Why do I Need a Bitcoin Mixer if It’s Untraceable
Have you also heard of anonymous BitCoin transactions and encryption? Unfortunately, it has been confirmed by many blockchain experts that it is possible to trace crypto payments in several ways. However, with a BitCoin Mixer, every user can be confident that his crypto transactions can be hardly ever be traced and observed by third parties.
You will agree that only a small percentage of users will not mind that others know where this person spends crypto coins. Others would prefer to stay anonymous.
Good news: Bitcoin mixer is an excellent assistant for keeping the privacy of your BitCoin transactions. Learn from the article how it can be used for making ‘private’ transactions private.
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Are Bitcoin transactions really anonymous?
Every BitCoin user knows that one of the beneficial features of crypto transactions, in addition to the speed and low cost, is naturally their anonymous character. But is it impossible to solve the puzzle of so-called ‘increased privacy’ and find out who is an owner of the wallet and where he or she spends crypto coins? In fact, it turned out to be not that difficult to learn this information. You may wonder how? Let’s see.
Despite the fact that all the BitCoin transactions are not controlled by third-parties who can be aware of some personal data to verify money transfers, in case of crypto coins, there is another public ledger to record all the transactions – blockchain. Naturally, the copies of these records are made on thousands of computers spread in different corners of the world and what is more important, they are public. It means that every person can access the history of transactions.
It goes without saying that blockchain does not provide names of wallet users since every wallet is encrypted with public key cryptography (a random set of numbers and letters consisting of 34 characters). This public key is shown to other users since it is used as an address for receiving coins or described as a sender depending on the transaction made. Another key given to a crypto wallet holder is called private and it serves as a ‘signature’ – user’s confirmation of his or her consent to perform the transaction. Despite the fact that this key must not be shared with anyone, it often happens that exchange users have to provide it to the platform to be able to perform the transaction and, consequently, involve third parties and provide them with secret data. As a result, it makes crypto transactions not completely confidential and leaves some risk to suffer from hack attacks or outflow of personal information.
Consequently, the feature of crypto transactions which has been called anonymous for a long time resulted in having multiple gaps which can be used by others for tracing BitCoin transfers.
4 ways to trace crypto transactions
Though crypto transactions performed through the blockchain seemed to be a perfect and 100% confidential solution at the very beginning, now there are several ways how other people can learn about the owner of the crypto wallet and the transactions made. Naturally, not all the coin transfers can be traced since many BitCoin holders use enhanced privacy approaches to save their confidentiality, but still, there are cases when they are traceable.
- Use of crypto exchange services
When a person registers on the crypto exchange, it is necessary to provide the email. Later, depending on the type of transactions, users may also inform the service with PayPal address, numbers of credit and debit cards, bank accounts. Some exchanges verify their users by name, surname and phone number. Any security breach can cause the expose of this information and it will not take much time to compare the wallet address with this data. - Allowing exchanges to manage funds and private keys
Today, there are online providers who offer wallet management services. When a wallet owner shares a private key with such a service, it leads to higher risks of losing coins. Such online service providers can be hacked anytime and they will get access not only to the personal information collected but also your savings. - Governmental control
Many countries are developing regulations regarding cryptocurrency and implying obligations on exchanges and even wallet holders. For example, citizens of South Korea can deposit to BitCoin wallets only if the user name on the exchange coincides with one possessing a bank account. Similar regulations can be soon implied in the US where all the exchanges will have to meet the requirements of the U.S. Securities and Exchange Commission to be able to operate in the country. - Crypto purchases
One of the simplest ways to trace the history of the transactions from one wallet and find out the name of its holder is to purchase goods and services from it. There is nothing bad that you pay from your BitCoin wallet, but you also leave your name and address for your purchase to be delivered. There are very high chances that a payer is the same person who receives the purchase, though it is not always so, of course. - Blockchain analytics
There are companies and individuals who can trace the history of transactions using a widely-known network, clustering, and other types of analysis. There are companies which offer such analysis services to the public with the goal to make an assessment of risks of illegal activities or tracking tax evaders, for example.
How to enhance the privacy of Bitcoin users
If you own BitCoin and want to ensure in the anonymous character of your transactions, there are several ways to do that. The most effective ones look as follows:
- Use a new BitCoin address for every transaction;
- Using anonymous browsers like Tor or VPN;
- Use exchanges which do not require users to provide their personal data;
- Avoid storing crypto coins in online wallets and use hardware wallets for that purpose;
- Make use of any reliable Bitcoin tumbler and mix your coins to make them untraceable.
The last method has become incredibly popular since BitCoin mixing is a very reliable way to prevent a trace of the transactions made.
What is mixing?
Being one of the best ways to prevent traceability of transactions is to opt for the services of BitCoin tumbler or mixer. It is a company where you can send your BitCoin amount to be mixed with coins of other clients for a quite low fee and after a random delay, this amount is delivered to the recipient. This delay is usually required for preventing advanced analysis and usually can take from several minutes up to several hours.
It is possible to mix Bitcoins on the platform of a tumbler company where they are mixed with the investments of other users and private funds of the company as well as opt for peer-to-peer mixing with a certain group of people.
Benefits of Mixing
Use of BitCoin scrambler provides crypto holders with a certain number of benefits. When you choose this method to enhance privacy, you get the following advantages.
- Privacy
It is exactly the reason why BitCoin holders use mixing services: their transactions become impossible to trace and they are guaranteed anonymity. - Convenience
There is no need to make transactions twice or put some effort. The procedure is very simple: you enter the amount of BitCoin and the address it must be delivered too. When you send the coins, it is necessary to wait for their mixing and delivery to the recipient. - Security
All the history of transactions through the mixer are deleted immediately after its completion or after 24 hours. Moreover, it protects your imperceptible wallet from cyber-attacks and hacks which happen very often today.
Conclusion
BitCoin mixer is a real finding for crypto holders who want to be anonymous and untraceable. There are minimum fees but the effect is really wonderful. Even the most advanced software will lose track of your transactions if you use a modern tumbler. However, be careful choosing a platform to avoid scams.