I asked a friend of mine from college (IT major) yesterday about it. He said something about learning and using something called virtual machines (no idea) to isolate yourself from hacking/viruses. I think I'll stick to my Google Crome Incognito, doubt it even does anything.
You can disguise your cyber identity through various VMs and proxys. A super paranoid buddy of mine downloads his torrents to a VM in China, then accesses it through proxys in Austrailia, the UK, and the Netherlands. He also writes a lot of SQL queries that also help to cover his tracks throughout the whole process.