Why Is Bitcoin Often Considered 'Pseudonymous' Rather than Fully Anonymous? ▴ Learn

Why Is Bitcoin Often Considered ‘Pseudonymous’ Rather than Fully Anonymous?

Bitcoin transactions are recorded on a public ledger, the blockchain, where all transaction amounts and wallet addresses are visible. While the addresses themselves do not reveal a user's real-world identity, advanced blockchain analysis can link multiple addresses to a single entity.

Once an address is associated with a user's identity through an exchange's KYC process, the entire transaction history of that address can be traced. This makes it pseudonymous, not fully anonymous.

What Is the Difference between a Public Key and a Wallet Address?

What Is the Difference between a ‘Hot Wallet’ and a ‘Cold Wallet’ in Terms of Private Key Security?

How Do Hash Functions Play a Role in the Security of Private Keys and Public Addresses?

How Is the ‘User’ Defined Differently in Various Applications of Metcalfe’s Law to Crypto?