A Practical Guide to Maintaining Privacy in the Crypto World
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A Practical Guide to Maintaining Privacy in the Crypto World
You don't need to become an extreme privacy advocate wearing a tin foil hat—just develop some basic habits.
Navigating Web3 tides with focused insightsAuthor: Vladimir S. | Officer's Notes
Translation: TechFlow
Initially, cryptocurrencies were created in pursuit of privacy and freedom, but today everything is tracked, linked, and sold. Blockchains are permanent public ledgers, exchanges require identity information (KYC), and analytics firms profit by linking your wallet to your real identity.
The good news is that with conscious effort, you can still maintain significant privacy. You don't need to become an extreme "tinfoil hat" privacy maximalist—just adopt some basic habits. Here are the privacy protection techniques that actually work in 2025:
1. Stop reusing wallet addresses
Every time you reuse the same address to receive funds, you're publicly exposing your transaction history to the world. Generate a new address each time, or at least use different addresses for different purposes (e.g., one for salary, one for trading, one for DeFi, one for entertainment). Most high-quality wallets now support automatic generation of new addresses—make sure this feature is enabled.
2. Separate your identities like a breakup with an ex: use different wallets for different aspects of your life:
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A "public" wallet for connecting to Twitter/Discord (assume this wallet may eventually be exposed);
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A "core assets" cold wallet that never connects to the internet or dApps;
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One or two "daily use" hot wallets for trading or DeFi, topped up only when needed;
Remember: never transfer funds directly on-chain. If you must move assets, use a non-KYC exchange or Monero as a bridge.
3. Avoid KYC exchanges when privacy matters
If you've completed KYC on exchanges like Binance, Coinbase, or Kraken, that wallet is permanently tied to your real name. Only use these platforms for fiat on/off ramps when absolutely necessary, and immediately withdraw assets to a private wallet afterward—ensuring you never send them back to the same address.
Better options in 2025 include:
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Bisq, Haveno (Monero-only), LocalMonero (use while still available);
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NoOnes, Hodl Hodl, Peach Bitcoin (for Bitcoin);
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SimpleSwap, ChangeNOW, FixedFloat (non-KYC swap tools).
4. Use Monero for truly private transactions
Bitcoin isn't private. Ethereum isn't either. But Monero truly is (thanks to ring signatures, stealth addresses, and RingCT). To break the on-chain link between sender and receiver, convert your assets into XMR, transact, then convert back. Yes, fees can be high and liquidity imperfect—but it's still the most effective option available.
5. Bitcoin privacy: Use CoinJoin correctly
When using Bitcoin, make sure to properly utilize CoinJoin. For example, use Wasabi Wallet with CoinJoin or JoinMarket. Samourai Wallet's Whirlpool was shut down after 2024 arrests, making Wasabi nearly the sole remaining tool for Bitcoin privacy. Mix your coins after consolidating UTXOs or purchasing BTC. Don't do just one small mix—perform multiple rounds for better privacy.
6. Ethereum privacy: Use privacy L2s or mixing tools (use cautiously)
Tornado Cash remains under U.S. sanctions, making its use risky in certain jurisdictions. Better current alternatives include:
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Railgun: Private balances on Ethereum, Arbitrum, Polygon, and BSC;
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Aztec: Full privacy solution on Ethereum L2;
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Nightfall: Polygon's privacy chain, still operational.
If you require maximum privacy, consider using a new wallet + VPN for each transaction and destroying the wallet after one use.
7. Always use a high-quality VPN or Tor
Your IP address reveals everything. Never connect your wallet without a VPN. Use paid, no-log services where you control the keys, such as Mullvad, IVPN, or Proton. Avoid free VPNs, and avoid well-known services that secretly log data (e.g., Express, Nord, Surfshark—all have been caught misleading users). For maximum privacy, consider Tor with bridges or i2p, though note these are very slow for transactions.
8. Browser hygiene matters more than you think
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Create a separate browser profile (or dedicated browser) for crypto activities;
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Use Brave or Firefox with uBlock Origin and ClearURLs extensions;
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Disable WebRTC;
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Never log into Google, Discord, or Twitter from the same browser profile used for crypto;
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Use temporary containers (Firefox's Multi-Account Containers extension is a game-changer).
9. Use hardware wallets + air-gapped operations whenever possible
Use hardware wallets like Ledger, Trezor, Keystone, or GridPlus Lattice. Sign transactions offline. Never enter your recovery phrase on any website. If a site asks for your private key or seed phrase, it's definitely a scam.
10. Don't brag on social media
Really, don't. Every portfolio screenshot, ENS name, or NFT flex post becomes a data point for blockchain analytics firms. For example, tweeting "Just went all-in on 50 ETH of $PEPE" from your real-name account exposes you completely.
Bonus: Emerging privacy technologies in 2025
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Stealth Addresses coming to Ethereum mainnet (ERC-5564 and ERC-6538): Start using wallets that support these standards—they'll significantly improve privacy.
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PayJoin (P2EP) for Bitcoin payments: Makes on-chain surveillance harder even without CoinJoin.
You don't need to follow every suggestion to achieve meaningful privacy. Just doing #1 (stop reusing addresses), #2 (separate identities), #3 (avoid KYC exchanges), and #7 (use VPN or Tor) will get you 90% of the way there.
Remember, "perfect is the enemy of good." Start with the basics, then gradually add more layers as you gain experience.
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