I use im Token app for this.
If you are converting bitcoin to any other coin and back again using the same app, then your privacy is still at risk. The owners and developers of that app can still see exactly what you have done, will likely have kept logs which are open to being leaked or hacked, and may share that information with any number of third parties. This is true regardless of what coin you are swapping in to, even if you are using a privacy focused coin like monero, and certainly when you are using a token based on a centralized coin. The coin's features are irrelevant when using the same exchange for both trades.
If you want to do something like this in a secure manner, then you need to trade from BTC to XMR, move the XMR to another wallet (preferably in a number of smaller transactions over several hops rather than just one transaction sending everything), and then use a different service to swap the XMR back to BTC and send to a bran new BTC Wallet, and do all this over Tor.
it doesn't necessarily mean that Monero would be the best option to hold most of your funds in.
Yeah, agreed. I tend to only hold what I need for the near future in XMR, and buy more with BTC when I run low.