Anonymous Bitcoin Wallets: Full Guide
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What is an anonymous Bitcoin Wallet?
An anonymous Bitcoin wallet is a wallet that keeps all your crypto-related activities private. Not many wallets offer this functionality, especially if those are mobile wallets. So if you are the type of people who prefer to keep crypto affairs private, you can accomplish it by getting an anonymous crypto wallet.
There are four well-known and the most anonymous Bitcoin wallets. So let us take a look at each of them, what they have to offer, the best anonymous Bitcoin wallets and also learn how to create anonymous Bitcoin wallet.
Best Anonymous Bitcoin Wallets
The Samourai wallet is an open-source wallet that promises to keep your crypto transactions private, your cryptocoins secure and your identity hidden. Currently, only the alpha version is available for Android only. The wallet was created by a group of privacy activists with a similar goal.
The Samourai wallet was launched in 2015, but it is still under development, as the developers plan on adding more features to the wallet.
The Samourai wallet has functionalities that enhance security, promote anonymity and facilitate transactions. Among these functionalities include:
- Samourai uses military grade encryption. The process of encryption takes place on your phone through AES-256.
- It uses BIP 39 and BIP 44 protection standards to increase the safety while you use Samourai.
- A PIN is required to use your wallet. The PIN has to be 5-digit number or more.
- Your private keys are generated and stored on the phone. These keys are not shared, copied or stored on the company’s servers.
- Certificate pining to prevent man-in-the-middle attacks.
- Samourai does not reuse addresses. Important metadata about your transactions or your identity are never leaked.
- Samourai randomizes the number of change outputs for each send. This makes it difficult for anyone to gather wallet address metadata.
- Samourai has Tor and is using the best VPN that allows you to send all your transactions via an anonymous IP address.
- Bitcoin Network Health Monitoring.
- Smart Miner Fees – this is a detection algorithm you can use to make sure that the confirmations are as fast as possible.
- BIP 47 – it helps enhance anonymity especially when you are making public payments.
- Ricochet – this is a type of transaction that improves exchangeability and discourages blockchain sleuths.
How to use Samourai?
Only an alpha version of Samourai is currently available for Android. You can download it from Google Play or directly from their website.
Making your first deposit
To make your first deposit, get your Bitcoin address.
- Press on “+button”, which is on the “main balance and transactions screen.”
- Then press the “Receive” button to launch the Receive screen. A QR code of your latest Bitcoin wallet will be displayed. Beneath the code, you will see the text version of the address. You can choose to scan the QR code or share the address manually by copying it to the clipboard.
- Scan the QR code on the Receive screen with any other Bitcoin wallet or paste the copied address and you are done. Samourai recommends depositing a minimum of $5 worth of BTC to be able to full advantage of all its features.
How to send BTC from Samourai?
To send BTC from Samourai, do the following:
- Scan the QR code from the recipient’s address.
- Press the Send button on the “main balance and transactions” screen. The send screen will open.
- Manually paste the recipient address, confirm that you have enough BTC for the transaction. Then press the Send button. You will be asked to confirm by pressing the “OK” button, and then wait for confirmation from the Bitcoin Network.
Despite being still under development, Samourai has a good reputation thanks to its advanced privacy and security features. It also offers a variety of other useful features that many other wallets do not. It’s a good choice for beginners and advanced users looking for a wallet that ensures anonymity and is easy to use.
Jaxx is a multi-coin wallet that was created in 2014 by Decentral Inc, a blockchain company located in Toronto, Canada. The company was founded by Anthony Di Lorio, a co-founder of Ethereum.
Jaxx Wallet is one of the few anonymous wallets that supports several different digital currencies. With Jaxx, you can trade, hold and control Bitcoin, Ethereum, Dash, Litecoin, Zcash, Civic, Augur, Bancor, Blockchain Capital and other digital assets.
- DAO refund feature – this feature allows DAO token holders to refund their DAO tokens at the initial rate of 1:100 (example 1BTC: 100DAO.)
- Pairing feature allowing you to access your Jaxx wallet from multiple devices.
- ShapeShift integration app for trading and executing transactions.
- 12-word security passphrase for better security.
How to use Jaxx Wallet?
Before we get into how to use Jaxx wallet, it is important to understand that Jaxx is a hierarchical deterministic wallet and not a static wallet. What this means is, Jaxx generates a new address each time funds are sent to your current address. By doing so, Jaxx wallet makes your transactions private.
