A cryptocurrency is an excellent option for performing safe transactions digitally. You can make online payments without a high risk of losing funds due to the unreliability of the site. Bitcoin, Ethereum, and other coins are also suitable for investing and making a profit.
However, your identity can be revealed when performing a cryptocurrency transaction. Luckily, you can improve your security by using a Bitcoin Tumbler or Blender. If you want to know whether these two things are the same, you can continue reading.
This guide will cover everything about Bitcoin Blender and Tumbler. You will also learn about the risks associated with different types of Bitcoin Blenders.
Bitcoin Blender and Tumbler: Are they the same?
A Bitcoin Tumbler is the same thing as a Bitcoin Blender. The two names are interchanged to refer to the same action of mixing cryptocurrency. So you should not get confused when seeing these two terms on different platforms.
Another name for a Bitcoin Tumbler is Bitcoin Mixer. Blenders, tumblers, and mixers are software that allows you to prevent your identity from being revealed when performing a cryptocurrency transaction.
Typically, you will come across centralized and decentralized Bitcoin Tumblers on the market. The two platforms allow you to enhance your security in slightly different ways.
What is a Centralized Bitcoin Blender?
A centralized Bitcoin Mixer will allow you to send your cryptocurrency to a specified address. This address is given by the company you are using for mixing. You will also enter details of how much total money you want to withdraw and at what time.
The service will program the transactions with random amounts at different times. It will split your total withdrawing amount into multiple exchanges at different periods.
So the money will be sent in small amounts to prevent the deposit and withdrawal figures from being the same. This will ensure no one can track the money easily by matching the amounts.
What are the Risks Associated With a Centralized Bitcoin Mixer?
A centralized Bitcoin Mixer mainly has two risks you must know about:
A Third Party will be Involved
The primary risk of a centralized mixer is that an external party will be involved in the transaction. You will send money to someone else to enhance the security. This means that the company or the individual may steal your funds.
What’s so worst is that you will not be able to do much about it. Of course, you can make things safer by researching the centralized tumbler before using it. A well-reputed platform that is registered with FinCEN is the best option.
Logs May be Recorded
Another significant drawback of a centralized tumbler is that logs of the transactions may be kept. Some platforms keep records for debugging purposes. Meanwhile, others may store the information to sell it to government agencies, blockchain companies, and other businesses.
You must be wary of using a centralized Bitcoin Mixer for mixing coins. The safer option for improving your security without compromising on privacy is choosing a decentralized blender.
What is a Decentralized Bitcoin Blender?
Decentralized mixers such as CryptoMixer are more advanced mixing platforms. The money you deposit to the company is added to a digital mixing contract with no external party involved in the exchange.
This means that you will have complete ownership and control of the funds, reducing the risk of your money getting stolen. You can withdraw the amount after a specific period and send it to a recipient of your choosing.
What are the Risks Associated With a Decentralized Blender?
A decentralized blender is safer than a centralized platform. However, since it is also a technological innovation, there are some risks you must be aware of:
May be Difficult to Use
Using a decentralized Bitcoin Mixer like CryptoMixer may be difficult for a beginner. You may not be able to understand the instructions if they are in a concept form. Of course, this risk is not a significant problem if you’re well-versed in using technology.
You may also research the mixer or watch a tutorial on YouTube to use the platform easily. CryptoMixer is one of the top software with an easy interface for beginners and advanced users.
A Certain Number Of Users are Required
Mixing cryptocurrency requires funds from a high number of users to improve security. If only a few people are involved in a transaction, traceability can be easier for the government. Law agents may also use an elimination process to find information about specific exchanges.
The best thing about this risk is that it is easily avoidable by choosing a famous Bitcoin Blender. A popular platform is likely to be used by thousands of people. This means your security will be much greater, and traceability will be more difficult.
When Would You need a Bitcoin Blender?
Here are the top use cases of a Bitcoin Blender to understand its purpose better:
Buying Stuff From Merchants
When making purchases, tracking a transaction is easier when using cryptocurrency. Anyone can find information about your exchange if you used your digital wallet for the transaction. This is because you may have used the wallet on a site that performed know-your-customer checks in the past.
So your information will be present in different databases, making it easier for law agents to track you. A blockchain analysis can also find out about your past transactions and the funds you still have.
Using a Bitcoin Blender will remove the trade signature from the transaction. This means no one will be able to know the money came from which wallet. You can use a mixer if you don’t want others to know about your past and current transactions.
When you hold Bitcoins or other cryptocurrencies for long-term purposes, it is called holding. The primary purpose of this act is to wait until the value of the coins increases. Of course, you must protect your stored currency from hackers and people who may steal your funds.
As a holder, you can protect your funds better by sending them to a reliable mixing contract using a decentralized mixer. You can then transfer the currency to a new wallet that has not been used for transactions before. This will offer more security because records of the wallet will not be present in databases.
Using a Hot Wallet
In the cryptocurrency world, a hot wallet is a wallet that is connected to the Wi-Fi or cellular internet always. Such a wallet is more susceptible to hacking and ransomware attacks. This is why it must be protected using advanced methods.
A cryptocurrency tumbler allows you to protect your hot wallet more easily. You can keep the wallet away from prying eyes by using a blender for your transactions. This will reduce the number of times your wallet appears on a database.
It will also prevent hackers from knowing that your wallet is currently active and contains funds. You may also scatter the money to new wallets with no transaction history for anonymity.
A Bitcoin Blender and Tumbler are the same things, so you must not get confused when finding a mixer for your cryptocurrency. Be sure to take safety precautions by researching a platform thoroughly. Avoid sending all the money to the mixer when testing a new platform. These methods will make your experience safer and better.