In this respect Bitcoin is the same as USDC. Keep different wallets for different things:
Discussion
It's not exactly the same. The address model means they can see all your assets, not just the fat ass UTxO you paid them with.
#LightningNetwork fixes this ✅
If only there was a self-custodial bitcoin privacy wallet which could prevent this, we could call it ninja wallet? Samourai Wallet? 👘🗿
This is nothing to do with the wallet, your coins are stored on the blockchain, not your wallet. Your wallet simply holds your keys and other tertiary information.
There are some privacy options however:
The first, I suggest is, ensuring you use different wallet (receiving) addresses for each new transaction. And if you wallet supports it, manually selecting your UTXO to be similar in size to the amount you wish to spend (some wallets do this automatically).
SparrowWallet is one of the most granular wallets out there, but it isn't for the feint hearted.
Although CoinJoins are pretty much stopped as a public offering, you can run a CoinJoin on your own node through a service like Jam, but once joined into a new UTXO, if you spend, say, 10K Sats on a UTXO with 10M Sats, this is still public information, even after a CoinJoin (Jam).
Lightning is less traceable, but still has privacy concerns.
In short, Bitcoin is a public ledger, your only source of anonymity is that nobody knows your wallet address(es) until you expose them by spending them, when you do.
Without private ways of transactions it doesn't matter how many wallets you use, because they are still connected
Bitcoin is not a privacy coin, it's transparency is a prime function of its "Don't trust, verify" ethos.
There are privacy coins if you want this and there are many ways to obscure your Bitcoin transactions and even sidechains like Liquid which offer transaction encryption.
But inherently Bitcoin is the opposite of a privacy coin, by design.
The Ledger is transparent, the tools we use with it don't have to be
It sounds like you have a predetermined agenda.
I wont step in your way 😂
No Agenda, just a vision of a better, more private future & financial independence
In that case, I think the Monero guys lurking about here would help you.
Bitcoin for the NGU and Monero for spending privately.
The slightly less better option is Liquid, Blockstreams side chain. It pegs Bitcoin to its liquid Bitcoin L-BTC 1:1
It encrypts the transaction values, but not the wallet addresses. It is a federated network run by around 30 major companies, including Blockstream.
I would have shared a link to their blockchain, but it appears Cloudflare are down again, but for future reference, this is a public copy of their blockchain
Is a Bitcoin ATM transparent? Does it need KYC?
Depends on the ATM and the jurisdiction it is operated within, but there is nothing that technically requires KYC.
If you're thinking in terms of privacy, then a Bitcoin ATM that offers Lightning would be more private than a mainchain transaction.