Bitcoin was invented with specific goals in mind. One of these goals is the ability to keep your wealth secure and private from the prying eyes and hands of governments. One of Bitcoin’s advantages is that the transactions are recorded and placed on the publicly available blockchain. Anyone can see how many transactions are occurring but it is impossible to see who’s accounts are making these transactions. Cybersecurity experts are facing a huge uphill battle trying to figure out ways to track individual bitcoins. So far they have had little or no success in doing so. But this don’t mean they are giving up. If they do succeed one day, your bitcoins could be seized by the government for one reason or another. Here are a few steps you can take to keep your bitcoins private, secure, and out of the hands of the government or anybody else.
Tracking Bitcoin On Exchanges
The quickest and easiest way to buy Bitcoin is from an exchange. Many of them let you connect your bank account for easy purchases. But are they a safe place to keep your Bitcoin? Exchanges like Coinbase require their customers to fill out what is called KYC (Know Your Customer). This gives Coinbase the ability to track and record every transaction you have made through them. The US government is constantly putting pressure on them to release information about their customers. In the past, there have also been instances where some exchanges have been hacked and people’s bitcoins stolen directly from their online wallets. Keeping your bitcoins off the exchanges after you purchase them is a safer and more secure way to go.
Keeping Your Bitcoin Safe From Being Tracked
One of the best ways to keep your bitcoins private and secure is to store them on an offline wallet device like the Trezor with private keys that only you hold. If the government or IRS should seize your device, they will not be able to access your bitcoins without your private keys.