Benefits of Bitcoin Mixers | Bitcoinist.com
One of the attractive points of bitcoin transactions in the early days was anonymity. Users believed that sending and receiving coins without revealing names or physical addresses masks their transactions.
But that’s not how it works. These transactions are not anonymous as users think. Instead, they are traceable since the wallet addresses are on the blockchain – a public ledger. Anyone can track the movement of funds from one address to another. The only thing that remained hidden was the identity of the parties in the real world.
Unfortunately, it is no longer easy to trade in crypto without revealing your real identity. The only way to mask your transactions and remain anonymous is by using Bitcoin mixers or tumblers. Keep reading to understand these services, how they mask your identity and transactions, and what types are available.
What are Bitcoin Mixers and Why Use Them?
Bitcoin mixers are services or (software) that collect many bitcoin transactions and mix them before sending them out to the target destination. The idea is to hide the identity of the senders or how much each of them sent.
After mixing and sending these BTCs, it becomes impossible for anyone to trace them back to the original senders and receivers. Any attempt to trace these transactions will only reveal the mixer’s address as the recipient or sender of the transaction.
Why Use Bitcoin Mixers
The first reason to use mixers or tumblers is to be anonymous. With rules like KYCs (Know Your Customer) and AML (Anti Money Laundering), government agencies can easily trace bitcoin transactions to real identities. Many crypto exchanges require users’ personal information and proof before using their services. So with users’ actual data linked to their addresses theirs, all their transactions will be linked to them.
- Alternative to privacy coins
Due to the need to remain private in crypto transactions, developers created privacy coins to protect users. But now there are also many countries that are cracking down on the use of privacy coins. For example, regulators in many countries, such as Japan and the European Union, have taken steps to ban privacy-enhancing cryptos.
Recently, Dubai launched its crypto regulation, defining anonymity-enhancing cryptos as troublesome since they are untraceable and can facilitate illegal activities. As such, it banned privacy coins like Monero and others onshore.
So if you are in a country that bans privacy coins, bitcoin mixers will be your best option.
Types of Bitcoin Mixers Available
There are two main types of bitcoin mixers, centralized and decentralized.
These are private services or software that mix users’ BTCs. One such centralized mixer is Blender.io. The service receives many BTCs from different customers in its address, mixes them and sends new coins to their respective recipient addresses. But note that users have to pay a fee and fill out a form containing the recipient’s address and other details.
The downside to using a centralized mixer is that one device runs it, creating a single point of failure. Any network shutdown or hack attack leads to loss of assets. Also, the mixer can steal assets or store users’ data and share it with third parties.
Decentralized mixers are edgeless and permissionless, given that they are peer-to-peer protocols. Some of the popular ones include CoinJoin, Samourai Wallet, etc. In this software, the mixing process is automatic, requiring multiple participants to send their BTCs to a single address.
A good thing about using a decentralized mixer is lower service fees and automatic mixing. But the disadvantage is that the users’ transactions can be traced back to them through elimination if there are few participants.
Mixer.Money, brings true anonymity to your crypto transactions
Mixer. Money gives users the flexibility to choose the preferred degree of anonymity for their crypto assets. Conventional tumblers typically mix cryptoassets from multiple users to obscure transaction records. Although effective, the involvement of a limited number of users at any given time on a conventional mixer increases the likelihood of assets or transactions being traced to a small pool of wallets. To prevent such a scenario, Mixer.Money includes the “Complete Anonymity” feature based on Jambler-powered bitcoin.mixer 2.0 algorithm.
To deliver complete anonymity, Mixer.Money sources crypto assets from a huge network of independent traders with accounts on crypto exchanges. The output transactions from such exchanges received by these traders are acquired by Mixer.Money and scored for reliability before being added to the reserves. The scoring mechanism also helps the platform identify any contaminated assets and reject them outright. Those assets that pass the scoring mechanism are then held in transit wallets, to be randomized and delivered to users in complete anonymity. Meanwhile, the assets deposited by users of the full anonymity mode will be mixed and delivered to those who choose the standard mixing mode, while the rest will be transferred over the network of crypto exchanges.
By ensuring the delivery of randomized crypto-assets originating from trusted sources, Mixer.Money ensures complete anonymity of transactions.
Learn more about Mixer.Money at –
Photo by Pew Nguyen
