**SHORT INSTRUCTION ON HOW TO USE LIGHTNING PRIVATELY**
Hopefully clear and succinct.
Follow these 5 steps:
1. Don't use UTXOs which are tied to your identity. So, coinjoin first! You can use any coinjoin implementation that helps, like Ashigaru's Whirlpool, Wasabi, Joinmarket or maybe even the newer ones like Joinstr which I haven't tried yet.
2. Send the coinjoined funds to an on-chain address which your LN Wallet provides. Now open an unannounced channel. Wallets like Zeus, Blixt and Phoenix will open unannounced channels by default and depending on which wallet you have chosen it will be done automatically for you.
3. Just spend, but be aware that, if you use Wallets like Phoenix, Phoenix will know your payments destination, thus I recommend Zeus or Blixt.
4. If you really have to receive, enable "Blinded Paths" if available. It may or may not work. If it doesn't work, receive anyway.
5. When you emptied your LN wallet, just delete it! Set up a new LN wallet to get rid of your static node identifier.
Go back to step 1 and repeat.
---
Last but not least, some hints and a warning:
- running your own LN Node (easily done with Raspiblitz for example) will always give you the best privacy
- use Tor or at least a trustful VPN provider
- wallets like Blixt don't use Electrum but Neutrino for scanning the Blockchain. You can connect to your own Neutrino server here as well. Make your own node ready for Neutrino by pasting these lines into the bitcoin[dot]conf file:
_blockfilterindex=1_
_peerblockfilterindex=1_
The building of the filter index may take up a couple of hours or half a day. After it's done, type the following in the terminal:
_bitcoin-cli -netinfo 4_
Pick the address with the port 8333 and paste it into Blixt.
---
⚠️ **Important caveat**
Be aware that the on-chain-address which Phoenix provided isn't controlled by you! Phoenix is briefly taking your coin into custody until the swap is done, but it is also possible that your coin may get flagged and frozen by Phoenix. If you want to avoid this, use wallets like @ZEUS where you really control the on-chain address and open the channel manually.
I hope it helps.
Feel free to ask, criticize or add some more information which I may have missed.
Hopefully clear and succinct.
Follow these 5 steps:
1. Don't use UTXOs which are tied to your identity. So, coinjoin first! You can use any coinjoin implementation that helps, like Ashigaru's Whirlpool, Wasabi, Joinmarket or maybe even the newer ones like Joinstr which I haven't tried yet.
2. Send the coinjoined funds to an on-chain address which your LN Wallet provides. Now open an unannounced channel. Wallets like Zeus, Blixt and Phoenix will open unannounced channels by default and depending on which wallet you have chosen it will be done automatically for you.
3. Just spend, but be aware that, if you use Wallets like Phoenix, Phoenix will know your payments destination, thus I recommend Zeus or Blixt.
4. If you really have to receive, enable "Blinded Paths" if available. It may or may not work. If it doesn't work, receive anyway.
5. When you emptied your LN wallet, just delete it! Set up a new LN wallet to get rid of your static node identifier.
Go back to step 1 and repeat.
---
Last but not least, some hints and a warning:
- running your own LN Node (easily done with Raspiblitz for example) will always give you the best privacy
- use Tor or at least a trustful VPN provider
- wallets like Blixt don't use Electrum but Neutrino for scanning the Blockchain. You can connect to your own Neutrino server here as well. Make your own node ready for Neutrino by pasting these lines into the bitcoin[dot]conf file:
_blockfilterindex=1_
_peerblockfilterindex=1_
The building of the filter index may take up a couple of hours or half a day. After it's done, type the following in the terminal:
_bitcoin-cli -netinfo 4_
Pick the address with the port 8333 and paste it into Blixt.
---
⚠️ **Important caveat**
Be aware that the on-chain-address which Phoenix provided isn't controlled by you! Phoenix is briefly taking your coin into custody until the swap is done, but it is also possible that your coin may get flagged and frozen by Phoenix. If you want to avoid this, use wallets like @ZEUS where you really control the on-chain address and open the channel manually.
I hope it helps.
Feel free to ask, criticize or add some more information which I may have missed.
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