Bitcoin Tumbler 101: Here’s Everything You Need to Know
One of the most lucrative features of Bitcoin was the fact that it allowed anonymous transactions amongst its users. Following its inception in 2009, many users within the crypto space considered Bitcoin transactions safe and private.
However, the crypto space has evolved, and the anonymity of transactions has become a major concern in the industry. It is now quite easy to trace transactions and wallets to the owners’ identity because all transactions are recorded in a public ledger. There is, therefore, a need for a service that assures anonymity, given the risky nature of crypto investing.
It is from this need that Bitcoin tumblers came to be. These platforms allow you to mix your digital coins from different transactions. The result? You become untraceable. Hackers or any other users on the blockchain cannot obtain your bitcoin address from your operations.
Bitcoinmix.org is an excellent example of a bitcoin tumbler. So, what exactly is it? How does it function? And do you really need the platform? Keep reading for some insightful information.
What is a Bitcoin Mixer?
Bitcoin Mixer is also known as Bitcoin Tumbler or Crypto Tumbler. The platform provides bitcoin mixing services to its users to help assure their anonymity when transacting on the blockchain. Whether you are making online purchases or P2P payments or donations, the tumbler comes in handy to keep you untraceable and protect your personal information.
You can use the platform to mix your digital coins, and as a result, hide them from hackers and any third-parties. An impressive feature of the platform is that it also gets you some new coins as you use the mixing services. The platform doesn’t even keep any logs or emails sent via the contact form to enhance your anonymity further.
The only information that the tumbler keeps is incomplete Bitcoin transactions. Users should give about three days for Bitcoin transactions sent using the minimum fees. For every transaction, Bitcoin Mixer charges a random commission of about 2-5%
The Bitcoin Mixer provides automated services. The platform doesn’t require any human help for it to run smoothly. Once it has mixed all your digital coins, it completely erases all related information to keep your identity safe.
The best part about Bitcoin Mixer is that the algorithm used to mix the coins is full-proof. You, therefore, don’t need to worry about ending up in phishing sites and other suspicious websites.
How to Use Bitcoin Mixer
Here are the steps you should follow when mixing your coins are on Bitcoin Mixer.
Step one: Decide which coins you want to mix and input the withdrawal address on the main page. The withdrawal address is the wallet where you want to send your mixed coins. Bitcoin Mixer allows you to add up to five withdrawal addresses. You can, however, only use one deposit address.
Step two: Set your custom time delay. This time lets the system know when to transfer your mixed coins to the chosen wallet.
Step three: Click the ‘Next’ button, which will direct you to a second screen. Here, you will see the address where you should send your coins.
Step four: Choose the number of Bitcoins that you want to mix. The minimum amount you can mix is 0.02BTC.
Step five: Send your coins to the address displayed. The transaction fee will be displayed on the screen, and you can tell how much you will receive.
Once you have gone through all the five steps, all you have to do is wait. The mixing process is automatic, and the return time is anything between 10 minutes and 24 hours. Bitcoin Mixer will take your coins and send you some new ones to the desired address. The platform sends the new coins from a random Bitcoin address that cannot be traced back to you.
- The process is entirely automatic
- You don’t have to sign up to use the service
- The commission charged on transactions is quite fair
- Guarantees anonymity on the blockchain
- No limit on the maximum transactions
- Retains information in the case of an incomplete transaction
- The commission charged is not a flat fee
Do I Really Need to Mix My Coins?
Although most investors understand the risks involved in the crypto world, a few remain oblivious to all the dangers they could face. If you are one such investor, you may be wondering whether mixing your coins is necessary. Here are a few reasons to convince you.
- Remain Anonymous
Exchanges aren’t that secure, and if you use one, you need to be mindful of your digital print in the blockchain. If you use a wallet to store your Bitcoins, then it is quite easy for anyone to compromise your private key.
Mixing your coins allows you to achieve total anonymity. The process wipes off any trace of your transactions on the blockchain, making you entirely untraceable.
- Prepare for unpredictable regulations
Governments across the world are yet to accept Bitcoins and other digital currencies completely. As of today, only Canada and Uruguay allow for legal crypto transactions. Crypto investors never know what new regulations will be introduced. If you have some digital coins as your assets, you may find yourself trapped by new government regulations.
Mixing your coins allows you to remain anonymous to the government as well. Your transactions and identity on the blockchain remain untraceable, so the government cannot tell how much digital assets you own. You can keep on making purchases on the blockchain without the fear of regulations catching up with you.
- Deter hackers
Although many people believe that blockchain transactions are entirely safe, hackers can get hold of information such as your private key, which they can then use to access your digital coins.
Mixing your coins ensures that the addresses are entirely mixed up, such that hackers cannot access your identity whatsoever. You can then send your mixed coins to a new wallet so that you throw any potential hackers entirely off course.
- Remain Private
One disadvantage of blockchain technology is that all transactions are recorded in a public ledger. This means that everyone on the blockchain gets a notification whenever you make a transaction.
A Bitcoin tumbler allows you to remain private as you buy and sell on the blockchain. You also get to make donations privately, if you so wish. The most significant advantage, however, is that the crypto exchanges cannot share your information during Know Your Customer (KYC) checks.
- Avoid being a target for criminals
Even in the decentralized system, banks issue wealthy people with anonymous accounts to prevent them from being targets of crime.
Criminals usually target people they believe and know to have vast amounts of money. If you have a sizable collection of digital currencies, a Bitcoin mixer will help you avoid being a target for real-world criminals.
One distinct feature of fiat money is that it is fungible. What this means is that another equal part can replace one part of the fiat money. If, for example, I lend you $1, I won’t be too concerned that you returned a different $1 bill, since the value is the same.
Bitcoin fungibility remains to be an issue of concern among many crypto enthusiasts. Although Bitcoin is fungible, the coins leave a trace on the blockchain following transactions. ‘Clean Bitcoins’, coins that don’t leave a trail, tend to be slightly more valuable than other currencies, interfering with the entire concept of Bitcoin’s fungibility.
Bitcoin Tumblers come in handy when dealing with the issue of Bitcoin’s fungibility.
Role of Mixers in Bitcoin Fungibility
Protecting Bitcoin’s fungibility is a vital aspect in the quest to make the digital coin acceptable globally as a mode of payment. This process is quite challenging, given that development teams often carry out blockchain analysis to determine their clients’ activities on the blockchain.
An issue of significant concern is that crypto enthusiasts feel that Bitcoin should have equal fungibility benefits as other fiat currencies. Central banks have never declared a fiat illegal because it was used in criminal activities. The same should apply to Bitcoin and other cryptocurrencies.
Tumblers help in protecting Bitcoin’s fungibility by ensuring users remain anonymous on the blockchain. The time lag set between the moment you send Bitcoins to the time you receive new coins helps in completely masking your identity.
Blockchain analysts use specific strategies to identify transactions on the blockchain that begin from or end at a wallet. Bitcoin Tumblers distort your private key’s identity, which ensures that analysts get lost on the blockchain while trying to trace your status.
Maintaining your online profile as private is essential, especially if you take part in crypto trading. Not only does it ensure that your coins are safe, but it also makes it difficult for anyone to trace your identity from your transactions.
Having a good tumbler should be a priority if you wish to remain anonymous. Bitcoin Mixer is one of the best mixing platforms currently available. Now that you know all that you need to, why don’t you try it out and see if it works for you?