Replying to Avatar Cerebrum

Consolidating UTXOs from KYC exchanges is never good for privacy.

Off course the Exchange (and the government) already knows those UTXOs belong to you but by consolidating you basically let the whole world know those UTXOs belong to a single person.

If the the UTXOs are smaller than 1 Million sats it makes sense to consolidate, higher I would not consolidate. Moving them (separate transactions over time) to other wallets makes sense , moving them into Lightning Channels by using a submarine swap is better for privacy.

Alternatively you can swap into Liquid than swap to lighting and once you have enough you swap back on chain with big UTXOs
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Noerms 9mo ago

thanks mate. very goog advice. especially the show-the-whole-world-thing was something i did not consider 🙏

I have the same question here as i asked darth coin: does it have to be a whole nother wallet to move the UTXOs to? Is moving them to new adresses inside the same wallet not enough? How could one tell the difference from the outside?

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