A static wallet, on the other hand, uses a single address for all transactions. Although is simpler, reusing an address compromises your privacy.
To use Jaxx wallet, download it to your device, then set up your 12-word security passphrase and then launch your wallet.
How to send cryptocoins using Jaxx?
If you wish to send crypto to someone from your Jaxx wallet, you must have the address of the same cryptocurrency. For instance, if you are planning on sending Litecoin to someone, make sure you have their Litecoin address.
If the person you are sending to the crypto sends you a QR code, click on the Camera icon to scan the code. You can only do this if you are using a mobile version of Jaxx (Android or IOS.)
Once that’s done, enter the amount and click Send.
If you are using a non-mobile version of Jaxx, you’ll need to paste the address manually on the address box.
Platforms supported by Jaxx
- Android mobile phones
- Android tablets
- iOS mobile phones
- iOS tablets
- Windows, Mac, and Linux
- And also browser extensions
Jaxx wallets are very reputable and considered one of the leading wallets on the market nowadays. A few things you should know about Jaxx is for one, it doesn’t use multisig (multisignature) feature to authorize transactions. Also, you cannot make direct withdrawals from Jaxx to your bank account. You need to withdraw your funds from the wallet to an exchange that supports bank transfer as a payment method, then transfer your funds to your bank account.
Jaxx is a great wallet for newbies and crypto traders who want to store a few coins. It does not store any of your funds, wallet data or your information on any centralized server. All your data and information are stored on the client-side. As long as you have your 12-word backup phrase, you will be able to back up your wallet and restore all your digital assets.
Electrum is one of the oldest wallets in the crypto market. Created in 2011 by Thomas Voegtlin, a German computer science expert, the wallet has undergone various improvements since then thanks to the developers who have dedicated their time and efforts towards its development.
Electrum is a desktop wallet that supports only Bitcoin. The inventor wanted to create a wallet that would be efficient and lightweight. Since the wallet only supports Bitcoin, it has accomplished its intended purpose. It is indeed fast and efficient.
The wallet is also compatible with multiple platforms including Linux, Windows and Mac OS.
- Cold storage support
- Supports multisig
- Seed generation for restoring your wallet in case your device gets lost or damaged
- 2-factor authentication security feature
How to use Electrum?
You need to install the wallet first on your PC or Windows device. You can download it directly from Electrum’s official website.
After you install the wallet, you have the option of creating a new wallet or restoring a new wallet. If you are creating a new wallet, you will select this option and then select the wallet type. There are four types:
- Standard wallet
- Wallet with two-factor authentication
- Multi-signature wallet
- Hardware wallet
When you select a wallet of your choosing, you will then generate your Seed. Write it down somewhere because it will be not be saved on your device. The seed is used to restore your wallet and the digital assets contained in them in case, your device is lost or damaged.
After doing this, you can now send and receive BTC. Keep in mind that the process of sending and receiving BTC for the different types of wallets is not exactly the same. Some of the wallets require an authentication code to sign a transaction.
Electrum has a rather good reputation too. It is a widely used wallet because of its ease of use, superb privacy features and speed. It has earned a great deal of trust with the Bitcoin community because the setup is easy, its fast, it is secure and it does not take much space. However, it is not an ideal wallet for beginners. But if you are an advanced Bitcoin user, this is the wallet for you.
For all those people who value their privacy and anonymity while dealing with cryptocurrencies, Rahakott wallet is another great anonymous crypto wallet option. Despite being a relatively new wallet it has already gained attention due to its interesting services and features. For instance, the sign-up process does not require any personal information from the users and simply provides with a mnemonic phrase (set of random words). Along with the privileges it offers to the users Rahakott wallet is a quite safe wallet, especially in comparison to other online wallets.
- The Rahakott wallet uses two-factor authentication aka 2FA security.
- There is an algoristic support that generates new addresses for every transaction for the increase of the user anonymity.
- The wallet offers sub-account options.
- Rahakott wallet supports multiple cryptocurrencies.
- The wallet is easy to access.
- There are some transaction fees that are charged for transactions to external addresses worth 0.0005 BTC and for minimal network transaction fees worth 0.0006 BTC.
- Despite all the conveniences that come with online wallets those are not as safe as hardware wallets are.
To sum up…
If you are a person who values privacy and anonymity very much while using cryptocurrencies, then the wallets listed above should be good choices for you as a Bitcoin user. We hope that this article helped and guided you towards a safe, anonymous, and convenient choice.
Make sure to visit our website for more information about various crypto-related topics. Thank you, until next time…