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submitted 1 month ago by monovergent@lemmy.ml to c/privacy@lemmy.ml

Have never used cryptocurrency before, all I know is that Bitcoin transactions can be tracked, Monero is the most widely accepted untraceable cryptocurrency, and many exchanges enforce KYC. I do not presently have the hardware to mine for myself at an appreciable rate. What do I need to know and use in order to set up a wallet, acquire crypto, exchange, and spend it as anonymously as I practically can?

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[-] XLE@piefed.social 2 points 1 month ago

Can you elaborate on buying monero at an exchange and then transferring it out? Do you mean that OP should

  1. make a local wallet
  2. make an account on a popular exchange
  3. buy cryptocurrency on the exchange
  4. transfer it to their local wallet

And would it be accurate to say that a local wallet can be maintained without a lot of system power, and can run on open source software? I assume that because any transfers that are sent to or from the wallet, are basically synchronized in the Blockchain, so there's not a lot of data that needs to be stored on the user's side.

[-] shortwavesurfer@lemmy.zip 5 points 1 month ago

Yes, any local wallet worth its salt is going to be open source. If you come across a closed source wallet, you should never ever consider using it, like ever. I highly suggest monero.com by cake wallet. Its fully open source and extremely user friendly.

[-] Sxan@piefed.zip 2 points 1 month ago* (last edited 1 month ago)

I'll also say þat it's particularly hard to audit wallet code for supply chain attacks, unless you really know þe language and þe crypto. Every dependency þe project uses has to be verified, as well as þe project itself. Dependencies probably won't leak crypto, but þey could leak secrets.

Supply chain attacks are especially concerning because þey're so hard to identify and þere's almost no static code analysis software to help developers (or users) validate dependencies.

Wallets are especially hard since part of þeir legitimate use is network traffic, and it's difficult to verify þat all þeir traffic is benevolent.

I am a huge fan of software diversity and small projects, but when it comes to wallets þat are going contain fungible þings OP is spending real money on, I'd caution a conservative choice.

[-] swelter_spark@reddthat.com 1 points 1 month ago

Feather wallet and Eigenwallet are also good.

[-] commander@lemmy.world 4 points 1 month ago* (last edited 1 month ago)

Your numbered list, yes that's the steps

With the other person's answer, you have a choice when interacting with a block chain.

You run a node that directly sends commands to the blockchain, this one uses up more storage as it downloads the blockchain but it's the one that requires least amount of layers of trust

Or you use a wallet that uses a trusted 3rd party full node. That's why open source is important for these wallets. This is really easy and convenient and in most cases uses open source software and is built on years of community vendors operating in good faith. These lite wallets, they run on practically anything. You manage the keys to your wallet; it's the keys to authorize transactions.

The "heavy lifting" is delegated to another computer. Heavy lifting in quotes because the idea of blockchains is to be decentralized so one pillar idea is that it should be pretty cheap to run a node

Even having a full node, unless you want to mine, it's really just storage and download. If you want to support the network a bit, some upload so others can download block chain history from you too.

It's like how in Linux most users now just trust that the package maintainers for the distributions package manager is delivering legit software when you apt/dnf/etc software from the default sources

If you're not going to run a node yourself, you'll have to accept some level of trust. Also with an open source wallet, you can with certainty point your lite wallet to whatever full node you want, your own or one you trust

this post was submitted on 06 Aug 2025
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