The popularity of cryptocurrencies is growing every year. This is due to the various innovative ideas and growth opportunities that digital currencies provide. Bitcoin is considered by many to be a revolutionary solution for the financial market because it has gathered a huge number of users around it. But not everyone is interested in it because of the monetary benefits. Another part of the users is attracted by the anonymity of Bitcoin.
But whether the cryptocurrency is so anonymous and for what purposes this privacy can be used, we have yet to find out.
Anonymous Bitcoin does have a high level of privacy, but it also has another side of anonymity – the blockchain. All transaction records are stored in sequential blocks and are available for viewing by absolutely any user. Yes, there’s no personal information about the person, just the date and amount of the transfer. However, a sequential unraveling of the chain of transactions can reveal the recipient and sender of not-so-anonymous cryptocurrency.
How to increase transaction privacy. Cryptocurrency tumbler
When it became clear that the anonymity of Bitcoin is not absolute, there were tools to increase it. Such a tool is the Bitcoin mixer.
“Mixer”, also known as “tumbler”, is a tool that helps to mix bitcoins from different senders, making it difficult to trace the transaction paths and owners of a particular bitcoin address and already get an anonymous cryptocurrency at the output. The use of a bitcoin mixer is gaining popularity as it provides a level of anonymity and privacy when conducting financial transactions with cryptocurrency.
How anonymity is enhanced. The work of a bitcoin mixer
The name of the tool itself reflects the principle of operation of the technology. The actions of such resources are quite simple – like an ordinary kitchen mixer that blends several ingredients into a homogeneous mass, bitcoin mixers mix transactions from different accounts.
To elaborate, a transfer through a crypto-tumbler entangles a blockchain chain that is already nearly impossible to trace. The transaction is carried out through the chosen crypto-mixer, where your coins are mixed hundreds of times or even thousands of times with other transactions that the service provides, and eventually, your bitcoins, being already completely anonymous, are sent to the final, specified by your wallet. Thus, the blockchain accumulates a huge amount of data on new transactions, among which it is difficult or even impossible to trace the primary and final address.
For what purposes can a crypto tumbler be used
Bitcoin Tumbler solves the problem of absolute anonymity, but for what purposes it can be used? Like any innovative technology, cryptocurrency anonymity can be applied in various “dark” and “gray” schemes. But it is a mistake to think that crypto tumbler, was created for nefarious people. First of all, the technology was developed for a large number of people to solve common household problems.
Even in a bank, not everyone can view your purchase and transaction history. But when viewing a transaction made directly, without using a crypto mixer, anyone through the blockchain can track what you did on your day off and what you spent your honestly earned money on.
When purchasing from an intimate store, not everyone would want anyone to know about their personal life. The boss was told that you were sitting in the office, while you were drinking coffee, having paid for it in a neighboring cafe. These simple examples show how the crypto mixer is used in ordinary life, and everyone will resort to using it at some point. This tool simply helps to keep a person’s privacy intact so that no one can peek into their boundaries.
What problems can be encountered when using a bitcoin tumbler
As with any business, it is possible to run into scammers when using a crypto tumbler. It is worth carefully choosing the best Bitcoin tumbler, otherwise, in an attempt to make your bitcoins anonymous, you can lose money by simply transferring it to the account of scammers.
There is also a risk of transferring your cryptocurrency through a Bitcoin tumbler, paying a commission, but at the end of the process, you will receive not “mixed” Bitcoin, which has not increased its anonymity.
You should also keep local laws in mind while considering using a bitcoin mixer. Some countries apply stricter requirements for all services that operate crypto, while others give them more freedom. Consequently, the particularities of the Terms of Service can depend on the mixer’s location. Some mixers, especially centralized ones, may be obligated to disclose information to the authorities, while others allow you to remain fully anonymous.
It is necessary to approach responsibly to the choice of crypto tumbler, taking into account the reputation of the service, usability, and commissions. These factors will help you consider all the risks and choose the best Bitcoin mixer for yourself. After all, caution and transparency are always important when working with finances.