Author: Vladimir S. | Officer's Notes
Compiled by: TechFlow TechFlow
Initially, cryptocurrencies were created in pursuit of privacy and freedom, but today everything is tracked, linked, and sold. Blockchain is a permanently public ledger, exchanges require KYC (Know Your Customer) information, and analytics companies earn millions by linking your wallet to your real identity.
The good news is that you can still largely maintain your privacy by taking conscious steps. You don't need to become a complete "tin-hat" extreme privacy enthusiast; just cultivate some basic habits. Here are some truly effective privacy protection tips for 2025:
1. Stop reusing wallet addresses
Every time you use the same address to receive funds, you are essentially exposing your transaction history to the world. Therefore, it's best to generate a new address each time you use it, or at least generate different addresses for different purposes (e.g., one for salary payments, one for trading, one for DeFi, and one for entertainment). Most reputable wallets now support the automatic generation of new addresses—make sure you have this feature enabled.
2. Separate your identities like you would an ex-partner, using different wallets for different parts of your life:
A "public" wallet is used to connect to Twitter/Discord (this wallet is expected to be eventually revealed).
A cold wallet for "important assets" should never be connected to the internet or a decentralized application (dApp).
One or two “daily” hot wallets for trading or DeFi, replenished only when needed;
Remember, never transfer funds directly on the blockchain . If you must transfer funds, use a no-KYC (no identity verification required) exchange or Monero as a bridge.
3. Avoid using KYC-enabled exchanges when privacy is required.
If you have completed KYC (Know Your Identity) verification on exchanges such as Binance, Coinbase, and Kraken, then that wallet will be permanently linked to your real name. Only use these exchanges as a channel for fiat currency deposits/withdrawals when you have no other choice, and immediately transfer your assets to a private wallet after completing the transaction, while ensuring that you do not transfer assets back to the same address.
A better option in 2025 is:
Bisq , Haveno (specifically for Monero) , LocalMonero (use them while they're still usable);
NoOnes , Hodl Hodl , Peach Bitcoin (for Bitcoin);
SimpleSwap , ChangeNOW , and FixedFloat (exchange tools that do not require KYC).
4. Use Monero for truly privacy-focused transactions
Bitcoin isn't private, and neither is Ethereum. But Monero can be (achieving privacy through ring signatures, hidden addresses, and RingCT technology). If you need to sever the on-chain connection between the sender and receiver, you can exchange your assets for XMR, complete the transaction, and then exchange them back. Yes, fees can be high at times, and liquidity isn't perfect, but compared to other options, this is still the most effective way.
5. Bitcoin Privacy: Proper Use of CoinJoin
When using Bitcoin, ensure you use CoinJoin technology correctly. For example, use the Wasabi wallet in conjunction with CoinJoin or JoinMarket. Due to related arrests in 2024, the Whirlpool function of the Samourai wallet has been discontinued, so Wasabi is currently the primary tool for Bitcoin privacy. It is recommended to perform coin mixing after integrating UTXOs or purchasing Bitcoin. Don't just perform a single small mixing operation—multiple rounds are recommended to ensure privacy.
6. Ethereum Privacy: Use privacy-preserving L2 or mixing tools (use with caution)
Tornado Cash remains subject to US sanctions, posing risks in its use in the region. Here are the better alternatives currently available:
Railgun : Supports privacy balances on Ethereum, Arbitrum, Polygon, and BSC;
Aztec : A complete privacy solution on Ethereum L2;
Nightfall : Polygon's privacy chain, which is still operational.
If you have extremely high privacy requirements, it is recommended to use a new wallet and VPN for each transaction, and destroy the wallet after each round of transactions.
7. Always use a high-quality VPN or Tor.
Your IP address will reveal everything. Never connect your wallet without a VPN . It's recommended to use a paid VPN service where you control your keys, such as Mullvad , IVPN , and Proton . Avoid free VPNs and services that are well-known but log transactions (such as Express, Nord, and Surfshark, which have been found to have engaged in false advertising). If you have extremely high privacy requirements, you can choose Tor with bridges or i2p, but be aware that these methods are very slow during transactions.
8. Browser usage habits are more important than you think.
Create a separate browser profile for cryptocurrency operations (or simply use a separate browser).
Use Brave or Firefox and install the uBlock Origin and ClearURLs plugins;
Disable WebRTC functionality;
Never log in to Google, Discord, or Twitter in the same browser profile;
Use temporary containers (the Multi-Account Containers plugin for Firefox is highly recommended, it's a must-have).
9. Use hardware wallets and isolated operations whenever possible.
We recommend using hardware wallets such as Ledger , Trezor , Keystone , or GridPlus Lattice . Sign transactions offline and never enter your seed phrase on any website . If a website asks you for your private key or seed phrase, it's undoubtedly a scam.
10. Don't show off on social media.
Seriously, don't show off. Every screenshot of your investment portfolio, ENS name, or NFT that you post is a data point for on-chain analytics companies. For example, if you tweet from a verified account, "Just All In on 50 ETH to buy $PEPE," you've already exposed yourself.
Additional information – emerging privacy technologies in 2025:
Stealth addresses are coming to the Ethereum mainnet (ERC-5564 and ERC-6538): Start using wallets that support these standards, as they will significantly improve privacy.
Bitcoin payment PayJoin (P2EP) : Even without using CoinJoin, it can make on-chain monitoring more difficult.
You don't need to follow all the recommendations to achieve privacy protection. Just doing #1 (stop reusing wallet addresses) , #2 (separate identities) , #3 (avoid KYC exchanges) , and #7 (use a VPN or Tor ) will achieve 90% of your privacy protection goals.
Remember, "perfection is the enemy of good." Start with the basics and gradually add more layers of privacy protection as you become more proficient.
