The truth is, Bitcoin isn’t the privacy protection many people think it is. If you’re using it for anything more shady than buying socks, you’re playing with fire. This is a guide on how to cover your ass when transacting with the OG cryptocurrency.
We’ve already discussed Monero, but let’s be real — Bitcoin still dominates the underground economy. The problem is, it has more holes in it than Swiss cheese when it comes to privacy. This blockchain? It’s a map for anyone trying to track you down.
This isn’t some basic “Bitcoin for Dummies” nonsense. We’re starting a three-part series focused on keeping your Bitcoin transactions anonymous.
Part one covers side-channel attacks — sneaky ways your opsec can fail even if you’re careful with your coins. We’ll cover how to create a watertight wallet that will never leak your information, and why most of you idiots are probably broadcasting your location every time you check your balance.
By the end of the series, you’ll either know how to actually keep your transactions private, or you’ll be too paranoid to use Bitcoin at all. Either way, you’ll be less likely to end up in handcuffs.
This isn’t just theory – it’s practical information that could keep you out of jail.
Time to educate yourself. Your freedom could depend on it.
P.S. Most of this applies to Litecoin as well, just with a few differences.
How Bitcoin Works
You already know how Bitcoin works. You know it, I know it, even your grandma probably already knows it. So we won’t waste time on blockchain 101. We’ll dive into advanced blockchain analysis in the next part.
For now, we’ll focus on how transactions get onto the blockchain and where your wallet connects when you move coins around. This is where most of you are putting yourself at risk.
Here's the thing: unless you're running your own Bitcoin node, you're essentially trusting your privacy to some random server. Every time you open that wallet to check your balance or make a transaction, you're connecting to a node somewhere. And that node sees your IP address, transaction details, and everything else you do.
Most wallets connect to any node they like. It could be run by some pimply teenager in his mom’s basement, or it could be a honeypot set up by the feds. You don’t know what’s what. You’re at the mercy of these services, and you hope they don’t roll over and leak your information the moment someone comes knocking.
Think about it. Every transaction you’ve ever made, every address you’ve interacted with, and every wallet address (even the unused ones) is all tied to your IP. It’s like leaving a trail of digital breadcrumbs leading right to your front door.
Web wallets are even worse. If you use one, you’re trusting a centralized service with all your transaction data and IP logs. You’re one step away from jail.
The point is that when you don’t control the node you’re connecting to, you don’t control your privacy. You’re vulnerable to having your entire Bitcoin history exposed for anyone to see.
And that applies even if you mix your coins (which we’ll cover in the next section) or exchange them for privacy-focused coins like Monero. Because once you transact with a decoy node, there’s no going back, because they’ve already registered you.
Node Poisoning
You might think you’re safe because you’re not buying drugs on the dark web, you’re just buying a CVV. Think again. The feds and companies like Chainalysis are playing a completely different game, and you’re a pawn.
Node poisoning is one of their favorite weapons. Here’s how it works: They set up Bitcoin nodes all over the world. These nodes look legitimate and act like real nodes, but they’re actually decoys waiting to log every transaction that goes through them. Transaction data, your IP address, the time, it’s all collected and stored in a giant database, ready to be combed through if they want to track down your specific wallet.
They run a huge swarm of poisoned nodes to collect data from SPV wallets. If they can do all this with Bitcoin, where every transaction is public, imagine what they’re trying to do with Monero. They’ve already claimed to have deanonymized Monero transactions in Germany.
Remember, it’s not just about seeing who you sent coins to and how much. They also log your IP address. So now they can potentially link your Bitcoin address to your real identity. Congratulations, you’ve just blown your own cover.
It gets even worse if you’re using web wallets like BitPay or Coinbase Wallet. You’re essentially handing over all your information on a silver platter. Might as well send the FBI a copy of all your transactions while you’re at it.
The thing is, unless you’re running your own node and taking serious precautions, you’re probably leaking more information than you realize. Every transaction could become another piece of evidence building a case against you.
Searching a Public Blockchain: A Damn Trap
I know you’re itching to check your balance or track down a transaction. But using public blockchain explorers? It's like walking into a police station and asking if they're attacking you.
