It would be much better to exchange the BTC to Monero or Zcash, and exchange it back after a while. You can use
decentralized exchanges or semi centralized providers like
ChangeNow.
There are some quick notes what you need to consider and how you can be tracked, loosely ordered on the easiness of tracking you:
- Address. Example scenario: You exchange BTC from address A to Monero on address B, and then you exchange Monero from the same address B to Bitcoin to address C. In this case, if you used the same service provider it is easy to track you or even if you used two different services a comparison of the two data pools can lead to deanonymization.
- Fingerprint. Using the same browser fingerprint and/or IP address on the same or different services. Again, the risk here is data pooling between services whether by the service providers themselves or by third party analytics.
- Amounts. Exchanging the same amounts can provide a limited or non existent anonymity pool depending on the specific of your situation. A simple example. If you exchange 0.1 BTC to Monero today which is about 32 XMR now, and then you exchange 32 XMR tomorrow back to Bitcoin you lose any anonymity there as it is clear that it the same entity.
- Timing. Timing is extremely important and in the short term destroys any anonymity that you may get. However, it can be considered also for longer periods of time when combined with other data. A short term example is given. You exchange 0.1 BTC to Monero which is about 32.12 XMR. You split it into two addresses of 16.06 each to avoid amount correlation attacks, and then you proceed instantly to make two exchanges of 16.06 XMR minus the fees back to Bitcoin. The likelihood that this is the same entity is extremely high.
- There are probably a few others, but these are the major ones that to mind first. Maybe I should consider writing a thread about it..
Depending on the
anonymity that you require or need, something like this should be your flow to maximize your anonymity set.
- Two browsers with different fingerprints and different proxies or VPN IPs. Make sure that you use IPs that you normally do not use from your VPN or proxy provider.
- Two different services, one in each browser. Whether from the KYCNOT exchanges or semi centralized providers like ChangeNow.
- Swap to Monero using 1 service. Split to new addresses in random amounts, avoid address reuse.
- Wait for time to pass, the longer you can wait the better it is. This is entirely up to you but longer is better, we are talking about days or weeks if possible. Keep in mind that you are exposed to exchange rate fluctuations here, but if you value the anonymity gains or require it then that is the cost to pay for this.
- Swap back to Bitcoin using the other service, optimally each swap should go to a new Bitcoin address.
This is more like a base, very strong anonymity setup. You can make each point deeper, mix and match to your preference. I can't tell you how many splits are required or how much time you need to wait, generally more is always better. Just be mindful of costs, and basic errors. Research each point, understand what you are doing. If you have superficial knowledge of this topic, you will do some things and have a false sense of accomplishment and anonymity. It may come back to bite you in the long future, depending on what you are doing and why.