I want to make sure that I am understanding the steps for a proper Wasabi Coinjoin.
The purpose is to coinjoin the current coins that I have from my cold storage wallet.
From what I understand, the steps that I would take would be the following:
- Create wasabi hot wallet
- Send cold storage wallet bitcoin to wasabi hot wallet
- Coinjoin the newly received hot wallet funds from the cold storage wallet
- Send back the coinjoined bitcoin to a fresh address created from the cold storage wallet.
As for moving forward with newly aquired bitcoin and coinjoing, and with running a node with channels, the steps would be the following:
- Receive new bitcoin into lightning channel
- **Allow funds to reach enough to send out in a large UTXO
- Send channel funds to Wasabi Hot Wallet for coinjoin
- Send coinjoined bitcoin from wasabi hot wallet to cold storage wallet
If there is any missing links in this, please let me know. Simple, perhaps, but I have never done this and want to make sure that I am understanding this properly.
Trying to keep it straight forward, but ensuring proper procedure for better privacy.
Thanks so much
Sounds like a plan!
I would have a look at the original cold storage UTXO's. Maybe send them into Wasabi one at a time and also at different times. That would depend on how they were bought, but consolidating them all in one TX might be a bad idea.
You also need to think about how many rounds you want to do.
Hmm, okay. So from what I understand in what you're saying here, is to send each UTXO from my cold storage, to my wasabi hot wallet, but not all at one time. Stagger it out over a few days.
Then, all of those sent UTXO's in the wasabi hot wallet will be mixed. After mixing, I will have multiple UTXO's in many different sizes.
I would then send those coinjoined UTXO's from the wasabi hotwallet in larger UTXO sets back to cold storage
Could be days weeks or months.
I think this it's generally a good idea to have larger UTXO's in cold storage as it's likely that fees will be high in the future. I wouldn't consolidate ALL of these UTXO's though.
Perfect. Thanks brother
Good plan. Make sure you write down your passphrase for Wasabi Wallet, it acts the "13th word" of your recovery seed.
So all of that is correct? I'm not misunderstanding anything in that?
There's only 2 more details I would mention:
Thank you.
When sending UTXO's from cold storage, to my lightning channels though, is that okay to do in terms of the leftover change output? Hopefully that makes sense.
It's okay if you use that change output to refill that same lightning wallet in the future.
There are still unofficial but working solution with Trezor (top hardware wallet)
One thing that has stopped me from coinjoining. I have heard random posts on the web about people who coinjoin and later either cannot sell the coinjoined sats or have their entire exchange account shut down if they move those particular sats to their exchange account.
While we should hope for bitcoin to be completely fungible with no concept of 'taint', unfortunately that does not seem to be true today. When you coinjoin, you may be mixing with the north korean or russian hackers stolen bitcoin and that may land you on some 'list' when you try to move your coins.
I don't know what the solution is to this type of problem. Perhaps the answer is everyone just coinjoins even more to make this 'taint' concept irrelevant, but unfortunately today it is extremely obvious onchain and coinjoin usage is extremely low so it is easy for exchanges to discriminate against coinjoin users.
I'd love to hear ways around this type of issue from bitcoiners, because bitcoin privacy should be the norm.