Ledger Live handles the change for you automatically and in the background. It goes back to the same BTC account where the original transaction was made from.
How does it
handle it, though? If it just goes 'back' (next
HD wallet-generated address), then it will be used in the next transaction, linking them together.
That's a pretty bad way of handling it.
On the other hand, locking the change may cause a lot of confusion, too. Not sure what's the best way to handle change while providing some sort of privacy.
I've been pondering about a wallet idea that is easy to use for newbies and still gives privacy with regards to change.
The idea would be to have a built-in Lightning wallet and automatically submarine-swap any change to the LN wallet.
This has the nice side-effect that you will always have some LN balance and some on-chain balance. If one of either becomes too much or you want to move all your Lightning funds back on-chain, there could be 2 simple GUI buttons to manually initiate submarine swaps from LN to on-chain or the other way round.
By aggregating change in a LN wallet and then moving the balance back on-chain in a single transaction (or multiples, but of different values), you break the ability of blockchain analysis to link payments by amountsl.
Anyhow; I'm way off-topic - I should create a dedicated topic for this.
You don't see the coins go into a change address but they do. If you connect your device to Electrum later, you can see the funded change addresses there. LL keeps it as simple as possible to not confuse newbies. It's far from ideal but luckily there are alternatives.
Are the change addresses labeled any differently from other addresses, though?