The 6 Most Anonymous Bitcoin Wallets

It’s 2019, and everyone desires online privacy and anonymity. But with the world as it is, it’s up to you to take measures to protect yourself. No one likes it when third parties sniff around your personal data, particularly when money is involved. Therefore, we have a few suggestions on how to safeguard your identity and cash with the use of anonymous bitcoin (BTC) wallets.

Here, we will compare the top six anonymous BTC wallets and explain how they work. But first, let's look at some foundational basics you will want to know in order to make your online transactions secure.

Table Of Contents

• What Is A Cryptocurrency Wallet?
• What Is a Public and Private Key?
• What Are Anonymous Bitcoin Wallets?
• Samourai
• Rahakott
• Electrum
• BitLox
• Darkwallet
• Jaxx
• Methods To Make Bitcoin Anonymous
• Conclusion

What Is A Cryptocurrency Wallet?

A Cryptocurrency wallet is a digital application that allows you to store and transfer (send and receive) digital currencies, like bitcoin, with the security of private key encryption. The wallet interacts with the cryptocurrency’s blockchain to facilitate direct transfers between two people with no intermediaries. The wallet is highly valuable as it stores your cash. And it’s incredibly convenient allowing you to check your balance anywhere, anytime.

What Is a Public and Private Key?

As described by Comodo.com:

The Public Key is ... made available to everyone via a publicly accessible repository or directory. The Private Key must remain confidential to its respective owner. Because the key pair is mathematically related, whatever is encrypted with a Public Key may only be decrypted by its corresponding Private Key and vice versa.

The private key is an encrypted code that allows other people to receive money from you over the internet, securely. It is presented as a type of digital barcode in a sequence of random letters or a QR (Quick Response) code. The unique code allows you to access your wallet and your currency.

What Are Anonymous Bitcoin Wallets?

Anonymous bitcoin wallets are designed to keep their users’ identity secret. They keep your personal data and transaction details secure from falling into malicious hands. They achieve this through the use of a Virtual Private Network (VPN) or a Tor Network used to carry transfers and continually change the public key of your wallet. The wallets use encryption, so you don’t need to provide any personal details such as an email address to create one.

Tor is a software program that enables your browser to become anonymous. The software works by changing the location of your computer’s internet address and encrypts your internet address by rerouting your network via multiple remote servers. It has the ability to show you are in a different physical location than where you really are.

Unfortunately however, due to the multi-rerouting required for this type of software application, Bitcoin wallets are prone to hackers so it is incredibly important to ensure your wallet is always safe. But how? Here are a few suggestions:

• Only log in to secure sites.
• Be aware of phishing scams.
• Opt for an upgraded version of your wallet.
• Always ensure the VPN is turned on when logging in and before making any transactions.
• Enable two-factor verification.

The 6 Most Anonymous Bitcoin Wallets

Now that you understand what an anonymous wallet is and how it can help in the crypto ecosystem, let's talk about some of the best anonymous wallets you need to consider in 2019.

1. Samourai Wallet (Mobile Wallet)

Samourai Wallet established in 2015--is a mobile wallet designed for Android operating systems only. It is equipped with military-grade encryption to ensure your location and identity are anonymous. It supports Tor networks and generates VPNs when making transfers. It can also create the public address on each transaction and generate meta-data of the same address that is difficult to hack.

Samourai also features an extra security measure--you must enter a five-digit PIN each time you want to use it.

Features

• Samourai also features an extra security measure--you must enter a five-digit PIN each time you want to use it. BIP 39 and BIP 44 while using the wallet, BIP 47 that increases the anonymity.
• Certificate pinning to prevent middle-man attacks.
• Generates and stores private keys on the device.
• Does not reuse addresses, so the critical meta-data or identity won't be leaked.
• Comes with Tor and uses the most effective VPN to make transactions through an anonymous IP address.
• Smart-miner fees - a detection algorithm that ensures your confirmations are fast.
• Ricochet to improve exchangeability and discourage blockchain detectives.

Download Samourai Wallet from Google Play or from their website.

Wallet Deposits

• If you're making your first deposit, you need to obtain a bitcoin address before you begin.
• From the Balance and Transaction screen, click on the + button.
• Click on Receive, an icon that activates the receiver screen. The QR code of your current wallet will pop up. Below the code, you will see a text version of the address.
• Select to scan the code or copy the address to the clipboard.

Wallet Transfers

• Scan the QR code from the recipient’s address.
• Click the Send icon on the Balance and Transaction screen and the Send screen.
• Manually paste the recipient's address and verify that you have sufficient BTC for the transfer.
• Click the Send icon and confirm by clicking the "OK" icon.
• Wait for the confirmation from the bitcoin network.

Pros

1. User-friendly features and interface.
2. Uses VPN and the Tor network.
3. Reliable and stellar reputation.
4. Military grade AES-256 encryption.
5. Generates new public keys with each transfer.

Cons

1. Available for Android users only.
2. Does not support a direct withdrawal of digital currency to physical tender.

2. Rahakott Wallet (Web Wallet)

This is a good crypto wallet option for anyone who values their privacy when transacting online. Despite being new, the wallet has already received some attention due to its fascinating features. For example, the registration process doesn’t require any user details. In addition to the privileges it gives its users, the wallet is secure, especially when you compare it with other online wallets.

Pros

1. Uses two-factor verification known as 2FK security.
2. Comes with allegoristic support that creates a new address for each transaction to improve the user anonymity.
3. Provides sub-account alternatives.
4. Supports several cryptocurrencies.
5. Easy to access.

