Why people got traced by using bitcoin?

[joeytamlovebusiness]

Switching bitcoin to a fiat currency is an obvious way. How about the ip addtess?some people said your ip address will be recorded and some said no, what is the truth on it?

 

[Perry8]

Switching bitcoin to a fiat currency is an obvious way. How about the ip addtess?some people said your ip address will be recorded and some said no, what is the truth on it?

Well, this is a very large topic. The basics is that Bitcoin (and most cryptos) are what we call semi-anonymous. What does this mean? It means that the transactions are traceable (they are on the blockchain), but the owner of the wallet is not identified. So, you have a situation where transactions can be traced, but not necissarily linked to a spesific person.

When you exchange crypto to fiat or fiat to crypto, the exchanger will normally want to know who you are. In the EU, they are now required to know as this type of service is under the EU AML/KYC directive. So, here you will be identified unless you do this is private or find a supplier that does this for you.

IP addresses are not recorded as such, but all centralised exchages (at least in the EU) have a software that traces your IP among other things. This is becuase they have to have a way to trace suspicious transactions (AML requirement). Luckily there is also GDPR. So, the total effect is that your IP is traced but not recorded over time.

It is, of course, possible to stay more or less anonymous using Bitcoin, and in reality governments do not have the systems or resources to trace you unless there is an ongoing investigation.

 

[moneyrequired]

use XMR!

btc->xmr->btc

or

buy xmr on exchange platform directly, then send xmr to fast exchangers and payout btc at ATMs

Keep in mind to use TOR(whonix + VMs with xmr/btc clients) when you send xmr or btc between wallets.

 

[joeytamlovebusiness]

Hi

Well, this is a very large topic. The basics is that Bitcoin (and most cryptos) are what we call semi-anonymous. What does this mean? It means that the transactions are traceable (they are on the blockchain), but the owner of the wallet is not identified. So, you have a situation where transactions can be traced, but not necissarily linked to a spesific person.

When you exchange crypto to fiat or fiat to crypto, the exchanger will normally want to know who you are. In the EU, they are now required to know as this type of service is under the EU AML/KYC directive. So, here you will be identified unless you do this is private or find a supplier that does this for you.

IP addresses are not recorded as such, but all centralised exchages (at least in the EU) have a software that traces your IP among other things. This is becuase they have to have a way to trace suspicious transactions (AML requirement). Luckily there is also GDPR. So, the total effect is that your IP is traced but not recorded over time.

It is, of course, possible to stay more or less anonymous using Bitcoin, and in reality governments do not have the systems or resources to trace you unless there is an ongoing investigation.

Hi, thanks for the reply, but I dont get it ,so the ip of an bitcoin wallet is traceable?

 

[moneyrequired]

YES IP is trackable, all transactions could be trackable. Start using schema from my previous post and keep your privacy.

 

[KJK]

If you are worried about your IP, I don't see need for Monero. Simply use VPN, Tor or a wallet with such functionality already built-in (Wasabi wallet is one). Monero is good if you are worried about someone doing chain analysis and tracing some transaction (such as drug sale) directly to your address which you e.g. used at some KYC exchange.

I recommend two interesting readings about this:
1) Edward Snowden's approach to security and privacy, he mentions it in his book (if you're buying it, buy it directly and not through Amazon) on what methods and precautions he used and in what way he used Bitcoin when he knew NSA will go after him
2) story of Silk Road and how some bitcoins were traced to corrupt FBI agents which is ridiculous

IP addresses are not stored in the blockchain (unless you intentionally put it there) however there are other ways - for example you send a transaction and then you use some online tracking tool (such as blockchain.info) to see if the transaction was already confirmed. You have no idea who is operating such service, what they are storing etc. What Perry8 mentioned about GDPR is complete bulls**t, you never know and you cannot rely on some regulation that someone will not store data about you or that they will even delete it.

The only recommendable way is to be hyper-paranoid, be two steps ahead, create multiple layers of obscurity.
In general I agree with moneyrequired - in the end it depends on your threat model, if you are a darknet vendor, then Monero may be better; though there will always be other ways how to make Bitcoins more "fungible" and the number of these ways is probably going to increase.

