6 Ideal ways to keep bitcoin transaction private
Secure your hard-earned bitcoins by making your transactions private
Online transactions are the most effective ones but there is always a secret fear roaming around when people transact online. When it comes to non-regulated digital payments the fear is more gruesome. But Bitcoin payments are the most secure and is a fortified platform. All bitcoin payments are supported by the blockchain network and hence they are ledgered and maintained. But still, out there, there is an unknown fear lurking in the minds of those who are new to the digital currency transactions. If you are one of them, this is the blog for you. In this blog, we are going to discuss 6 ideal ways on how to keep your bitcoin transactions private from your end.
This is like an informal 3rd-factor authentication that you would love to know.
Understanding Bitcoin traceability:
One of the endorsements that the Bitcoin brought in is its credibility and transparency. Bitcoin is a stronghold currency due to the security offered by the blockchain technology. Hackers find it difficult to track down the transactions and steal money as they would do in conventional payment methods. Coming to transparency, Bitcoin is one of the transparent digital currencies that you can trace your transactions through the blockchain technology.
All transactions are stored in the ledger. But the fact is, they are publicly traceable and they are stored in the database of the bitcoin network. You can trace your transactions using the bitcoin wallet address. With this address, you can trace your entire transactions on whom you have allocated funds to which address, etc. You cannot keep your anonymity while dealing with bitcoin. You need to reveal at least a section of it. So, it is best to keep track of your traceability to protect your details.
Using a new address during every transaction you make:
If you want to keep your bitcoin transaction secure and private, you should change your bitcoin address after every transaction you make. If you are making multiple transactions, you can segregate your payments through multiple bitcoin wallets. In this way, you can isolate your payments on different wallet platforms. Even if any-one of your transactions gets diluted for privacy, you can keep track of other payments and transactions effectively. So People who send you the bitcoin or do payments cannot take a look at other payments that you have made. You can also change your address after every transaction by refreshing your wallet address. But you should be aware of the address that you send to receive payments. Because sending an old address will not only create a problem but also lead to the loss of bitcoins.
Sharing your bitcoin address in the public domains:
If you are sharing your bitcoin address in the public domain, you should be extra careful. Unless or until you are sharing your address for receiving funds for any social cause or campaign, you should not share your bitcoin address in the public. Sharing the bitcoin address in the public will showcase your transactions related to other addresses explicitly.
For example, if you use a separate bitcoin wallet to receive funds for social cause and you are transferring those funds to the required organization that asks you to keep their bitcoin address private, then, it will be in vain. Even if you transfer the funds from the public wallet to your private wallet, you will get the limelight.
Because the individual who sends funds to your public bitcoin address can trace the transaction of your address to other addresses easily through the transparency provided by the wallets.
So, it is best to avoid propagating your bitcoin address in any public domain like in any website or in social media.
Logging of IP addresses:
Bitcoin secures the information and the computer-based information from where you buy and sell bitcoins. But there is a way for those full node bitcoin clients rely on all the transactions as it is a peer to peer network. Finding the source of a particular transaction is difficult. But there are chances that the user can mistake a Bitcoin node for a source of a transaction. So, to prevent these kinds of mishaps, you have to secure your computer IP from being transparent in the log. Certain tools can be used to hide your computer IP address from showcased in the public domain.
Ideal mixing of services with a limitation:
Mixing of services can play a crucial role in the elimination of fraudulent activities in bitcoin transactions. Yes, you cannot trace the transaction where it comes from as it would be mixed when it reaches you. For instance, you can buy and sell from independent bitcoin addresses to create a mix of addresses so that the receiver or sender cannot really trace your exact bitcoin address. But it too carries a risk.
The risk is based on trust. During the mixing of funds, there are chances that people may steal or take away your funds so that you cannot pay or receive from the targeted individual. In that case, you should mix funds only from your known ones or trusted ones. This will save you from not losing your hard-earned cryptocurrency and also helps to save your information.
So you should draw a limitation line while mixing your funds. Shortly speaking, if this is done right with proper safeguards, this is the best move to keep your bitcoin transaction private.
Formulation of API to avoid address overflow:
The payment gateway overflows with multiple addresses together that contaminates the entire payment process. Also, it deteriorates the bitcoin transaction privacy. To avoid this, the API should be modulated accordingly. The address misuse should be stopped by giving transparency according to the will of the seller and buyer of the cryptocurrencies. Also, certain precautionary measures should be taken on the website side to prevent any kind of privacy deterioration.
People aspire for transparency and decentralization and once they get it they aspire for privacy. Technology is satisfying the people’s needs by providing them with extra features and updates but people do need to actively assist the technology. Digital transactions are not an exception. Since 2008, Bitcoin has been a sensation, but one must find a way to manage certain information to feel secure and private. The above mentioned 6 ideal ways are one of the best in the crypto industry to keep your bitcoin transactions safe and secure.