What Are Bitcoin Mixers?
A BTC mixer (or tumbler) is a service that mixes different streams of potentially identifiable cryptocurrency, like bitcoin. This improves the anonymity of transactions, as it makes bitcoin harder to trace.
What are Cryptocurrency tumbler?
Cryptocurrency tumbler (Bitcoin Blender) or cryptocurrency mixing service is a service offered to mix potentially identifiable or 'tainted' cryptocurrency funds with others, so as to obscure the trail back to the fund's original source.
This is usually done by pooling together source funds from multiple inputs for a large and random period of time, and then spitting them back out to destination addresses.
As all the funds are lumped together and then distributed at random times, it is very difficult to trace exact coins.
Tumblers have arisen to improve the anonymity of cryptocurrencies, usually bitcoin (hence Bitcoin mixer), since the currencies provide a public ledger of all transactions.
A Bitcoin mixer (or Bitcoin tumbler) is a service that mixes different streams of potentially identifiable cryptocurrency.
This improves the anonymity of transactions, as it makes bitcoin harder to trace.
The bitcoin owner transfers the money to the mixing service, which mixes it with that of other users and transfers the mixed currency to the desired address, meaning there is no connection between the original transaction and this address.
The transaction amounts can be chosen at random so that the transaction is made up of many small partial payments spread over a longer period of time.
The mixing service usually charges a fee of between 0.25 and 3% of the amount to be mixed.
What is a Bitcoin Mixer (Bitcoin Tumbler)?
In spite of government efforts to tackle the prevalent issue of personal data privacy, hackers and other malicious users have discovered endless loopholes on the internet, thereby exploiting them to gain authorized access to the victim’s sensitive information.
Similarly, users of cryptocurrencies such as Bitcoin (BTC) have also expressed their concerns regarding the lack of privacy, especially when anyone can trace public keys and pseudonymous BTC addresses to specific real-world identities.
In order to address the privacy issues with Bitcoin, a growing number of Bitcoin investors have turned to Bitcoin Mixers or Bitcoin Tumblers to obfuscate their BTC transactions from malicious users and blockchain analytics companies.
Bitcoin Mixers, also known as Bitcoin Tumblers, are services that sever the connection between the user’s old and new address by mixing their BTC with other users in the mixing pool, thereby disassociating the original coins with the owner.
A good Bitcoin Mixer (Tumbler) could effectively make the user’s funds untraceable and anonymously.
To put it simply, it is akin to moving funds through banks located in countries with stringent bank-secrecy laws such as the Cayman Islands and the Bahamas.
A single misstep in your Bitcoin transaction process could expose you and your transaction data to bad actors, government agencies, and other unwanted entities who might pose a risk to your BTC funds and even your personal safety.
How to use a Bitcoin Mixer (Bitcoin Tumbler)?
It is possible using anonymity tools such as a Bitcoin Mixer to properly hide your Bitcoin transactions which could otherwise be viewed by anyone through blockchain explorers.
Hence, it is crucial to “mix” your coins in order to protect yourself from unwanted risks and threats from bad actors, since it is possible to link your identity from your original address with today’s blockchain analytics services.
- Step 1 - Visit the official Bitcoin Mixer / Bitcoin Tumbler site. Depending on your preference, you may visit the website using an ordinary web browser or the privacy-focused TOR browser.
- Step 2 - Set up your Destination Bitcoin (BTC) Addresses. You may assign up to 5 BTC addresses, time delay, and more to strengthen the anonymity of your mixed coins.
- Step 3 - Send Bitcoin to the Bitcoin Mixer (Tumbler). Send the amount of Bitcoins as indicated by the Bitcoin Tumbler to the address as shown on the page.
- Step 4 - Processing your mixed coins. Wait for the mixing process to be completed.
- Step 5 - View the status of the mixing process. Your mixed coins should be sent successfully and your transactions are now untraceable from anyone.
If you would like to know more about the Bitcoin mixing, do check out our guide on how to mix your Bitcoins to gain a better insight on the mixing process.
Bitcoin Mixer(Blender or Laundry) Review:
Today got me focusing my review lens on Bitcoin Mixer(Blender), a service that is hinged on anonymity; making crypto transactions untraceable.
Bitcoin Mixer(Blender) is a service that makes your transactions on the blockchain untraceable.
As you read further, you will get to understand clearly how this works with all the information concerning this service.
All suited up already? Great!
Let’s go do some Bitcoin Mixing!
Bitcoin Mixer(Blender) is a simple privacy tool that was launched in late 2015.
Its sole mission is to make transactions on the blockchain anonymous.
Now you might ask: I thought the transactions are anonymous already?
Nah… Pseudonymous is a more fitting word!
Transactions on the blockchain are pseudonymous. This simply means the person uses an alias or fake name, which, in this case, is the address.
This way, anyone with your address can still trace your transactions on the blockchain, which is an open ledger.
Bitcoin Mixer seeks to prevent this as it believes that privacy is a fundamental right of each person.
It does this by cutting the trail with the original address and giving you the same coins in your newly generated address.
The main focus is to ensure that the initial address trail is confused so no one can figure out the source.
It is also useful if you want to make donations or make P2P payments.
Let’s move on to learn further details about this service.
Features of Bitcoin Mixer(Tumbler)
Friendly user interface
Multiple coins support
Is Bitcoin Tumbling Necessary?
You’re practically anonymous, the fees are extremely low, transactions get confirmed within just a few minutes, and you don’t need to trust any single person or corporation.
That awesomeness, however, comes at a price. Namely, everyone with a copy of the full blockchain (which is freely available) can look into everyone’s transaction history, including yours.
Based on this, and some external information, others can deduce the owner of an arbitrary Bitcoin address.
You could send all your money to a new address and forget about the old one, but it’s a really thin cover; such an operation wouldn’t fool the potential person spying on you.
A good example is illustrated in a recently leaked memo where the U.S. Army and the National Security Agency sought to track cryptocurrency users by analyzing transactions.
And that’s where a Bitcoin tumbler service shows up to save the day.