So I do DCA into Bitcoin every month. Lately, I may have even started to become a little paranoid, but I've become preoccupied with sharing as little as possible about myself, whether online or in personal relationships, and this is also true for my crypto portfolio and during research I came across coinjoining.
I am more or less aware of what it means and how it happens, but I have not yet fully decided whether it is useful for ordinary people. By ordinary, I mean that people who try to invest into BTC and roughly that's it.
I would be interested to hear the opinions of those who use it regularly, why (perhaps with suggestions as to with whom and why), as well as those who consider it unnecessary, and why.
Is there any real benefit for the average bitcoiner to do coinjoin?
byu/NegativeCaptain0 inBitcoinBeginners
Posted by NegativeCaptain0
6 Comments
What do you mean coinjoin ? I believe you wanted to say consolidate instead of coinjoin.
Coinjoin is basically gather or batch multiple transactions from multiple individuals and send them in a single transaction to optimize transaction fee.
Consolidate is picking all your UTXOs and send them in a single transaction to create a single UTXO.
If you should coinjoin your Bitcoin when you buy it ? Absolutely but it depends if the exchange you use allows.
If you should consolidate your UTXOs regularly?
Absolutely but you should do it directly in your hardware wallet.
>Is there any real benefit for the average bitcoiner to do coinjoin?
Most people do not need to coinjoin because there are easier ways to achieve good privacy
https://old.reddit.com/r/BitcoinBeginners/comments/1h5qjur/bitcoin_privacy_questions/
privacy is never a bad idea tbh. even as just an average btc holder it keeps your finances private from companies/family/friends. like why should anyone be able to trace what you spend on?
Conjoins are about privacy, which everybody likes. The flip side is they are a favorite of criminals who literally live and die on privacy. You can read the front page of coinjoins.org. The FAQ near the bottom might give you a little pause – pay attention to the section on getting exchanges to accept coin involved in a coinjoin for example. Some UTXOs are flagged by law enforcement as being involved in crimes. Of course, you can end up getting one of these innocently, but encountering flagged UTXOs in a coinjoin is far more likely.
I’m pretty focused on privacy – have pretty much de-googled, etc. But you need to pick your battles – I live most of my life as an open book and focus on privacy in areas most important to me. You really don’t want a major national government to raise an eyebrow at aspects of your life. Once you have their attention, you are an open book!
I would 100% recommend CoinJoining all your BTC. I have been doing this for a long time and am very happy with it.
There is very little reason not to do it! It cannot erase your BTC purchase history (for that you would have to buy Bitcoin anonymously to begin with, such as on [HodlHodl](https://hodlhodl.com/)), but it does provide complete privacy from the time of the CoinJoin into the future. I.e., exchanges/governments will know you bought X amount of BTC, but they’ll have no idea what you did with that X Bitcoin.
You probably already know this, but the best/easiest way of CoinJoining is using Wasabi wallet. The current leading coordinator is `https://coinjoin.kruw.io/` (biggest CoinJoins, so maximum anonymity – and zero fees).
The only disadvantage is that exchanges will sometimes reject freshly-CoinJoined BTC. However, if you let time pass between the creation of the CJ UTXO and also perform a few on-chain hops, you should be good to go.
I’m big on privacy and I think most people underestimate how much data companies already collect on them.
You don’t need to be a whale or some privacy nut. If someone can map out your income and savings habits just by looking at the blockchain, that’s a no from me. Therefore for me coinjoin is not about hiding, I just don’t want any counterparty to read my full financial history.