Bitcoin Privacy Fundamentals

30 minutes 📝 Placeholder

🚧 Content Under Development

This is placeholder content. The full module with interactive lessons, examples, and exercises will be available soon. Check back later!

Introduction

Bitcoin is pseudonymous, not anonymous. Every transaction is public, allowing anyone to trace funds between addresses. Privacy requires minimizing linkability.

Blockchain Analysis & Address Clustering

When you spend Bitcoin, you often combine multiple UTXOs from different addresses into a single transaction. This reveals to observers that:

  • All those addresses belong to the same person (you)
  • The approximate total value you control
  • Patterns in your spending behavior

This technique is called address clustering, and it's the foundation of blockchain analysis. Protecting your privacy means avoiding unnecessary address linkage.

Privacy Best Practices

Key strategies for maintaining privacy:

  • Never reuse addresses — Each receive should use a fresh address
  • Minimize UTXO consolidation — Avoid combining coins from different sources
  • Use coin control — Manually select which UTXOs to spend
  • Consider CoinJoin — Break the on-chain link between sender and receiver
  • Run your own node — Don't leak your addresses to third-party servers

Interactive Privacy & UTXO Management

Practice privacy-conscious UTXO selection. See how your choices affect privacy scores and blockchain transparency.

Launch UTXO Visualizer (Privacy Focus) →

Try the privacy scenario to see how address clustering works. Check the privacy score panel!