Does using BTC XMR BTC enhances your privacy?

[Yamane_Keto]

One of the suggestions to enhance your privacy (if you do not want to use mixers, Coinjoin Whirlpool or Jointmarket) was swapping your Bitcoin to Monero and back to bitcoin, but is your privacy definitely enhanced?

I will pose 3 main challenges:

If your Bitcoin address is blacklisted, how will BTC/XMR/BTC solve this problem, because you are simply pushing the problem to the other user.

When you exchange XMR to BTC, you may receive Bitcoin from a blacklisted address. Will you exchange it again or use a mixer?

There is a possibility that you will receive the same BTC especially in the case of P2P or if the exchange you are using to exchange XMR has a limited BTC reserve.

[Charles-Tim]

The only privacy issue I see more about this is the use of IP address to convert from bitcoin to monero and back to bitcoin. Some people may not know that they should use Tor and the site that accepts it like https://exch.cx/ or that has in-built Tor like https://bisq.network/. There are mixer that may provide the service like https://mixero.io/ advanced mixing, although which is the only one that I know of.

If your Bitcoin address is blacklisted, how will BTC/XMR/BTC solve this problem, because you are simply pushing the problem to the other user.

When you exchange XMR to BTC, you may receive Bitcoin from a blacklisted address. Will you exchange it again or use a mixer?

There is a possibility that you will receive the same BTC especially in the case of P2P or if the exchange you are using to exchange XMR has a limited BTC reserve.

Monero transactions are not traceable. If someone send you monero, it can not be known that it is from a blacklisted address. As you convert it back to bitcoin, more suspicions are also blocked.

[notblox1]

When you exchange XMR to BTC, you may receive Bitcoin from a blacklisted address. Will you exchange it again or use a mixer?

This can happen to you even if you are using normal mixer that is using BTC to BTC mixing, without any use of monero or other coins.
If you dont send coins to big exchange you will never notice is your addresses are blacklisted, and if you are that concerned just use monero or swap it with other altcoins.
I dont hear much about altcoin addresses being blacklisted, except for Ethereum and Tether.
 

[Z-tight]

You'll encounter most of the challenges listed here even if you use a mixer. Swapping BTC to xmr and back to BTC provides a high level of privacy if you do everything correctly. Blacklisting addresses is one of the ways the government attacks BTC's fungibility and it is mostly people who use centralized exchanges and custodial services that are at risk of their funds being confiscated.

To enhance your privacy through BTC-xmr-BTC exchange, send BTC's to a p2p exchange, trade it for monero and withdraw monero in more than one tx, at different times into your wallet. Send monero into a different p2p exchange in a different order again, exchange for BTC and spread the withdraw in small chunks into different receiving addresses, this should greatly enhance your privacy.

[Yamane_Keto]

Monero transactions are not traceable. If someone send you monero, it can not be known that it is from a blacklisted address. As you convert it back to bitcoin, more suspicions are also blocked.

I do not talk about this, but within the Bitcoin blockchain, no changes happen. If my address was on the blacklist and I used the BTC XMR exchange, what happened is that my bitcoin were transferred from my address to another address. It has not been mixed, and if the other person deposits it to CEX, it will be frozen because bitcoins are still blacklisted and can be tracked.

In the case of mixers, it is transferred through thousands of intermediary transactions, which means it is difficult to trace its blacklisted origin.

This can happen to you even if you are using normal mixer that is using BTC to BTC mixing, without any use of monero or other coins.

This is not true. When you mix your coins you will obtain them from many sources and thus you break its link with their blacklisted origin.

If we assume that what you are saying is correct, then before using the mixer your coins would have been 100% frozen, but after use there is a possibility that they will be frozen and a possibility that they will be accepted.

You'll encounter most of the challenges listed here even if you use a mixer. Swapping BTC to xmr and back to BTC provides a high level of privacy if you do everything correctly. Blacklisting addresses is one of the ways the government attacks BTC's fungibility and it is mostly people who use centralized exchanges and custodial services that are at risk of their funds being confiscated.

You did not understand what I am trying to say. It is true that you, as a user, broke the link between your old and new transactions, but the old transaction is still blacklisted and without mixing it you moved this problem from you to someone else.

[0t3p0t]

When you exchange XMR to BTC, you may receive Bitcoin from a blacklisted address. Will you exchange it again or use a mixer?

This can happen to you even if you are using normal mixer that is using BTC to BTC mixing, without any use of monero or other coins.
If you dont send coins to big exchange you will never notice is your addresses are blacklisted, and if you are that concerned just use monero or swap it with other altcoins.
I dont hear much about altcoin addresses being blacklisted, except for Ethereum and Tether.

Is this way even cheaper compared to availing mixing services? I tried this way back 2017 with Doge, Dash and it's pretty damn cheap. Same here I personally do not hear any rumors like addresses being blocked but CEX can freeze funds from it.

[fruktik]

The only privacy issue I see more about this is the use of IP address to convert from bitcoin to monero and back to bitcoin. Some people may not know that they should use Tor and the site that accepts it like https://exch.cx/ or that has in-built Tor like https://bisq.network/. There are mixer that may provide the service like https://mixero.io/ advanced mixing, although which is the only one that I know of.

