Hashbon Pass opportunities

Integration with Hashbon Pass is a great way to boost security at your business platforms and increase their attractiveness to potential clients.

Full anonymity in the crypto industry, as well as in the traditional financial market is indeed possible. An example is the NFT passport Hashbon Pass.

Go to Source
Author: Bitcoinist


Recommended Crypto Services, Products and Strategies:

The first thing any crypto investor needs is is a reliable and secure Crypto Wallet.  Whether you’re looking for an online wallet, hardware wallet, desktop or mobile wallet, Crypto Renegade provides you with all the Best Crypto Wallets in each category.

Best Crypto Wallets Banner

When you’re ready to buy more crypto, or exchange your coins for others, Crypto Renegade’s list of the Best Crypto Exchanges has you covered.  The Crypto Exchanges recommended here offer everything from simplicity and convenience to advanced trading platforms and profit sharing. 

Best Crypto Exchanges Banner

If you want to learn more about the methods and tools that can be used to find Great Crypto Projects, then be sure to check out Crypto Renegade’s strategy for How To Find The Best Cryptocurrency.

Crypto Strategy Banner

For those people that don’t have any money to invest right now, or just want to understand the technology a bit more, you’ll definitely want to check out Crypto Renegade’s Free Crypto Strategy and start collecting Free Coins today!

Free Crypto Banner

What do you think about cryptocurrency? Do you have any questions about it? Be sure to leave a comment below.

This site uses Akismet to reduce spam. Learn how your comment data is processed.