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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.
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.
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My understanding as well. Thank you.
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