Your Bitcoin Is Highly Traceable

A lot of us once thought that crypto is untraceable, when my friends were introducing crypto to me 7 years ago they said it’s untraceable. The narrative was that, if you use crypto no one can link it to you, because the blockchain doesn’t show your name. Except you register your crypto domain name with your name. Well, to an extent they are right, if you go to any blockchain explorer you will discover that the information on the chain shows just transaction information and wallet addresses. You can’t identify whose address is that except they are a public figure and they make the world know their address. But aside that, your crypto can get hacked by a hacker, transfer your crypto to another wallet and you wouldn’t know who did that, except the coin get transferred to a CEX wallet.

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When you were registering on a CEX wallet, I am sure most of us inputed our personal details, this process is known as KYC, meaning the platform is trying to know you, and what are the ways to know you, well, your Identity Document is one way to know you. Once your identity get collected by the exchange, the exchange has the right to release your information to authorities when there is a need for it. This is where your Bitcoin can be traced to you, and this where the feature of bitcoin or crypto becoming untraceable is false. While this is true, we are forgetting that some people have been able to do crypto transactions through Peer to Peer without the use of centralised exchanges. But this can be done with little funds, as for bulk funds, you would need Centralised Exchanges and this will eventually get your information exposed.

In as much as we applauded crypto for its transparent features that is also the same feature that makes it’s really traceable and can be of advantage to you when you are trouble. This has saved a lot of people millions of dollars after their wallets get hacked.

Posted Using LeoFinance Alpha