I use mycelium Wallet and it has a master seed that makes new deposit and withdrawal addresses. What I do Is circle > HD wallet > market.
Is this horrible? Does this offer protection in any way?
Thanks for your advice/flames/trolls in advance.
[Inquiry] HD wallet and tumbling
I use mycelium Wallet and it has a master seed that makes new deposit and withdrawal addresses. What I do Is circle > HD wallet > market.
Is this horrible? Does this offer protection in any way?
Thanks for your advice/flames/trolls in advance.
[1 Points] Rassah:
[0 Points] BillTheCommunistCat:
Transferring between wallets before the market is not the same as tumbling.
When you tumble the blockchain is broken at the tumbler so no one can see where your coins have gone (i.e. a dark net market).
When you transfer to a wallet and then to the market the blockchain is unbroken so in theory someone could still track where you sent your coins.
HD wallets "tumble" by sending change to a newly created address. I.e. if someone knows that an address is yours, and you send money from it, it will go to two addresses, one the person you are sending to, and another being your change address. To anyone looking at the blockchain, they won't know which of those addresses is yours.
In this particular case, Circle knows your address you withdrew to, and market address may be known, especially if it gets busted. So there is a clear link from your circle account, to your address, to a possibly known market address, and subtract them all and your change address is known as well. To do any sort of tumbling with HD, you would have to send at least a few random transactions to yourself. Then at least you could claim that those coins were sent to someone else. But it's still not guaranteed, or the best way. Wait until Mycelium implements CoinJoin to do true tumbling, and for now use something like DarkWallet (which uses CoinJoin), an actual tumbling service, or as a last resort the blockchain.info tumbler. I don't shop at markets, but for privacy I create a throwaway addres on blockchain.info wallet, send money there, send it through their tumbler back to my wallet, and delete the address after I'm done.