How to buy Bitcoin anonymously (well almost)
How to buy Bitcoin anonymously (well almost)
No matter how you acquire Bitcoins, it will likely not be anonymous. This section highlights a few options for acquiring Bitcoins that are relatively private, or at least not overwhelmingly invasive. To increase your privacy, do not carry devices with you that have SIM cards in them, and never log your location with GPS.
Buy Bitcoins in person
You can buy bitcoins in person at Bitcoin meetups, through the “marketplace” option of the Mycelium wallet (the marketplace exists on the Android version only), or by finding traders on the LocalBitcoins platform.
The best place to meet traders in person is in a busy but not crowded place that offers free Wi-Fi. Public libraries or cafes are great venues for these appointments.
Both parties should allow enough time to wait for at least one confirmation of the Bitcoin transaction. To make sure your Bitcoin transaction gets confirmed by the network, you don’t need to bring a Bitcoin wallet with you; just knowing your address is enough. Enter the address into the search field on Blockcypher or any other blockchain explorer and watch as the transaction comes in and confirms.
Get Bitcoin From an ATM
Bitcoin ATMs are common in some countries but rare in others. Check Coin ATM Radar to see if there’s one near you! Make sure to check the “other services” box in the bottom-left corner, or you might be missing out on some places where bitcoins are sold as vouchers.
Each machine differs in how it handles your personal information. Some might not ask for anything other than your Bitcoin address and cash, while others might want your phone number, fingerprint or passport. Just try the machine out with a small amount. Asking the machine’s operator can be tricky, because there’s a risk they might file a suspicious activity report.
If there is video surveillance at the Bitcoin ATM, you might not be able to hide from it. Even still, showing up at a Bitcoin ATM with a ski mask would make you look too suspicious, no matter how much you value your privacy.
Accept Bitcoins as a Payment or Donation
If you’re regularly spending bitcoins, it makes perfect sense to accept them as payment too as you will no longer need to worry about how to acquire them. The bitcoins you accept will not be anonymous either since there might be a record somewhere that they were paid to you, but they are likely already more difficult to link to you for a passive observer than the bitcoins you buy at an exchange, where records are kept in detail and made available to several parties.
Mine Bitcoins
Mining Bitcoin is not a profitable endeavor for hobbyists, but if you need a steady flow of Bitcoin and you have access to cheap electricity and free cold air, along with excess capital lying around, it can be an interesting alternative for acquiring bitcoins.
To mine Bitcoin, get yourself a Bitcoin mining machine, paid with cash or credit card, plug it in, point it to a mining pool, and watch the earnings come in daily.
Be aware, though: you are making an immense bet on the Bitcoin network, and there are many ways you might lose your investment. Make sure to read a lot about this topic before you start!
Also, there are many dubious services offering you mining contracts. They promise you gains from a Bitcoin mining operation without the hassle of acquiring machines or electricity. Most such mining contracts are accidental or deliberate ponzi and pyramid schemes, and you will lose all your money.
- Also take a look at the best GPUs for mining
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