I see a lot of people mentioning this here, but this is not always possible.
Of course it is.
The most obvious reason, anyone participating in a signature campaign is receiving repeated payments on the same address for the duration of the campaign.
Then don't participate in signature campaigns. You say you want privacy, then why do yyou agree to engage in transactions with individuals and organizations that refuse to allow you the privacy you desire?
If you now use these funds to pay someone, this person could not only see the max amount of coins you have there currently or the maximum accounts you held there, but they could just google the address and find out your profile and ultimately source of funds.
Sounds like just one more reason (of many) that participation in signature campaigns is an absolutely horrible idea.
Either is fine. For small amounts that will only be in the wallet for a short period of time, and which wouldn't be hugely upsetting to lose, you might even find an account with a custodial service could be convenient.
What do you mean? You mean a wallet blockchain.info or whatever? I would prefer to avoid these.
blockchain.info, BlueWallet, Coinbase, it doesn't really matter just pick one. If you want to avoid them, that's fine. But the more restrictions you place on yourself, the more restrictions you place on yourself.
I say, "I want to go to New York, and there's no way to get there"
Someone says, "Take a train."
I say, "I don't like trains."
Someone else says, "Book a flight."
I say, "Flight's are too expensive"
Someone else says, "Drive a car."
I say, "Driving is too dangerous, many people die in car accidents every day."
Someone else says, "Walk."
I say, "It will take too long, see what I mean, it's just impossible for anybody to ever go to New York!"
Why?
What do you mean? for privacy, so when you pay someone they cannot look up your history.
I already explained that you can get some privacy without using mixers.
And when you spend your local currency, you never know where that has been before you received it either.
You mean cash? cash doesn't have an online permanent public blockchain to check a track record of transactions. If you mean bank transfers, well same thing, there's no public records.
My statement was in reference to your concern about "tainted" money. If you are concerned about "tainted" money, why do you care if the records are public? Tainted is tainted, and most of the cash that you use has been tainted in some way before it got to you.
And Bitcoin and crypto in general has just this bad stigma about it that regular transactions do not.
Among those that use crypto, there is no stigma. Among those that do not use. crypto, there is nothing you can do to change their bias, and it doesn't matter anyhow since you aren't going to be paying them with crypto.
If you don't want to use a mixer, don't use a mixer. If you want to use a mixer and believe that Bitcoin is fungible, use a mixer. If someone comes asking about the "source" of the bitcoins, tell them you used a mixer. If use of a mixer is illegal in your jurisdiction, you need to decide how you feel about non-compliance with that law.
I want to have a reasonable privacy, and when it comes to authorities, you just want to avoid raising any flags because they hate crypto by default.
As you've just pointed out, it's too late. The simple fact that you've "used crypto" is going to "raise flags". If that frightened, and you want to "avoid raising flags", don't use crypto. (And work to raise awareness in your community so that the authorities won't hate it by default anymore.)
In my jurisdiction, I find that the biggest inconvenience is the need to keep track of every satoshi acquired and spent so I can report every single transaction when calculating my capital gains for my taxes every year.
Yeah this is insane. They just do this to frustrate people even at the thought of using it for payments.
Correct.
Exactly. FALSE positives. Meaning, it doesn't really matter if you use a mixer or not. If an exchange wants to cause their customer "trouble", they're going to do it regardless.
Like I said, you want to avoid false positives. You don't want to deposit coins that raise chainalysis flags when depositing into an exchange and go through some audit of all of your related coins. I mean why would anyone want that? This is why im saying, mixing the coins, or receiving coins from an stranger and putting them into a centralized exchange where you are doxed is a mistake, same goes for paying someone with coins you just mixed that knows who you are, that then puts these coins into an exchange. An extra intermediate step here is required.
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Don't send your crypto to exchanges. If others choose to do so, that's their problem.