Anonymity is one of the motives behind choosing cryptocurrencies over fiat money. When creating crypto wallets, users usually do not need to provide any papers to prove their real identity. Consequently, the wallet is not tied to your identifying data, unlike bank accounts and credit cards. But it isn’t enough to buy bitcoin truly anonymously. Due to the nature of how cryptocurrencies work, all transactions remain transparent. This means that anyone can view the details of each transaction, for curiosity or with malicious intent, for example, to identify which wallet has recently received a huge amount of money and may become a target of a cyber-attack. To avoid such threats and better protect your anonymity while using crypto, a Bitcoin mixer might be useful.
What is a Bitcoin Mixer
Bitcoin Mixers, also known as crypto tumblers, became widely popular in the latter years due to the growing usage of various cryptocurrencies. If you need to know how to buy crypto anonymously, learn about various types of coin mixing services and their operation.
At its core, any Bitcoin mixer is a website that accepts transactions from various users, then mixes their coins and sends payments back to users. Each transaction becomes part of the common pool which then is broken down into smaller chunks. It becomes impossible to trace, which user’s coins were transferred from which source. Sometimes untraceable cryptocurrency is used as an interim stage to enhance users’ anonymity.
When to Use Bitcoin Mixers
There are various situations when you may need to buy crypto anonymously. For some people who do not have much experience in the world of cryptocurrency, the first thing that jumps to mind is hiding some illegal activities. Those who obtain their money through illegal activities would benefit from mixing their coins. However, they are a tiny minority among all users of crypto mixers. Most people who are interested in selling and buying bitcoin anonymously are Even for your casual bitcoin operation, having a bitcoin tumbler at hand will be useful because obscuring your transaction serves as fraud prevention and enhances your cyber security.
How Do Bitcoin Mixers Work?
There are several types of crypto tumblers on the market. The most important distinction is between centralized and decentralized ones. The former are usually easier to find and use, but they are considered less secure because you need to trust a centralized entity. Decentralized BTC mixers can be slower and more complicated to use but ensure better anonymization. The operation of such a service user to buy crypto anonymously can be described in several steps:
1. Users send their crypto coins to the address of a coin mixer. Some services operate over many addresses, to make tracing transactions more difficult.
2. All coins are divided into smaller fractions.
3. All coins are shuffled, mixed, and redistributed.
4. Additional obfuscation methods are used to protect clients of a coin mixer. For example, it can be random transaction delays or using interim wallets.
5. Coins are returned to the target users. Now it is impossible to find out which initial source each transaction came from.
6. All operations are confirmed via blockchain.
You can use a reliable Bitcoin mixer to protect your identity and make your crypto operations secure. It does not matter, whether you are a regular crypto user or a beginner, knowing how to use this tool will prove useful. Do not forget to thoroughly study the reviews for several coin mix services to choose the best one, which you can safely entrust with your money.