As cryptocurrency platforms continue to require more information from their users, privacy concerns only continue to grow. Users are quickly learning how to protect their financial transactions in new and innovative ways. These tools include decentralized exchanges and non-custodial wallets, which provide more private options than traditional, data-hungry platforms.
Bisq and LocalCryptos are two platforms that provide a service to connect buyers and sellers directly. These web3 platforms allow for user autonomy by removing the need for a central authority. They provide powerful encryption, alongside secure messaging. This enhances privacy for all people who would like to keep their financial activity private.
Non-custodial wallets are another key privacy-preserving crypto tool. These wallets allow users to retain complete control over their cryptocurrency, meaning that individuals are not reliant on third-party services. This reduces the risk of data exposure. So long as the owner, and not an exchange or other intermediary, holds the user’s private keys, they have ownership.
Services that don’t require extensive Know Your Customer (KYC) verification have an important part to play in protecting identity. Users can reduce their digital footprint by not submitting personal information in the first place. This simple step greatly decreases the likelihood of their data being breached. These platforms provide a refuge for those who value their anonymity over all else, even their crypto criminal act.
It's important to acknowledge the trade-offs. Though these approaches improve privacy, they can restrict users from accessing valuable services or functionalities. Each user will need to consider the trade-offs and decide what’s most appropriate for them.
