In 2022, a survey showed that 1 billion of the world’s population use cryptocurrencies. Users want confidentiality and anonymity in their daily transactions. Those who have basic knowledge of the BTC blockchain know the blockchain is entirely public, and anyone using blockchain explorer can know the real identity of the wallet holder. The blockchain records all crypto operations, including where, how, how much, and to whom you send money. Bitcoin mixer solves your privacy problems by splitting your BTC into different wallets. Financial privacy is essential, especially for those who live under oppressive regimes or wish to carry out legal transactions anonymously.
Let us explain Bitcoin and how they work and why we need Bitcoin mixers, the pros, and cons of Bitcoin mixers, and how to use bitcoin mixers.
Bitcoin mixers or tumblers
A bitcoin tumbler is a software that collects BTC from multiple users and then sends out different BTCs to their destinations. As the name shows, it mixes the coins and hides the actual address of the coins. For mixing coins, you are required to pay the service fee for mixing your coins. If you are interested in a BTC mixer and want to know how to use Bitcoin Mixer, then there is good news for you. It’s effortless to start. A person with basic knowledge of software operating and crypto can get started. It will increase your confidence in investing in crypto. Any mixer you use should be.
- registered with FinCEN,
- It fulfills and ensures that all reporting and record-keeping requirements.
- Implement a compliance program for anti-money laundering and knowing your customers,
Research the respective mixer you are using. Check the reviews of their service and their compliance with the standard-setting and regulatory bodies. Every country has different rules. Check what standards your government has set for using BTC tumblers. Go on the website of the tumblers to get information about their legality and compliance with standards.
Why do you need a Bitcoin mixer?
Users have a different identity from their real identity on the Bitcoin platform. But anyone on the internet can get information about your actual address and a complete record of your transactions using Bitcoin Explorer. If you want total privacy and anonymity, consider BTC mixers. If someone uses advanced tools to find your transaction address, they will see the mixer’s address. This tool will create hurdles for hackers because they will not be able to get your information.
How a Bitcoin mixer works
There are two different styles of working with BTC mixers: one is centralized, and the other one is decentralized. Both techniques disrupt the link between the real word identity and the wallet address.
These are privately owned software that mixes coins. First, you fill out the form where you specify the address of the tumbler. It will act as a third party between you and the recipient. You will send the money to the tumbler’s address and they will add the coins to the pool. After mixing, they will send new coins to the destination.
The decentralized mixer differs from the centralized tumbler because it requires multiple users to contribute to a single transaction, and they are permissionless and borderless. In decentralized mixing, your coins become a part of a vast transaction with multiple participants sending their BTCs to the specified address, but you will receive coins different from what you have sent.
How to use a BTC mixer?
Everyone having a basic knowledge of cryptocurrencies and modern technology can easily use a BTC mixer
- First, you will fill out the form where you will insert the address to which you will send the mixed coins.
- Choose the time delay slider and it will give you the freedom of the duration of the delay.
- Then you will choose the personal fee size by clicking on the customized free slider.
- Click on the mix button to mix your coins.
Most of the mixers do not keep logs, and tracking the transactions is a good thing for users considering them.
Pros of a Bitcoin mixer
The BTC tumblers help you keep a low profile while dealing with many cryptocurrencies. They enhance service privacy and anonymity of transactions.
Cons of a Bitcoin mixer
The transaction got delayed because it had to go through a process while being sent to the destination. But some have the option to set the duration for the delay.
A centralized BTC tumbler comes with a single point of failure because it runs by one entity. Unluckily, When the network gets shut down for any reason, you will lose all of your funds in the processing. At this stage, your coins will be at Risk of a hack. Few mixers take a record of the input and output of your transactions which results in information sharing for any reason.
The major downside of the decentralized mixer is your transaction can get back to you by eliminating your transaction address. Where mixes provide privacy to the other users, it also allows criminals to do money laundering and other crimes.
Mixers are the safe option for crypto transactions. Your transaction gets mixed in the pool of various coins. In this process, the actual address of your transactions gets eliminated. Where tumblers provide you service, they also charge you money. This software is user-friendly, safe, and does not require know-your-customer KYC checks. You only have to fill out the form to start your privatized crypto journey. For example, when someone wants to know the address of your transaction. The only information revealed will be that person A transfers money to the mixer, and the mixer transfers it to B. Then, no one cannot know to whom person A sends money and from whom person B receives money. It is an excellent invention for crypto investors. Make sure you choose a cryptocurrency mixer that follows the legal guidelines of your local government if interested in using one. We hope that your queries about the BTC mixer are solved.