Wallet that offers privacy, even when using a third party node?

[Amaro958]

Most wallet's I found always fetch all the UTXO's from all the XPUB's every time you open the wallet.

This has the issue that the backend node can see that all these UTXO's belong to the same person. It also doesn't help much if you use Tor/VPN because is still the same IP for the entire request.

Is there a wallet software that has an option to only fetch the UTXO's of XPUB's/Account's manually by clicking on them? And also avoids other identifiers like identifying API Key's ?

[Charles-Tim]

Use different routing on different wallets will be better. I mean you should have several wallets, use different Tor locations to connect to each wallets.

This has the issue that the backend node can see that all these UTXO's belong to the same person. It also doesn't help much if you use Tor/VPN because is still the same IP for the entire request.

At least, Tor offer anonymity.

VPN are centralized services, I do not recommend them. Also to avoid mistake connection with the real IP, Tor is better to be used on wallets like Electrum. I like the synching while connecting Electrum through Tor which is also indicated in blue, unlike VPN that will remain green.

Is there a wallet software that has an option to only fetch the UTXO's of XPUB's/Account's manually by clicking on them? And also avoids other identifiers like identifying API Key's ?

No.

[nc50lc]

This has the issue that the backend node can see that all these UTXO's belong to the same person.

You know it.
So if a wallet utilizing your own full node isn't an option, you have no option but to include trust in this since it's a third-party nonetheless.
"Trust" because, you'll be utilizing servers that claimed "no logs" but there's no way to verify it without getting access to their machine/VPS.

That said, you can pick an SPV wallet that utilizes public Electrum servers but select one of those privacy-enthusiast servers.
There're actually one in Electrum board created by a reputable member: DireWolfM14's Electrum SPV Server
Other notable mentions are Blockstream's and Sethforprivacy's Fulcrum Electrum servers.

But I can't vouch for any of them since as I've said, there's no way to verify their claims.

Otherwise, use a full node's wallet, e.g.: Bitcoin Core.

Is there a wallet software that has an option to only fetch the UTXO's of XPUB's/Account's manually by clicking on them? And also avoids other identifiers like identifying API Key's ?

If you want to do the hard way, this can be done with a workaround.
For example, in Electrum, you may create separate shortcuts containing different set of -w and -s command line args.
e.g.:

Code:

electrum -w ".electrum/wallets/default_wallet" -s 1234server.org:50002:s

(read this to use Tor proxy: electrum.readthedocs.io/en/latest/tor.html)

This'll ensure that a specific shortcut will only connect to that server using a particular wallet containing your dedicated xpub for it.
You may even create a single address or non-HD imported wallet in Electrum via import option during wallet creation.
Just keep it organized, only use one instance at a time and it should work as you intended.

[Kruw]

So if a wallet utilizing your own full node isn't an option, you have no option but to include trust in this since it's a third-party nonetheless.

This is wrong, wallets that implement BIP157/BIP158 block filters protect your privacy even if you don't run your own node. Instead of downloading the entire blockchain, you only download the blocks that contain your transactions (plus a few false positives). You can sync privately with block filters using these wallets:

Wasabi Wallet
Zeus Wallet
Blixt Wallet
Bitcoin Safe

[Pmalek]

If you want to remain private and anonymous or as private and anonymous as possible, then you have to use your own full node and Tor every time. Trezor Suite is one example where the connection goes through Tor. Electrum and Sparrow are other. If you are worried that your Tor IP will be logged by SPV wallet nodes, then change it regularly.

[ABCbits]

So if a wallet utilizing your own full node isn't an option, you have no option but to include trust in this since it's a third-party nonetheless.

This is wrong, wallets that implement BIP157/BIP158 block filters protect your privacy even if you don't run your own node. Instead of downloading the entire blockchain, you only download the blocks that contain your transactions (plus a few false positives). You can sync privately with block filters using these wallets:

Wasabi Wallet
Zeus Wallet
Blixt Wallet
Bitcoin Safe

FWIW those wallet not that popular, since downloading block filter and relevant blocks could be much slower than using SPV wallet (such as Electrum). It could be avoided if you regularly open your wallet, but some user only open their wallet if they need to move their coin. It's even slower if you decide to use VPN or Tor to connect to the nodes.

[Yamane_Keto]

Is there a wallet software that has an option to only fetch the UTXO's of XPUB's/Account's manually by clicking on them? And also avoids other identifiers like identifying API Key's ?

The main purpose of xPubs is to scan all addresses, Here are some tools that allow you to scan XPUB, extract transactions individually and use block explorers to check the balance but this will increase time and the main function of SPV wallet is to make things easier.

[DireWolfM14]

Wasabi Wallet
Zeus Wallet
Blixt Wallet
Bitcoin Safe

It's worth noting that some of these wallets coordinate with Block Chain Analysis and will flag some of your UTXOs as have having evil origins, hence blocking them from utilizing the coinjoin feature.  If that's not a concern, then they can be helpful in maintaining privacy.

I encourage all to to run their own node.  Umbrel (for one) is very easy to set up for anyone who's experienced installing an OS, very easy to maintain, and doesn't require expensive hardware.  It can be installed on a micro PC with enough hard drive space.  Obviously it'll take some time for the initial block chain download, but once that's done you're good to go.  For those of us who value privacy, running your own node is really the only way to guarantee it.

Running and using Bitcoin Core, even with pruning if necessary, is another decent alternative.