It’s a common misconception that Bitcoin and other cryptocurrencies are fully anonymous and untraceable. In fact, many blockchains only disguise users’ identities while leaving behind a public record of all transactions that have occurred on the blockchain. The data in the ledger often includes how many tokens a user has received or sent in historical transactions, as well as the balance of any cryptocurrency that they have within their wallet.
There is a concern that even with their identities disguised, users can still be identified based on their activity within a blockchain. This is why some people turn to privacy coins – cryptocurrencies that provide users with a higher level of anonymity.
Although controversial (some authorities see privacy-oriented coins as an illicit…