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.

[nc50lc]

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.

I admit, saying "no option" here is quite overboard.
But even BIP158 isn't as good as running your own node since selectively fetching blocks can still be utilized to reduce the user's privacy
but it's certainly a lot better than BIP37 SPV wallets in terms of privacy and difficulty of attacks.

Probably why Wasabi still has an option to use a full node instead of compact block filters, or was it for some other reasons?

[ABCbits]

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.

Do you mind share more details (such as link to article or thread)? If you refer to Wasabi wallet, the blacklist happen on zkSNACKs server that run the CoinJoin coordinator. But both their server and company already closed.

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.

I admit, saying "no option" here is quite overboard.
But even BIP158 isn't as good as running your own node since selectively fetching blocks can still be utilized to reduce the user's privacy
but it's certainly a lot better than BIP37 SPV wallets in terms of privacy and difficulty of attacks.

It's one of reason why Wasabi Wallet enforce Tor connection.

Probably why Wasabi still has an option to use a full node instead of compact block filters, or was it for some other reasons?

If you configure it to connect to your local full node, the wallet could download both block filter and block faster. And Bitcoiner who take privacy seriously is more likely to run full node.

[DireWolfM14]

If you refer to Wasabi wallet, the blacklist happen on zkSNACKs server that run the CoinJoin coordinator. But both their server and company already closed.

I was indeed referring to that coordinator, and was not aware that they are now defunct.  Good riddance.

[Amaro958]

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.

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.

I don't like to create a bunch of seeds, at least not for the high value stack where I don't store them digital.

So the only option would be to create passphrases, but this is either not supported or implemented in a stupid way.
Like with Trezor Suite that always directly load's the none passphrase wallet, so that I need to take my device offline (removing network permission on application level, doesn't work, because this change requires restart of the application) to load my passphrase wallet and "eject" the none passphrase wallet.
Also I need to remember to renable Tor since it give's you an internal loading screen if its enabled and you don't have network.

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.

Do you think that just nobody has done it yet, or that there is a technical limitation I am unaware of that prevent this?
I really can't think of any technical reason why a wallet can't give you the option to only load the UTXO's of a specific XPUB and not all XPUB's

[/quote]

[Forsyth Jones]

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.

Yeah, Bitcoin Core over Tor is the best option, a full node, but if you can't do that, simply use the Wasabi Wallet, but there's a catch: Wasabi will take a while to load the first time, if I'm not mistaken, Wasabi operates over Tor by default... (yes, I just confirmed this with subsequent posts).

Furthermore, if Wasabi detects a full node like Bitcoin Core, it connects directly to it without any prior configuration, further increasing privacy (I'm not sure if it's the same with a pruned node).

[Kruw]

Yeah, Bitcoin Core over Tor is the best option, a full node, but if you can't do that, simply use the Wasabi Wallet, but there's a catch: Wasabi will take a while to load the first time, if I'm not mistaken, Wasabi operates over Tor by default... (yes, I just confirmed this with subsequent posts).

The load time will be substantially shorter after PR #14345, the new filter fetching method is 5x faster than the previous one on my machine. Combined with a wallet birthday checkpoint, it reduces the initial loading time from 110 minutes down to 86 seconds.

[Synchronice]

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.

This is the best answer and an underrated approach. Running your own full node with Tor is the answer.

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.

This also needs to be highlighted.

I would add one thing. Even though many people say that it's better to use Tor alone, I would say that the fact government can see you use a Tor is a red flag and it's better to use VPN and Tor together, but you have to be very careful in this case because you should know what you are doing. You have to be very careful which VPN you choose.

[ABCbits]

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.

This also needs to be highlighted.

Can you explain why? Are there are any other wallet (on default setting/server) that does that? DireWolfM14 was talking about CoinJoin server that no longer running.

I would add one thing. Even though many people say that it's better to use Tor alone, I would say that the fact government can see you use a Tor is a red flag and it's better to use VPN and Tor together, but you have to be very careful in this case because you should know what you are doing. You have to be very careful which VPN you choose.

Aside from VPN, consider using Tor bridge. It's designed to avoid censorship by making the Tor traffic look like regular internet traffic.

[PrivacyG]

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.

A sacrifice has to be made.  With SPV you get fast load time but have no Privacy.  With Full node you get Privacy but very slow initial Blockchain download time and it is very slow if you do not continue to run the Node for months and need to move some Bitcoin fast.

The Wallets using Block Filters you get some Privacy and faster load time.  This is in my opinion the only option in between.

[BlackHatCoiner]

The load time will be substantially shorter after PR #14345, the new filter fetching method is 5x faster than the previous one on my machine. Combined with a wallet birthday checkpoint, it reduces the initial loading time from 110 minutes down to 86 seconds.

If memory serves me right, when creating a new wallet in Wasabi, it loads instantly and does not download anything. Theoretically, this is correct, as a new wallet has no history in the blockchain, and so, there is no point in downloading block filters.

The IBD reduced from 110 minutes to 86 seconds probably refers to recovering an old wallet with an unknown birthday checkpoint (fetching from segwit checkpoint). Very important upgrade for Wasabi.