Every time you type your address into Blockchain.info, Blockchair, or any other public browser, you're handing over your identity to the operators of these sites. These sites log everything - your IP, the addresses you're browsing, timestamps, your browser fingerprints, all of it.
You think this shit is private? Think again. These companies are in cahoots with law enforcement. One request and your entire bitcoin history is exposed and linked to your real identity.
The feds and Chainalysis have been doing this Bitcoin bullshit for years. In 2020, they were caught red-handed running a decoy block explorer called WalletExplorer.com. The site collected users’ IP addresses and linked them to Bitcoin addresses. They even bragged to the Italian cops that it gave them “significant leads.” And that’s just the tip of the iceberg.
So what’s the solution? Run your own damn node. We’ve covered this before, but it’s worth repeating. With your own node, you can query the blockchain all day long without leaving a trace. No third-party servers, no logs, no bullshit.
If you absolutely must use a public explorer (and I mean you absolutely must), at least make the effort to use Tor.
Hardening Your Wallet
The BTC blockchain may be public, but there are ways to hop onto it anonymously. Your first step is to harden your wallet and set it up.
Here's a rough security cheat sheet from Sparrows Creator. As a carder, you should choose the highest level of security possible (without interfering with the process or making it too complicated) when deciding what tools and software to use.
Sparrow or Wasabi: Your New Best Friends.
Forget web wallets and exchange-provided nonsense. Sparrow and Wasabi are the way to go. They are open source, feature-rich, and actually care about your privacy. Here’s how to set them up correctly:
Both wallets are roughly equal, but Wasabi has the edge with its built-in CoinJoin support – we’ll cover that mixer in the next section. For now, just know that it’s there if you need it.
Managing Your Wallet via Tor.
Using Tor with your wallet is a must. Here's how:
Launch your own node.
This is the gold standard of privacy. Don't trust, verify. Basic setup:
Here’s the thing: With this setup, you’ve just created a huge problem for tracking.
Your IP? Obfuscated by Tor. Good luck tracking that data.
Node poisoning? Doesn’t matter when you’re running your own node. You verify everything yourself, no trust required.
Side-channel attacks? Now that’s much harder. Your wallets aren’t constantly handing over your data to the feds.
The key here is separation. Your wallet doesn’t know who you are, and neither does the network. Unless you screw up and tie your wallet to your real identity, you’re effectively invisible.
And remember, Wasabis has CoinJoin built in. It’s like a mixer at the ready, ready to mash your coins into smithereens. Well, we’ll get to that in the next part.
Conclusion
Okay, paranoid carders, let’s get this over with. We’ve covered the basics of securing your Bitcoin setup, but don’t get cocky. This is just the beginning, and we’ll cover a lot more in the future.
In the next part, we’ll dive deeper into blockchain analysis and how to counter even these advanced tracking methods. We’ll look at mixing services, coin pooling, and other methods to further obfuscate your transactions on the blockchain. You’ll learn how to make your transactions blend together like a chameleon at a rainbow party.
Stay tuned because this rabbit hole gets deeper. The cat and mouse game between privacy seekers and blockchain analysts never ends, and you’ll need to stay one step ahead if you want to keep your ass out of the fire.
Remember, in this world, paranoia is not a disorder, it’s a survival skill. Stay alert, your transactions are private, and your identity is separate from your coins.
We’ve already discussed Monero, but let’s be real — Bitcoin still dominates the underground economy. The problem is, it has more holes in it than Swiss cheese when it comes to privacy. This blockchain? It’s a map for anyone trying to track you down.
This isn’t some basic “Bitcoin for Dummies” nonsense. We’re starting a three-part series focused on keeping your Bitcoin transactions anonymous.
Part one covers side-channel attacks — sneaky ways your opsec can fail even if you’re careful with your coins. We’ll cover how to create a watertight wallet that will never leak your information, and why most of you idiots are probably broadcasting your location every time you check your balance.
By the end of the series, you’ll either know how to actually keep your transactions private, or you’ll be too paranoid to use Bitcoin at all. Either way, you’ll be less likely to end up in handcuffs.
This isn’t just theory – it’s practical information that could keep you out of jail.
Time to educate yourself. Your freedom could depend on it.
