Can Bitcoin be traced? It is an essential question that many individuals who trade or want to trade in Bitcoin may ask. Nevertheless, If you are a Bitcoin investor, it is challenging to be completely anonymous when using Bitcoin, and your Bitcoin can be stolen. However, don’t worry. We will discuss everything you need about Bitcoin traceability and how to avoid it, so keep reading.
Can Bitcoin Be Traced? What Does That Mean?
All transactions related to Bitcoin are recorded on the computer. When you create your wallet, no one will know about it. Still, when you make any transaction of buying or selling Bitcoin, the transaction details are recorded on the blockchain as well as the balance, amount of bitcoin sent, sender address, receiver address, transfer fee, and transfer date, not real-world identities. So all Bitcoin transactions are public and traceable.
Can Suspicious Bitcoin Activity Be Tracked?
Although Bitcoin transactions on the blockchain are exposed, this platform cannot track suspicious Bitcoin transactions. Still, agencies Chainalysisusually try to detect those who have carried out electronic hacking or fraud, or you can hire tracking specialists from Mycoingoblin, who will help you get your stolen coins back to your wallet.
How To Make Your Bitcoin Wallet Safe To Avoid Being Tracked?
Can Bitcoin be traced? Our answer to you is yes, it can be traced, but you can take one of the following actions to avoid tracing your Bitcoin, namely:
- Exchange your Bitcoin for any other digital currencies like Monero(XMR), as the monero blockchain is secret and untraceable because it uses many privacy-enhancing technologies.
- You can use multiple wallets to store your Bitcoin transactions. So not all of these transactions will be traceable by others, and the people sending you Bitcoins will not know anything about your past transactions.
- Use a cold wallet or hardware wallet. Cold wallets are the best to protect your coins because cold wallets do not connect to the Internet, unlike so-called hot wallets. So cold wallets are not exposed to electronic attacks. Therefore your transactions on them remain safe. This also applies to hardware wallets.
- Avoid using public Wi-Fi networks while doing your Bitcoin transactions. To keep your safe trading, use a secure internet, and for extra security, use a VPN as the VPN changes your IP address as well as your location.
- Use a powerful anti-virus program on your personal device. Continually update your device with the latest virus definitions to avoid vulnerabilities that may allow hackers to infiltrate your device.
- Use a strong password that is difficult to crack, and if you have multiple wallets, choose strong passwords for each wallet.
- Watch out for unknown emails, as well as suspicious links and ads.
6 Types Of Wallets Used In Digital Currencies
There are several types of wallets used in digital currency transactions, which differ from each other in terms of security and risks related to them, namely:
- Online wallets: Which are the most used wallets for Bitcoin transactions, but they are vulnerable to hacking due to their connection to Internet networks. You can save your transactions on these wallets by using security tools and logging in from secured networks.
- Cold wallets: Which are offline wallets and are the most secure type of wallets and are challenging to be hacked by hackers.
- Hardware wallets: Offline wallets also take the form of hardware-connected small USB devices. These wallets are safe. However, you must be aware that losing the device exposes your wallet to hacking and thus easy access to your encryption. Still, you can follow the security suggestions for these wallets.
- Paper wallets
These wallets contain the private key for your encryption and have security suggestions similar to hardware wallets.
- Multi-signature wallets
This type of wallet requires more than one private key for encryption, so it is difficult for hackers to access your crypto.
- Service wallets
Traders use these wallets to store and trade their digital coins, and these wallets are weak.
Can Bitcoin Be Tracked By The Police?
Yes, Bitcoin transactions are tracked by the police, which helps detect transactions used in illegal activities. Thus, those carrying out these transactions can be arrested.
If a Bitcoin wallet is stolen, it can be challenging to determine who owns the wallet. Still, the wallet owner will undoubtedly want to convert it into cash. Consequently, the police will wait for the transfer to occur so that they can catch the hacker.
Final Thoughts – Can Bitcoin Be Traced? Is Bitcoin Safe?
Bitcoin transactions are vulnerable to hacking, and in this article, we have tried to clarify your question, can Bitcoin be traced? As your Bitcoin transactions are vulnerable to electronic attacks, and despite this, Bitcoin remains the focus of attention for those who want to trade digital currencies and earn a lot of money. If you are a Bitcoin trader or want to trade it, try as much as possible to keep your transactions safe and always follow the security procedures.
