More and more people these days are becoming more self aware in regards to privacy. Since there are several cryptocurrencies focused on privacy it may be confusing on where to start and lot’s of people are asking if is monero traceable!
The short answer is yes! But there is more to it. Monero is the most private cryptocurrency you can get. No one can track transactions but there are a few things you need to keep in mind when the time comes to place your transactions.
How is monero not traceable?
I won’t go deep into many details because understanding cryptography is enough meat for a PHD!
Just know this: Monero uses a kind of cryptography that by default obfuscates every transaction, making the blockchain nearly impossible to analyse.
Does not being traceable make monero illegal?
No! this is a common misconception. Monero is used for lots of purposes like betting anonymously or just shopping!
Although being widely used on the dark web for illegal transactions due to it’s anonymity level, monero is not illegal!
What do i need to know?
There are some things you need to keep in mind to be fully anonymous
Use official wallets
There are wallets out there, speccially in mobile devices that can store a record of your transcations. This is done on the wallet level and despite no one can trace transactions on the blockchain, if you’re using a bad wallet they can see what you do and share it with advertisers or governments.
Use your own node
Although it’s not necessary if you connect your wallet to one of the major nodes, the privacy geeks insist that it’s still better to use your own private node. This can be a daunting task for most users and honestly i don’t see the need for it but hey, if you are really paranoid about it you can check this great guide on setting your own monero node.
If you don’t want to setup your own node i suggest accessing the remote node with tor.
Wrapping it up
Using monero the right way makes it completely untraceable but for the less tech savvy users it might seem somewhat difficult to achieve this level of privacy.
It’s not! Just use the official tools and you’re good to go!
Also read: My crypto portfolio.