P.S. Most of this applies to Litecoin as well, just with a few differences.
How Bitcoin Works
You already know how Bitcoin works. You know it, I know it, even your grandma probably already knows it. So we won’t waste time on blockchain 101. We’ll dive into advanced blockchain analysis in the next part.
For now, we’ll focus on how transactions get onto the blockchain and where your wallet connects when you move coins around. This is where most of you are putting yourself at risk.
Here's the thing: unless you're running your own Bitcoin node, you're essentially trusting your privacy to some random server. Every time you open that wallet to check your balance or make a transaction, you're connecting to a node somewhere. And that node sees your IP address, transaction details, and everything else you do.
Most wallets connect to any node they like. It could be run by some pimply teenager in his mom’s basement, or it could be a honeypot set up by the feds. You don’t know what’s what. You’re at the mercy of these services, and you hope they don’t roll over and leak your information the moment someone comes knocking.
Think about it. Every transaction you’ve ever made, every address you’ve interacted with, and every wallet address (even the unused ones) is all tied to your IP. It’s like leaving a trail of digital breadcrumbs leading right to your front door.
Web wallets are even worse. If you use one, you’re trusting a centralized service with all your transaction data and IP logs. You’re one step away from jail.
The point is that when you don’t control the node you’re connecting to, you don’t control your privacy. You’re vulnerable to having your entire Bitcoin history exposed for anyone to see.
And that applies even if you mix your coins (which we’ll cover in the next section) or exchange them for privacy-focused coins like Monero. Because once you transact with a decoy node, there’s no going back, because they’ve already registered you.
Node Poisoning
You might think you’re safe because you’re not buying drugs on the dark web, you’re just buying a CVV. Think again. The feds and companies like Chainalysis are playing a completely different game, and you’re a pawn.
Node poisoning is one of their favorite weapons. Here’s how it works: They set up Bitcoin nodes all over the world. These nodes look legitimate and act like real nodes, but they’re actually decoys waiting to log every transaction that goes through them. Transaction data, your IP address, the time, it’s all collected and stored in a giant database, ready to be combed through if they want to track down your specific wallet.
They run a huge swarm of poisoned nodes to collect data from SPV wallets. If they can do all this with Bitcoin, where every transaction is public, imagine what they’re trying to do with Monero. They’ve already claimed to have deanonymized Monero transactions in Germany.
Remember, it’s not just about seeing who you sent coins to and how much. They also log your IP address. So now they can potentially link your Bitcoin address to your real identity. Congratulations, you’ve just blown your own cover.
It gets even worse if you’re using web wallets like BitPay or Coinbase Wallet. You’re essentially handing over all your information on a silver platter. Might as well send the FBI a copy of all your transactions while you’re at it.
The thing is, unless you’re running your own node and taking serious precautions, you’re probably leaking more information than you realize. Every transaction could become another piece of evidence building a case against you.
Searching a Public Blockchain: A Damn Trap
I know you’re itching to check your balance or track down a transaction. But using public blockchain explorers? It's like walking into a police station and asking if they're attacking you.
Every time you type your address into Blockchain.info, Blockchair, or any other public browser, you're handing over your identity to the operators of these sites. These sites log everything - your IP, the addresses you're browsing, timestamps, your browser fingerprints, all of it.
You think this shit is private? Think again. These companies are in cahoots with law enforcement. One request and your entire bitcoin history is exposed and linked to your real identity.
The feds and Chainalysis have been doing this Bitcoin bullshit for years. In 2020, they were caught red-handed running a decoy block explorer called WalletExplorer.com. The site collected users’ IP addresses and linked them to Bitcoin addresses. They even bragged to the Italian cops that it gave them “significant leads.” And that’s just the tip of the iceberg.
So what’s the solution? Run your own damn node. We’ve covered this before, but it’s worth repeating. With your own node, you can query the blockchain all day long without leaving a trace. No third-party servers, no logs, no bullshit.
If you absolutely must use a public explorer (and I mean you absolutely must), at least make the effort to use Tor.
Hardening Your Wallet
The BTC blockchain may be public, but there are ways to hop onto it anonymously. Your first step is to harden your wallet and set it up.
