What is a Bitcoin Mixer (Tumbler)?
There is a list of users that run for bitcoin mixers; from ransomware users to dark market users. The environment is perfect for them and they actually bloom under bitcoin mixers. Even dubious digital operators love bitcoin mixers. However, we have to hit the nail on the deck. What are bitcoin mixers?
Well, this packaged software is meant to facilitate the prevention of tracing BTC transactions and they create a barrier for transaction influence. Bitcoin mixers, also called bitcoin tumblers, are ideal for specific users. Are these mixers legal? What can you expect from bitcoin mixing services and what can you expect from KYC/AML standards? These are some of the burning questions that will be answered below. The article will detail that and many more.
Table of Contents
What Are Bitcoin Mixers
In the introduction, we touched a little on the whereabouts of bitcoin mixers. In this segment, we delve a bit deep. Bitcoin mixers are basically ultimate solution grants. Traders and users have the opportunity to blend various coins, with another set of traders or users. This blending process is all done to motivate privacy.
Take note, while mixing, users bear anonymity and use “stand out” names, just like pseudo names on Twitter. You do not have to identify yourself entirely or revealing your true persona. However, some users have turned to other conducive and advanced blockchain analysis systems that clutch addresses on original identities.
The process is a bit risky because as traders mix more and more coins, they tend to divulge more and more of their personal details. This can create a loophole but inside the blending circles, it builds trust. Coin mixers can actually create a blur between the original identity and the address. The blur acts as a perfect hideout place thereby granting so much privacy and safety of digital assets.
Types Of Mixers
Over the years, there has been a sharp rise of bitcoin mixers which continue to take the industry by storm. From trusted solutions to centralized solutions, mixers have been grabbing much attention. Some of the best mixers are perfect examples of a lightning network of payment links.
Check out how Monero becomes this ultimate privacy feature for many blending processes. It’s a jungle of mixing features that contain an array of details. Let us delve into the most important bitcoin mixing sites available at the moment.
1. Centralized Mixers
As we have mentioned above, centralized mixers are perfect for privacy. By just agreeing to bitcoin payments, users are also able to send many coins in return. The only noticeable challenge is that people are unable to weigh or assess coins trickling in with those trickling out. Transaction trail is broken by such. All you have to do when you are a mixer is to put your guts on trust. Trust the level of privacy.
Bitcoin mixers are perfectly designed to trail the owner of the bitcoin while also revealing who sent and who received it. Very interesting indeed. Some might try to share information with the rest of the pack but it’s risky because you are also sharing your personal details. It’s jeopardy to privacy and, at times, you are not able to receive your return payment.
2. Chaumian Coinjoin Mixers
Apart from Centralized Mixers, there are Chaumian Coinjoin Mixers. At some point, Chaumian Coinjoin Mixers made a stride to let a huge group of traders post 0.1 BTC to a fresh address. This address they have total control of and then combine the 100 transactions to obtain a huge single transaction.
As a result, each member received 0.1 BTC and no one can actually see where they received it from. That’s what Chaumian Coinjoin Mixers are capable of. It is that ultimate merger that grants extra privacy, coins come from an anonymous participant.
Bitcoin Mixing Process
Now that we have settled the dust on what bitcoin mixers are, let us look at the process itself. What does it entail? Well, the process, as usual, bears a lot of anonymity but in actual fact blockchain observers have the chance to view the real identities of those mixing. Blockchain analytic devices and systems are able to track the correct address and this enlarges risks.
The connection between the exact identity and original address is made possible. But, below we have outlined key and cardinal steps that should be followed to ensure full bitcoin mixing processes.
In order to utilize Bitcoin tumbler, you should have:
- A tor browser or tor-enabled interface for mixing service links.
- Bitcoin and a proper wallet for mixing.
- Transition wallets
Firstly, link to a tor browser. Come up with a fresh wallet called a transition wallet.
Deposit into the transition wallet. The main reason behind the use of transition wallets is that posting bitcoin to a tumbler is very jittery.
Come up with another transition wallet, which is now the third. This is the last wallet to be created.
