(Q.) Wasabi Coinjoin Steps \ stacker news ~bitcoin

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1513 sats \ 16 comments \ @PictureRoom 6 Oct bitcoin_beginners

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

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121 sats \ 2 replies \ @kruw 6 Oct

Good plan. Make sure you write down your passphrase for Wasabi Wallet, it acts the "13th word" of your recovery seed.

0 sats \ 1 reply \ @PictureRoom OP 19h

So all of that is correct? I'm not misunderstanding anything in that?

0 sats \ 0 replies \ @kruw 4m

There's only 2 more details I would mention:

Make sure that you do not share the xpub address of your cold storage wallet with third party servers; run your own node
When transferring between your own wallets, try to send entire UTXOs without creating a leftover change output

100 sats \ 0 replies \ @hynek 6 Oct

There are still unofficial but working solution with Trezor (top hardware wallet)

121 sats \ 3 replies \ @OT 6 Oct

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.

0 sats \ 2 replies \ @PictureRoom OP 19h

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

21 sats \ 1 reply \ @OT 12h

Stagger it out over a few days.

Could be days weeks or months.

I would then send those coinjoined UTXO's from the wasabi hotwallet in larger UTXO sets back to cold storage

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.

0 sats \ 0 replies \ @PictureRoom OP 11h

Perfect. Thanks brother

0 sats \ 7 replies \ @79c9095526 6 Oct

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.

21 sats \ 1 reply \ @SatAttack 19h

my first downzap! congrats

0 sats \ 0 replies \ @PictureRoom OP 15h

lolllll

0 sats \ 4 replies \ @OT 12h

After conjoining it does make it more difficult to sell on an exchange. If you don't think that Bitcoin was really meant for p2p trade then better not coin join.

0 sats \ 3 replies \ @79c9095526 11h

Meant for and what reality is are two different things. The vast majority of my savings are in bitcoin. But I have fiat bills to pay for my family. Reality wins in that situation, I have to be able to sell little chunks of my stack to have a roof over our heads and food in bellies.

Therefore coinjoining isn't practical if it gets me kicked off the fiat rails.

0 sats \ 2 replies \ @OT 11h

Are you using LN? You can send a LN transaction from a LN channel into an exchange. It's hard to trace where the LN payment came from.

Consider coin joining with Wasabi or Join market for onchain privacy. Spend or sell (if you have to) with LN.

0 sats \ 0 replies \ @79c9095526 1h

I do use lightning for small transactions (my email provider for example).

Typically I convert btc to fiat 3-4 times a year in a decent sized chunk to take care of expenses. I don't think lightning can still handle transactions that large, but maybe things have changed. I remember trying a $800 transaction a couple years ago and it just kept failing so I assumed a several thousand dollar lightning transaction would still fail today.

0 sats \ 0 replies \ @PictureRoom OP 10h

My understanding as well. Thank you.