Most wallets and most exchanges do not help with this, they completely neglect it.
In UXTO blockchains like Bitcoin, a core feature is combining your “outputs”, immediately correlating otherwise separate addresses in the same wallet. The system supports transaction types that wallets may not show in the GUI. So you can choose to only send from a specific address. You may have to recreate you hierarchy of addresses in a more capable wallet, but you always can do that no matter where you normally use your bitcoin.
Ultimately you want to unlink your transaction.
Monero, a few smart contracts and some layer2 systems do that. “Coinjoin” systems do not do that, the advertisement of them is probably funded by adversaries.
You have to get your transactions to the systems and currencies that let you unlink.
So you have a series of bitcoin addresses that werent funded with an exchange or tied to your identity. For illustrative purposes lets say you cashed out of a gambling website to a virgin address and US institutions will freeze your accounts if you try to cash out. Nothing illegal for you, as the federal law is only against financial institutions. Just fire up Tor and hop over to Monero using Morphtoken.com and send them btc and get monero. (You dont need Tor for cashing out gambling withdrawals, but just get in the practice.)
Now you have Monero, which is more analogous to cash. If that claim isnt comfortable enough for you, spend time researching that yourself.
You have options now. Monero can just be a conduit for unlinking transactions as you go back into transparent blockchains in a few hours or days. Or it can be your desired currency and nest egg. Or you can sell it directly into fiat currency as several exchanges support it, as well as all OTC desks, as well as local in person markets. Monero is perfectly suited for exchanging for goods and services and many people use it for that despite merchants accepting bitcoin more prevalently, many bitcoin invoices are paid with Monero which trigger another service like Morphtoken to pay a merchant in bitcoin.
Back to the conduit example, you can just generate a new hierarchy of addresses on whatever blockchain you like and convert the monero back into that cryptocurrency.
You can also deposit that Monero on a crypto-only exchange and just trade it for something else and withdraw. This option has the caveat of whether you want to do this in Tor or not, whether the amounts trigger KYC or not, whether you want to use someone else’s KYC, whether you are patient enough to stay in the non-KYC’d withdrawal limits over many days and several accounts, etc. If you just used Monero to a crypto-only exchange under your identity and they got subpoena’d in the future, do you think you need a way to explain the source of funds?
Anyway, thats not even necessary. In this gambling example there is no need to reintegrate, you just need to pass a chainanalysis filter so a US financial institution feels compliant. Unlinking solved, problem solved.
Question: what do you think about the litecoin mimblewimble features that are supposed to happen later this year?
Litecoin is already so widely integrated in the ecosystem that it should become the largest "privacy coin" overnight, but I don't know enough to say if it's any good.
https://litecoin.com/en/news/the-litecoin-mimblewimble-propo...