I am new into the cryptocurrency scene and just recently learned about that IP address can get leaked when sending transactions (since they connect to nodes). So I have few questions regarding this:
1. Is it only when you send transactions that your IP address is being used? What about when you generate addresses and receive transactions with the electrum client?
2. I recently connected my Electrum to TOR through SOCKS5 127.0.0.1:9150 in the network settings. Before this it was set on default with SOCKS4 connection. While I have been using VPN all the time before all this discovery, my question here is, did the SOCKS4 connect to my VPN or my actual home IP address? And let's say I created a wallet with the SOCKS4 alternative, but then recently changed settings to TOR, does my transactions continue to use the IP-address I used while creating the wallet, or will it automatically change to the TOR connection?
3. I also have a Nano ledger S that I am using. Does this also send out my IP addresses when I am sending transactions like Electrum? And if it does, how do I connect TOR/VPN to it?
According to your question about 1,2 and 3, it doesn't matter what IP you are using if you send bitcoin from electrum(according to blockchain) the IP is not the same when you are sending base on what I see no one could fund your IP where you send your bitcoin from electrum.
VPN or TOR network it would be still the same IP when you check it from blockchain. Because bitcoin is anonymous unless if there is another way to trace you.
4. I also read that they can also see all your bitcoin addresses, in addition to IP-address, when you connect to servers, how is this possible?
No, if you receive the bitcoin in one address from electrum wallet only the bitcoin address with balance could see your bitcoin addresses.
If you didn't use the other bitcoin addresses from electrum no one would know your other bitcoin addresses unless if you use all of your bitcoin address with balance.
5. Is there anything else I should be aware of or any extra advice? I have been trying to inform myself more through google, but always good to hear from others.
My advice beware of fake electrum website, there are many fake websites nowadays so if you are not sure if what the real electrum official website better to ask it here in the forum.