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Code & Psychology ⚡️ 2y ago

💡 BTC tip for the day 💡

If you have KYC-d btc on your cold storage:

1️⃣ Send btc from cold storage to hot wallet

2️⃣ Regenerate seed phrase for your cold storage

3️⃣ Do coinjoin/mixing with your hot wallet onto your fresh seeded cold wallet.

Benefits:

You will have forward privacy of your btc.

You break the link from your KYC to your btc.

You can use Sparrow wallet for this, because it has a Whirlpool feature in it, that can do the mixing/coinjoin for you.

Further steps:

Buy no-KYC btc, and do mixing on that as well.

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Discussion

nolim1t 2y ago

Stary a business, accept bitcoin or lightning.

Stack #nokyc sats

#[0]

GoldenSun777 2y ago

Nice one ! #privacymatters 🥳😎⛈💯🏴‍☠️☣️

Noerms 2y ago

I am always afraid with mixing, that i might get some coins that are related to a hack or something… is this possible? 🤔

ferriswheel 2y ago

nah doesnt matter much. No need to be overly paranoid about forensics. The best is you were just not involved in crime and its ok.

If you want to be sure, think about how to spend it (no kyc spend or use lightning)

Noerms 2y ago

Thanks for the helpful thoughts 🙏💜

BitcoinEagle.dev 2y ago

Wasabi censors those UTXOs

Stronghodler 2y ago

Mmm if the BTC is KYCd and you do this. What happens when IRS or other entity come asking about it? Boat accident?

BUB 2y ago

Sorry, not a good guide.

What's the purpose of regenerating a new seed phrase? If you do cold storage properly your seed is never exposed to a computer.

Code & Psychology ⚡️ 2y ago

It depends in my opinion.

You do mixing to have forward privacy. So noone knows what you use your btc for.

You shall not reuse the addresses that you sent KYC sats onto. Otherwise mixing does not make sense. Because they already know that this address is yours due to KYC, so new sats also will be labeled on this address to you.

If you just generate a new address from same seed of cold storage or generate a new seed for your cold storage both could be an option. I think better to be safe, then sorry. If you generate a new seed, then you don't have any address kyc-ed generated from your seed, so you can't accidentally reuse it.

But you are right, it is not a must.

BUB 2y ago

Fair enough reasoning, but "not reusing old addresses" is implied and baked into any good wallet software.

Code & Psychology ⚡️ 2y ago

Thank you for the notice! Fair point. Next time in similar case I will add optional, and the reasoning behind the selection.