If your Bitcoin or Etherium was involved in some illegal business you can have problems with using it. How to avoid it? What will happen if a black cryptocurrency will be sold to you? Let’s check.
White Crypto
White Crypto is a brand new, freshly mined Coin or bought from a trusted Exchange. Like a fiat banknote. It’s brand new and smells good. Sometimes we are lucky to get them. In most cases somebody already used the Crypto that is being sold to you. Meanwhile you buy and sell Crypto on big Exchanges with KYC you are 100% safe. Big exchanges like banks verify crypto-currencies they sell. Same as banks verify banknotes or sources of your income.
But what happens if you buy Coins somewhere else?
Black Crypto
Black Crypto comes from anonymous sources, small exchanges, telegram bots, mixers. The rate can be lower as the seller is very interested to sell it. This type of Crypto is not welcome on big Exchanges as it has been involved in illegal activities.
Crypto currencies are not as anonymous as we think about them. Crypto works on blockchain where all history is being stored. Once a bitcoin was sent to a wallet that was used to accept payments for something illegal the Internet knows it. Crypto can be traced!
It is quite useless to trace Crypto meanwhile it circulates between anonymous wallets. Nobody can be punished or prosecuted.
What happens when you mix black and white crypto?
As soon as black Crypto comes to your verified wallet on a big Exchange like Coinbase or Binance that did KYC procedures with your ID, the Exchange may start to suspect you in illegal activities. Sure you are not a delinquent but an Exchanges are regulated by local authorities that fight illegal transactions and money laundering activities. So, to be safe, your account on an exchange can be suspended for further investigation.
It double hurts when you have your brand white Bitcoins in your wallet as the entire wallet is blocked.
Then you have three options – you account is unlocked without consequences, you are asked to transfer your balance to another wallet outside the Exchange and your account is being closed and your account stays suspended for undetermined time.
How to protect yourself?
Don’t mix black and white Crypto. Sometimes you can verify or laundry crypto-currencies using different services. But in this case you take all the risk. Up to you to decide if that is worth it.
In general you have to choose between profit/comfort and anonymity. Big Exchanges don’t like black Crypto, but have good security and are easy to use. All your activities are traced and they have your ID. So don’t be a bad boy, hehe.
Private Crypto wallets are like wallets with cash in you pocket. Less secure, compared to a credit card, but nobody cares where your cash came from and how do you spend it. Feel free to be a bad boy, hehe.
Black business – black crypto, white business – white crypto. Don’t mix it! Sometimes it is as simple as that.
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