Quote from: puresoul108 on April 07, 2013, 06:51:45 AM

1.) I am trying to make a payment to an online business that accepts bitcoin but want it so that my personal identity is totally untraceable.

I was told that to do this I need something like instawallet but now instawallet is not there anymore.

Can someone please clear this up for me on how exactly to do this.

You can pay with a bitcoin address, wich is a random string, therefore anonymous. The problem is : can someone discover that this address belongs to you ? In example, if you are signing for an online wallet from your own computer, and someone can access the logs, he may be able to discover your identity through your ip.

Same goes for the transaction : if your doing the transaction from your home pc, then your ip wil be logged and bound to the transaction.

If you want to be anonymous one has to :
- use anonymous vpn while doing your things online
- use TOR

Quote from: puresoul108 on April 07, 2013, 06:51:45 AM

2.) I am also wondering what the plusses and negatives are of using a wallet located on my own computer, as opposed to an online wallet.

Please also recommend the best ones

Well in both cases the main risk is that an intruder steal the wallet. In case of your desktop you can "cold store" your wallet on a usb stick for example, and delete it from your pc, thus nobody can hack your desktop to get it. But if you lose your usb stick, you are doomed.

Quote from: puresoul108 on April 07, 2013, 06:51:45 AM

3.) I hear the mtGox is the biggest place to buy and sell bitcoin is there any drawbacks to using them? Can anyone recommend a better one and if so tell me why they are better.

Thanks

Interested in that question too.