2.12 Node Privacy & Tor

Every time you check a Bitcoin balance on a public website or use a wallet that talks to a company's server, you're whispering 'I care about these addresses' to someone. Stack enough of those whispers together and outsiders can map your entire holdings.

Running your own node closes this leak. Instead of asking a third party 'what's my balance?', your wallet asks your own computer. Nobody else sees the question.

For extra privacy, you can connect over Tor — a free, volunteer-run network that hides which computer is making each request. Most modern node bundles (Umbrel, Start9, etc.) turn Tor on by default and give you a long hidden-service address you can paste into your phone wallet.

The combination — your own node + Tor + a privacy-respecting wallet — is what people mean by 'sovereign Bitcoin use'.