Perhaps the most appealing part of cryptocurrency for many who hold Bitcoin is the anonymity involved. Compared to traditional bank accounts and transactions, cryptocurrency can protect your privacy, at least to a very significant extent. Instead of displaying transactions with a name, the immutable ledger of the blockchain stores the information of sender and receiver as an address, protecting your personal information.
While cryptocurrency revolves around privacy to some extent, there are also other factors at play, such as decentralization and immutability. This is why some Bitcoin wallets will provide anonymity while others require personal information; some focus instead on the other aspects of cryptocurrency. In this article we’ll look at the best anonymous Bitcoin wallets if you make your privacy a priority.
More Than the Right Wallet: Other Ways to Protect Anonymity with Bitcoin
In addition to choosing an anonymous wallet, there are a few other steps you should take when buying, holding, using and selling Bitcoin to further protect your anonymity. After all, those who are computer savvy can actually track down which transactions you are involved in by looking up your IP and public-address information.
If you want to make your transactions as anonymous as possible, you could pay for a Bitcoin mixer. You may hear Bitcoin mixing being referred to as Bitcoin laundering, tumbling or washing.
Essentially, this process separates Bitcoin addresses by either exchanging coins with addresses with the same value or creating temporary ones. The result is a blockchain trail that is harder to find. However, you will have to pay for the service.
A variation of this is altcoin shifting, which is when you convert some of your Bitcoins to an altcoin that places a strong value on privacy, such as XMR (Monero). Move the coins to your XMR wallet and then convert them back to BTC for anonymity.
Another option is to opt for a Tor browser when connecting to the Bitcoin network. The Tor nodes will encrypt your internet traffic and then route it to random nodes within the Tor network, making it hard to find your IP address and get your information in that way.
Just remember that Tor will not work if you opt for a Bitcoin website with KYC enabled since KYC security measures counter the efforts. When using Tor, you should also avoid LocalBitcoins since there is a common attack with malicious Tor exit nodes delivering a fake LocalBitcoins version that will phish your login information.
You can also opt for a logless VPN (virtual private network) that doesn’t store your history on the server, instead encrypting your traffic and routing it through various servers you choose.
There is also the option of a peer-to-peer transaction face to face, such as those arranged by LocalBitcoins. You could theoretically set up the account with a fake name and a new email address and get a cheap burner phone. However, that will require a reasonable amount of effort on your part just for anonymity.
Of course, one of the simplest ways to protect your anonymity when conducting a Bitcoin transaction is to just generate a new wallet address every time you send or receive funds. This not only ensures anonymity but also helps with security, and it is a practice that most crypto experts recommend.
Why an Anonymous Wallet Is a Smart Decision
As mentioned previously, there are multiple reasons to opt for an anonymous Bitcoin wallet, including to protect your privacy and secure your funds. Your Bitcoin wallet is just a set of private keys, and whoever knows those keys will have access to your money. The problem is that if a hacker can track your Bitcoin, they may be able to discover your private keys and steal your BTC.
Essentially, keeping your Bitcoin wallet anonymous ensures that your personal information is separate from your money and makes it harder for a would-be Bitcoin thief to discover your private keys and rob you.
BitLox is an excellent Bitcoin wallet if you want anonymity. This hardware wallet can hold over 100 different wallets and can create seemingly endless Bitcoin addresses for each—millions of addresses per wallet. As such, you never need to reuse a wallet address, putting your privacy at risk.
For additional security, BitLox relies on hidden wallets that store data in a way that makes it impossible to distinguish from random bytes, adding extra security. Signatures on transactions also receive additional security via a random number generator that is NIST certified true. This wallet even has an emergency PIN. When entered, it will eliminate all the user data from your device.
BitLox even offers a military-grade USB vault that makes it possible to anonymously receive and send funds with a Tor-compatible web tool over the Tor network. However, you will have to buy an Extreme Privacy Set to get that feature.
