How to remain pseudo-anonymous
There are UTXO-based Blockchains (Bitcoin, Litecoin, ...) and there are Account based Blockchains (Ethereum, Solana, ...).
The problem with most of the UTXO-based Blockchains is that all transaction data is public on their blockchain, which means that, any person, government, or entity can look up historical transaction data and use this against you. The blockchain is immutable so all data is stored permanently.
This is the reason you might want to use MWEB for Litecoin, do CoinJoins with Bitcoin, or use Tornado Cash for Ethereum (including L2's) blockchains. Or maybe you take it one extra step and use Monero or ZCash protocols which provide security features by default.
Ethereum Tornado Cash
I think this is one of the most controversial ones as the authors went to jail and the FBI has a list of Tornado Cash contracts. Anyone interacting with such contracts might get rejected from popular American-based (central) exchanges like Binance or Coinbase. (luckily we don't need these)
The website is at tornadocash.ws, make sure to save your 'deposit notes' safely and keep the funds inside the contract for some time as other people will add their funds before you take out, creating a great set of anonymity.
Litecoin MWEB
The Litecoin "Mimble Wimble Extention Blocks" is kind of like a second blockchain but it can be modified to 'trim' historical transactions while keeping a consensus. I am not going into too much detail, but at the time of writing, the protocol is relatively new in Litecoin and can only be used with the official Litecoin Core (desktop/PC) wallet software.
Monero & ZCash
Monero provides 'stealth addresses' along with 'ring signatures' to create a fairly strong anonymity set by default. ZCash can do something similar but special 'stealth address' options must be explicitly enabled by the user. The big benefit of 'stealth addresses' is that only the owner (the entity with the private keys) can see how many coins a given address holds.
Date: 30/11/2023
Author: Principal Vagina