The unijoin mixer can also provide its services through the Tor browser. There is even an onion link. Here you have anonymity that significantly surpasses all other mixing options. There would only be a desire to get to know this whole thing in more detail in order to have an idea of how it all functions. I started using the Tor browser quite often for such purposes and I don’t regret it. This is because I live in a country where there is a very strict dictatorship and such transfers to the opposition can lead to a long prison sentence.

[dkbit98]

When you exchange XMR to BTC, you may receive Bitcoin from a blacklisted address. Will you exchange it again or use a mixer?

It all depends if you are using this service and other exchanges correctly.
In case you are using centralized exchanges with kyc verification and exact same amounts of bitcoin and monero exchanges, than you could be identified much easier.
Few days ago one guys was traced and found in Finland for doing something like this:
https://cointelegraph.com/news/finnish-authorities-traced-monero-vastaamo-hack

[DAMKAR]

This can happen to you even if you are using normal mixer that is using BTC to BTC mixing, without any use of monero or other coins.
If you dont send coins to big exchange you will never notice is your addresses are blacklisted, and if you are that concerned just use monero or swap it with other altcoins.
I dont hear much about altcoin addresses being blacklisted, except for Ethereum and Tether.

I think mixer is good choice, but TBH I didn't used it yet.
I still used BTC XMR BTC.
It's really privacy transaction.
But for the next, I will learn normal mixer.
this is interesting to try. 
Because new projects are definitely good and safer, but I haven't had the chance to learn about them yet.

[ABCbits]

One of the suggestions to enhance your privacy (if you do not want to use mixers, Coinjoin Whirlpool or Jointmarket) was swapping your Bitcoin to Monero and back to bitcoin, but is your privacy definitely enhanced?

It depends on many things, including when you perform the exchange and whether the exchange keep logs or not.

I will pose 3 main challenges:

If your Bitcoin address is blacklisted, how will BTC/XMR/BTC solve this problem, because you are simply pushing the problem to the other user.

When you exchange XMR to BTC, you may receive Bitcoin from a blacklisted address. Will you exchange it again or use a mixer?

There is a possibility that you will receive the same BTC especially in the case of P2P or if the exchange you are using to exchange XMR has a limited BTC reserve.

Your thread asking about privacy, but those challenge is mostly about "tainted" and "clean" Bitcoin. As for receiving same BTC, it could be avoided by using different exchange and set some delay so BTC you owned in past already handed to someone else.

[bitmover]

If your Bitcoin address is blacklisted, how will BTC/XMR/BTC solve this problem, because you are simply pushing the problem to the other user.

If you transfer to another address with more coins, than transfer to another address and consolidating with more inputs, and so on, that blacklist address will simple disappear.

It is still possible to do that. As the blacklist is not in the blockchain level, but in third party services. Transactions still get confirmed.

[Yamane_Keto]

https://cointelegraph.com/news/finnish-authorities-traced-monero-vastaamo-hack

This is a good example. The user has done the following

• BTC to Monero (non-kyc)
• Monero to Binance
• Binance: Monero to BTC

However they managed to track him down.
The details have not been disclosed but it is a good example because BTC XMR BTC may not properly enhance your privacy even though the steps taken are correct.

If your Bitcoin address is blacklisted, how will BTC/XMR/BTC solve this problem, because you are simply pushing the problem to the other user.

If you transfer to another address with more coins, than transfer to another address and consolidating with more inputs, and so on, that blacklist address will simple disappear.

It is still possible to do that. As the blacklist is not in the blockchain level, but in third party services. Transactions still get confirmed.

It is true that you can send from a blacklist address, but if you send it to KYC service and they decide to track you in the future, then they will be able to arrest you. Altcoin or XMR exchange does not break the onchain as much as mixers or coinjoin do.

[bitmover]

Altcoin or XMR exchange does not break the onchain as much as mixers or coinjoin do.

Ofc they do.

Let's suppose you have 0.5 btc in address A.
Then you send 0.5btc  to address B (swap service) and then you receive some XMR.

Then you swap again XMR to btc.
You send XMR and receive 0.5Btc from address C(swap service) to your address D.

Your address D contains other coins, totally unrelated to the "blacklisted " address.

[dkbit98]

However they managed to track him down.
The details have not been disclosed but it is a good example because BTC XMR BTC may not properly enhance your privacy even though the steps taken are correct.

This can only be done with help of big centralized exchanges like Binance, and maybe that is the only reason why they didn't delist monero yet.
Just to make it clear, nobody hacked or busted monero transactions, they just did the math for amount of bitcoins and they guessed it was him.
It's similar thing with bad address management in Bitcoin, it's much easier to make connections if you are using one address for everything.

[/size]Your address D contains other coins, totally unrelated to the "blacklisted " address.

[/size]
Exact same amount is the problem, and he used kyc exchanges, so it's obvious 
Maybe he used fixedfloat or something like that to exchange monero, and they also work with police, like they publicly confirmed.
Bust in his home computer and you find proof he used monero.
End of story.

[Yamane_Keto]

Your address D contains other coins, totally unrelated to the "blacklisted " address.

If this swap service implements blacklisting, your coins may be frozen, or at least they will cooperate with the authorities to provide your IP address and more about you.

If you use P2P, then again someone else needs to mix these currencies, otherwise the blacklist will move between several addresses and a deep analysis of the chain will link those addresses.