Here's a rough security cheat sheet from Sparrows Creator. As a carder, you should choose the highest level of security possible (without interfering with the process or making it too complicated) when deciding what tools and software to use.
Sparrow or Wasabi: Your New Best Friends.
Forget web wallets and exchange-provided nonsense. Sparrow and Wasabi are the way to go. They are open source, feature-rich, and actually care about your privacy. Here’s how to set them up correctly:
- Download Sparrow from sparrowwallet.com or Wasabi from wasabiwallet.io. Verify PGP signatures.
- Install on a clean system. Ideally on a separate machine that will never touch your personal data.
- Launch Tor before you even think about opening any of your wallets.
- Open your chosen wallet and select "New Wallet". Choose a secure name that is not associated with your identity.
- Save your catchphrase offline. Write it down and put it somewhere safe. Lose it and you're screwed.
- In the settings, connect to your node (more on this later) via Tor.
- Enable coin management features. This allows you to manage your UTXOs for better privacy. We will cover this in the next section.
Both wallets are roughly equal, but Wasabi has the edge with its built-in CoinJoin support – we’ll cover that mixer in the next section. For now, just know that it’s there if you need it.
Managing Your Wallet via Tor.
Using Tor with your wallet is a must. Here's how:
- Download Tor Browser Bundle from torproject.org
- Install and run Tor before opening your wallet.
- In Sparrow, go to Tools > Options > Server. In Wasabi, it's in Settings > Network.
- Select "Use Tor" and "Use a separate Socks5 proxy" (Sparrow), or just enable Tor (Wasabi).
- For Sparrow, set the proxy to 127.0.0.1 and port 9150 (Tor default settings). Wasabi will do this automatically.
- Apply and restart. Your connections are now going through Tor.
Launch your own node.
This is the gold standard of privacy. Don't trust, verify. Basic setup:
- If you're super paranoid, buy a dedicated machine. A Raspberry Pi would work, but a VPS would work just fine too.
- Download Bitcoin Core from bitcoin.org
- Install and run the initial blockchain synchronization. This will take some time, so be patient.
- After synchronization, edit the bitcoin.conf file to enable Tor connections.
- Add these lines to bitcoin.conf:
Code:proxy=127.0.0.1:9050 listen=1 bind=127.0.0.1 - Restart your node. It is now only accessible via Tor.
- In your wallet, connect to your node using its .onion address.
Here’s the thing: With this setup, you’ve just created a huge problem for tracking.
Your IP? Obfuscated by Tor. Good luck tracking that data.
Node poisoning? Doesn’t matter when you’re running your own node. You verify everything yourself, no trust required.
Side-channel attacks? Now that’s much harder. Your wallets aren’t constantly handing over your data to the feds.
The key here is separation. Your wallet doesn’t know who you are, and neither does the network. Unless you screw up and tie your wallet to your real identity, you’re effectively invisible.
And remember, Wasabis has CoinJoin built in. It’s like a mixer at the ready, ready to mash your coins into smithereens. Well, we’ll get to that in the next part.
Conclusion
Okay, paranoid carders, let’s get this over with. We’ve covered the basics of securing your Bitcoin setup, but don’t get cocky. This is just the beginning, and we’ll cover a lot more in the future.
In the next part, we’ll dive deeper into blockchain analysis and how to counter even these advanced tracking methods. We’ll look at mixing services, coin pooling, and other methods to further obfuscate your transactions on the blockchain. You’ll learn how to make your transactions blend together like a chameleon at a rainbow party.
Stay tuned because this rabbit hole gets deeper. The cat and mouse game between privacy seekers and blockchain analysts never ends, and you’ll need to stay one step ahead if you want to keep your ass out of the fire.
Remember, in this world, paranoia is not a disorder, it’s a survival skill. Stay alert, your transactions are private, and your identity is separate from your coins.
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IMPORTANT WARNING: The mixing industry is volatile - services appear and disappear daily. Some are legit, some are bait and switch, and some are outright scams just waiting to happen. Never blindly trust any mixer, no matter how trustworthy it seems. Start with small test amounts, check their reputation on multiple sources, and ALWAYS assume that they can disappear along with your coins at any moment.