How to Hide Your Bitcoin Transaction (Without CoinJoin)

[Skjadoon]

Hi guys

I don’t want to use CoinJoin, but want to increase your privacy (to make tracing transactions hide) on Bitcoin is it possible?

Any other methods?

[Merit.s]

Hi guys

I don’t want to use CoinJoin, but want to increase your privacy (to make tracing transactions hide) on Bitcoin is it possible?

Any other methods?

Yes of course, you can use a bitcoin mixer/tumbler to mix your coins for privacy, if you do not want to use CoinJoin. Don't send your coins from an exchange to a mixer and vice versa but send to your noncustodial wallet first before sending using mixer to mix your coin to the bitcoin address that you want to send it to.

[satscraper]

Hi guys

I don’t want to use CoinJoin, but want to increase your privacy (to make tracing transactions hide) on Bitcoin is it possible?

Any other methods?

Swapping back and forth using p2p/DEX/CEX but this method involves fee.

If you choose this method, make sure to swap back to a newly generated address preferably using new wallet that differs from the old one by seed, passphrase, or derivation path. Also, be sure to mask your real IP when doing so.

[Charles-Tim]

Swapping back and forth using p2p/DEX/CEX but this method involves fee.

If you choose this method, make sure to swap back to a newly generated address preferably using new wallet that differs from the old one by seed, passphrase, or derivation path. Also, be sure to mask your real IP when doing so.

Centralized exchange can be used but it does not guarantee privacy. It will still be seen as a poor method to do it. If he does not want to just use coinjoin (decentralized mixer) he can use centralized mixer just as Merit.s posted already.

Or he can choose to first convert to monero and convert the monero back to bitcoin which is also good. He should use a decentralized exchange for it instead.

[LoyceV]

want to increase your privacy (to make tracing transactions hide) on Bitcoin is it possible?

Before answering this: who are you trying to hide from? It makes a lot of difference if you're trying to hide from your wife, your government, or random people on the internet.

[satscraper]

Swapping back and forth using p2p/DEX/CEX but this method involves fee.

If you choose this method, make sure to swap back to a newly generated address preferably using new wallet that differs from the old one by seed, passphrase, or derivation path. Also, be sure to mask your real IP when doing so.

Centralized exchange can be used but it does not guarantee privacy. It will still be seen as a poor method to do it.

Yeah, providing swapping involves centralized exchange that requires KYC.

I’ve been using the non-KYC account on Huobi Global and it works fine so far. Definitely, p2p and DEXs are better for privacy, but they may sometimes lack liquidity.

If he does not want to just use coinjoin (decentralized mixer) he can use centralized mixer just as Merit.s posted already.

I have added mine just for the diversity of options. Their are free in choice anyway.

[DireWolfM14]

Hi guys

I don’t want to use CoinJoin, but want to increase your privacy (to make tracing transactions hide) on Bitcoin is it possible?

Any other methods?

As has already been mentioned, privacy means different things to different people. 

The only way to gain anonymity is to use a decentralized exchange and convert your bitcoin to a privacy coin like monero, send the monero to a couple of different addresses in varying quantities, then sell those different quantities to for bitcoin making sure all the transactions end up in different addresses, preferably at different times.  Then make sure to not combine any of the coins in those addresses.  It's worth mentioning that no centralized service can guaranty anonymity.

Simple privacy can be attained just by not reusing addresses and not combining UTXOs.

[apogio]

@DireWolfM14 is right. A very good way to hide the traces is to convert to private currencies and then back to Bitcoin.

Beware though, if you buy from a CEX with KYC, it doesn't matter where your coins are at any moment, because the CEX will always know that a person X Y, has bought Z amount of BTC. So, it's true that a specific UTXO can't be linked directly with you, if you 've followed DireWolf's advice, but the knowledge that you have bought and withdrawn Z mount of BTC will always be verifiable.

Like @LoyceV said, your enemy determines your actions.

If the enemy is the government, you should make sure to never use CEXs or services that require KYC. If you have used such services in the past, it's all good, just don't mix them with other funds that you possibly have. Relax, enjoy your Bitcoin and if you wanna be ok, just send the same amount of BTC to the same CEX, sell it and withdraw the FIAT. Then pay taxes on your capital gains and you 're cool.

Moment of honesty:
Let's be honest know... Most people, especially within this forum care about privacy because they want to hide their income from the authorities. They dislike taxes and they don't wanna mess with all the laws that surround cryptocurrencies. I dislike most taxes as well, but tax evasion is illegal and I don't encourage it.

