Think your crypto transactions are safe & untraceable? Think again

Anonymity vs. PseudonymityCrypto in general, and more specifically Bitcoin, is often portrayed as an encrypted and untraceable method of payment that facilitates payments without being tracked. This depiction implies that users transacting in crypto can do so completely anonymously — without their identities being exposed. However, this can be far from the case, and it is many times.There are three elements involved in a bitcoin transaction: a transaction input, a transaction output, and an amount. The transaction input is the bitcoin address from which the money was sent, and the transaction output is the bitcoin address to which the money was sent. For Bitcoin, all three are public. For any transaction, we can see the address of the sender, receiver, and value of the transaction. Now, since every Bitcoin transaction is recorded on Bitcoin’s public ledger, anyone can view any Bitcoin wallet and transaction.Bitcoin is neither confidential or anonymous.As usage grows and more transactions are recorded on the BTC blockchain, a massive public map is being stored, which is accessible by anyone. With the right tools, transactions can be placed under a microscope to give a very clear picture of how Bitcoin transactions are moving. This poses a huge privacy concern.Here are a few ways your crypto transactions can be linked to your identity:The simple act of making a purchase on a public blockchain like Bitcoin’s makes your crypto tx traceableLet’s say you visit a restaurant that accepts Bitcoin as a payment method. Hip hip hooray! Adoption is here! You make a payment from your Bitcoin address which you use for all your BTC deposits and withdrawals, you enjoy your meal, and then head home.Since your bartender received funds from your Bitcoin address, they can very easily use this address to look up the details of your account. And bam!…