So my understanding is, you have a wallet, that wallet has a hash ID and thus is basically anonymous. But if someone connects that ID to you, you aren’t anonymous anymore.
I heard you should use a new wallet for every transaction. But if I send money to the new wallet from my personal wallet, won’t that be on blockchain forever? Thus making it identifiable? Or if I send euros/dolars to my new wallet, won’t that connect me to the new wallet?
It’s not. It’s at best pseudonymous. You are correct that every transaction is perpetually traceable. If you want anonymous crypto, look toward something like monero.