2025 Privacy Self-Rescue Guide: How to Ensure On-Chain Asset Security?

Original Article Title: Staying Private in Crypto & Web3: Simple, Practical Tips That Actually Work

Original Article Author: Vladimir S. | Officer's Notes, Threat Researcher

Original Article Translation: Deep Tide TechFlow

Initially, the birth of cryptocurrency was for the pursuit of privacy and freedom, but today everything is tracked, linked, and sold. The blockchain is a permanently public ledger, exchanges require identity information (KYC), and analytics companies earn millions by associating your wallet with your real identity.

The good news is, as long as you take conscious steps, you can still largely maintain your privacy. You don't need to become a complete "tin foil hat" extreme privacy advocate; you just need to cultivate some basic habits. Here are privacy protection tips for 2025 that actually work:

1. Stop Reusing Wallet Addresses

Every time you use the same address to receive funds, you are actually exposing your transaction history to the world. Therefore, generate a new address each time you use it, or at least generate different addresses for different relationships (e.g., one for salary, one for transactions, one for DeFi, one for entertainment). Nowadays, most quality wallets support the function of automatically generating new addresses—make sure you have enabled this feature.

2. Separate Your Identities Like Your Exes; Use Different Wallets for Different Parts of Your Life:

· One “Public” Wallet for connecting to Twitter/Discord (expect this wallet to eventually be exposed);

· One “Significant Asset” Cold Wallet that should never connect to the internet or decentralized applications (dApps);

· One to two “Daily” Hot Wallets for transactions or DeFi, only replenish funds when necessary;

Remember, never transfer directly on-chain. If you must move funds, you can use a no-KYC (no Know Your Customer) exchange or Monero as a bridge.

3. Avoid Using KYC Exchanges in Privacy-Sensitive Cases

If you have completed KYC (Know Your Customer) on exchanges like Binance, Coinbase, Kraken, your wallet will be forever tied to your real name. Only use these exchanges as a fiat on/off-ramp as a last resort, and immediately transfer your assets to a private wallet after the transaction, ensuring not to send the assets back to the same address.

A better option by 2025 would be:

· Bisq, Haveno (specifically for Monero), LocalMonero (use them while you can);

· NoOnes, Hodl Hodl, Peach Bitcoin (for Bitcoin);

· SimpleSwap, ChangeNOW, FixedFloat (non-KYC exchange tools).

4. Conduct Truly Private Transactions Using Monero

Bitcoin is not private, neither is Ethereum. However, Monero does achieve privacy (through ring signatures, stealth addresses, and RingCT technology). If you need to sever the on-chain link between sender and receiver, consider converting your assets to XMR, conduct the transaction, and then convert back. Yes, fees can be high at times, and liquidity isn't perfect, but it remains the most effective way compared to other options.

5. Bitcoin Privacy: Proper Use of CoinJoin

When using Bitcoin, make sure to utilize CoinJoin technology correctly. For example, use the Wasabi Wallet combined with CoinJoin or JoinMarket. Due to the 2024-related arrests, Samourai Wallet's Whirlpool feature has been discontinued, making Wasabi almost the primary tool for Bitcoin privacy protection. It's recommended to mix your UTXOs after consolidation or bitcoin purchase. Don't just do a single small mix—multiple rounds are advised to ensure privacy.

6. Ethereum Privacy: Use Privacy L2 or Mixing Tools (Exercise Caution)

Tornado Cash is still subject to U.S. sanctions, posing risks when used in that region. Here are some current better options:

· Railgun: Supports privacy balances on Ethereum, Arbitrum, Polygon, and BSC;

· Aztec: Complete privacy solution on Ethereum L2;

· Nightfall: A privacy chain on Polygon, currently still operational.

If you have a high requirement for privacy, it is recommended to use a new wallet + VPN for each transaction and destroy the wallet after one round of transactions.

7. Always Use High-Quality VPN or Tor

Your IP address reveals everything. Never connect your wallet without a VPN. It is recommended to use a paid VPN service where you control the keys, such as Mullvad, IVPN, and Proton. Avoid using free VPNs and avoid using well-known but logging services (such as Express, Nord, Surfshark, which have been found to have false advertising). If you have a high requirement for privacy, you can choose Tor with bridges or i2p, but note that these methods are very slow during transactions.

8. Your Browser Habits Are More Important Than You Think

· Create a separate browser configuration profile for cryptocurrency operations (or simply use a separate browser);

· Use Brave or Firefox and install uBlock Origin and ClearURLs extensions;

· Disable WebRTC functionality;

· Never log in to Google, Discord, or Twitter in the same browser profile;

· Use Temporary Containers (recommended: Firefox's Multi-Account Containers extension, a real game-changer).

9. Use Hardware Wallet + Air-Gapped Workflow Whenever Possible

Consider using a hardware wallet such as Ledger, Trezor, Keystone, or GridPlus Lattice. Sign transactions offline, never enter your seed phrase on any website. If a website asks for your private key or seed phrase, it's undoubtedly a scam.

10. Avoid Social Media Bragging

Seriously, avoid bragging. Every post showcasing your portfolio, ENS names, or NFTs is a data point for blockchain analytics companies. For example, when you tweet from your real identity, "Just aped into 50 ETH for $PEPE," you've already exposed yourself.

Additional Note — Emerging Privacy Tech by 2025:

· Stealth Addresses Coming to Ethereum Mainnet (ERC-5564 and ERC-6538): Start using wallets that support these standards to significantly enhance privacy.

· Bitcoin's PayJoin (P2EP) for Payments: Even without using CoinJoin, this makes on-chain surveillance more difficult.

You don't need to follow all recommendations to achieve privacy. Just by addressing #1 (stop reusing wallet addresses), #2 (separate identities), #3 (avoid KYC exchanges), and #7 (use a VPN or Tor), you can accomplish 90% of privacy goals.

Remember, "perfect is the enemy of good." Start from the basics, progressively adding more layers of privacy protection as your skills grow.