Hey guys,
I know for the sake of privacy we should use a different BTC address all the time for receiving.To be very honest, I set a DCA from an exchange and I send all my BTC purchases to the same address.
But I also spend BTC time to time, and I spend from the same address, as I always have some BTC there. I have recently read that my private keys can be extracted because of this reason.Bitcoinmagazine: [https://bitcoinmagazine.com/technical/for-better-security-do-not-reuse-bitcoin-addresses#:~:text=Reusing%20Bitcoin%20Addresses%20Can%20Lead,can%20result%20in%20negative%20outcomes.&text=Only%20using%20Bitcoin%20addresses%20one%20time%20is%20best%20practice.,-By%20using%20addresses](https://bitcoinmagazine.com/technical/for-better-security-do-not-reuse-bitcoin-addresses#:~:text=Reusing%20Bitcoin%20Addresses%20Can%20Lead,can%20result%20in%20negative%20outcomes.&text=Only%20using%20Bitcoin%20addresses%20one%20time%20is%20best%20practice.,-By%20using%20addresses)
Is it true? Should I abandon my current BTC accounts and create a new seed? (Wallet: Ledger)
Thanks in advance for the replies.
Note: I will not respond any chat requests.
“The possibility to be anonymous or pseudonymous relies on you not revealing any identifying information about yourself in connection with the bitcoin addresses you use. If you post your bitcoin address on the web, then you’re associating that address and any transactions with it with the name you posted under. If you posted under a handle that you haven’t associated with your real identity, then you’re still pseudonymous.
**For greater privacy, it’s best to use bitcoin addresses only once**.”
Satoshi Nakamoto, 2009
I do not think it is that bad especially if you are holding long term, using it as store of value and not planning to spend it.
Using same address has its advantage during the exchange panic this year. Exchanges were delaying the confirmation of new addresses and it was safer to just reuse the existing whitelisted address to get your bitcoin out of the exchange.
You should stop doing it though and plan out your wallet distribution. New address each time for very small DCA amounts is a nightmare. Personally i create a new address every 2000$. Wallets act like dollar bills, it is up to you how much you want split them.
You do not need to get a new key. You just need to generate a pass phrase. 24 words + pass phrase = new unique private key.
Read this:
https://blog.coinkite.com/everything-you-need-to-know-about-passphrases/
Wasabi Wallet or Joinmarket will help u
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The seed is not affected, the private key gets weaker when you reuse the address after you first spent from it so to be fine you can send everything left on the reused address to a new address.
Reusing addresses is one of the worst things you can do in terms of privacy, more so if your coins are KYC.
At the end of the day your coins are still yours but you risk the data on the exchange being leaked and somebody knowing how much BTC you have pretty easily as everything is in the same address.
You’re good until quantum computing becomes a thing. Private keys can be derived from public keys by a quantum computer due to ECDSA not being quantum resistant and by reusing addresses your public key becomes public knowledge after the 1st outgoing transaction.
By the time quantum computing becomes a thing then they won’t immediately go after your bitcoin though, there’s hundreds of thousands of old forgotten bitcoin that hasn’t moved in ages (actual bitcoin, not dollars) up for grabs. Back in the day the public key wasn’t even hashed so even bitcoin that has never moved is up for grabs (today public key only becomes public knowledge after 1st outgoing transaction)
You will not hide much on the btc chain, unless you mined yourself a whole block back in the day.
Are you screwed like how? Getting hacked? Getting Arrested? Retaining your anonymous personal life? I setup my exchange accounts with MFA and then require a known BTC address for withdrawals which require 7 days of lead time to add a new address. I would probably spend using a separate address though just because it is easy enough to do.
There’s no loss in privacy if you keep sending from the same exchange to your own “static” address.
Because you’re just saying the same thing:
– This exchange paid to address A
– This exchange paid to address A
– This exchange paid to address A
– This exchange paid to address A
etc…
That’s all that you’re revealing.
If address A is linked to your real world identity then all the world will known when you got “paid” and how much.