Simultaneously, please trust me on this, it's super tiring and very costly, trying to find privacy doing all that backs and forths with your coins. But, privacy is a must, so you got to do what it takes. Just make sure to remember that if your coins are bought from a CEX, you can hide the traces but not erase the truth.

Privacy, for me, is that a user of this forum can't trace one of my addresses and be able to see how much money I have. It's also that no online scrapper can deterministically scrape my username and find details about my real identity. Or, privacy means that a company that's hiding in the Seychelles, that works in the cryptocurrency sector, won't be able to acquire my personal information...

Privacy for me, isn't avoiding to pay taxes for my income. And once more, I repeat, I dislike most taxes (if not all of them).

[LoyceV]

Most people, especially within this forum care about privacy because they want to hide their income from the authorities. They dislike taxes and they don't wanna mess with all the laws that surround cryptocurrencies. I dislike most taxes as well, but tax evasion is illegal and I don't encourage it.

Maybe I'm naive, but I always assumed the majority of Bitcoin users doesn't do it to evade taxes. There's one very simple reason: if your small Bitcoin investment turns into a small fortune, you want to be able to tell a honest story so you can legally use your money to buy things.

I dislike most taxes

My governments' greed keeps growing. A few years ago, the "wealth tax" was 1.2% per year. Now it's 2.12%, next year they're planning to increase it to 2.84%. That's a tax on unrealized gains, and I'm pretty sure that's by far the highest wealth tax on the planet.

[apogio]

Maybe I'm naive, but I always assumed the majority of Bitcoin users doesn't do it to evade taxes. There's one very simple reason: if your small Bitcoin investment turns into a small fortune, you want to be able to tell a honest story so you can legally use your money to buy things.

Well it's a combination. Because if it turns into a small fortune, it becomes a "warning sign" for the governments. It tells them that "this guy has become rich suddenly, let's get some of his money".

My governments' greed keeps growing. A few years ago, the "wealth tax" was 1.2% per year. Now it's 2.12%, next year they're planning to increase it to 2.84%. That's a tax on unrealized gains, and I'm pretty sure that's by far the highest wealth tax on the planet.

It's not the highest, but it's very high. I think Spain has a very high wealth tax but I don't live there, so...

[DireWolfM14]

Moment of honesty:
Let's be honest know... Most people, especially within this forum care about privacy because they want to hide their income from the authorities. They dislike taxes and they don't wanna mess with all the laws that surround cryptocurrencies. I dislike most taxes as well, but tax evasion is illegal and I don't encourage it.

Attempting to hide money from authorities is nearly impossible, and also dangerous.  Tax evasion is far more risky than rewarding.  Don't get me wrong, I firmly believe that taxes are theft, pure and simple.  Nevertheless, governments have the ability to make our lives miserable if we don't play by their rules.

In this day and age, there's nothing you can do to hide money from the global surveillance state, certainly not any significant quantity.  Even if you sell bitcoin for cash on the street, what expensive items are you going to buy with it that won't draw attention?  Sure, you can sell enough to buy groceries, some furniture, and maybe even a used car without drawing too much attention.  But, you can't buy a new car or house with that money.  In the US we have a law that forces banks to disclose to the IRS whenever we deposit $600 of cash or more into our accounts, so there's really nothing you can effectively hide from them except for some pocket money.

[LoyceV]

It's not the highest, but it's very high. I think Spain has a very high wealth tax

Let's see:

   from €3,000,000 to €5,000,000, the tax rate will be 1,7%
    from €5,000,000 to €10,000,000, the tax rate will be 2,1%
    from €10,000,000, the tax rate will be 3,5%

Here, the high rates starts at owning just €50,000. That's "wealth", according to government, and needs to be punished. If you'd own €10 million here, you'd have ways to legally get away from paying those taxes. But if you're middle class, you can't.

Attempting to hide money from authorities is nearly impossible
~
Even if you sell bitcoin for cash on the street, what expensive items are you going to buy with it that won't draw attention?

Hiding money is easy, using it is where they get you. That's why a quick Google search shows that global money laundering is between 2 and 5% of global GDP. While honest people are hoping to pay less taxes, criminals want to pay taxes so they can use their money "legally".

I firmly believe that taxes are theft, pure and simple.

