Bitcoin mixers offer you a unique way to not only protect your coins but also to protect your identity.
Another massive hit that some bitcoin users have taken is theft. Of the 21 million bitcoins in existence, and over 17 million already in circulation, it’s estimated that roughly one million of which have already been stolen.
In 2014, a massive heist took an estimated 850,000 bitcoins from trading platform MT. Gox, leaving thousands of traders without their coin, and without any way to gain it back.
Bitcoin heists aren’t uncommon. Using the same technologies that governments and corporations use to track users, thieves are able to make a sound guess at which accounts are the most lucrative to target.
Stealing bitcoin is no easy process, so thieves must focus on specific accounts. Namely, those that deal often and heavily. Using the blockchain analysis, thieves can readily predict which accounts are most likely to provide the biggest payoff for the massive amount of effort it takes to break into a bitcoin wallet and take coins.
What is a Bitcoin Mixer: What a Bitcoin Mixer Does
Whether you’re worried about keeping your finances private or keeping your coins secure- anyone that deals heavily in bitcoin should also be dealing with bitcoin mixing services.
Bitcoin mixers work similarly to fiat money laundering- except it’s perfectly legal. Let’s say you steal a million dollars from a bank. The bank is capable of tracing those specific notes back to users thanks to serial numbers. In order for crooks to keep their payload and use it too, they exchange the stolen currency for different currencies or goods. Making the paper trail far less traceable.
For bitcoin holders, your transactions and accounts are traceable in the same way that those theoretical dollars are. Governments and hackers can follow your transaction history by using analytical software to locate and track the key that is associated with your wallet.
To keep this from happening, bitcoin holders can “wash” their coin using a bitcoin mixer. This severs all ties your current coin has with anyone bitcoin wallet key. Making your transactions less traceable.
What is a Bitcoin Mixer: How Bitcoin Mixers Work
Bitcoin mixers work by taking macro transactions from a number of different users, then adding in some coins from other sources, and creating a number of microtransactions with the sum of the original coins.
These microtransactions are performed from any number of wallets that are then discarded following the mixing process. Effectively breaking the connection between any user’s wallet key and where they send their coins. These services also serve to break a connection between a user’s wallet and the address that they received their coins from.
Making it next to impossible for anyone to find out how many bitcoins a user has, where they got them, and what they do with them. Once again making bitcoin the anonymous currency that it was built to be.
What is a Bitcoin Mixer: Why Use a Bitcoin Mixer Now?
If you’re not engaged in nefarious activity, using the dark web or gaining decent money from online crypto gambling, why should you use a mixer?
Across the world, new legislation is being proposed and enforced for cryptocurrencies. Requiring taxation, accruing big data, and mapping consumer habits are all becoming subjects of extreme interest to the powers that be. Meaning that as cryptocurrency popularity increases, any transaction you’ve ever made with bitcoin could be subjected to scrutiny soon.
The best way to protect your anonymity is by using a bitcoin mixer. And anyone who uses bitcoin should be jumping at the chance to sever ties if they haven’t already.
While it is possible to use peer-to-peer mixing services or to mix coins yourself, the process is exceptionally difficult, and if done wrong could prove disastrous.
Mixing services often offer guarantees that you will never come in contact with your original “tainted” coins. It also prevents the user from needing to create more than two wallets in order to effectively clean coins.
Choosing a bitcoin mixing service, users should be just as wary as when they choose trading platforms or wallet providers. With the right bitcoin mixing service, your coins will not be stolen and your anonymity will always be the greatest priority.
What is a Bitcoin Mixer: Bitcoin Mixer Use
To use a bitcoin mixer is simple. Users only need to create two wallets: one to purchase the bitcoin with, and another wallet to transfer the clean coins to. Once coins have been purchased, users then transfer the desired amount to be mixed to the mixing service.
The mixing service then moves coins around from hundreds of different users, into thousands of different wallets. Taking small amounts from each user and transferring them to a mix wallet, then taking small amounts from that wallet, and others like it, and that blend into other wallets, and so on. Until at last, the coins that are returned to you have nothing to do with your original addresses.
It’s generally recommended that users create a “final mix” wallet. This is the second wallet that users will need to create. This wallet will serve as the address that the freshly mixed coins are transferred to. It’s also recommended that users discard the original purchasing wallet, keeping the cleaned coins in an offline account.
The offline wallet can then be used to transfer coins into any number of online wallets anytime a purchase or transaction needs to be made.
This way, there is no link to the account that bought the coins, as it was discarded, and the mixed coins have no traceable origin. The second wallet should act as a storage device, and users are free to create new transactional wallets as they need them.
Keeping your finances secure, anonymous, and exactly the way they were meant to be.
You can find more information in our News page.