Electrum has nearly all the features you could want from a top anonymous Bitcoin wallet. It will encrypt your private key, making it even more challenging for hackers to access this crucial information. Like most of the other top Bitcoin wallets, it will also generate a new address for every transaction if you want.
Electrum supports multi-signature functionality and cold storage. It offers seed generation, so you can restore your wallet in case of a damaged or lost device.
To access your wallet, you will need to use two-factor authentication, a security feature you want to see in an anonymous Bitcoin wallet.
One very nice thing about Electrum is that it was among the first cryptocurrency wallets, having been created in 2011. As such, there has been a significant amount of time for the developers to make improvements.
You can trust that the team behind this wallet thoroughly understands Bitcoin and cryptocurrency, as they have been in the crypto world since the beginning. There is no risk of hackers accessing personal information since Electrum does not require you to enter any.
The only limitation of Electrum is that it only has support for Bitcoin and there is only a desktop version, although you can use it with Windows, Mac or Linux. These limitations were intentional since the development team wanted it to be lightweight and efficient.
By supporting just Bitcoin, Electrum can be very quick. At the same time, it does offer integration with various hardware wallets, including Ledger Nano S, Trezor and KeepKey.
After you download the wallet from the Electrum website and install it, you can create your new wallet. Choose from a standard wallet, one with two-factor authentication, a hardware wallet or a multi-signature wallet.
You will generate your seed, which you need to write down since the device will not store it. Remember that the seed is necessary to restore your wallet in the future.
While the Electrum wallet has a strong reputation and is quick, most experts do not suggest it for beginners, who should stick to one of the other options on this list instead.
This desktop wallet has features that specialize in anonymity as well as offering full nodes. The dashboard is organized and efficient, making it more straightforward than some other options for beginners to take advantage of.
In addition to storing Bitcoin, you can also use this desktop wallet to store Litecoin and Dash, along with numerous other cryptocurrencies. For added convenience in that respect, there is a built-in exchange to trade between various supported coins.
The only major downside of Exodus is a serious one: a lack of two-factor authentication. Because of this, it has a slightly higher risk of attacks than some other wallets on the list.
Despite this, there are other security features in place. Experts agree that it is easy to use and has high anonymity, making it a good choice for beginners who place a strong emphasis on anonymity. It is partially open source for a reasonable level of transparency.
Jaxx is not only a top anonymous Bitcoin wallet but is also among the most popular cryptocurrency wallets overall. It was created back in 2014 by a Toronto-based blockchain company.
You will not need to enter any personal information at all; it doesn’t even ask for your email address if you don’t want to give it. Since Jaxx has no personal information, there is no risk of your identity becoming exposed via the wallet; there is no information to share.
Additionally, Jaxx hosts private keys locally, meaning that a hacker cannot just break into the network and get them. As long as your computer itself is safe and protected, your private keys will be, as well.
There is also a pairing feature that makes it possible to access Jaxx from several devices, such as your computer or smartphone. For improved security, you get a 12-word passphrase.
Like some of other best anonymous Bitcoin wallets, Jaxx always generates a new unique address for your wallet. This feature allows for truly private and secure transactions instead of reusing the same address.
A major bonus of Jaxx is that it is among the very few anonymous wallets that supports more than just Bitcoin. You can also store a long list of other digital assets in the same wallet, including Ethereum, Litecoin, Dash, Zcash, Bancor and more.
As such, this is a good choice for those with diverse crypto holdings. To make it even more convenient, the Jaxx wallet even has ShapeShift integrated into the platform so you can seamlessly convert between cryptocurrency.
To use Jaxx, download the wallet and create a 12-word security passphrase. Remember that because Jaxx supports multiple cryptocurrencies, you must always confirm that you send Bitcoin to a Bitcoin address, Ethereum to an Ethereum address and so on.
You can enter a receiving address by scanning a QR code (if using the Android or iOS version) or copying and pasting the wallet address. Jaxx has excellent platform support, making it possible to use it on tablets and smartphones with either Android or iOS, as well as computers with Mac, Windows and Linux. You can even opt for a browser extension if you prefer.