I get why we need taxes, but I don't like how much it went up (over the centuries). Not paying more than 10% tax should be a human right, and I believe 10% should be more than enough for any government to cover the basics. Too much money makes them do many things they shouldn't be doing.
The real theft is in structural inflation, created by central banks. We'd be much better off without it, but the current fiat world is literally based on ever growing debt.

[Skjadoon]

Hi guys

I don’t want to use CoinJoin, but want to increase your privacy (to make tracing transactions hide) on Bitcoin is it possible?

Any other methods?

Yes of course, you can use a bitcoin mixer/tumbler to mix your coins for privacy, if you do not want to use CoinJoin. Don't send your coins from an exchange to a mixer and vice versa but send to your noncustodial wallet first before sending using mixer to mix your coin to the bitcoin address that you want to send it to.

Don't send your coins from an exchange to a mixer

what is meaning?

let says i have binance account, you are saying, binance > mixer

don't do that? why?

[LoyceV]

let says i have binance account, you are saying, binance > mixer

don't do that? why?

They may block your account. Coinbase for instance is well-known for blocking accounts if users send coins to an online casino.
It's safe to assume centralized exchanges are analysing incoming and outcoing coins.

[ABCbits]

--snip--
what is meaning?

let says i have binance account, you are saying, binance > mixer

Usually it means either exchange > your Bitcoin address > mixer or exchange > mixer.

don't do that? why?

Exchange invade our privacy, by tracking our coin after withdrawn. Here's old example for Wasabi (CoinJoin, not custodial mixer), https://www.reddit.com/r/Gemini/comments/usvlny/just_received_a_disturbing_requestemail_from/.

[BlackBoss_]

Basic Bitcoin privacy guide and depends on your need, pick steps that are usable with you.
https://bitcoiner.guide/privacy/

More
https://bitcoin.org/en/protect-your-privacy
https://www.lopp.net/bitcoin-information/privacy.html

Generally big centralized exchanges dislike deposits from tumblers/ mixers as such ones can cause legal problems for their exchanges and if they detect your deposit as tainted coins, they will block your account.

Blacklist, Taint, and Wallet Fingerprints.

[apogio]

But, you can't buy a new car or house with that money.  In the US we have a law that forces banks to disclose to the IRS whenever we deposit $600 of cash or more into our accounts, so there's really nothing you can effectively hide from them except for some pocket money.

While honest people are hoping to pay less taxes, criminals want to pay taxes so they can use their money "legally".

Answering to both of you, because the answer has common parts.

In my country, every bank transaction that exceeds 500 euros triggers a flag, which is just a notification to the authorities. There are some exceptions, for specific transactions that are mostly salary payments.

I have watched a great video in the past, which I can't find now (sorry for that), which showed that at some point, the criminals drop some of their money in the banking system, trying to launder their money. Strange, isn't it? They intentionally mix their money with other sources, in an effort to hide their traces. So, the criminals don't always try to use FIAT, P2P, but they also use the banks for money laundering.

[Skjadoon]

let says i have binance account, you are saying, binance > mixer

don't do that? why?

They may block your account. Coinbase for instance is well-known for blocking accounts if users send coins to an online casino.
It's safe to assume centralized exchanges are analysing incoming and outcoing coins.

I had no idea they could track outgoing Bitcoin transactions too

really surprising!

[mr.mister]

Once you come out of a mixer or coinjoin, you could send your coins 2 or 3 more times to other addresses, within some time. Maybe something like this will help? I can't help but think that if mixers and coinjoin were such a problem, that you would see accounts frozen and flags all over the place and we are not seeing that. I know accounts do get suspended, but is it really happening at such a high level? Does not appear to be the case. Coinjoin has a lot of daily traffic. I don't like the idea of changing my btc for xmr, and then back. What if there is a price increase? I am taking look at some of the above privacy guides, they look like they have good info in them.

[Skjadoon]

Once you come out of a mixer or coinjoin, you could send your coins 2 or 3 more times to other addresses, within some time. Maybe something like this will help? I can't help but think that if mixers and coinjoin were such a problem, that you would see accounts frozen and flags all over the place and we are not seeing that. I know accounts do get suspended, but is it really happening at such a high level? Does not appear to be the case. Coinjoin has a lot of daily traffic. I don't like the idea of changing my btc for xmr, and then back. What if there is a price increase? I am taking look at some of the above privacy guides, they look like they have good info in them.

send your coins 2 or 3 more times to other addresses

it can be tracked mate