Onchain is NOT for day to day payments. It is mostly for opening/closing LN channels.
Stop using onchain as your payment network. Onchain is your vault, the hodl wallet that you barely move your corns.
LN = the payment network
Always use the 3 levels stash method
And read these guides to see the answer about how to enhance privacy using swaps between LN and onchain:
On-chain privacy when receiving is simple when using HD wallets. Generate a new address when receiving and that address has never been used before. It looks like a new wallet to chainanalysis.
Your wallet should have coin control so you can choose which utxos to spend. Of it doesn't request it or move to a different wallet. When you spend try to have one utxos input if possible so you're always splitting never combining. If you must combine then wait for when fees are low and use a coinjoin tool.
Because when you make a payment, the whole prehistory of the bitcoin you’re sending is traceable back to the very first transaction. If you don’t follow basic rules, your transaction could be linked to you, making all your past and future transactions visible to a third party.
Some simple rules to follow when sending:
avoid using KYC bitcoin (i.e. bought at a centralized exchange like Binance)
coinjoin your bitcoin with Wasabi or Samourai before sending
use anonymous swap exchanges to break the link between the sending and the receiving address.
Take Full Self-Custody Of Your Coins (use your own private wallet not an exchange wallet, we recommend Sparrow Wallet)
Don’t Reuse Addresses (generate a fresh new one each time you receive)
Don’t Use Public Block Explorers (Chain Analysis firms can link your IP to the addresses you search)
Use Your Own Full Bitcoin Node (build or buy your own node and connect all wallets to it)
Use Tor (Ensure your node and all wallets only connect over Tor or a private VPN)
Use Coin Control & Labelling (Label and be selective about which sats you use when you spend)
The most important ones all Bitcoin beginners should start with is using non-KYC exchanges only and taking full self custody of their coins in a private wallet. Good luck!
CoinJoin is a privacy tool that ensures Bitcoin transactions cannot be tracked, protecting the identities of the sender and receiver.
CoinJoin offers a lower level of privacy compared to Tornado Cash but is available for Bitcoin, making it a popular choice among Bitcoin users seeking privacy on the network.
Onchain is NOT for day to day payments. It is mostly for opening/closing LN channels. Stop using onchain as your payment network. Onchain is your vault, the hodl wallet that you barely move your corns. LN = the payment network
Always use the 3 levels stash method
And read these guides to see the answer about how to enhance privacy using swaps between LN and onchain:
Yep clear, but sometimes on-chain is needed. Thanks for the useful guides
if you have a node, installing Jam could be useful too
Wasabi, and recently the Trezor Model T to do hardware wallet signed coinjoins ⚡
On-chain privacy when receiving is simple when using HD wallets. Generate a new address when receiving and that address has never been used before. It looks like a new wallet to chainanalysis.
But when you pay, it will merge both addresses coins and it will reveal your identity.
Your wallet should have coin control so you can choose which utxos to spend. Of it doesn't request it or move to a different wallet. When you spend try to have one utxos input if possible so you're always splitting never combining. If you must combine then wait for when fees are low and use a coinjoin tool.
The question was about receiving, not paying.
Opendime/Satscard
receiving onchain is very easy and very private
only one thing is needed: one new receive address per receive transaction
sending is more complicated
why pay is more complicated?
Because when you make a payment, the whole prehistory of the bitcoin you’re sending is traceable back to the very first transaction. If you don’t follow basic rules, your transaction could be linked to you, making all your past and future transactions visible to a third party.
Some simple rules to follow when sending:
Payjoin https://thebitcoinmanual.com/articles/btc-payjoin/
Good method for opening lightning channels as well https://thebitcoinmanual.com/articles/open-multiple-lightning-channels/
We have an entire section dedicated exclusively to Bitcoin Privacy and another to Bitcoin Security. In a nut shell though as others have mentioned:
The most important ones all Bitcoin beginners should start with is using non-KYC exchanges only and taking full self custody of their coins in a private wallet. Good luck!
Coin join using Sparrow or Samourai Wallets.
no kyc corn -> wasabi -> hww
No KYC then coinjoin
COINJOIN!
CoinJoin is a privacy tool that ensures Bitcoin transactions cannot be tracked, protecting the identities of the sender and receiver. CoinJoin offers a lower level of privacy compared to Tornado Cash but is available for Bitcoin, making it a popular choice among Bitcoin users seeking privacy on the network.
From LN swap...
https://bitcoinnews.com/coinjoin-versus-lightning-for-bitcoin-privacy/