Anonymity in the crypto sphere is becoming increasingly important as centralized exchanges require more and more personal information from their users. While this is a necessary evil to comply with strict AML policies, sharing this info presents a high-security risk for crypto users.
Hackers target exchanges specifically and can access this information, putting users in danger. Using anonymous exchanges and privacy-focused coins can serve as an all-around solution to this issue.
In this article, we explain how using privacy coins like Monero can help you keep your transaction data hidden from malicious actors. We will also provide you with a guide on how to convert XMR to BTC anonymously using the Godex exchange. Let’s get started.
Monero: Privacy-Focused Coin
Monero emerged in 2014 to provide users with genuinely private P2P blockchain transactions. As a fork of Bytecoin, Monero’s goal was to achieve what its predecessors never managed to do. It is a fully decentralized payment system where transactions are obfuscated by default.
To achieve this, the protocol uses a concept known as ring signatures. Multiple transactions from the ledger act as decoys, never providing info to an external observer who sent the transaction or received it. The amounts are also split into multiple transactions. This makes it even harder to distinguish the details of a single transaction.
Is Bitcoin Anonymous?
Cryptocurrency neophytes often mistake Bitcoin for an anonymous cryptocurrency. Even people that have been in the sphere for quite some time have the misconception that Bitcoin provides them with privacy.
This is an understandable mistake. You don’t need to provide any personal information when creating a Bitcoin address. What’s more, transaction data is only defined by the public address of your wallet, which isn’t connected to your identity.
However, internet sleuths and government agencies can quickly trace back this data and link it to your person. This can make it easier for criminals to track you down and harm you to get to your holdings. Additionally, if you are using a centralized exchange that employs KYC procedure, all your financial data will be exposed in case of a data breach or hack.
How to Stay Anonymous During a Transaction: Enter DEXs
Decentralized exchanges (or DEXs) provide infinitely more privacy than centralized ones. These platforms use smart contracts instead of a central intermediary and offer direct peer-to-peer transactions for their users.
To use a decentralized exchange, all you need is a compatible blockchain wallet, and you should be good to go. This means that you share no personal data with the exchange before being able to use its services.
However, there’s a caveat. DEXs exclusively run on smart contract-capable blockchains like Ethereum. This means that exchanging Bitcoin and Monero on a DEX, while possible, is entirely impractical and tedious.
Exchange XMR to BTC Anonymously with Godex
Fortunately enough, there’s a solution to this issue when you are using an anonymous cryptocurrency exchange. These exchanges act like third-party brokers and deal uniquely with cryptocurrencies.
Unlike centralized exchanges, anonymous services don’t offer fiat currency on- and-off ramps. This allows them to do away with tedious KYC procedures and doesn’t require users to provide any personal info. Consequently, exchanges like Godex do not hold any personal data, making them much more secure than traditional centralized exchanges.
This makes them perfect for exchanging XMR to BTC and vice versa and blurring your tracks in the blockchain space. What’s more, the procedure is entirely streamlined and perfect for beginners and experimented users alike. Here’s what to expect when initiating an MXR to BTC swap on Godex:
- Visit the Godex.io website and select your coins. The exchange offers more than 300 assets, so you can use the search option to select XMR on the left and BTC on the right.
- Provide the amount you wish to exchange and your BTC address (where you wish to receive your coins).
- Send the required XMR to the exchange’s address and you should receive your BTC within a few moments.
You might have noticed that the exchange never requested that you register an account or provide any data apart from your wallet address. This ensures that your anonymity is preserved at all times.
Keeping your privacy in the crypto sphere is becoming more difficult as regulations and centralized exchanges require additional user info. Thanks to anonymous exchanges like Godex and privacy coins like Monero, you can still keep your financial data to yourself.