VPN (Virtual Private Network) is a great way to maintain anonymity on the network. But if you do not follow the precautions, even with a VPN there is the ability to identify the user.
A virtual private network, among other functions, allows you to remain anonymous on the network. When connecting via VPN, the user receives the IP address of another network and thus can hide his real location. An encrypted communication channel is forwarded between his device and the VPN server, and all data transmitted through it is encoded. Thus, a third party will only receive an unreadable data array when intercepting traffic from this channel.
Anonymity is good, but there is a problem: if you pay for the VPN service with fiat or traditional electronic money, there is a risk of deanonymizing yourself. For adherents of anonymity on the network, this option is not suitable. To stay incognito, you should close your identity to those who need to pay, including VPN services. The easiest way is to use cryptocurrencies. In this case, the transaction and its author is much more difficult to track. But in such a scheme there are a number of nuances.
Anonymity ordered?
Inexperienced cryptocurrency users often hear about the anonymity of transactions and the inability to find out the identity of the owner of a particular wallet. In the first years of the existence of cryptocurrencies, it was, but the situation has long changed. Several private companies, funded by governments, are involved in the analysis and deanonymization of cryptocurrency transactions. These are Elliptic, Chainalysis and other blockchain analysis service developers. In addition, most of the online wallet, exchange, and cryptocurrency exchange operators registered in the EU, USA, Japan, and other countries that comply with the FATF directives are required to collect data about their customers, monitor transactions and transmit information about them to law enforcement and tax authorities. Therefore, fans of anonymity when choosing a cryptocurrency platform should clarify the requirements and identification thresholds in advance and worry about disguising their data in advance. But to solve this problem is possible.
Firstly – If the issue of anonymity is very acute, you should avoid large exchanges and wallet operators that transmit user data and transaction information to law enforcement agencies. If at registration or for withdrawing money it is necessary to provide a full name, bank card details, load scans of documents, confirm the address of residence – it becomes clear that there is no smell of anonymity.
Secondly – it is preferable to use anonymous cryptocurrencies: DASH, Zcash, Monero, Grin or their forks. They are considered the most protected from monitoring by a third party. The analytical tools mentioned above are designed for bitcoin, ether and other open blockchains. Tracking transactions with anonymous cryptocurrencies and deanonymizing their holders is much more complicated, which regulators really dislike. For example, Japan banned operations with anonymous cryptocurrencies last year, and South Korea began to demand the identification of all cryptocurrency traders.
Thirdly – work with wallets and exchanges through a VPN. The technology makes it possible not to show your real IP address, avoiding tracking. VPN significantly reduces the likelihood of a compromised wallet or account on the exchange. In some wallets and exchanges, you can create a “white list” of IP addresses that are allowed access. If you enter the addresses provided via VPN there, then the probability of compromising your wallet or account on the exchange will be reduced many times. On the other hand, such a measure is unsafe, since the service becomes a critical point of failure – it can close or change the range of issued IP addresses.
For a one-time VPN payment transaction, the degree of anonymity of BTC or ETH is sufficient with simple precautions.
How to buy the first cryptocurrency anonymously
There are many opportunities for the first time anonymously to buy cryptocurrencies. The most reliable option is to buy directly from acquaintances or friends, avoiding registration on any services. But if this is not possible, it is better to use the following algorithm:
Open a wallet on blockchain.com or another proven online wallet service. Registration takes a few minutes. Just go to the site, click on the “Get a free wallet” button, enter your e-mail and a strong password and register.
During registration, the user receives a Wallet ID. The only way to access the wallet is with Wallet ID, which must be stored in a safe place to prevent incidents.
Now there is a wallet, but no cryptocurrency. It can be bought through trusted exchangers, which can be found on Bestchange or the Bits.media aggregator. You can buy cryptocurrencies using various payment methods, including Yandex.Money, Qiwi, bank cards, etc.
Cryptocurrency Hosting VPN Services
More and more VPN services, realizing the desire of users to remain anonymous, allow you to buy a VPN for BTC, ETH and other cryptocurrencies.
HideMy.name
HideMy.name VPN service accepts all basic cryptocurrencies, such as BTC, LTC and ETH, many altcoins, including Bitcoin Cash, Ripple, Monero, and rarer TRON, BitTorrent, etc. There is a desktop version, applications for iOS and Android. All modern protocols are supported: OpenVPN (TCP and UDP), IKEv2, L2TP, PPTP.
Free trial access is provided for a day. Annual subscription from 190 rubles per month plus a 30-day money back guarantee.
VPN.ac
VPN.ac accepts a lot of cryptocurrencies. The service also supports OpenVPN, IKEv2, L2TP, PPTP.
The price is slightly higher: with an annual subscription per month, 310 rubles will be released at the current rate. 7 days return guarantee. There is no free trial period.
Proxy.sh
This service accepts all major cryptocurrencies. Unfortunately, the tariff schedule is quite complicated. The base tariff has few servers and location countries, the optimal tariff starts from 480 rubles per month with an annual subscription, the maximum “package” costs more than 1000 rubles per month. This is the most expensive service of the three.
Finishing touches
It’s enough? Not really. Security and anonymity require an integrated approach. In addition to VPN and cryptocurrencies, do not forget:
- Use special extensions for browsers, or secure browsers Sphere, Epic, Brave;
- Personal firewalls and antiviruses to protect against leakage of personal data from the computer;
- Anonymous email accounts for online registration;
- A variety of aliases when filling out questionnaires in Internet services;
- Complex and different passwords;
- Be wary of all links in letters and messages;
- Recheck whether the site of the bank or social network is fake;
- If possible, abandon the use of social networks.
Of course, the most reliable way to maintain anonymity is to not use the Internet at all. But since this option in the modern world looks even more complicated, it is quite enough to follow the simple steps listed above, which significantly reduce the likelihood of personal data leaks and deanonymization.
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