Blend all your bitcoin. Blending or mixing is all about transferring a blending address from the initial transition address. Guides of mixing allow traders to come up with measures. These measures include the location of your new bitcoin (second transition wallet) the period of mixing and the exact amount you wish to blend.
After all that, transfer the reward to the new second transition wallet. From then on, traders can actually utilize some of the bitcoin or they can send it to some traders.
Why Tumble Bitcoins?
The issue of tumble Bitcoin is emanated from Coinbase. Traders have been passing queries on why Coinbase uses gambling platforms. It has been an ongoing trend but Coinbase actually denied the trend while there have been reports of traders using the Dark Net to maneuver through the digital market. It is very dubious to pursue such because some of the prolific Bitcoin providers have actually shown displeasure on this trend. It’s a huge crime which will cost you a lot.
DNMs are very dangerous. One has to be extra cautious. This can actually be done by maintaining anonymity even on the public blockchain. If you are looking for a good identity hideout, you can use VPN or making your way through a browser that hides your true identity. You can blur or obscure your IP address in such a way that it is not visible.
Though such methods have been used by many traders, our main focus now shifts to Coinjoin or in other words coin tumbling (coin shuffling). Yes, there might be many altcoins that use this method but our main focus is on Bitcoin and how it can be used perfectly. What it does is that it blends the transactions together. Think of it as a deck of cards, how a live dealer shuffles and mixes them perfectly. That’s the same process but as the transactions are being mixed, the origin of the transaction is hidden though everyone gets their money.
Do not worry about where you can find a good mixing platform There are many platforms that blend your bitcoin through the hidden web. Check out Bitcoinlaundry, Bitmix, or Blockchain.info. Their interfaces are very friendly and appropriate. On the deep web platform, traders can maneuver their way through the use of Dream Market or Alphabay, the two most prominent DNMs around.
Is Bitcoin Mixer A Must?
It is two-sided really because if your main worry and aim is the issue of privacy, then it’s a must to use the tumbling method. Bitcoin tumbler does not only ensure maximum safety but also makes sure that BTC tokens’ origin is rubbed off while still maintaining that anonymous edge.
Yes, the tumbling method is an effective way of ensuring safety but it’s also a must that traders be extra cautious in everything they do.
Most Popular Bitcoin Tumblers
1. Bitcoin Mixer
It’s not only about mixing when it comes to Bitcoin Mixer but there is a whole lot behind the curtain. The same services found in BTC mixing are also found in LTC and ETH. How exciting it is to get an ultimate mixer ensuring privacy for the three best cryptos. The Bitcoin mixer is custodial. What does that mean anyway?
Well, traders can actually mix huge amounts of Bitcoin as compared to those sites which are non-custodial. Select your mixer of choice and the period blending. Mind you, the period of mixing ranges from 20 to 30 minutes. So this is how it all works, if you wait a long time, you are strengthening anonymity. All in all, the site exerts 2-5% of the fee.
Cashshuffle is noncustodial meaning that traders should expect decentralized mixing platforms. Bases of mixing include UTXOs that would have been inserted in your BCH wallet with those of other traders. Cashshuffle has mixed a lot of bitcoin, the amount of bitcoin mixed now stands at $40. Cashshuffle is compatible with many wallets including electron cash.
You can rather browse through the news.bitcoin.com site. The site boasts of details to do with mixing services. Check out how Cashfusion has been a result of a combination between services and Tor-integration. Whirlpool is also available to determine connections utilized by blockchain forensics in a bid to interlink on-chain transfers.
It is important to note out that noncustodial forms of BTC and BCH mixers bear their foundations on Coinjoin. Coinjoin is a jittery technique of joining many payments from many traders into one transaction. In the process, the origin is kept at bay. Since Cashshuffle is bound by Coinjoin, traders still have two special BTC mixers. The first one is Whirlpool while the second one is Wasabi Wallet.
These two are popular wallet integrates. Samourai Wallet developed and designed the Whirlpool wallet and it blends UTXOs with others while choosing from a total of three groups. These three groups differ, from 0.01, 0.05 to 0.5 BTC. In some cases, traders have 1 BTC so you use 0.5 BTC, the third variant. This means that your UTXO payout will be transferred in two circles.
