While Monero remains the recommended cryptocurrency for darknet operations, some users need to work with Bitcoin. This analysis covers the practical privacy tools available for Bitcoin users and their significant limitations.
CoinJoin: The Standard Approach
CoinJoin is a trustless method of combining multiple Bitcoin transactions into a single transaction, making it harder to determine which inputs correspond to which outputs. Wasabi Wallet implements the WabiSabi protocol, which uses a cryptographic blind signature scheme to create CoinJoin transactions where even the coordinator cannot link inputs to outputs. Wasabi routes all connections through Tor automatically.
The Critical Limitations
CoinJoin does not erase the history of your Bitcoin before the mix. It only obscures the path forward. If your input to a CoinJoin was purchased from a KYC exchange in your name, that purchase is still on record. For users who acquired Bitcoin from a KYC exchange, a Bitcoin-to-Monero swap after CoinJoin provides substantially stronger forward privacy. For detailed guidance, see our Bitcoin privacy guide and our recommendation to use Monero where possible.