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Topic: Do you know which Bitcoin wallets provides complete anonymity & privacy? (Read 260 times)

member
Activity: 253
Merit: 93
Humble Bitcoin Stacktivist

Running a node is a whole different scenario but most of us are not good with technicality and are unable to create nodes. There are platforms that can provide to an extent privacy and people like me should consider it who do not have any technical idea. 

It's not as difficult as you might think. There's a lot of info available online to help. I am happy to help point you in the right direction if you're willing and interested in learning.
sr. member
Activity: 756
Merit: 390

If you are so concerned then It is better to use Chipmixer which is free as the platform does not charge any fee. For any transaction they would charge the miner fee. If you are not aware on how it works then you should read page 9/30 of this PDF file on - Everything You Ever Wanted to Know AboutBitcoin Mixers (But Were Afraid to Ask).

If you want to know which Bitcoin Mixer you should then you should read the below post.



Thanks for sharing those links! I was not aware of Mixers. I would try to go through these two links and then create a new topic related on how Bitcoin transactions can be made anonymous.

I don't think there's a way to achieve perfect privacy or anonymity but I use Sparrow wallet, run my own node/electrum server, CoinJoin, and practice good privacy like using coin control etc.

With that combo I have a pretty high level of privacy but I don't think it will ever be perfect.

If your wallet is connecting to random electrum servers to update your address balances, I would consider that completely compromised and little to no privacy.

IMHO, there is no privacy without running your own node.

Running a node is a whole different scenario but most of us are not good with technicality and are unable to create nodes. There are platforms that can provide to an extent privacy and people like me should consider it who do not have any technical idea.  
member
Activity: 253
Merit: 93
Humble Bitcoin Stacktivist
I don't think there's a way to achieve perfect privacy or anonymity but I use Sparrow wallet, run my own node/electrum server, CoinJoin, and practice good privacy like using coin control etc.

With that combo I have a pretty high level of privacy but I don't think it will ever be perfect.

If your wallet is connecting to random electrum servers to update your address balances, I would consider that completely compromised and little to no privacy.

IMHO, there is no privacy without running your own node.
hero member
Activity: 2156
Merit: 803
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Yep. It means the pros point in OP is not correct.

By default settings that are for normal users, Electrum is not good for anon and privacy.

Nope, I would say the level of anonymity when compared with Wasabi and Samourai might not be on that level. However, still you would get anonymity if you are constantly using new receiving/sending addresses generated by Electrum. Transactions cannot be made hidden on the blockchain but they can only be disguised.

If you are so concerned then It is better to use Chipmixer which is free as the platform does not charge any fee. For any transaction they would charge the miner fee. If you are not aware on how it works then you should read page 9/30 of this PDF file on - Everything You Ever Wanted to Know AboutBitcoin Mixers (But Were Afraid to Ask).

If you want to know which Bitcoin Mixer you should then you should read the below post.


I do not think everything written by the OP is correct. I know a lot could have been discussed in this post as many important points were left out. I would be happy to read this post and then verify the content by visiting those links rather than judging it with a reply. If you are someone who believes on others rather do it all yourself then you might encounter problems in the future.
sr. member
Activity: 854
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Quote
High level of anonymity and privacy.
Is it true with Electrum wallet?

By default, no. Electrum wallet simply send list of address on your wallet to few random Electrum server.
Yep. It means the pros point in OP is not correct.

By default settings that are for normal users, Electrum is not good for anon and privacy.
legendary
Activity: 2870
Merit: 7490
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You need to read about this thread to know if wasabi wallet is 100% privacy oriented or not The default Wasabi Wallet coordinator will start censoring "illegal" UTXOs

Also read their official statement at https://blog.wasabiwallet.io/zksnacks-blacklisting-update/.

I don't think it's enough to use the coinjoin feature to stay anonymous, you still need to use a mixer and follow a lot steps to achieve it.

Why do you think so? Even mixer cannot guarantee anonymity, see Breaking Mixing Services.

