Trezor is the first and sole hardware wallet that offers unmatched privacy to its users through the utilization of CoinJoin.
CoinJoin is a method of blending transactions, enabling multiple users to combine their funds into a single transaction. This process hinders the ability to trace the original sender and recipient of the funds.
Advantages of CoinJoin:
- Privacy: CoinJoin ensures a high level of privacy by obfuscating the identification of transaction senders and recipients.
- Anonymity: By blending transactions, CoinJoin thwarts attempts to trace the flow of funds, thereby preserving user anonymity.
- Protection against data analysis: The combination of multiple transactions into a single transaction makes it arduous to analyze the data and identify connections between addresses.
- Enhanced Financial Privacy: CoinJoin empowers users to safeguard their financial data from surveillance by third parties.
To activate CoinJoin, follow these simple steps:
- Add a CoinJoin account to the Trezor Suite.
- Click the “+” icon at the top of the “My Accounts” menu bar.
- Select “Coinjoin” from the Account Type drop-down menu.
- Click “Add Account.”
- If Tor is not enabled, follow the on-screen instructions to enable it.
- Your Trezor device will prompt for permission to access your CoinJoin account. Confirm by pressing the green checkmark button.
Upon completing this process, your CoinJoin account will be ready to receive funds. You can transfer any amount of Bitcoin to your CoinJoin account, ensuring separation from the funds stored in your “standard” accounts. Bitcoin intended for private transfers can now be sent directly from your CoinJoin account.
Please note:
- The recommended minimum amount for CoinJoin is 0.01 BTC or higher for optimal cost-effectiveness.
- Utilizing CoinJoin incurs a small fee of 0.3% of the transaction amount, in addition to the standard mining fee required for all Bitcoin transactions.
- Furthermore, using CoinJoin may result in longer transaction times due to the utilization of Tor, which introduces slower speeds but preserves IP address anonymity.
To maximize privacy, Trezor's CoinJoin feature also offers the option to activate the Tor anonymous communication protocol.
Tor (The Onion Router) is a network that ensures anonymity and privacy while browsing the internet. It achieves this by routing internet traffic through multiple nodes, encrypting and re-encrypting data, making it difficult to trace.
To enable Tor in Trezor:
- Click on the Tor activation icon located in the upper right corner.
- Verify that all Tor enable settings are active.
Benefits of Using Tor with Trezor
Anonymity and Privacy: Connecting Trezor to the Tor network conceals your true IP address and renders your transactions anonymous. This obstructs third-party attempts to track your activity and link it to your identity.
Disadvantages
Slower Speed: Utilizing Tor may lead to reduced internet connection speed due to traffic being rerouted through multiple nodes. This can result in delays when accessing websites and conducting Trezor transactions.