If you care about the security of your payments, you have probably already used cryptocurrency transactions. However, if protecting your identity online is important to you, it will be useful for you to learn what a Bitcoin mixer is.
Why May You Need A Bitcoin Mixer?
While Bitcoin remains a staple of the crypto market, if its users make transactions from one wallet from another, it may be possible to track the identities behind these wallets. However, Bitcoin being a public ledger means that everyone is able to explore the properties of a particular transaction. By their nature, Bitcoin wallets aren’t directly tied to the real-world identities of their users, but there are methods which allow interested parties to establish such a relation. Due to this reason, it would be incorrect to call Bitcoin transactions “anonymous”, while “pseudonymous” is a more correct term. Bitcoin Mixer, also known as the Bitcoin Tumbler solves the problem. It allows its users to hide their identity, making transactions fully untrackable.
How Does A Bitcoin Mixer Work?
As it was explained above, the sender and receiver in each Bitcoin transaction aren’t hidden. Everyone with a specialized software such as Bitcoin Explorer can view the properties of the transaction to get this information. However, if the transaction was made through a crypto mixer, it becomes impossible to track its source and find out who sent how much money. Essentially, such a service mixes the coins of one user with other transactions and then sends the desired amount to the receiving party. Consequently, the transaction is broken down into many small pieces, and it becomes impossible to track its real source.
Two Types Of Crypto Tumblers
There are two types of crypto tumblers on the market, which are centralized and decentralized. Both function in a similar way. You can understand them with the following metaphor: Imagine many users put their money into a box and fill in the name of the transaction recipient. Then the money is taken out of the box and sent out. This way, the money gets mixed up, so you cannot tell whose portion went to which recipient.
With centralized crypto mixers, there is a certain private entity (a service owner) who owns the box and distributes money among recipients for a small service fee. Usually, you need to fill in the form with the recipient’s address and then send the money to the service. There is no requirement to interact with other users. Decentralized mixers operate in a similar way. Multiple users pool their funds to combine them in one large transaction, and then it is distributed among the destinations. Such services usually have smaller service fees than centralized ones.
How To Choose A Bitcoin Mixer
Using a Bitcoin Mixer is essential if you aim for true anonymity when using cryptocurrency. The main drawback of using such a service is slowing down your transaction. You may need to warn your recipient that they will get the money a bit later because the transaction needs to go through the tumbler service. Moreover, some exchange services restrict or fully prohibit the usage of coins that went through obfuscated transactions due to laws against money laundering.
Consequently, it is necessary to choose a Bitcoin mixer wisely. Make sure it operates in the legal field and using it won’t cause problems for you. Study reviews on external websites and be wary of scams. Use only trusted services to protect the anonymity of your Bitcoin transactions to make your cryptocurrency transactions more secure.
Clearnet: https://tumbler.io/
Tumbler.io TOR MIRROR: http://tumbler222jbg3jjkr7zezg4xp6q3fmbqpjlk5cy4kqxvh5xfmxgosyd.onion