People tend to get easily carried away by the bitcoin’s space excitement, presumptuous that all their transactions are anonymous. Unfortunately, these transactions are not entirely secure despite Bitcoin being made initially to be anonymous. Now, this is where the new Bitcoin mixers come in handy. They are famous for the privacy and security enhancement of users.

A bitcoin tumbler is a transaction whereby all transactions in a blockchain are made anonymous. It merely complicates transaction history, making it hard for hackers or scammers online to trace them. If you have no clue about what bitcoin mixers are and how essential they are, this read is for you!

How Bitcoin Tumblers Work

Various mixing strategies try to cover transaction history and protect users. These range from the fully centralized solutions (traditional mixing) to those that users are not required to trust anyone. How a mixer works depends on the type of mixers as discussed below:

Centralized Mixers

This type of mixing transaction sends different bitcoins after a user makes a bitcoin payment in return. Eventually, the transaction trail becomes hidden enhancing privacy.

Nonetheless, centralized mixers have two main weaknesses. One is that a user needs to trust their private information with the mixer. The mixer can retrace the path of ownership of bitcoins because it knows each coin’s initial sender and final receiver. Secondly, a mixer may refuse to complete the final return payment, basically stealing a user’s bitcoins.

That’s why it is highly recommended to use only trusted mixing services like Bitcoinmix.org.

Charmian Coin Join Mixers

The Charmian modern mixer has solved the two weaknesses with traditional mixers. This mixer allows transactions among large groups of different users whereby they make large payments to themselves. For instance, if a hundred different users send specifically 0.1Bitcoin into a new address, the miser merges it into one huge transaction, and each user receives 0.1 Bitcoin back. However, none of the users can know where the coin came from.

Also, this type of mixer is designed so that even the unit that mixes these transactions into one cannot trace or know where each coin goes. The issue of lost or stolen coins with these mixers is unheard of because users can refuse to sign the merged transaction if they don’t receive their 0.1 Bitcoin back.

How to Use a Bitcoin Mixer

To use or operate a bitcoin tumbler, you ought to begin selecting the coins you would want to mix, followed by writing the address where you want to send your coins. Subsequently, set a custom time and click the ‘next’ option on that page. This takes you to the next page, whereby you put the specific amount of coins you want to mix. The next field indicates a service charge amount that is deductible for the service provided and the final amount you ought to receive after completion.

That is all. Click on the ‘send’ option to complete the transaction to the address displayed. You will get new mixed coins in your specified wallet.

The Essence of a Bitcoin Mixer

The advantages of using a bitcoin mixer are countless. They were denied the main reason to serve as an anonymity bridge while using bitcoin and other cryptocurrencies. Improved anonymity and security of transactions are their main pro, making users feel more secure and trustworthy while transacting online.

For example, when making payments using their bitcoin wallet, all their transaction activities are exposed on the blockchain. Therefore, phishing and online scrutiny on your transactions becomes easy.

At one point or the other, bitcoin exchanges might as well get hacked because anyone can view the bitcoin blockchain through block explorer. Hackers have ascertained that such bitcoin exchange wallets have very many coins when they break their firewall or security. Using a bitcoin mixer hides and helps keep your identity safe away from prying eyes.

Can Mixers be banned?

This is considered more of a legal than a technical question. Whether or not bitcoin blenders can be banned differs from one jurisdiction to another. Some types of blenders have been banned because authorities claimed that this service was a widespread money laundering technique. Avoid bitcoin mixers represented in the dark web.

Are Mixed Coins Potentially Labeled as Tainted?

Depending on the type of mixing of coins, it is likely to label mixed coins as ‘contaminated.’ However, some mixers have a clear mixing trail. Therefore, a premix history of bitcoins may be hidden. However, by when this article was written, mixed coins are yet to be labeled as tainted. It’s impossible to identify if the coins were mixed or a simple transaction has taken place.

Are Bitcoin Mixers for Criminals?

Contrary to what people believe, bitcoin mixing is not for criminals. Privacy, a human right provided under article 12 in the Universal Declaration of Human Rights. Criminals also enjoy all rights, freedoms, and forms of privacy like the rest of us. Therefore, perceiving coin mixers to be just for criminals is false. They are mostly used by regular bitcoin traders who want privacy.

Blockchain Analysis

This is an open, transparent ledger. Every payment or transaction is visible to the public. It makes viewing and tracing of payments from one address to the other easy. Technically, this may not be the most acceptable way to describe it, but it is close enough for an introductory guide.

Blockchain analysis is the act of using privacy leaks to analyze blockchain, as the name suggests. Currently, the most popular bitcoin blending services are centralized; hence authorities could shut them down effortlessly. If centralized mixing services are shut down, decentralized mixing services can replace them.

Conclusion

You are now better informed about all the essential facts on bitcoin mixers. They are the new trend in enhancing security and privacy for bitcoin traders. Privacy is a crucial factor in the development of confidence and trustworthiness among traders. They would like to feel secure before sending their money online because they know many hackers are out there ready to prey on their money if they are not careful. Blockchains may be considered hack-proof or safe, but it does not hurt to reassure yourself that your coins are safe.