Does using supplied hardware wallet software damage the privacy o Non-KYC coins?

[billllib]

Hi all,

I recently read the following:

„You may already have a wallet, but as I mentioned, if it has ever connected to a public node, the addresses in that wallet are not private (even the empty unused ones), so sending private coins there damages privacy.“

Source:
https://armantheparman.com/cj/

My current situation:
I have a hardware wallet (Bitbox02), which I use as cold storage. After I bought some no-KYC coins at Bisq, I transferred them from Bisq to the Bitbox. From that point on, I have used the Bitbox software, which connects by default to the Bitbox servers.

Note:
Although my setup includes a Bitbox wallet and their software, i suspect that my question applies as well for other HWW makers and their specific software.

My question:
– Does that now mean that the privacy of non-KYC coins has suffered?
– If so, what should I do instead?
– Run my own Bitcoin Core server and connect the Bitbox software to it?
– Or even use a software wallet (I already know Sparrow wallet a little) and connect it to my BCC server?

(Side note:
I have a second HWW (another Bitbox02), on which I store some KYC coins from my first Bitcoin days. So, I keep my KYC coins separate from the non-KYC cons. For them, of course, I use the Bitbox software as well, but I think that shouldn’t be a privacy issue since these coins are already KYC.)

Thanks for answers!

[satscraper]

~

BSQ tokens  are nothing more than colored BTC which outside bisq network look like as ordinary bitcoin. Thus Bitbox servers don't  aware that you are  in possession of BSQ and  use bisq layer in your routine.

Regarding, your own  Bitcoin Core node. Yes, it is a good practice to   run your ow node as it preserves you privacy on both level bitcoin and  bisq. On default if bisq node at launch notices that you run your own Bicoin Core node it connects to yours. At the same time should you move your colored BTC to other address  Bitbox servers will be in total ignorance of your action.

[Pmalek]

Whenever you connect to an SPV wallet, like your Bitbox, any other hardware wallet's native software, or Electrum, you share certain information about yourself and your wallet with the owner of the node. The node operator will be able to see your IP, the balance in your wallet and individual addresses, and the list of funded and unfunded addresses. This is a privacy issue. The way around that is to run your own node or Electrum server and only connect to that.

[dkbit98]

– Does that now mean that the privacy of non-KYC coins has suffered?

Nobody can know what you did and how you connected your wallets, but this article you posted is about conjoin, not about hardware wallets.
It's always better to run your own Bitcoin node if you can, but that doesn't mean you will have everything private with Bitcoin.

– If so, what should I do instead?

Run your own node, and use Tor connection every time you connect your wallet.

– Run my own Bitcoin Core server and connect the Bitbox software to it?

I don't own Bitbox and I am not sure how it works with full nodes and third party wallets.
There is a page on Bitbox explaining how you can connect full node:
https://shiftcrypto.support/help/en-us/14-privacy/29-how-to-connect-the-bitboxapp-to-my-own-full-node

– Or even use a software wallet (I already know Sparrow wallet a little) and connect it to my BCC server?

That is hot wallet, unless you use it with offline computer.
I would never enter seed words from hardware to software wallet.