Regulatory authorities have received mixed responses about the viability of anonymous crypto wallets. While users believe that remaining anonymous is the essence of Crypto, it is no longer possible to conduct transactions with Crypto without leaving a trace on the blockchain.
That is where anonymous crypto wallets come in. Before we delve into anonymous crypto wallets, let’s understand what crypto wallets are.
What is a crypto wallet?
Crypto wallets store your private keys, allowing you to store your crypto safely while keeping it accessible. You can send and receive currencies like Bitcoin, Ethereum, Doge, etc. Crypto wallets could be in the form of a Ledger (similar to a USB drive) or a mobile app.
Unlike normal cash wallets, you don’t technically store your crypto coins within your wallet. It is more like a key or code used to access your crypto holdings on the blockchain.
What is an anonymous crypto wallet?
Anonymous crypto wallets allow users to sell and trade using their wallets without revealing private information about the users or transactions made. It is also referred to as a dark crypto wallet or a stealth crypto wallet. Most users prefer anonymous crypto wallets that do not require any private user information to be added. Some anonymous crypto wallets offer IP address obfuscation and VPN masking support.
Why is it required?
Anonymous crypto wallets allow two very important things: the use of decentralised currency and anonymous usage. These were the two pillars on which crypto was built.
Anonymous crypto wallets offer more privacy and security than public blockchains. While it is technically possible to track transactions, it requires a massive effort.
People using anonymous crypto wallets can customise them based on specific requirements. One wallet could be used exclusively for personal spending, while another could be for business.
Anonymous wallets can be used with a public blockchain; this makes them flexible and easy to use.
The top 5 anonymous crypto wallets
Now that the concept of anonymous crypto wallets is clear, which one is best? Let’s find out a little bit about each of the top five anonymous crypto wallets:
ZenGo is considered to be the most secure non-custodial wallet in Web3. It mitigates private key vulnerability and is easy to use.
Users can store, buy, trade, send and receive crypto. They can also sell Bitcoin in Europe, the UK, and the US, and it supports more than seventy types of crypto assets. Users can choose between three network fee modes, economy, regular and fast. It also allows users to cancel or hasten transactions before they are confirmed.
Its drawbacks are that it has a limited range of currencies and is not a completely non-custodial wallet.
2. Ledger Nano X
This hardware wallet has an LED display and requests a PIN to confirm transactions. It is a great anonymous crypto wallet to manage crypto assets. Ledger Nano X also has a LedgerLive App, which allows users to manage over 5500 coins. It is also relatively cheaper than some of the other offerings. Its limitations are that it only allows three apps’ worth of storage.
3. Bitcoin PaperWallet
This is a free anonymous crypto wallet; it is merely a piece of paper with a private and public key. It also allows you to destroy cache files and reduces the risk of being hacked as it is completely offline. PaperWallet is available in 12 languages, has unique serial numbers, and is the best way to store bitcoin for the long term.
Its limitations are that it only supports Bitcoin, Litecoin, and Dogecoin, and it may not be the best way to store large amounts of crypto.
Electrum keeps private keys safe on your system. The wait time is low. Moreover, it can be integrated with your hardware, it verifies all your transactions, and is anonymous. It also offers a very easy-to-use user interface. One of the drawbacks is that it only supports Bitcoin.
PrimeXBT is a multi-currency anonymous crypto wallet that offers users control over their private keys; it has AES256 encryption for all transactions. It also works with multiple currencies, and the onboarding process is relatively quick. Despite offering multiple-currency support, it only offers support for 40 currencies.
Summing It Up
There are many other anonymous crypto wallets out there, and each individual’s specific usage determines which one may be best for them. Having said that, the wallets mentioned above are among the most reliable. While these wallets are great for individuals, companies should ensure they are compliant with international rules and regulations whenever they use crypto.
What should I look for in an anonymous crypto wallet?
This depends on what you plan to use it for. If you intend to store crypto, a hardware anonymous wallet is best; otherwise, an app is ideal.
What is multi-signature support?
Multi-signature support is essential for anonymous crypto wallets handled by more than one person, such as business partners or spouses.
Can you store multiple types of currencies in one wallet?
Yes, you can store different currencies in one anonymous wallet. However, it must offer compatibility for all the crypto you have.