Here Are 6 Facts About Bitcoin Mixers And How To Keep Your Funds Safe

Handy Tips / 05.06.2020

Many people know the benefits of Bitcoin but few users know that they are not as anonymous as they think. 

Certainly, it’s a fact that Bitcoin works on the blockchain, which means every other investor, bitcoin user, miner, or other person connected to the network can track your transactions and moves. 

Though Bitcoin addresses are pseudonymous i.e. they don’t reveal the owner’s identity, they can often still be linked to real-world identities.

A Bitcoin mixer helps users to obscure the links between their crypto addresses and real-world entities to create a deluding situation that makes it impossible for hackers and malicious third parties to trace your transactions. 

Anyone considering a mixer to keep their actions anonymous will need to know and keep in mind the following 6 facts about bitcoin mixers. 

1. Bitcoin Mixers are Used by Individuals

Contrary to common belief, Bitcoin mixers are not only used by conmen aiming to launder funds from people. Mixing services are widely adopted by individuals who wish to gain more privacy while using cryptos.

2. Coin mixers are used by Companies and Services

Besides individuals, companies are using coin mixers as well. Companies use bitcoin mixers to keep client information private and to provide an additional layer of privacy for their customers. 

3. Mixing Services Attract a Fee

Using a Bitcoin Mixer is not free as many may think. Consider how the process goes:

To ensure anonymity, users send bitcoins to the mixer or tumbler, the mixer mixes them with bitcoins in a pool and then returns them to owners at new addresses minus the service fee.

For example, one of the best mixers, Crypto Mixer, charges a random commission of 2-5% for every transaction in Bitcoin, Ethereum, or Litecoin

4. Need for Trust

There are lots of “what if?” concerns associated with bitcoin mixers. What if they don’t do enough mixing to provide the required anonymity? What if the mixer confuses addresses and sends my funds to the wrong address? 

One simple answer to all these is trust. Trust doesn’t occur instantly, it takes time to develop enough trust especially where bitcoin is involved. This calls for users to examine the platforms before settling for any mixer. Users must pick a mixer with positive reviews and that is ranked in google.  

5. Government Intervention

Most people think of bitcoin mixers as a way to run from government interventions. However, things are different. Bitcoin mixers operated independently without government interventions until a concern arose about criminals taking advantage. Several bitcoin mixers were registered that were used to launder bad actors funds anonymously. So the best solution is to stay away from mixers that operate in dark web and have an .onion mirror. 

6. There are Two Main Types of Bitcoin Mixers

Bitcoin Mixers exists as Centralized or peer-to-peer platforms:

  • Centralized Bitcoin Mixers – These are the first generation mixers that involve a third party. It involves traders sending their coins and paying a commission. The broker (broker) then takes coins from another user for the same amount and channels them to the trader’s specified address. With centralized bitcoin mixers, the anonymity level is highest when there are more users and coins in the system. 
  • Peer-to-peer platforms – Unlike centralized Coin Mixers, the P2P mixers don’t have intermediaries. They allow users to exchange coins directly among themselves. P2P platforms use protocols such as CoinJoin and CoinSwap to enable several users to create one standard transaction. A mixer server is used to store the addresses of coin senders and recipients in a way that ensures privacy.

Mix with the Best, is the industry’s top coin mixer with excellent anonymity features and reputation. It is the most volatile coin mixer in that, besides BTC, the service can also mix your LTC and ETH. This makes it best for mixing the three largest cryptocurrencies.

Notable features of BitcoinMix includes:

  • High-volume tumbler, can handle large amounts of coins,
  • According to its website, BitcoinMix doesn’t store logs and hence there’s no way anyone can have access to your information,
  • Stores information about incomplete Bitcoin transactions to help the user when need arise,
  • Emails from contact forms are deleted within 24hrs after opening,
  • BitcoinMix charge random commission 2-5% for every transaction,
  • Services are completely automated therefore require minimal user involvement.

Final Take

Maintaining privacy while using bitcoin helps secure your funds. Bitcoin Mixers enable users to trade bitcoins safely and anonymously by masking their transactions from hijackers and hackers. Popular belief that mixers are only used by bad actors, but breaking that point by providing high quality mixing services for individuals and services to maintain privacy and protect important personal details. This and above facts about coin mixers will give you a better view and help you make viable decisions.

Wayne is a Blockchain enthusiast and expert in crypto trading. Currently, he covers trendy issues on digital currencies.