You're mistaken. With Tor you are (in theory) anonymous at every leg of the journey. The only connection Tor doesn't encrypt is the connection between the exit

You're mistaken. With Tor you are (in theory) anonymous at every leg of the journey. The only connection Tor doesn't encrypt is the connection between the exit node and the server you're connecting to, which is unavoidable. Your ISP can probably tell you're using Tor, but they won't know what you're sending or what its ultimate destination is. In a little more detail, when connecting through a circuit of Tor routers R1 -> R2 -> R3, the encryption looks something like this. client <- E1(E2(E3(msg))) -> R1 <- E2(E3(msg)) -> R2 <- E3(msg) -> R3 <- msg -> server It's not perfect, though. If you can see the traffic between the client and R1 and between R3 and the server and you're being reasonably clever you can probably break Tor's anonymity. (This is what's called an 'end-to-end correlation attack'.)