an example would be to use Metamask wallet. You OWN your keys/crypto...you can make several wallets or thousands of addresses. from within the app (or other dex sites) you can swap token to token anonymously on a decentralized exchange (meaning no custodian). Example, I own 1 eth in metamask wallet:
- I can swap that 1 eth to several other ERC20 tokens (link, aave, omg, even wrapped BTC which is 1:1 with BTC).
- I can swap to any stablecoin since most stablecoins are an ERC20 (tether, USDC, REN, sUSD, or my fav DAI)
- You can also swap to anon tokens which there are many on erc20 platform for even more ANONYMITY.
If this was regular transactions on coinbase or any KYC'd exchange.... THE GOVT "can" see all the transactions above and tax you for each Tx.
Does that help?