Bitcoin

What are Bitcoin (BTC) Mixers? How do they work? And how to use them!

Bitcoin is not completely anonymous. The sender’s address and the receiver’s address is public information and is visible to everyone. With the majority of the transactions taking place through exchanges and third-party wallet, it is easy to point a bitcoin address to a particular individual. Because of this reason, the Bitcoin network analysis business is booming.

Bitcoin Mixers (or Tumblers or Launderers) are special services which break the connection between a sender address and a receiver’s address. Using these services a sender essentially is able to hide their transaction from the public.

How Bitcoin Mixers Work?

Bitcoin Mixing services essentially work by taking Bitcoins and breaking the transactions down to multiple small transactions from unknown and unique addresses and sending the Bitcoins through multiple addresses.

Example: Imagine you want to send 5 BTC to address XYZ. You send the Bitcoins to a mixer and enter the receiving address. The mixing service will take their fee (1-5%) and send the remaining Bitcoins to XYZ. But instead of sending 5 Bitcoins directly to XYZ, Bitcoin Mixers would send ten o.5 BTC to XYZ from different addresses. This essentially ensures that the transactions cannot be tracked.

Advantages of using a Bitcoin Mixer

The biggest advantage of Bitcoin Mixer is it adds privacy. Many major exchanges such Coinbase do not accept Bitcoins transferred from Casinos (reason given is due to money laundering). To send Bitcoins from a Casino you would be using a Bitcoin Mixer. Some advantages are,

  1. Transactions become untraceable.
  2. Can transfer Bitcoins where other some addresses are not accepted.
  3. Bitcoin Mixers hide your address

Using Bitcoin Mixer

We are going to use Bitcoin Mix, a Bitcoin Mixer, to send Bitcoins privately to an address.

Step 1: Go to Bitcoinmix.org.

Step 2: Go down to Start Mixer.

Step 3: Enter the receiver’s address and as well as the Custom time delay. Custom time delay is the time between each small transactions. And select Next.

 

Step 4: Send the Bitcoins to the address given a relax. You can also calculate the service fee by entering the amount of Bitcoin you are sending in the below text boxes.

It’s that simple. Word of caution though, test the mixer by sending a small amount of BTC first instead of the entire amount. Once the transaction is confirmed then send the entire amount. This step ensures that you do not fall prey to a scam.


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Disclaimer: Blockmanity is a news portal and does not provide any financial advice. Blockmanity's role is to inform the cryptocurrency and blockchain community about what's going on in this space. Please do your own due diligence before making any investment. Blockmanity won't be responsible for any loss of funds.

Ishan Garg

Ishan is a cryptocurrency trader and a journalist. He joined the cryptocurrency space in 2017. He is the founder of Blockmanity. He is a HODLER and is holding BTC, ETH & UGT.

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Ishan Garg
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