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Bitcoin addresses are the only information used to define where bitcoins are allocated and where they are sent. These addresses are created privately by each user's wallets. Can police trace bitcoin? Although it is reported that most bitcoin transactions (98.9%) are not associated to criminal activity, the birth of cryptocurrency has provided individuals with new mediums to facilitate criminal activity. As a digital currency, there is no way to track or identify who is sending or receiving Bitcoin . How can I use bitcoin anonymously? Answer: You can opt to use Bitcoin ATMs that allow you to buy Bitcoin anonymously with cash . Other platforms like ShapeShift, BitQuick, and LocalBitcoins.com, Paxful, and DameCoins let you trade Bitcoin anonymously with PayPal, credit cards, Western Union, and bank transfers. Can the FBI trace Bitcoin? The trail of Bitcoin addresses allegedly links all that money to online illegal drug sales tracked by FBI and Interpol . If Bitcoin's privacy shortcomings drive users away, the currency will quickly lose its value. But the demand for financial privacy won't disappear, and new systems are already emerging. Can police track Bitcoin? Although it is reported that most bitcoin transactions (98.9%) are not associated to criminal activity, the birth of cryptocurrency has provided individuals with new mediums to facilitate criminal activity.