One always wants the crypto exchanges to be faster, safer, and more profitable. It is very easy to lose yourself in the dazzling variety of different exchange platforms. Of course, some crypto owners get richer in an instant, and this raises the security question. Anonymity is what is vital, and it is the priority for Swapzone. Therefore, in this article we will try to show you the way in this labyrinth of offers and point out the ways to perform an anonymous cryptocurrency exchange.
When Bitcoin emerged in the international financial arena about ten years ago, governments did not care about digital currency at all. Now, most countries are elaborating laws governing the regulation of cryptocurrencies, whereas some have banned them completely. People who trusted their governments to develop smart crypto laws in places like China and India have lost a lot. Cryptocurrency owners who choose to be as anonymous as possible are far more likely to retain ownership of their cryptocurrencies and use them the way they want. Therefore, it is very important to look for platforms that don’t require you to register,and thus, to trust them with your funds. This means that you should avoid CEXes and choose non-custodial and anonymous Bitcoin exchanges.
Some people are not registered anywhere, due to social conditions. Some deliberately refuse to use bank accounts, as transactions can track all the actions of a person. The tragedy is that Bitcoin would be an ideal means of storing values for those who prefer not to use banking products, however, Bitcoins are usually difficult to buy without entering your ID. At least so far this has been the case. Buying Bitcoins anonymously is a good start to maintaining your crypto privacy, but there are other things to consider. The Internet is widely open to hackers and government agents, so if you want your cryptocurrencies to be as anonymous as possible, read on. We will compile a list of must-know things for a person who wants to go on with anonymous cryptocurrency exchange.
Financial institutions normally use KYC (Know Your Client) and AML (Anti Money Laundering) procedures. Thanks to the identification the institutions, on one hand, get the information about the person and the financial sources. On the other hand, the client gets the opportunity to make an official agreement.
KYC is customer identity verification. In essence, KYC is used when someone tries to open an account or conduct a transaction. The KYC process usually includes:
With the help of KYC, those who do not have the right to use the services are screened out. Illegally obtained incomes are always in the course of being laundered or converted into net assets. At some point, scammers began to understand how convenient the cryptocurrency world is for those operations.
To prevent these activities, the AML process includes:
As we noted before, the major part of crypto exchanges stays true to these practices, therefore, eliminating the possibility of an anonymous crypto exchange. Moreover, cryptocurrencies themselves can be traced. Therefore, when talking about anonymous cryptocurrency exchange, one should also pay attention to coin used.
Let us look now at anonymous digital currency. We will also explain in brief, by what means is anonymity guaranteed.
Anonymous digital currency is a cryptocurrency with its own internal payment unit. Their main goal is to ensure complete confidentiality of financial transactions using special technologies and cryptographic protocols.
The developer of the main anonymous cryptocurrency Monero, Ricardo Spagni, believes that the digital industry needs financial privacy. Otherwise, in the best scenario, the market will be flooded with targeted advertising based on consumer preferences. In the worst case, criminals will start waging wars against individuals with a large number of cryptocurrencies (after all, almost everyone can find out the balance of someone else's Bitcoin wallet).
Monero (XMR) is a cryptocurrency that, in fact, appeared back in 2014 and provided key advantages in the field of privacy. It focuses on confidentiality and works with open-source technology using blockchain. Open-source or open code means that technology and software are built, tested, and improved through collaboration with users. According to Monero, more than 240 developers participated in the project, with 30 of them marked as the “main” group.
Zcash (ZEC) is a cryptocurrency project that arose from the idea of Zerocoin / Zerocash, proposed back in 2013. It was launched in October 2016, it was previously Zerocoin. It uses cryptography, which in theory should ensure the privacy of its users. Cryptography, like cryptology, analyzes various protocols that prevent third parties or the public from reading private messages.
Zcash and Bitcoin have a lot in common. There are two types of Zcash transactions: private and open (similar to BTC). When you download the official Zcash wallet, you see that it offers two types of addresses: t-addr, your common address, and z-addr, your personal address. You can choose which one to use. Bitcoin transactions are completely transparent. Everyone can use the BTC block explorer to check if a transaction was sent from one BTC address to another. Zcash becomes private if the user selects a z-address and this means no user or customer’s identity will be known just by looking at transaction reports. This is Zero-Knowledge Proof - the technology that provides Zcash users with the option to shield transactions if they so wish.
The Verge project aims to create a cryptocurrency with an emphasis on complete anonymity of transactions, high throughput, and fast confirmation. Unlike most popular projects, the Verge does not have any formal organization or community. The project is open source, and the team consists of independent pseudonymous developers. A black paper of the project is signed only by the creators’ nicknames. Privacy, anonymity, and decentralization are the main principles of the project.
Verge's anonymity technology affects the process of connecting a user to a network. There is a different approach to data transfer involving Tor and I2P protocols. They are also adopted by Verge to ensure the anonymity of users. Tor (TOR, The Onion Router) is a well-known Internet network of devices carrying IP addresses, embedded between the sender and receiver of data. In addition, the data goes through several stages of encryption to make it difficult to intercept halfway. I2P is the next-generation technology solution. Unlike Tor, I2P offers a dynamic destination for sending a package on a p2p network.
Firo, formerly known as Zcoin, is an anonymous digital currency aiming at bringing true financial freedom to the users. The idea to give people 100% control over their assets derives from Firo’s belief that privacy is a fundamental human right.
To ensure this privacy and untraceable transactions, Firo team created the Lelantus protocol. In simple terms, Lelantus helps users to conceal transaction history via burning and redeeming the coins.
Pirate Chain is a cryptocurrency that focuses on complete privacy, thus making 100% of ARRR transactions shielded. Combining Delayed Proof-of-Work from Komodo, zkSNARK from Zcash and the rule of enforced private-only transactions from Monero, Pirate Chain indeed creates a unique mixture of the strongest privacy technologies.
As an example of ARRR’s outstanding privacy, we can examine how hard it is to attack against this blockchain. DPoW used by Pirate Chain bases itself upon both Litecoin and Komodo blockchains. Therefore, a Sybil attack would cost a fortune, because in this case one should overcome the hasrates of LTC, KMD and ARRR.
Swapzone is the aggregator of the new generation. Its creators have already taken into account all the previous drawbacks and now are ready for the users to thrive. We offer you the opportunity to make exchanges operating with 600+ altcoins among which you can find 10+ anonymous digital currencies. All you have to do is:
Working with crypto may turn out as a difficult process. However, the exchange aggregators can become your personal compass, showing the best prices offered. Some ratings may be biased and the market volume is not the best criterion to find YOUR platform; so, it is worth making your own (or read ours) research and choose for yourself. We offer you Swapzone as the base for your future anonymous cryptocurrency exchanges, as it we won’t be once bitten: we know how to make amendments to the other platforms’ drawbacks and save your time and money. Besides, one can easily profit from comparing the prices and knowing how to operate in the world of 600+ cryptocurrencies. Join Swapzone and see the difference!