Most of the non-custodial crypto wallets are not private and know a lot about you.

In this thread, we’ll take a brief look into how privacy works in crypto wallets 👇

ℹ️ First, if you use a Bitcoin and Ethereum wallet of custodial type then your level of privacy is zero!

If the provider is hacked your funds are gone and personal data is leaked.

ℹ️ Most non-custodial wallets are very likely to know your balances, transaction history, approximate physical location, app usage times, etc.

ℹ️ If the wallet has Bitcoin support. Find out whether a wallet provider knows about your balances and transactions by looking up how the wallet interacts with the Bitcoin network. This aspect is explained here.

ℹ️ If the wallet has Ethereum and EVM (Binance Smart Chain, Polygon, etc) support. Since these chains keep data fully public there is no way to hide that. A wallet provider (as well as the RPC service it uses) can potentially map initial anon addresses to approx. physical location.

ℹ️ One solid privacy-preserving feature for a user when it comes to protecting real-world location data is to use a reliable VPN app or a VPN/TOR-enabled wallet. This would not address all issues but at least ensure that the user’s location remains hidden.

ℹ️ There can be even greater privacy leaks if the wallet has the following features:

a) 2FA via phone

b) buying crypto using the card

ℹ️ These can potentially expose users’ real-world identities & addresses. While there are good reasons for such features they do affect privacy negatively.

That’s all there is. Stay safe, stay private

Stay educated with Unstoppable Wallet