KeepKey is another hardware wallet that will store your Bitcoin anonymously. It is a bit expensive, which is to be expected of a hardware wallet, but it is compact and stylish with an easy-to-use interactive digital screen. It has also had a semi-recent price cut, bringing it closer to the average person’s budget.
A rare advantage of this particular wallet is that in addition to supporting Bitcoin storage, it also supports BCH, ETH, LTC, DOGE, DASH and NMC. The wallet lets you store unlimited private keys. This wallet also works well in conjunction with Electrum, letting you utilize two different anonymous wallets for all your Bitcoin needs.
For security, KeepKey stores private keys right on the device and never sends them anywhere else, so no hackers can access this information. You have a PIN, a 12-word recovery sentence, and the option of an extra passphrase to better anonymize and protect your funds.
This multi-signature wallet has support for BIP32 offline storage, a feature that is highly regarded in terms of cryptocurrency security for its ability to protect your information and funds. You will also notice encrypted electronic and paper backups, storing copies of your wallet’s information in a way that is harder for hackers to access.
The wallet also features multi-device synchronization, so you can access it on multiple different devices, which adds convenience to its functionality. This wallet is advanced, yet relatively easy to use, although it’s not as simple as some of the other ones on this list.
It stands out with its security and enterprise-level scalability, meaning that it should easily scale up to the average person’s needs.
Some other features of mSIGNA worth mentioning are its speed, decentralized offline key generation, offline signing general multi-signature transactions. This wallet has a strong rating for security across various review sites and is open source. To make it more accessible, you can also use it on Windows, Mac or Linux.
Using mSIGNA is as simple as downloading it from the official website, installing it, and creating an account. The easiest method is to use the “Account Wizard,” which will take you through the steps.
One of the standout features of Samourai that helps it earn a spot among the best anonymous Bitcoin wallets is that it automatically generates a unique Bitcoin address every time you receive this cryptocurrency. You cannot reuse an address with Samourai, which is a strong point in its favor.
To make it more challenging for hackers to gather metadata about wallet addresses, this wallet also randomizes how many change outputs occur with each send. It also has plenty of additional privacy features, such as support for both VPNs and Tor.
In terms of encryption, Samourai relies on military-grade strategies, including AES-256. It also adheres to BIP 44 and 39 standards to improve safety.
Your private keys are stored and generated right on your phone, so no copies are ever stored or copied onto the company’s servers, reducing the risk of a hacker being able to access them. You must also use a PIN to access the wallet and the PIN must be five digits, although you can make it longer if you prefer.
Samourai wallet is open source to provide a higher level of transparency. The only downside is that you can only get the alpha version for Android devices, but there are plans for expansion in the future.
Other features of Samourai worth mentioning include smart miner fees for quick confirmations, Bitcoin network health monitoring, BIP 47 to improve anonymity (particularly in the case of public payments) and ricochet (a transaction type to discourage blockchain sleuths while improving exchangeability).
Additional features also include blockchain obfuscation and a stealth mode. Stealth mode hides the wallet from recent apps, the app list, launcher and the home screen, so you can only find it by entering a secret PIN.
Using Samourai to store your Bitcoin anonymously is relatively straightforward. Visit its website or the Google Play store to download it. Deposit funds via the “main balance and transactions” page.
Hit “Receive,” and you will get a QR code of the most recent Bitcoin wallet address, along with the text version below. Use it to deposit funds. Sending is done from the same screen.
Since Samourai is still under development, more features may be added in the future to further enhance anonymity. It is also worth noting that this is a good choice for Bitcoin beginners thanks to the simple interface.
Choosing an anonymous Bitcoin wallet will improve the security of your funds by making it harder for hackers to find your wallet addresses and private keys. It also delivers privacy for you as a holder of Bitcoin by limiting the possibility of others discovering your personal information or linking that information to your wallet addresses.
While many Bitcoin wallets do not focus on anonymity, there are several that do so. Any of the wallets listed above will be an excellent choice if you want privacy in your transactions.