Quote
High level of anonymity and privacy.
Is it true with Electrum wallet?

By default, no. Electrum wallet simply send list of address on your wallet to few random Electrum server.
legendary
Activity: 2380
Merit: 5213
How it's possible a hardware wallet will provide a complete anonymity and privacy?
If you use your hardware wallet properly, you can protect your anonymity and privacy.
A solution is to connect your hardware wallet to electrum and run your own server and use TOR connection.
hero member
Activity: 910
Merit: 680
How can these bitcoin wallets provide complete anonymity and privacy when they are meant to always be online? What you need is a hardware wallet with an air-gapped feature, completely offline is the only solution.
How it's possible a hardware wallet will provide a complete anonymity and privacy? after all when you want to access your coins, you need to connect your hardware wallet through hot wallet, so after all you still need to use online wallet and it will depends on your setup.

Hardware wallet is just offer you a good security level, not about anonymity and privacy. Someone who find your hardware wallet obviously think you must have Bitcoin, but if you use your phone as your cold storage, they wouldn't think you own Bitcoin.
legendary
Activity: 2380
Merit: 5213
Quote
High level of anonymity and privacy.
Is it true with Electrum wallet?
You can protect your privacy and anonymity, if you run your own server and use TOR connection.
With using TOR connection, you hide your IP address and with running your own server, you no longer have to connect to others server and there is no way for them to link your addresses with each other.  
hero member
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How can these bitcoin wallets provide complete anonymity and privacy when they are meant to always be online? What you need is a hardware wallet with an air-gapped feature, completely offline is the only solution.

Hackers rely on internet connection or USB slot connection to steal your information,  when it comes to air-gapped devices there is no way hackers can take advantage of your wallet,  they are always offline.
sr. member
Activity: 854
Merit: 424
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Quote
High level of anonymity and privacy.
Is it true with Electrum wallet?

I know we can use Tor with Electrum but high level of anonymity and privacy is not accurate.

You forgot one important advantage of Electrum. It is very light in storage space because technically, it is a SPV wallet.
legendary
Activity: 2212
Merit: 7064
Why use the second best wallet when the first one exists?
Roll Eyes
If you have the ability to fully read my previous message than you will see the reasons I stated why I recommended Sparrow wallet, in some areas it is better than Electrum wallet.
It is totally related to question Elevates asked about privacy, and I don't think further explanation is needed at all.
legendary
Activity: 2380
Merit: 5213
I guess you forgot to read the below generic statement before your quoted one. I also had Electrum in my mind and therefore I used this statement.
I read your topic completely and I disagree with the 2FA part. That's all.
You said: "Look for wallets that offer private key protection, two-factor authentication, and other security features to protect your privacy and keep your funds secure."

It's not a good idea to look for a wallet that offer two-factor authentication. As I already said, if you want to have 2FA, you have to rely on a third party and that's against the purpose of bitcoin.
legendary
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If you are concerned about privacy I would suggest to check open source desktop wallet called Sparrow.
This is probably second best Bitcoin wallet after Electrum, and it has support for Tor, Paynyms, Coinjoin with Whirlpool, support for hardware wallets, strong encryption, etc.
https://sparrowwallet.com/

For mobile wallet Unstoppable wallet is decent choice, it's open source, has Tor support and it respects privacy:
https://unstoppable.money/

Wallets that support Lightning Network and some second layer privacy solutions (Mercury Wallet) can also be consider good for privacy.
Why use the second best wallet when the first one exists?

I allow this as a craving for knowledge and curiosity, as well as to personally test the effectiveness of crypto wallet.

