Bitcoin Is NOT Private
Bitcoin uses a public blockchain where every transaction is permanently recorded. While addresses are pseudonymous, chain analysis can link transactions to real identities.
Reality Check: Bitcoin is pseudonymous, not anonymous. Once an address is linked to your identity (via exchange, purchase, etc.), your entire transaction history is exposed.
Chain Analysis Techniques
Input Clustering
Multiple inputs = same owner
HeuristicChange Detection
Identify which output is change
AnalysisExchange Tracking
Link addresses via KYC data
IdentityGraph Analysis
Map transaction relationships
NetworkPrivacy Improvements
CoinJoinMultiple users combine transactions
Lightning NetworkOff-chain transactions, less visible
PayJoinSender and receiver mix inputs
Address Reuse AvoidanceNew address per transaction
Best Practices
- Never reuse addresses
- Use CoinJoin (Wasabi, JoinMarket)
- Run your own full node
- Connect wallet via Tor
- Avoid linking to KYC exchanges
- Consider Monero for privacy needs