‹ CHAPTER 14, ALL LESSONS

MASTER · CHAPTER 14 · LESSON 3 OF 5

Privacy

Address reuse and coin control

What are the two simplest habits that protect your privacy? 5 min

Never reuse an address

A wallet can create a practically unlimited number of addresses from one seed. Giving a fresh address for every payment received costs nothing and stops anyone from linking all your payments by looking at a single address. Reuse also exposes the public key once you spend, which is a small extra risk in the long run.

Coin control

Your wallet holds several UTXOs, each with its own history. Coin control lets you choose which ones a transaction spends instead of letting the wallet pick. Spending two UTXOs together tells the world they are both yours.

  • Label each UTXO when you receive it: where it came from, who knows about it.
  • Avoid merging coins from an identity verified exchange with coins received privately.
  • Consolidate small UTXOs when fees are low, and only coins that already share a history.

What to remember

  • Use a new address for every payment received.
  • Coin control chooses which UTXOs to spend.
  • Spending coins together links their histories.

Quick check

You hold one UTXO bought on a verified exchange and one received from a friend. You spend both in one transaction. What did you reveal?

What is coin control?