Some things you need to know before Using Bitcoins Anonymously

There are several forms of anonymity for online purchases.

Some things you need to know

Before Using Bitcoins Anonymously

Store/service purchasing transaction anonymity - We are able to generate separate wallet addresses so that the store does not see repeat orders from one wallet. This form of privacy breaks the database many stores, such as Amazon, Target, Costco, etc. keep on customer purchases. There will be almost an infinite number of purchases from different Bitcoin wallet addresses. Different Bitcoin addresses with different purchases makes it almost impossible to track buyers.

We can maintain this low level of anonymity by creating a new Bitcoin address or wallet for each purchase. Many Bitcoin wallet services or clients have a “New Address” option for each purchase. This option creates a shadow wallet address that ties in with your main wallet and masks where the purchase came from.

Our original Bitcoin wallet address, account, and email address can be tracked back to our Internet service provider (ISP), computer, and finally, our identity.
Preventing any attempt at linking a person to a Bitcoin wallet address, service, or email requires a more thorough approach.

These steps are available from Anonymity.com

1. Use Tor browser from http://www.torproject.corg.
2. After Tor confirms that you are being routed through the Tor proxy network, go to TorMail for hidden service and create an email account. This is the first, and major roadblock for anyone tracking Bitcoin addresses - anonymous email addresses.
3. Create a new, anonymous email address through Tor for each new Bitcoin purchase.
4. Use the bitinstant.com service or others that allow cash deposits for Bitcoin to email purchases. Another option is to use localBitcoins.com for buying them in cash anonymously.
5. Use the created TorMail email address, the amount of money you are converting to Bitcoins, create a name with a DOB. Will be a good idea to keep these handy, but not necessary.
6. Take the cash deposit slip to the service counter that completes the deposit process. There may be cameras to avoid at some locations.
7. The transfer will be completed after you get confirmation, normally within an hour. Create another Bitcoin address using the same steps above, and send the Bitcoins to the newest address created with TorMail.

Following these steps creates a nearly impenetrable wall of anonymity.

Our anonymity is not fool proof with Bitcoin. Most of the services commonly used, such as Dwolla, MtGox, Bitcoin-24, Flexcoin, and many others do require tying our account to bank accounts, and often cell phones. This account linkage requires much more effort for clearing our trail. Getting a prepaid phone from a small retailer in the $20 range, we can receive our confirmation text with this phone and not use it for anything else.

Getting funds into and out of the Bitcoin wallet for everyday use will have to occur without having a bank account tied to the Bitcoin service. Once we tie our bank accounts in, we have lost anonymity.
Paypal is not a popular method of buying Bitcoins, partly because it breaks anonymity. The other reason for avoiding Paypal, is that there is up to a 7 day delay for obtaining Bitcoins through Paypal. This delay stems from the reversibility of Paypal transactions. Avoid using Paypal because other Bitcoin users will suspect the transaction to be spam or from a dishonest person.

Our options for fully maintaining Bitcoin anonymity throughout - and not on a per transaction or per store basis - necessitates buying Bitcoins with cash, barter, silver, gold, or anything but bank wires, debit cards, Paypal, or standard financial instruments.