Going from dumb to smart BTC management

[sovereignSam]

Greetings

I'm kinda of a BTC noob looking from guidance on switching the way I store my BTC and thereby enhancing my privacy and safety of storage.

My current scenario: I've been dumb enough to buy my BTC via a KYC exchange. I've also not switched the public key between withdrawals. I'm currently using Exodus hot wallet but would like to switch to cold storing my BTC. Also, I'm not looking to spend my BTC any time soon, so security over accessability is preferred.

Questions I have:
- How do I make myself untraceable in the network? That is, how do I get my BTCs to a new address, that is not linked to my ID via the KYC exchange?
- How do I keep the costs as low as possible?
- What would be the best storing solution for long term BTC storing? I guess some kind of an multi-sig solution would be the best?

My sincerest thanks to everyone answering

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[ranochigo]

- How do I make myself untraceable in the network? That is, how do I get my BTCs to a new address, that is not linked to my ID via the KYC exchange?

You can't make yourself untraceable. You can send them through CoinJoin or mixers which can break the link. You must ensure that you do not mix your addresses and thereby forming a link.

Centralized KYC exchanges are known to block and ban accounts which deposits money from a mixer. You should take this into consideration as well and avoid spending funds linked with mixers to your exchange addresses.

- How do I keep the costs as low as possible?

Consolidating your inputs could help: https://bitcointalk.org/index.php?topic=2848987.0

- What would be the best storing solution for long term BTC storing? I guess some kind of an multi-sig solution would be the best?

Multisig isn't more secure than cold storage. You should ideally invest in a hardware wallet or setup a cold storage. If you're inexperienced in this domain, I recommend using a hardware wallet for a foolproof method of storage.

[sovereignSam]

You can't make yourself untraceable. You can send them through CoinJoin or mixers which can break the link. You must ensure that you do not mix your addresses and thereby forming a link.

Centralized KYC exchanges are known to block and ban accounts which deposits money from a mixer. You should take this into consideration as well and avoid spending funds linked with mixers to your exchange addresses.

Thanks Yeah, this is actually what I meant. Not making myself untraceable per se, but rather breaking the link. I will switch to a non-KYC exchange though so getting this particular public key banned wouldn't bother me anyway.
Let's see if the quote work, no idea how the formating works here

[Amphenomenon]

In addition to ranochigo post, you should note not all wallet gives you the freedom to choose you wish for your transaction and one of such are exchanges but now that you are moving to a non-custodial wallet, it's good to know how to control fee and the link he shared is good.

Hard wallet is most secure wallet for storing bitcoin but in addition with multi Sig then it becomes more efficient, choosing a good hardware wallet is important and you have to get it from the official dealer and not any random person or a used one but since you are incline with being cautious of your privacy I advise you don't go with Ledger, this thread will be helpful in picking one.
52 Hardware Wallets, compared feature by feature

Thanks Yeah, this is actually what I meant. Not making myself untraceable per se, but rather breaking the link. I will switch to a non-KYC exchange though so getting this particular public key banned wouldn't bother me anyway.
Let's see if the quote work, no idea how the formating works here

This would be helpful in knowing good non-KYC exchange https://kycnot.me/

Let's see if the quote work, no idea how the formating works here

You did get the formating well here is a [GUIDE] Bitcointalk forum etiquette

[LoyceV]

My current scenario: I've been dumb enough to buy my BTC via a KYC exchange.

What problem are you trying to solve? Is it a problem that one KYC exchange knows how many coins you own? Who are you trying to hide from?
Keeping a legal record of ownership can also benefit you in the future: if you want to sell some Bitcoin when it's worth a lot more, chances are the exchange, your bank or the tax man will ask questions. If you can answer: "I bought them at this exchange", it makes your life a lot easier than if you have to explain why you tried to hide your ownership.

[sovereignSam]

What problem are you trying to solve? Is it a problem that one KYC exchange knows how many coins you own? Who are you trying to hide from?

From everybody I guess lol. Maybe that one exchange itself isn't a problem, but if a nation state would want to disclose everyone owning BTC, the exchange would of course hand over the information. I just like the idea that no one would be able to link me with a BTC address. At least at the moment given that not too many public organizations are BTC friendly. I don't think them embracing BTC in the future is given by any means.

Keeping a legal record of ownership can also benefit you in the future: if you want to sell some Bitcoin when it's worth a lot more, chances are the exchange, your bank or the tax man will ask questions. If you can answer: "I bought them at this exchange", it makes your life a lot easier than if you have to explain why you tried to hide your ownership.

This is a really good point which I hadn't thought. I guess mention authorities would ask the question even if I had just sent BTC to a mixer.
Gonna have to give this some thought.
 

[LoyceV]

From everybody I guess lol. Maybe that one exchange itself isn't a problem, but if a nation state would want to disclose everyone owning BTC, the exchange would of course hand over the information. I just like the idea that no one would be able to link me with a BTC address. At least at the moment given that not too many public organizations are BTC friendly. I don't think them embracing BTC in the future is given by any means.

Even if you hide your funds, and they can't link you to a specific Bitcoin address, they'll still link you to Bitcoin itself. If they knock on your door and ask you what you did with your Bitcoin, what are you going to tell them?

[sovereignSam]

From everybody I guess lol. Maybe that one exchange itself isn't a problem, but if a nation state would want to disclose everyone owning BTC, the exchange would of course hand over the information. I just like the idea that no one would be able to link me with a BTC address. At least at the moment given that not too many public organizations are BTC friendly. I don't think them embracing BTC in the future is given by any means.

Even if you hide your funds, and they can't link you to a specific Bitcoin address, they'll still link you to Bitcoin itself. If they knock on your door and ask you what you did with your Bitcoin, what are you going to tell them?

Yea, thought of this while writing the previous message. The authoriatarian state probably wouldn't care if I had a boating accident, they'd just imprison me either way Maybe it is just the idea of privacy that I'm attracted to. Probably the benefits of "Keeping a legal record of ownership" as you said,outweight the benefits of achieving unlinkability(is this a word?). Especially since the KYC mistake has already been made.

[LoyceV]

Yea, thought of this while writing the previous message. The authoriatarian state probably wouldn't care if I had a boating accident, they'd just imprison me either way Maybe it is just the idea of privacy that I'm attracted to. Probably the benefits of "Keeping a legal record of ownership" as you said,outweight the benefits of achieving unlinkability(is this a word?). Especially since the KYC mistake has already been made.

Hence my first question: "What problem are you trying to solve?"
Even if you'd sell your Bitcoin on the same KYC exchange so you can show you have nothing left, the moment you use a non-KYC exchange to buy Bitcoin again it will be linked to your bank account. If I'd send/receive a large amount to/from an established exchange, my bank asks less questions than if that same amount comes from different unknown foreign bank accounts.

If you withdraw cash from your bank account and buy Bitcoin P2P, you'll end up with a problem if you later sell and get a large amount of cash. That stuff becomes more and more restricted to spend in large amounts.