The way I look at it is, the more information is known about you the easier it is for someone or something to predict/manipulate you.
Now sure this can be beneficial to you if that someone/something is a looking out for your best interest or at least is looking for a mutual benefit solution. However the vast majority of the online world isn’t looking out for your best interest they just want your time and your money. Because of this I personally try and keep my data to myself.
I do my best to block ads and trackers and just be careful about where I am giving out my real information. I think this has helped me avoid buying crap I really don’t need and helping avoid scams as is hard to fall for a scam when they think your Name is Tommy Baker living at a Walmart address in California.
Being private I feel will also help you with social media addition. I spend less time on YouTube/Reddit/Lemmy or wherever if I am not logged in vs if I am logged in. Simply because my accounts are very personalized to me thus it does a better job suggesting content I would be interested in looking at. (Sucking up my time)