Tor

Each relay decrypts only enough data to forward packets to the next hop, preventing correlation between source and destination.

For crypto users, Tor helps obfuscate IP addresses during wallet access and transactions, reducing the risk of linking on-chain activity to real-world identities or triggering KYC requirements on centralized platforms.

If you're exploring ways to stay private while transacting in crypto, we recommend diving deeper into the topic. Start with our updated guides on the 15 Best No KYC Exchanges for 2025, how to use Crypto Gift Cards That Can Be Redeemed Without KYC, and whether you can really Buy Bitcoin on PayPal Without KYC. For the privacy-conscious, our feature on Blockchain SSN explores how blockchain tech could help protect your most sensitive personal information.

Disclaimer

The information on this website is for general information only. It should not be taken as constituting professional advice from Koinly. Koinly is not a financial adviser. You should consider seeking independent legal, financial, taxation or other advice to check how the website information relates to your unique circumstances. Koinly is not liable for any loss caused, whether due to negligence or otherwise arising from the use of, or reliance on, the information provided directly or indirectly, by use of this website.

By Michelle Legge • Head of Crypto Tax Education

Updated May 19, 2025

This article has been fact checked and reviewed as per our editorial policy.

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The information on this website is for general information only. It should not be taken as consulting professional advice from Koinly. Koinly is not a financial adviser. You should consider seeking independent legal, financial, taxation or other advice to check how the website information relates to you unique circumstances. Koinly is not liable for any loss caused, whether due to negligence or otherwise arising from the use of, or reliance on, the information provided directly or indirectly, by use of this website.