If you’re looking to keep your Bitcoin transactions private, a mixing service (also known as a tumbler) can be a great way to do it. By sending your coins through a mixer, you can break the link between your old and new addresses, making it much harder for anyone to trace your activity.
Bitcoin is currently enjoying a big boom in popularity. People are suddenly getting it, depositing it and using all sorts of interesting apps to access their cryptocurrency. However, with Bitcoin’s popularity and the recent scandals, people are being encouraged to think more carefully about their Bitcoin transactions.
At the same time, Bitcoin has some amazing features, which allow users to keep their bitcoin transactions private. Using the features of the Bitcoin network, a user can hide his transaction’s origin and destination addresses. It does this through mixing.
What is mixing?
A mixer is a service which allows users to combine their coins together so that when they send them to another address, they won’t reveal the transaction origins. The user of the mixer service receives their own coins, plus those from others (who may have used the same service). Then, the user sends these coins to a receiving address, which is not known to any of the initial users. This address does not belong to any of the users, but to an anonymous third party service. The service decides who gets the coins, and notifies them.
There are a few things to look for when choosing a mixer:
– Reputation: Look for a mixer with a good reputation. There are many scammers out there, so it’s important to do your research.
– Fee: Most mixers charge a fee, typically around 2-5%. Make sure you understand the fee structure before sending any coins.
– Anonymity: Some mixers offer more anonymity than others. If privacy is your main concern, look for a mixer that doesn’t require any personal information.
All Bitcoin transactions have a public address which the mixer will show to users. But, not everybody knows the public address. Similarly, the recipient cannot identify his public address.
A mixer tries its best to ensure that the anonymity is respected. However, it is impossible to guarantee perfect anonymity. A Bitcoin mixer does not claim to offer complete anonymity. They do their best to hide the identities of both the sender and the receiver. But, it’s possible for a Bitcoin mixer to reveal identities. The receiving party could discover that the sender is a public address, and track back to the user. Once you’ve found a reputable mixer, simply send your coins to the mixer’s address and they will be mixed with other users’ coins. The process usually takes a few hours, after which you’ll receive your coins back at a new address. That’s it! Your transactions are now much more private.