Crypto Privacy Tips
Cryptocurrency is pseudonymous, not anonymous. Every transaction is public on the blockchain. Here's how to protect your financial privacy.
Why Privacy Matters
- Physical security - Known wealth makes you a target
- Financial autonomy - Your transactions are your business
- Protection from stalkers/abusers
- Competitive information - Business transactions visible
Privacy is Not Illegal
Wanting financial privacy is normal and legitimate. You don't share your bank statements publicly - crypto privacy is the same concept.
Basic Privacy Practices
1. Use New Addresses
- Generate new receive address for each transaction
- Most wallets do this automatically
- Prevents linking all your transactions together
2. Don't Reuse Addresses
- Each address should ideally be used once
- Reusing creates a public transaction history
- HD wallets generate unlimited addresses from one seed
3. Never Share Addresses Publicly
- Don't post addresses on social media
- Don't use same address for donations
- Once linked to identity, entire history is exposed
ENS Names Are Public
If you buy yourname.eth and link it to your wallet, your entire transaction history becomes publicly linked to your identity.
Exchange Privacy
KYC Concerns
- KYC links your identity to your addresses
- Exchange data breaches expose your info
- Withdraw to personal wallet promptly
- Consider exchanges with strong privacy records
Withdrawal Strategy
- Don't withdraw to same address repeatedly
- Consider mixing withdrawals with other UTXOs
- Time delay between deposit and withdrawal
Privacy Tools
CoinJoin (Bitcoin)
- Combines multiple transactions together
- Breaks the link between sender and receiver
- Available in Wasabi Wallet, Whirlpool (Samourai)
Privacy Chains
- Monero (XMR) - Privacy by default
- Zcash (ZEC) - Optional shielded transactions
- Built-in privacy, not an add-on
Layer 2 Privacy
Lightning Network (Bitcoin) provides significant privacy improvement. Transactions happen off-chain and aren't individually recorded on the blockchain.
Operational Security (OpSec)
Digital OpSec
- Use VPN when accessing crypto services
- Use Tor for maximum anonymity
- Separate email for crypto accounts
- Avoid browser fingerprinting
Physical OpSec
- Don't talk about crypto holdings publicly
- Be vague about investment amounts
- Secure physical seed phrase storage
- Consider decoy wallets
Transaction Privacy
| Chain | Default Privacy | Privacy Options |
|---|---|---|
| Bitcoin | Public | CoinJoin, Lightning |
| Ethereum | Public | Limited options |
| Monero | Private | Always private |
| Zcash | Public/Private | Shielded pools |
Privacy Checklist
- New address for each receive
- Never post addresses publicly
- Withdraw from exchange to personal wallet
- Use VPN/Tor for sensitive transactions
- Separate crypto identity from real identity
- Don't discuss holdings publicly
- Consider privacy-focused chains for sensitive transactions