Bitcoin mixers (aka tumblers) conceal where your bitcoin came from. This makes your blockchain trail much harder to follow. Bitcoin mixing or tumbling is the process of exchanging your Bitcoin balance for an equal (or similar) amount from a different source. But why mix bitcoin? Many “criminals” and “innocent people” alike – regularly use bitcoin mixers to periodically exchange their old coins for new coins. These new coins can’t be associated with the original owner.
It’s commonly speculated that mixing bitcoin is only for people who are using them for illegal activity. Although it is true that you should always mix your Bitcoin when using them for illegal activity (and want to avoid getting caught). There are many other reasons why you might want to mix your bitcoin.
Why Mix Bitcoin?
Bitcoin is an excellent way to make purchases, donations, and p2p payments, without using banks. This makes it an attractive way to pay for goods and services across a whole spectrum of interests. However, all Bitcoin activities are recorded and made available publicly via the blockchain. Blockchain is a comprehensive database that keeps a record of all bitcoin transactions. This is the reason why mix bitcoin. Meaning that when someone uses bitcoin to pay for goods and services-they make themselves vulnerable to monitoring/analysis by any interested 3rd party.
Anybody who is ever involved in a transaction with you could identify your wallet addressescan then monitor the balance at any given time. They could also find out where you’re sending coins to and from. This could not only be an unnecessary intrusion on your privacy, but could make you the target of cybercriminals who might be tempted to track you (and your Bitcoin) down.
To find out more about how people track Bitcoin transactions, and the kind of people who might want to track you down, read more on Blockchain Analysis
Mixing bitcoin is a great way to cover your tracks, and make bitcoin transactions impossible to follow. This protects you against criminals, nosey parkers, and law enforcement.
How To Mix Bitcoin
Mixing Bitcoin is a fairly simple process. There’s much more information about different mixing services, extra precautions you can take in Bitcoin Mixers
The most best way to mix bitcoin is to run them through a dedicated Bitcoin mixing service. There are plenty of these around – some of them exist on the clearnet, and there are many on the darknet, as well.
For example, let’s assume “Adriana” wants to make a purchase on a deep web market. Obviously, she wants to make sure that the bitcoin is kept clean and never associated with her real identity.
Here’s how she would achieve maximum anonymity:
1: Purchase coins from an exchange
2. Mix bitcoins using a bitcoin mixer
3. Deposit mixed coins to a darkweb market of choice
Now… in the event she was left with change, or has a balance in her darkweb market wallet.. she will then:
4. Withdraw change (to a fresh wallet or directly to a Bitcoin mixing service)
5. Mix coins
6. Sell coins
There are many variations following this similar theme, be sure to carefully compare mixing services before choosing one, as you will be putting your balance into the hands of the people who run the service. This is a big responsibility.
For more information about mixing services, extra precautions to take, and DIY mixing methods read the full guide here: How To Mix Bitcoin