Normally, when transacting business online, there is a need to divulge personal information. Sometimes, people are skeptical about purchasing online for fear that their personal information might be copied for the purpose of identity theft. Thanks to Bitcoin, otherwise known as the pseudonymous cryptocurrency, anyone can now order anything online without having to reveal his or her identity.
The Blockchain system is a public ledger where Bitcoin stores all transaction information. Some of the important data stored here are the sender’s and receiver’s Bitcoin address, amount paid, and others. The user can actually use different addresses per transaction to avoid being traced.
There is no need for a new user to register an account linked to a company or provide all his or her personal details because the system used by this online payment platform is peer-to-peer based and is decentralized. You may also choose to register your account if necessary, through a protected web wallet provider.
With a wallet, you can create an address (not necessarily your real address) and this essentially becomes your identity in the Bitcoin network. That means you can hide your real name and other important information. However, the transactions you will be making will not be private. All transactions in Bitcoin are made public so it is easy to trace any transaction done.
So here are the ways on how to anonymously order products online using Bitcoin:
- Use a different address per transaction.
The first (and the most important) step you should be making is to create a new address when sending or receiving money. This will essentially hide the remaining balance in the user’s Bitcoin wallet.
- Use a Bitcoin mixer.
A Bitcoin mixer is actually a software or an application that can be used to enhance a user’s privacy. An example is CoinMixer.se, which works by mixing coins with other coins from different sources.
- Buy and Sell Bitcoins.
Yes, Bitcoins can be bought and sold anonymously. Arranging a private deal is easy.The user must choose a decentralized, purely peer-to-peer exchange. Examples are Bitsquare and LocalBitcoins.
- Use a Public WiFi Network.
When using Bitcoin for transactions, it is safer to use public networks or public WiFi because there is no need for the user to provide any personal information. Hence, it will be more difficult to trace the user’s identity. Internet service providers collect personal information so it is unsafe to do transactions at home since the provider has all the essential information of the user.
These are just a few of the many possibilities Bitcoin offers its users. The user simply needs to be extra cautious when transacting business online because fraudulent people are virtually present at any given time or day.