Cryptocurrency is often used by people who value their privacy and want to make their transactions untraceable. However, to achieve true anonymity, you need to make some additional effort. If you just transfer Bitcoin to the wallet of another person as it is, the transaction can be viewed with the help of specialized software, because the blockchain is public by its nature. Albeit the transaction is not tied to your identity directly, someone can use its size, time, and other info to deduct its nature. This is especially undesirable if you are transferring crypto regularly or operating large sums of money. To protect your private data and buy crypto anonymously, you will need to use a bitcoin mixer.
What Is a Bitcoin Mixer?
A Bitcoin Mixer, also known as a crypto tumbler, is a service that protects the anonymity of its users by mixing their crypto into the common pool, making each particular crypto transaction untraceable. There are various types of coin mixers on the market, but the basic principles are the same. When you want to conduct a transaction, you transfer your money into the pool along with the other users. Then the coins are mixed and divided before they come out and are sent to the target wallet. Consequently, it becomes impossible to trace who has sent coins to whom.
What Are the Types of Bitcoin Mixers?
To choose the right coin tumbler to buy btc anonymously, it will be useful to know what types of them do exist on the market. As for many other crypto-related services, one of the main characteristics is their level of centralization. There are fully centralized solutions, where you need to rely on your trust in the service provider, as well as decentralized bitcoin tumblers. Some coin mixers also use untraceable cryptocurrency for an intermediary stage of conducting a transaction to obscure its source and target.
Centralized coin mixers are easy to use and effective, however, they come with two potential risks. First, the centralized entity will know the data for each transaction. Consequently, the data can be stolen by hackers or revealed at the request of the authorities if it is required by law. Moreover, nothing prevents the owner of the tumbler from stealing users’ money, so it is of utmost importance to use a trusted service with an established reputation.
To avoid these risks and make it possible to buy crypto anonymously, Chaumian coin tumblers were created. They use a more modern technology, allowing users to collaborate without a centralized structure. Let’s imagine a hundred users wanting to hide the source of their coins. They will send some amount of crypto to the mixers. All transactions will be merged into one big transaction, and then everyone will get their money back. The system is organized so that the address of each user isn’t stored anywhere. The merged transaction is finalized only everyone gets their target money.
Is Mixing Coins Legal?
Mixing coins is sometimes associated with illegal activity, because, naturally, those who get money from illegal sources would want to use an untraceable cryptocurrency. However, the usage of bitcoin mixers isn’t restricted to this area. There are a lot of regular Bitcoin users who transfer their coins through mixers to protect their privacy without any illicit intentions.
However, you need to know that in some countries the usage of coin mixers is restricted by law. Such services may need to store information about the transactions or employ KYC procedures to prevent money laundering or other criminal activities. It is important to consult legal law before conducting any crypto operations.
How to Choose the Best Coin Mixer?
To find the best coin mixer, you will need to thoroughly read reviews on several resources that aggregate data about services working with cryptocurrency. Read the opinions of other users as well as terms of service. Pay attention to additional fees and other transaction details.
Using the right BTC mixer will help you to conduct your transactions safely while buying bitcoin anonymously. If you operate Bitcoins regularly, it will be useful to always have such a service at hand.
Angela Spearman is a journalist at EzineMark who enjoys writing about the latest trending technology and business news.