The most exciting feature is that the fee charged is fixed and does not change even if you send BTC up to 10. Not only does it ensure a fixed fee charge but also takes few moments before completion. Very fast way of mixing BTC.
Next is Wasabi Wallet. It has been an unlucky phase for Wasabi because Samourai has been speculating that Wasabi does not offer reliable anonymity. Yes, Samourai has an extra edge over Wasabi but it’s very detrimental to shade Wasabi’s efficiency. Wasabi still remains that ultimate noncustodial BTC wallet.
It’s well-integrated and has conducive and appropriate privacy systems. Who can forget Plustoken (prominent hacking movement) attempt to chuck our many BTC through Wasabi but all was in vain because Wasabi is not that open. Wasabi is the best when it comes to the standard mixing of fair Bitcoin and that extended edge of anonymity.
Are They Legit?
The only mishap when it comes to Bitcoin mixers is the absence of set laws that govern the tumbling of Bitcoin. So in actual fact, it’s not a crime to use tumbling, although some digital vagabonds try to get tokens illegally using tumble.
Privacy And Security Tips
- The most important part when is how can one invigorate privacy and this can be done through the use of Tor Browser. It’s very efficient and has huge customer frequency, but if you are in need of extra strengthened operating systems, you can use TAILS. Make sure that the service does not keep cookies or in any way, personal details. Expect private burner emails because the crypto realm is anonymous.
- When it comes to notes, make sure that you format them after use. These notes include your personal ID, PGP guarantees, and blended IDs. The use of various wallets is all done to activate a low profile. It’s actually better than using a single wallet and it’s more tedious.
- Multiple wallets spread risk and you broaden your chance of gaining more. When coming up with new mixing voyages, make sure that you use new emails addresses and accounts. This shades off the chances of scamming.
- Now we move on to onion links. What are these onion links? Well, Onion links are hidden services that do not have SSL certificates. They have to be verified thoroughly because they can turn out to be a forgery.
Pros & Cons
To Secure Your Bitcoins
Bitcoin mixers are good at effecting anonymity by guaranteeing maximum security and protection of crypto assets. It’s different from open markets that are public domains meaning that every trader knows what you have in your wallet. Public domains have tracing probability meaning that traders have an idea of where the coins came from. This can be evaded by storing your coins in various wallets.
To Avoid Hacks
Bitcoin Tumblers are perfect ways of guarding against hacks. Bitcoin can be transferred in a whisker from one wallet to another without any chance of a trace. Hackers find it difficult to track down the Bitcoin movement but the best way to guard your crypto assets is by laying low. You are not only protecting your accounts and wallets but also guarding your transactions against clapperboard invasions and dusting.
Makes You Prepared for Unfavorable Regulations
Cryptocurrency is digital and until now there has not been a firm set of laws that govern transaction operations. Luckily, many countries across the world are trying to understand the whole cryptosystem and trying to propound laws. However, some have cast tough laws to regulate crypto. Thanks to bitcoin mixers, volumes of bitcoin can be kept at bay while identity is solidly managed.
It is unlike public Blockchain analysis. Users know how, when and how much bitcoin you have transacted. It’s a huge loophole because hacking chances are huge and high. Mixing services shade off that disparity while traders can enjoy maximum privacy and a perfectly guarded transaction history.
- Yes, we can say that bitcoin mixers are safe and sound but cryptocurrency is not a safe haven. It’s highly volatile and anything can twist to your disadvantage.
- Anonymity is a corrupt trend.
How fast is the bitcoin mixing process?
Yes, the mixing of UTXO with other users’ bitcoin is fast and you only have to wait for 30 minutes for completion.
What’s the difference between custodian and non-custodian mixers?
Well, think of non-custodian as a public crypto domain. A platform that has low privacy tags. Noncustodial mixers are more secure ways that create a huge identity barrier.
Bitcoin mixers are the ultimate way of keeping your crypto assets safe. Be it noncustodial or custodial mixers, they offer fair privacy but all you have to do is to create a defining line between the two. One of the important factors is that after using a set of wallets to mix UTXO, you have to change your wallet details because they can be traced. Bitcoin mixers are sort of digital clean houses. We recommend that you use a bitcoin mixer, it’s a way to go!