Cons

1. It’s not secure like hardware wallets.
2. Users are required to pay transaction fees of 0.0005 BTC for a transfer to an external address and minimal network transfer charges of 0.0006 BTC.

3. Electrum (Desktop Wallet)

Electrum is recognised as the oldest wallet in the crypto field, generated in 2011. Since then, the wallet has experienced various advancements. The desktop wallet is designed to support bitcoins only.

Features

• Seed creation to help you restore your wallet if your device gets lost or stolen.
• Offers two-factor verification safety feature.
• Cab supports multi-signature.
• Supports cold storage.

How to use

First, install the wallet on your computer or Windows hard-drive. It can be downloaded directly from the website.

You can either create a new wallet or restore an old one. If you want to create a new wallet, select that option, then choose the wallet type, they include:

• Standard wallet
• Wallet with two-factor verification
• Multi-signature wallet
• Hardware wallet

Pros

1. Supports hardware wallet.
2. Seed creation to help you restore your wallet if your device gets lost or stolen.
3. Comes with two-factor verification feature.

Cons

1. Newbies may find it difficult to operate.

4. BitLox (Hardware Wallet)

This is a hardware wallet that was created for bitcoin storage but with more emphasis on security and anonymity. BitLox allows you to generate 100 wallets, whereby you can create millions of addresses from each wallet.

BitLox has canceled wallets that have indistinguishable data, and NIST certified true random-number creator to secure transaction signatures. It comes with an emergency PIN that can be used to delete user data.

Privacy features

• Military-grade USB vault.
• Pre-installed the tails OS.
• Compatible with Tor.

Pros

1. Can be used without a data connection.
2. Highly recommended and secure.
3. Ensures maximum safety and anonymity.

Cons

1. Expensive

5. Darkwallet (Web Wallet)

Darkwallet was created specifically for users to make their transactions private and anonymous. According to their website - the wallet is currently on their GitHub page - states that the product is available in Alpha testing.

Pros

• Uses Multi-signature.
• Supports escrow.
• Uses a mix of stealth payments and CoinJoin comparison.

Cons

1. Transactions through this wallet take longer than usual transactions.
2. Accessible as Google Chrome plugin only.
3. Full of bugs.

6. Jaxx (Multi-Platform Hot Wallet)

Jaxx, a multi-coin wallet designed in 2014, is among one of the few wallets that supports numerous digital currencies. It allows you to trade, store, and control digital coins such as Bitcoin, Zcash, Civic, Augur, Bancor, Litecoin, and Ethereum, as well as other digital properties.

Features

• DAO refunding feature that lets DAO token owners refund their tokens at the original rates of 1BTC: 100 DAO.
• Pairing feature that lets users access Jaxx wallet from several devices.
• Shapeshift app allows trading and transaction execution.
• Security passphrase for improved security.

How To Use Jaxx

Jaxx is a hierarchical deterministic anonymous wallet and not a static one. This means that the wallet creates a new public address every time cash is transferred to the new address to make the transfers private. To be able to access Jaxx, you will need to download the wallet to your device, and then create 12 word-safety passphrases prior to launching the wallet.

Once you are done, key in the currency amount and press Send.

If you're using the non-mobile version, you will be required to paste the address in the address box.

Platforms Supported By Jaxx

• Android phones
• iOS phones
• iOS tablets
• Windows, Mac, and Linux
• Browser extension

Pros

1. Perfect wallet for beginners and crypto traders who intend to hold a few coins.
2. Does not store your wallet information on a centralised server.
3. Data is stored on the client side.
4. Provided you have the 12-word phrase, you can back up your wallet and restore your coins.

Cons

1. Does not support multi-signature.
2. Cannot make direct withdrawals to your bank account.

Methods To Make Bitcoin Anonymous

Bitcoin Mixing

Bitcoin mixing is a procedure that strives to break the traceability of transactions. Mixing helps by breaking the link between public addresses by generating a temporary address. With a temporary address, no one can trace and follow the blockchain.

Note that crypto transactions are stored on a public ledgers, so anyone who finds a public address will know the origin and destination. Since there is no protocol-level way to anonymise the digital coins, you need to have a bitcoin mixer to hide your identity.

Tor-Onion Router To Stay Anonymous

You can connect with the cryptocurrency network through a Tor browser. The browser comes with nodes that encrypt and route Internet traffic to random PC nodes on the Tor network before it gets to its destination. This makes it difficult to identify the IP address or system where the transaction originated, helping you remain anonymous.

Use Logless VPN

Logless VPN is a network that doesn’t store the history of your online activities in its servers. It encrypts your traffic and routes it via several servers at various locations before reaching the final destination. Most Logless VPNs preserve a shared IP address for many users, so it makes it hard to know and trace an individual’s identity. Connecting to your bitcoin client through Logless VPN is another perfect way to increase the privacy of your transactions. However, you must trust the VPN provider since others might log your activities.

JoinMarket

In case you distrust a centralised site admin such as BITMIZER to anonymise your currency, you can try JoinMarket to play it safe.

JoinMarket is neither software nor a service; it’s a market where traders meet to perform special transactions referred to as CoinJoin transactions. The market assembles the correct amount of crypto at the appropriate time and place.

Buyers in the market are required to pay a nominal charge to the sellers who are ready to mix their currencies. The CoinJoin mechanism allows mixing without escrow or centralised parties. During these transactions, private keys are controlled by the user.

Conclusion

As a crypto trader, your privacy and anonymity when using the coins are important. So, make good use of the above-mentioned wallets to ensure you remain anonymous. Order your coins safely through these top six wallets.