Help me understand sending transactions privately between my own wallets

[BillyQ12]

Let’s say I have 2 hardware wallets, one of which is connected to the native desktop app for that wallet company (Wallet A). The other hardware wallet is connected to the sparrow wallet desktop app (Wallet B). I want to transfer all my coins from A to B. What would be the best way to go about this from a privacy and security standpoint? I understand connecting to your own node is probably the best method but let’s say that’s not an option at the moment. Would it then mean just simply sending over the coins in multiple transactions with different receive addresses each time to avoid a single UTXO? or is there anything else that can be done to emphasize a bit of extra privacy? Would connecting to a vpn beforehand make any difference? Sending everything over in one transaction would save on fees but it would compromise privacy correct?

[The Cryptovator]

Whatever you use to make transactions doesn't matter; all the transactions will be visible on the blockchain when a transaction is broadcast. If you want to protect your privacy, you have to use some other services to break the transaction. Likey VPN helps to protect you by hiding your location, but transactions will always be visible on the chain. You may break transactions in many ways, like by exchanging Bitcoin for something else, then again exchanging for Bitcoin and directly transferring to your wallet. You may use p2p or decentralised exchange. This way will charge you handsome amount. Mixers have a lot of issues now, and I advise you to avoid them.

[Mia Chloe]

Speaking of privacy I believe in this case it depends on how much Bitcoins we are talking about here. And please don't get me wrong, I am not saying privacy is not important neither am I saying you have to tell us how much coins you wish to sweep or transfer. But all I'm  saying is if it's just a few hundred dollars it won't be much of an issue.
In my opinion even if you send it to multiple wallets it will still traceable to the final wallet.
A possible alternative is for you to swap those coins to fiat or some other stable altcoins and they use it to repurchase Bitcoins. You con make all these p2p to remove the ability of an Exchange to trace you Bitcoins to the final wallet

[jrrsparkles]

Would connecting to a vpn beforehand make any difference? Sending everything over in one transaction would save on fees but it would compromise privacy correct?

If you want to keep your privacy intact then sending the funds in wallet A to multiple addresses of wallet B is different values is a choice but it comes with a high fee cause the transaction fee depends on several inputs and outputs.

Instead of a VPN, you can connect to TOR to proxy your server which gives security for your IP address but the address will be still known to the node that you are connected to it.

[Orpichukwu]

If you want to keep your privacy intact then sending the funds in wallet A to multiple addresses of wallet B is different values is a choice but it comes with a high fee cause the transaction fee depends on several inputs and outputs.

Instead of a VPN, you can connect to TOR to proxy your server which gives security for your IP address but the address will be still known to the node that you are connected to it.

The Bitcon network is not an onchain transaction, which can't be visible on the blockchain, so sending the bitcoins bit by bit into different wallets, even if it's up to 100 wallets just for them to be split, all the wallets can still be linked from where they were sent to where you will send them; they can all be traced on the blockchain, and anyone who knows you own the first address will definitely know you still hold those coins at a different address.

[Upgrade00]

Has your security and privacy been compromised at any point? If not, then you can make a simple transaction with a new receiving address on wallet B.

Would it then mean just simply sending over the coins in multiple transactions with different receive addresses each time to avoid a single UTXO?

Sending through multiple transactions does not help much to provide privacy except if combined with other features. You can send them in different transactions through a mixer to blur the trail or convert to Monero and then back to Bitcoin.

or is there anything else that can be done to emphasize a bit of extra privacy? Would connecting to a vpn beforehand make any difference? Sending everything over in one transaction would save on fees but it would compromise privacy correct?

A VPN does not provide privacy for a Bitcoin transaction, it can minimally help to protect your location but exposes you to the risk of the VPN server logging your details.

[BillyQ12]

Has your security and privacy been compromised at any point? If not, then you can make a simple transaction with a new receiving address on wallet B.

Would it then mean just simply sending over the coins in multiple transactions with different receive addresses each time to avoid a single UTXO?

Sending through multiple transactions does not help much to provide privacy except if combined with other features. You can send them in different transactions through a mixer to blur the trail or convert to Monero and then back to Bitcoin.

or is there anything else that can be done to emphasize a bit of extra privacy? Would connecting to a vpn beforehand make any difference? Sending everything over in one transaction would save on fees but it would compromise privacy correct?

A VPN does not provide privacy for a Bitcoin transaction, it can minimally help to protect your location but exposes you to the risk of the VPN server logging your details.

Nothing compromised at least to my knowledge. Just wanted to get an idea for best practices as it’s a larger amount that needs to be sent over. So am I better off using a tor proxy over vpn service? Even if said vpn service doesn’t log any details?

I definitely plan to set up my own node in the not too distant future.

[decodx]

Well, it kinda depends on what type of privacy we're discussing here.  Do you simply wanna disrupt the money trail between wallet A and wallet B? Or do you aim to obfuscate where the money in your wallet came from? Maybe you wanna hide your true IP address when making these transactions? Is Big Brother or some shady outfit tracking your moves? You gotta figure out what specific privacy matters most so you can take the right steps to protect it.  

Like if hiding your IP is crucial, you'd likely wanna route your traffic through Tor or a trustworthy VPN.  If your main aim is to confuse the transaction path, using a mixer service or Coinjoin could scramble things up.  And if total anonymity is essential perhaps a privacy-focused coin like Monero is the way to go.  Point is, defining the threat first allows you to counter it best.

[Upgrade00]

<snip>

Yes, Tor is a preferred option.

And you should set up your node as you plan to, considering you're privacy conscious and moving large amounts.

[The Cryptovator]

Nothing compromised at least to my knowledge. Just wanted to get an idea for best practices as it’s a larger amount that needs to be sent over. So am I better off using a tor proxy over vpn service? Even if said vpn service doesn’t log any details?

I definitely plan to set up my own node in the not too distant future.

What do you want to exactly protect? Is it your own location, or do you want to break the transaction between your two wallets? If it's only about location, then Tor or VPN would help, and make sure you use a premium VPN service. But everyone who knows your old address will know where the fund ended up. Tor or VPN won't protect your privacy if someone else knows the address of your sender's wallet.

[jrrsparkles]

The Bitcon network is not an onchain transaction, which can't be visible on the blockchain,

I assume you are saying Bitcoin network is oncoin transaction and everything moved is visible.

so sending the bitcoins bit by bit into different wallets, even if it's up to 100 wallets just for them to be split, all the wallets can still be linked from where they were sent to where you will send them; they can all be traced on the blockchain, and anyone who knows you own the first address will definitely know you still hold those coins at a different address.

I am talking about privacy, not anonymity. Keeping things private doesn't necessarily mean the user wants complete anonymity its all about the choice and who can get to know what I do. Obviously even if the funds moved to 100 different addresses instead of 1 the link isn't broken and can be traced back to its origin and it is not going to help if someone wants to hide their traces.

But this will be helpful if you don't want someone you know how much you have left in wallet B.

[serjent05]

I wonder if all this process in the earlier replies masked the transaction, I think it does not, TOR and VPN only masked your IP but the broadcasted transaction still appears normal on the blockchain.  Unless it goes through some centralized service and is withdrawn to another wallet, it can at least make the history of the coins a bit complex but obviously, it can still be traced if the centralized service cooperates to people who want to know the origin of the transaction.

So just like one of the replies stated, you can just casually transfer your funds from wallet A to wallet B, using VPN or TOR is just optional if you want to mask your IP address.