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KYC / NON-KYC Coin Control Question
238 sats \ 4 comments \ @PictureRoom 15h bitcoin_beginners
I went ahead and purchased more bitcoin via Strike. I then sent it to my self hosted node, which also holds some non-kyc coins.
My question is, how (or is it even possible) do I differentiate those KYC coins from the non-kyc for when I send them to cold storage? I am using sparrow wallet, so I have my UTXO's categorized by KYC / NON KYC.
Did I do something incorrect? How or what should I have done, and moving forward?
Any insight and additional protocols would be appreciated in this regard.
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21 sats \ 2 replies \ @tuma 12h
First of all, remember to avoid using the same address when receiving Bitcoin. This way, you will not contaminate clean and dirty coins.
Second, as far as I know there is not an automatic way to do that, thus you have to manually label where the different coins come from.
Moreover, don’t forget to choose the correct UTXOs when spending. Try avoid spending together KYC-ed coins and clean ones, but choose only those coins that are labeled in the same way!
Finally, use the right coin for the kind of purchase you are making. Don’t buy drugs with KYC-ed sats 😂 (just joking, officer 👮‍♀️).
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0 sats \ 1 reply \ @PictureRoom OP 11h
Yep, check on never using the same address. That should be baseline numero uno for beginners.
I figured there is not an automatic way. Perhaps in the future, but I highly doubt it.
Gotta keep'em seperated...
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0 sats \ 0 replies \ @tuma 11h
I don’t know about the automatic part, you would have to have a list of addresses from big exchanges, in order to be able to know if they are dirty or not!
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0 sats \ 0 replies \ @fanis 3h
I think in most cases the best way to go around this is to use separate accounts (e.g. different derivation paths). Sparrow lets you do that pretty easily.
If open your current wallet and head to the "Settings" tab, you'll probably see under the Keystores section that your derivation path is something like m/84'/0'/0' (could also be something else depending on your setup). Using the same seed (eg the same hardware wallet, if you're using one) you should be able to create a new wallet, and specify a different derivation path (eg m/84'/0'/1'). You can give it a clear name (like "KYC wallet") for future reference.
You now have 2 different accounts, backed by the same seed, but from which you cannot accidentally spend in the same transaction.
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