What’s the Most Private Way to Accept Bitcoin Payments?

When you accept Bitcoin, privacy is not always guaranteed. Every transaction is public on the blockchain. If you reuse the same address for multiple payments, those transactions can be linked together.

On top of that, many payment processors keep logs or even require identification. This undermines one of Bitcoin’s key advantages: pseudonymity.

So, what is the most private way to accept Bitcoin?

Option 1: Self-Hosting (BTCPay Server)

One route is to self-host software like BTCPay Server.

• It’s a fully non-custodial, open-source payment processor.
• Runs on your own server, giving you full control.
• Designed for maximum privacy: every payment gets a unique address.
• Can even be routed through Tor.

Drawback: Running BTCPay Server requires effort.

• You need your own Bitcoin node.
• You must manage server infrastructure.
• You need to handle software updates and uptime.

For individuals or small businesses, this can be a heavy lift.

Option 2: Custodial Processors (Coinbase Commerce, BitPay)

On the opposite side, custodial processors handle everything for you.

Examples: Coinbase Commerce, BitPay.

• Easy to set up and beginner-friendly.

Privacy concerns:

• Usually require identity verification.
• Control your funds until withdrawal.
• Keep extensive logs of transactions.

From a privacy perspective, these are the weakest option.

Option 3: A Lightweight Non-Custodial API (Blockonomics)

A middle ground exists: a non-custodial API that:

• Generates new addresses for each payment.
• Notifies your server when a payment is received.
• Never touches your private keys.

This avoids the complexity of self-hosting while maintaining strong privacy protections.

The Blockonomics API: Privacy Without the Hassle

Blockonomics provides exactly this solution.

A non-custodial Bitcoin payment API built for merchants and developers.

• Blockonomics never holds your funds.
• You provide your wallet’s extended public key (xPub).
• The API derives unique receiving addresses for every order.
• Payments go directly to your wallet — with no middleman custody.

Privacy benefits:

• Each payment uses a unique address.
• Prevents address reuse (a major privacy risk).
• Customer payments are harder to link together.

In short: you get privacy without the overhead of running a full payment server.

How to Set Up the Blockonomics API (Step-by-Step)

Here’s a quick overview, based on the official Blockonomics documentation:

• Generate an xPub from your Bitcoin wallet.
• Connect your xPub to the Blockonomics API.
• Configure your server to receive payment notifications (webhooks).
• Display generated addresses to customers for each new order.
• Receive payments directly in your wallet — no custodians involved.

✅ With Blockonomics, you keep privacy, reduce complexity, and avoid custodial risks.