 

[joeytamlovebusiness]

If you are worried about your IP, I don't see need for Monero. Simply use VPN, Tor or a wallet with such functionality already built-in (Wasabi wallet is one). Monero is good if you are worried about someone doing chain analysis and tracing some transaction (such as drug sale) directly to your address which you e.g. used at some KYC exchange.

I recommend two interesting readings about this:
1) Edward Snowden's approach to security and privacy, he mentions it in his book (if you're buying it, buy it directly and not through Amazon) on what methods and precautions he used and in what way he used Bitcoin when he knew NSA will go after him
2) story of Silk Road and how some bitcoins were traced to corrupt FBI agents which is ridiculous

IP addresses are not stored in the blockchain (unless you intentionally put it there) however there are other ways - for example you send a transaction and then you use some online tracking tool (such as blockchain.info) to see if the transaction was already confirmed. You have no idea who is operating such service, what they are storing etc. What Perry8 mentioned about GDPR is complete bulls**t, you never know and you cannot rely on some regulation that someone will not store data about you or that they will even delete it.

The only recommendable way is to be hyper-paranoid, be two steps ahead, create multiple layers of obscurity.
In general I agree with moneyrequired - in the end it depends on your threat model, if you are a darknet vendor, then Monero may be better; though there will always be other ways how to make Bitcoins more "fungible" and the number of these ways is probably going to increase.

So If I am just afraid my ip address will got traced when I am doing the transaction , I use tor . And if I am worrying about my transaction record will got traced , I use Monero, right?

 

[Perry8]

What Perry8 mentioned about GDPR is complete bulls**t, you never know and you cannot rely on some regulation that someone will not store data about you or that they will even delete it.

The only recommendable way is to be hyper-paranoid, be two steps ahead, create multiple layers of obscurity.

My point was only that if you are on a regulated exchange in the EU they are required to monitor IP-addresses. It does not necessarily mean that they store IP-addresses (they are not allowed to in most cases). So, to answer the question: Normally, your IP will not be stored.

BUT, you are completely right. You cannot know if somone stores your IP. If you are concerned about your IP, you have to take your own steps to protect yourself.

 

[moneyrequired]

In short, nonsence to use tor or vpn without mixing (btc->xmr->btc) if you afraid about privacy or have bitcoins from illegal sources.

 

[KJK]

My point was only that if you are on a regulated exchange in the EU they are required to monitor IP-addresses. It does not necessarily mean that they store IP-addresses (they are not allowed to in most cases). So, to answer the question: Normally, your IP will not be stored.

What you are saying is bulls**t. Log into your Bitstamp account and you will see your IP history indefinitely, stored forever, no restriction. Also browser fingerprint. Same for other exchanges such as Bitpanda and all others.

That is why I am repeating for the second time that what you wrote is complete bulls**t. If data can be stored and used against you, you can be pretty sure it will. It may happen in a month or in five years, you just must be aware this possibility exists.

 

[JohnLocke]

You want to use TOR browser or similar services and privacy tools to CREATE your wallet and before you get any money into the wallet. As mentioned in a few other threads you need to do proper research and prepare everything carefully.

If you think you can just use BTC to receive money and exchange it "anonymously" to FIAT you are wrong. Sorry to say so.

 

[Perry8]

What you are saying is bulls**t. Log into your Bitstamp account and you will see your IP history indefinitely, stored forever, no restriction. Also browser fingerprint. Same for other exchanges such as Bitpanda and all others.

That is why I am repeating for the second time that what you wrote is complete bulls**t. If data can be stored and used against you, you can be pretty sure it will. It may happen in a month or in five years, you just must be aware this possibility exists.

Thanks! At least I have learned not to make any nuances. All exchanges will definetly track your IP and you are screwd. Case closed.

 

[maureen lewis]

Bitcoin and all the crypto currencies are decentralised It means that no central authority is involved in it.Bitcoin transaction are recorded in the block chain which means that all the users are able to see the transaction of a given network. but it cannot trace a particular person identity is is just checked by using the wallet address.