How is a privacy wallet any different from a regular one?Most people assume Bitcoin transactions are anonymous, but in reak sense they are not and anyone who knows how to look around can link balances to addresses and also link multiple addresses to one identity. Privacy centered wallets help to prevent this and maintain the pseudo anonymity of a Bitcoin user. They use features like coinmixing or joining, Tor, etc, to protect user's privacy.
Exodus for example, I dont think they collect your info. Let's say a government wanted to give a warrant for them to look into some random dudes wallet. Would they hand the info over or something or what?
If they do not collect info, then they technically cannot link an address to a random dude. Exchanges which requires users to pass KYC process are platforms bitcoin holders should avoid, as they request for vital personal information.