This is the most common question which is asked by many people “can we hide our identity on bitcoin”, Generally speaking, no, you cannot hide your transactions entirely, but at some point, a bitcoin wallet gives you a facility to hide your Identity at some level.
Protection at Certain level
Every transaction while you are going to make, protection or Identity is essential, and it is possible with the help of a bitcoin wallet at a certain level. The backend address of every wallet is very complex because it is a combination of string functions with uppercase and lowercase characters.
With these complex strings, it is difficult to find out the identity of the wallet user and the location of the wallet user. So, bitcoin provides you with protection at a certain level while other payment methods do not.
When bitcoin exchanges are included in the transactions of bitcoin, it is harder to track the Identity of the wallet users. For example, if Mr X sells his bitcoin from his wallet to Mr Y and the transaction made via an exchange, it will harder to track the wallet of sender and receiver because these exchanges are listed.
Just at a certain level but not entirely
Bitcoin can protect your Identity at a certain level, but it cannot hide your identity entirely. Bitcoin is working on some algorithms, and blockchain is the most common that is used to audit every transaction.
Every payment you have made, or you will make in future, are storing in the public ledger, and anyone can see your transaction all around the world.
What is Public Ledger?
“Public ledger means your transactions are visible to people everywhere the planet.” In simple words, “it may be a digital book where all the transactions are stored, and it displays all the recent transactions that have recently made.”
You can track transactions you have recently done, or you can also check your previous transactions as well by visiting the website www.blockchain.info. This is the main website where all the transactions are shown.
How blockchain works
Blockchain is used to track every transaction and then storing those transactions into the public ledger where anyone can check the transactions. You can also check the wallet address from sender to the receiver and the number of transactions.
For example- If you have made a transaction from your wallet (x) to the wallet of (Y), your transaction will be stored on the public ledger means everyone can get access your wallet and your receiver’s wallet only for reading purpose such as who is the sender and who is the buyer and how much he has to spend etc., here access does not mean he can control your wallet transactions.
Using third parties to hide your Identity
There are many people who don’t want to show their wallet and address or Identity on every transaction, the reason maybe they don’t want to pay tax, or maybe they want to buy illegal goods or services by using an online payment gateway.
Actually, bitcoin is made to remove the role of the third party such as the government and banks in payment gateways, though there will be low transaction fees and convenient method for paying online if you will use the third party to hide your Identity, all the risk will depend upon you, and in these transactions, if you lose your coins, there are no ways to get it back, because your Identity is hidden and if you try to complain, first of all, you will be arrested. Thus, be careful while using third parties to hide your Identity.
Remember Using External service.
If you want to use external services, first of all, properly research why you want to hide your wallet identity; really, it is important for you to hide your wallet balance.
From the above information, Bitcoin provides anonymity at a certain level, but you cannot hide your wallet transaction through website like Crypto Trader login entirely. You can protect your wallet’s Identity by using third-parties, but it depends upon you if you want to take the risk. Research about why hiding the balance of your wallet is important? A public ledger is also important to determine the value of bitcoin on the basis of all transactions that have been done.