It's good that you suggested sparrowwallet as a continuation and addition to OP's wallets. It would also be interesting to hear the opinion of users who have experience using Electrum and Sparrow, why does Electrum still take first place in this competition? Do many here agree with this?
legendary
Activity: 2212
Merit: 7064
If you are concerned about privacy I would suggest to check open source desktop wallet called Sparrow.
This is probably second best Bitcoin wallet after Electrum, and it has support for Tor, Paynyms, Coinjoin with Whirlpool, support for hardware wallets, strong encryption, etc.
https://sparrowwallet.com/

For mobile wallet Unstoppable wallet is decent choice, it's open source, has Tor support and it respects privacy:
https://unstoppable.money/

Wallets that support Lightning Network and some second layer privacy solutions (Mercury Wallet) can also be consider good for privacy.
sr. member
Activity: 756
Merit: 390
With using a wallet with 2FA feature, not only you don't increase your privacy, but you hurt your privacy.
If you want to have 2FA, you have to go for a custodial wallet and due to obvious reasons that you know, we should avoid custodial wallets.
You can't have 2FA on Wasabi or Samourai at all. As I said in my previous post only electrum allow you to have 2FA. The 2FA feature is provided by a third party called trustedcoin and you have to pay additional fee for using their service.

I understood what you said but the heading What do we need to look for in a wallet for privacy & anonymity? is about an overall overview in deciding on a Bitcoin wallet. It does not specify Wasabi or Samourai at all. I did write before your quoted statement.

This is what you quoted:
Look for wallets that offer private key protection, two-factor authentication, and other security features to protect your privacy and keep your funds secure.
With using a wallet with 2FA feature, not only you don't increase your privacy, but you hurt your privacy.
For having 2FA, you have to use a custodial wallet and give a third party full control over your fund. In this way, you lose both security and privacy.
(The only wallet that allow you to have 2FA while having full control over your fund is electrum. As the 2FA feature is provided by a third party called trustedcoin, you still have to sacrifice your privacy.)

I guess you forgot to read the below generic statement before your quoted one. I also had Electrum in my mind and therefore I used this statement.

Quote
In order to choose an anonymous Bitcoin wallet, there are several important factors to consider. First and foremost, security features are crucial.

legendary
Activity: 2380
Merit: 5213
With using a wallet with 2FA feature, not only you don't increase your privacy, but you hurt your privacy.
By the way, clearing Google CAPTCHA also hampers your privacy which we do when we log in to the forum.TOR is available on all three wallets.
I think you didn't understand my point. You recommended using 2FA for increasing the security and privacy while that's not a good idea.
If you want to have 2FA, you have to go for a custodial wallet and due to obvious reasons that you know, we should avoid custodial wallets.
You can't have 2FA on Wasabi or Samourai at all. As I said in my previous post only electrum allow you to have 2FA. The 2FA feature is provided by a third party called trustedcoin and you have to pay additional fee for using their service.
sr. member
Activity: 756
Merit: 390

Electrum offers coinjoin? Must be a copy-paste mistake.

My mistake! I have edited it.

With using a wallet with 2FA feature, not only you don't increase your privacy, but you hurt your privacy.
By the way, clearing Google CAPTCHA also hampers your privacy which we do when we log in to the forum.TOR is available on all three wallets.
legendary
Activity: 3668
Merit: 6382
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PROS-

  • High level of anonymity and privacy.
  • Offers coinjoin transactions for added privacy.
  • IMO it has a user-friendly interface.

CONS-

  • May not offer as high a level of anonymity as other wallets

Electrum offers coinjoin? Must be a copy-paste mistake.
Also coinjoin is imho overrated, since the link between coins/inputs is not broken and also the coordinator knows about all the movements.
And, let's not forget: you could have been also adding at least Bitcoin Core to the list. Maybe Sparrow too.

The 2FA part was already said, I won't repeat that.
legendary
Activity: 2380
Merit: 5213
Look for wallets that offer private key protection, two-factor authentication, and other security features to protect your privacy and keep your funds secure.
With using a wallet with 2FA feature, not only you don't increase your privacy, but you hurt your privacy.
For having 2FA, you have to use a custodial wallet and give a third party full control over your fund. In this way, you lose both security and privacy.
(The only wallet that allow you to have 2FA while having full control over your fund is electrum. As the 2FA feature is provided by a third party called trustedcoin, you still have to sacrifice your privacy.)
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