Bitcoin is a decentralized currency without a central bank and has no physical entity or entity issuing it. However, if you plan to start bitcoin trading you may choose a trading platform with useful features and precise strategies for smooth transactions. Moreover, you will get live customer support. It has no administrator, the transaction is invisible to anyone, and the bitcoin balances will be visible to everybody once they are there. Blockchain, the ledger that records all bitcoin transactions, can be custody of any information about the person seeking to conduct a transaction.
How does blockchain work?
Data collection in the Blockchain network is spread over many servers worldwide. Therefore, no single server has complete information about all transactions conducted by any participant in the bitcoin network. On the other hand, blockchain cannot store information about the identity of the person wishing to avail of bitcoins.
It makes it almost impossible to track a bitcoin transaction. If your account is involved in a transaction, then all details will be available to you based on your public key linked with your account address. However, it won’t disclose any information about the identity of the person who has shared their bitcoin wallet address with you for making a transfer.
Can bitcoin be tracked?
NO, people cannot track bitcoin once they have transacted in bitcoins as these digital currencies have no central repository. It makes it impossible for anyone to track its transactions as these are encrypted by cryptographic technology. Additionally, since no central authority is backing the bitcoin network, DDoS attacks are making it difficult for people to track their bitcoins.
The anonymity provided by bitcoin is one of its most significant features, making it very hard for anyone to track any transaction conducted through Bitcoins. A government cannot track every business activity carried out by its citizens as it will have to supervise every single transaction that happens across the globe. It is not a piece of cake for the government. Why is bitcoin so easy to manage?
Once the information is entered into a bitcoin transaction, no one can track it, unlike traditional banks that don’t provide their customers with privacy and anonymity. With bitcoins, you will be able to conduct your transactions privately and securely as no one has any access to your personal information, making it almost impossible for anyone to track the details of your bitcoin wallet address once you have initiated a transaction with someone else.
How to manage cryptocurrencies in a safe wallet?
As mentioned above, the bitcoin network is highly secure and has an almost impossible time figuring out what’s going on in the system. It is a decentralized network that does not need authentication from any single entity. Every bitcoin wallet address is publicly visible, but its owner remains anonymous. The entire blockchain system works like an on-demand ledger that keeps track of all transactions and has no central location for any information about them.
Different types of cryptocurrency wallets:
Bitcoin, Ethereum, and other cryptocurrencies have their types of wallets, such as a paper wallet for bitcoin, an e-wallet for Ethereum, a hardware wallet for some coins, or an online wallet for other cryptocurrencies.
Hardware wallet: Hardware wallets are like portable hard drives, and these can be carried around, but they are expensive. These are only designed for cryptocurrency storage, and there is no ability to plug into a computer for mining or trading.
E-wallet: An E-wallet is your online bank account. The online e-wallets are easy to use, and a user can quickly login into their account from anywhere, provided they have an internet connection. However, one disadvantage of an e-wallet is that you share your personal information with the third party who operates its website, making it easier for anyone to track your transactions.
For example, if you use blockchain. Info then your name, mobile number, and other details are saved in the blockchain, which is like a public ledger. So all you have to do is to ensure that you are using an e-wallet that can be accessed only by you, and no transaction details will be public to any entity.
A paper wallet is a bit tricky, but it is the safest way to store cryptocurrency as your bitcoins will not be stolen by cybercriminals due to their physical nature of being printed on a piece of paper.
In short, bitcoin is hard to track and easy to manage.