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Protect your privacy
Bitcoin is often perceived every bit an bearding payment network. Only in reality, Bitcoin is probably the most transparent payment network in the world. At the same time, Bitcoin can provide acceptable levels of privacy when used correctly.
Ever remember that it is your responsibility to adopt good practices in guild to protect your privacy.
Agreement Bitcoin traceability
Bitcoin works with an unprecedented level of transparency that most people are not used to dealing with. All Bitcoin transactions are public, traceable, and permanently stored in the Bitcoin network. Bitcoin addresses are the only information used to define where bitcoins are allocated and where they are sent. These addresses are created privately by each user’south wallets. However, once addresses are used, they go tainted past the history of all transactions they are involved with. Anyone tin can see the rest and all transactions of any address. Since users usually take to reveal their identity in order to receive services or goods, Bitcoin addresses cannot remain fully bearding. As the cake chain is permanent, it’s important to note that something not traceable currently may become trivial to trace in the future. For these reasons, Bitcoin addresses should only be used one time and users must be careful not to disembalm their addresses.
Use new addresses to receive payments
To protect your privacy, yous should use a new Bitcoin address each time you receive a new payment. Additionally, you tin can use multiple wallets for different purposes. Doing and so allows y’all to isolate each of your transactions in such a way that it is not possible to associate them all together. People who send you lot coin cannot see what other Bitcoin addresses y’all own and what you lot do with them. This is probably the most important advice you should keep in mind.
Be careful with public spaces
Unless your intention is to receive public donations or payments with full transparency, publishing a Bitcoin address on any public space such equally a website or social network is non a good idea when it comes to privacy. If you choose to do and then, always remember that if you lot motion any funds with this address to one of your other addresses, they will be publicly tainted by the history of your public accost. Additionally, you might also want to be conscientious non to publish information well-nigh your transactions and purchases that could let someone to place your Bitcoin addresses.
Your IP accost can be logged
Because the Bitcoin network is a peer-to-peer network, it is possible to heed for transactions’ relays and log their IP addresses. Full node clients relay all users’ transactions just like their ain. This means that finding the source of any item transaction can be difficult and whatsoever Bitcoin node can be mistaken as the source of a transaction when they are not. Yous might desire to consider hiding your calculator’s IP accost with a tool like Tor so that information technology cannot be logged.
Limitations of mixing services
Some online services called mixing services offer to mix traceability between users past receiving and sending back the same amount using independent Bitcoin addresses. It is important to note that the legality of using such services might vary and be subjected to different rules in each jurisdiction. Such services also require yous to trust the individuals running them non to lose or steal your funds and non to keep a log of your requests. Even though mixing services can intermission traceability for small amounts, it becomes increasingly difficult to practice the same for larger transactions.
Time to come improvements
Many improvements can be expected in the hereafter to better privacy. For instance, some efforts are ongoing with the payment messages API to avert tainting multiple addresses together during a payment. Bitcoin Cadre modify addresses might be implemented in other wallets over time. Graphical user interfaces might be improved to provide user friendly payment request features and discourage addresses reuse. Various work and research is also being done to develop other potential extended privacy features like existence able to join random users’ transactions together.
Source: https://bitcoin.org/en/protect-your-privacy
