Electrum Privacy

[Burner93479349]

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?

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?

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.  

All help would be appreciated

[1714020679]

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[1714020679]

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[BitMaxz]

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.

[Gvest]

I did not understand. If I use Electrum (sent coins) without connecting to the Tor network and the proxy, what IP address will be visible in the blockchain? My current IP address or the address of the Electrum server?

[Ayanamirs]

I did not understand. If I use Electrum (sent coins) without connecting to the Tor network and the proxy, what IP address will be visible in the blockchain? My current IP address or the address of the Electrum server?

Just send a small number of satoshis and check for yourself, very easy and you gonna learn a lot.

[ranochigo]

I did not understand. If I use Electrum (sent coins) without connecting to the Tor network and the proxy, what IP address will be visible in the blockchain? My current IP address or the address of the Electrum server?

Address of the Electrum server if you're talking about blockchain.info.
Electrum works differently from a lot of other SPV clients. With Electrum, users are required to connect to Electrum servers. The way blockchain.info track the IP transactions is to see who relayed the transaction to them first. If you're using Electrum, the only possible IP address you would see there is the server's. This does not mean that your privacy is preserved; Electrum servers can see all the addresses in your wallet.

[pooya87]

I did not understand. If I use Electrum (sent coins) without connecting to the Tor network and the proxy, what IP address will be visible in the blockchain? My current IP address or the address of the Electrum server?

neither!
bitcoin transactions do not contain any IP information and blocks in the blockchain contains these transactions. in other words no IP address is recorded.
if by any chance you mean blockchain.info website then the IP address they list is different, it is the IP address of the node that sent them the transaction first. it may be the Electrum node or it may be another node that is just relaying that tx.

regarding privacy and Electrum the only thing that happens is that when you connect to an Electrum node you are asking them for your transaction history so you give them all your addresses which means that node sees all your bitcoin addresses and can connect them together and also record your IP address and associate these two together. whether they do it or not is another discussion.
in other words there are two things here: they see list of all your bitcoin addresses and link them together even if they are not connected + your IP address. you can hide your IP but you can't hide your address list.

[BitcoinGirl.Club]

...you can hide your IP but you can't hide your address list.

Sorry this topic had to wake up. I am looking for a privacy related answer for Electrum. After reading your post it seems that they do not log the IP...

in other words no IP address is recorded.

If they do not record the IP then why the question rise to hide the IP?

Please feel free to leave me a response here: https://bitcointalk.org/index.php?topic=5089395.0

Thanks

[Rath_]

If they do not record the IP then why the question rise to hide the IP?

Your IP is being exposed to the node you are currently connected to. What other information does it know? Your public addresses since you request information about transactions associated with them. Using Tor allows you to avoid linking your Bitcoin address to your IP address. Not every node operator will collect information about you of course. You shouldn't worry about it if your Bitcoin address is already somehow associated with you.

[pooya87]

...you can hide your IP but you can't hide your address list.

Sorry this topic had to wake up. I am looking for a privacy related answer for Electrum. After reading your post it seems that they do not log the IP...

in other words no IP address is recorded.

If they do not record the IP then why the question rise to hide the IP?

you don't know what Electrum servers do. there is always a chance that some of them for various reasons (blockchain analysis, being government agents,...) are recording all IP addresses and associate them with a list of bitcoin addresses that you own and reveal as you make a request to these servers for your transaction history.

people don't want others snoop around in their business, know how much they own, where they keep their coins,... it is a matter of wanting to keep your privacy which is why some attempt at hiding their IP addresses so that they can improve their privacy a little bit this way.

[BitcoinGirl.Club]

you don't know what Electrum servers do. there is always a chance that some of them for various reasons (blockchain analysis, being government agents,...) are recording all IP addresses and associate them with a list of bitcoin addresses that you own and reveal as you make a request to these servers for your transaction history.

Exactly and that is why I am concern about my privacy here. I am trying to find my answer too.

You shouldn't worry about it if your Bitcoin address is already somehow associated with you.

Say
- I created wallet without using tor and made some transaction using x, y, z address <= they know the IPs of these transactions.  

Now
-I want to hide me and in that case, I create another wallet. This time I use tor. I transfer all the BTC from x, y, z wallet to the new wallet address.


From now on, I always use a tor wallet. Meaning they will lose my identity? Completely?

[Rath_]

- I created wallet without using tor and made some transaction using x, y, z address <= they know the IPs of these transactions.  

You don't know if the node operator is logging information about clients which connect to their node. They might know that x, y, z address was used by someone from certain IP address.

I transfer all the BTC from x, y, z wallet to the new wallet address.
From now on, I always use a tor wallet. Meaning they will lose my identity? Completely?

Not really. Transactions are not completely private. Everyone is able to track specific inputs and outputs using block explorers. That's why Bitcoin mixing services are so popular. You should also read more about coin control. You can easily control which coins (inputs) you are going to spend but, first, you have to understand why it is important.