Bitcoin is probably the most popular cryptocurrency today. Starting when it first came into the digital currency market, Bitcoin started from a value of less than $1 to more than $40,000 today. A lot of traders and investors have spent a significant sum of money to acquire Bitcoin, as digital currencies are speculated to continue increasing value in the foreseeable future.
Many developers have already created several methods to keep Bitcoin transactions secure. But a lot of users are still looking for ways on how to cash out Bitcoins anonymously.
From their first conception, cryptocurrencies are actually more transparent than fiat currencies. This is because this digital currency makes use of blockchain technology. All transactions made are recorded in a digital ledger. Since cryptocurrencies have a specific address that is unique to them, once you execute a transaction, the history of this unique address is open for the public to view.
Cashing Out Bitcoins
Securing a cryptocurrency wallet is a surefire way to be able to create transactions such as cashing out your Bitcoins. However, the use of crypto wallets is not entirely anonymous. If your goal is to keep all your cash out transactions private, you can explore some of the methods we listed below.
Some of these methods will allow you to stay more anonymous than others. Depending on the level of anonymity that you want to obtain, be sure to do your research first before using any of the methods on this list. And remember – you must only cash out your Bitcoin anonymously to keep your privacy safe, not for anything illegal.
LocalBitcoins is an online platform that will allow you to trade your Bitcoins anonymously. It caters to hundreds of countries around the globe. This platform won’t need extensive personal information from you – just a quick registration will do the trick.
Once you enter the platform of LocalBitcoins, you will see several usernames advertising the price of their Bitcoin, their location, and the different payment methods available. You will be able to buy and sell your Bitcoin for different currencies as long as your country is catered to by the platform.
To make an exchange, the two users of the platform simply agree when and where they will execute the transaction. This platform may not be 100% anonymous, but it is a safe way to keep your privacy intact while trading Bitcoin.
Spend the Bitcoin or Purchase Gift Cards
A foolproof way of how to cash out Bitcoin anonymously is to spend it. Since Bitcoin was the first-ever cryptocurrency developed, its value now exceeds a whopping $40,000! With a high value also comes a high adoption in the market. A lot of online platforms now accept Bitcoin as a form of payment for goods or services.
One way to keep your cash out transaction anonymous is to first purchase several goods online using your Bitcoin. Once you have purchased the brand-new goods, you can sell the items for cash on a different platform using a different email address in your account.
Another way to cash out is to purchase gift cards. There are many stores that accept Bitcoin for gift cards that can be used in popular stores like Amazon or iTunes. Then, you can either use these gift cards on a different platform or sell them online.
Coinbase is another option to cash out your Bitcoins. Although not entirely anonymous, this cryptocurrency exchange is compliant with the Bank Secrecy Act. This means that all users on the exchange will just need to input a few details to verify their identity. This act is in place to prevent money laundering, which is becoming a hot topic in the cryptocurrency market.
Use a New Address
Keeping your privacy protected when cashing out Bitcoins can also be done by using a new cryptocurrency address each time that you make a transaction. This is also called Bitcoin mixing.
A Bitcoin mixing service will allow you to send Bitcoin to another address that is already stored on their server, therefore it cannot be traced back to you. This type of service usually charges a service fee to “mix” the addresses, keeping your transaction private and secure.
The only problem with Bitcoin mixing services is that these are usually used for illegal activities. Although, some of these services do not allow a large amount of money to be transacted. But if you don’t want to pay an extra service fee for a Bitcoin mixer, there are still several options available to keep your Bitcoin cash out transaction as anonymous as can be.
A good approach to how to cash out Bitcoins anonymously is to use a secure browser. The Tor Browser is a free browser that is a lot more secure than Firefox or Chrome. This browser allows you to surf the internet without any type of surveillance. When using this browser, your internet activities will not be tracked.
Thus, executing any type of transaction when logged on to the Tor Browser helps preserve your anonymity. Due to the browser keeping your IP address secure, it will be very difficult to trace any transaction back to you. As a bonus, the Tor Browser is a great tool to use for all your internet dealings, whether you are making Bitcoin transactions or just casually surfing the net. Discover more about cashing out Bitcoins here!
Some traders prefer to keep their Bitcoin transactions private, and the public digital ledger prevents them from doing so. Thus, these solutions on how to cash out Bitcoins anonymously were developed. When aiming to keep all your cash out transactions anonymous, do it with the goal of keeping your information private from prying eyes.
Lastly, be sure to keep everything legal. It is best to know the local laws in your area governing cryptocurrency transactions. Investing in a secure crypto wallet will also help keep your information safe from potential network attacks.