Bitcoin is pseudo-anonymous because its operating code and ledger of transactions are open, transparent and seen by anyone who runs a full node.
No one’s name is directly attached to a Bitcoin address or transaction. However, if you acquire Bitcoin from a party that asks for your name, then that transaction is forever attached to you.
This is how law enforcement and chain analytics may be able to logically assert that some bitcoin currently belongs to one particular person. So, buying bitcoin on an exchange is not anonymous since your personal data is collected there and can be shared.
However, there are legal ways to break the deterministic links that associate Bitcoin transactions with individual entities. And, there are ways to acquire Bitcoin in an anonymous way, known as “KYC-free”.
Schedule a free consultation with Bitcoin Consultant to learn more.