I started using the Lightning Network over the past 4 months and wanted to know if I wanted to use the Lightning Network as a Bitcoin mixer, what are the correct steps I should take to break the link between my inputs outputs. What wallets should I avoid or wrong settings that should not be made?
Firstly as far as I know LN can provide some level of degree to privacy but it cant be really considered a reliable privacy solution, Mixers are a good solution still they also possess some risks as third third-party service you are using can compromise your data, if they record. On the same time in the Ln, you can have the control of your data, but still as in LN transaction are processed through the channels and by using the multiple channels we can really make it complex for a person to track back your onchain data, as still its onchain so we can really not consider it reliable.
Some of the tips I've found after making some searching on internet are....
Look for nodes that are run by privacy-conscious individuals or organizations
Avoid Reusing Payment Channels
use one wallet for everyday spending and another for more private transactions. This can help prevent linking transactions back to you.
Hmm... Thanks OP as I was also not aware of most of things, your post made me learn a bit and after making some more search on this topic I think it will be helpful for me as well. Lets wait for other users replies as well, maybe some how they can assist you and me more on this topic.