People Are Making Private, Anonymous Payments - Here's How

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Online payment transactions have never been more common. People buy and sell services and goods online more than face to face. The large volume of money being transferred online has attracted malicious elements that are gaining access to people’s funds and information with ever-increasing expertise. Most people transacting online only consider security as an afterthought not knowing the real magnitude of the dangers they face.

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However, you can be smarter and keep your funds and transactions protected. All your payments can be anonymous and untraceable hence completely secure. There are certain steps anyone can take to improve their online security, but when it comes to online transactions there are two key tips: the use of cryptocurrencies and utilizing VPNs (Virtual Private Network).

 

Cryptocurrencies

Cryptocurrencies have risen to prominence in the past decade. Bitcoin is the most ubiquitous cryptocurrency on the planet. There are other reputable cryptocurrencies such as Ripple and Ethereum. Cryptocurrencies offer users the option of secure, anonymous payments using a currency that is not regulated by a central authority like normal fiat currency.

They make use of blockchain technology which is incredibly difficult to hack to safeguard their security, but ultimately each Bitcoin owner is responsible for the safety of their own coins. Cryptocurrencies are safer than credit cards and debit cards or using other online payment platforms like PayPal, which is what most people online use. They offer little protection against hackers, government agencies and other entities who would go to extreme lengths to breach your privacy or security.

In the early days of cryptocurrencies, most exchanges were unregulated. It was very much like the Wild West, but with recent developments in cryptocurrency regulation, it is possible for Bitcoin data to be traced. Most crypto exchanges, such as Binance, Coinbase, etc., now have Know Your Client (KYC) policies which require users to present some form of ID verification.

As long as you provide an entity or individual with your private information, it can be found. Therefore, anyone purchasing cryptocurrencies would be wise to take extra security measures to secure their funds. One measure you can take is to purchase anonymous cryptocurrencies.

 

Anonymous Cryptocurrencies

Though cryptocurrencies are inherently designed for privacy, there are some cryptocurrencies whose sole existence is to secure their users’ anonymity. These cryptocurrencies are called anonymous or privacy coins. The three main anonymous cryptocurrencies are Monero, Z-Cash, and Dash.

 

Monero:

Monero has unique characteristics that make it the most private cryptocurrency currently in existence. The cryptocurrency’s excellent development team utilizes stealth addresses, ring signatures, and Kovri I2P implementation to ensure clients’ security. Monero has a more decentralized coin distribution than most other cryptocurrencies.

 

Zcash:

Zcash adds a privacy layer to Bitcoin’s security protocol which is cryptographic proof known as ZK-Snarks which stands forZero Knowledge Succinct Non-Interactive Argument of Knowledge. ZK-Snarks enables Zcash to verify any transaction on a blockchain without revealing its origin, destination or amounts transferred. Zcash offers the choice of private or transparent transactions.

 

Dash:

Dash utilizes a system of masternodes in conjunction with CoinJoin to offer security for the cryptocurrency. It offers the choice of either private or transparent transactions. Dash’s anonymous transaction capability is called Privatesend and is enabled by the tool, Coinjoin. However, Dash requires a high level of liquidity for the privacy features to function effectively. It is not as decentralized as Monero or Zcash which could make it more prone to attacks.

 

How VPN Services Can Help You to Stay Anonymous As a Cryptocurrency User

As great as blockchain technology is, cryptocurrencies can have some anonymity gaps. When using cryptocurrency applications, including services, wallets, and websites, there is always the potential for a bad actor to be sniffing for and logging users’ IP addresses.

Virtual Private Networks (VPNs) are a great tool to increase your security and anonymity especially as an owner of cryptocurrencies. VPNs are useful because they reroute your web traffic to servers in different parts of the world, therefore, hiding your IP address and protecting your anonymity.

VPNs can either be free or paid for and will do simple rerouting or provide in-depth protection depending on the VPN you buy. For the best protection, it would be best to choose a VPN that does not store user logs. It can seem daunting trying to choose the right VPN service, so it’s worth using online resources such as Blokt’s best VPNs list to find to the top performing and most reputable services available at the moment.

All of your cryptocurrency transactions should be done while using a VPN, so you know that your internet connection is secure and that you are not being spied on. This helps to prevent you from becoming a target for phishing or malware-based attacks by those who want to steal your funds. You could even configure your VPN only to hide cryptocurrency activities if you are concerned about it slowing down your browser.

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