Cryptocurrency has been touted as the ultimate new currency. It’s decentralized, keeping out middlemen. It’s unlikely to be subject to artificial inflation and is more dependable to almost any fiat, and it’s completely anonymous! Right?
Well, sort of. You see, even though cryptocurrencies like bitcoin have been promoted as “anonymous” and “decentralized”, the fact of the matter is that big business and government want to get in on the movement in a big way. “While it’s still possible to keep your bitcoins and other currencies anonymous, there are some extra steps you’ll need to take.” Says an expert from the experts in bitcoin mixers, Best Bitcoin Tumbler “If you haven’t already started to take security measures for your bitcoin seriously, now is definitely the time.” They tell us.
While we understand why it might be of the utmost importance to keep your crypto safe, after reports of massive hacks on trading platforms like Mt. Gox and governments around the world trying to take control of crypto finance, what to do may still be a mystery to some. Luckily, the experts at Best Bitcoin Tumbler have taken a moment to fill us in on exactly why any crypto holder needs to get a bitcoin mixer.
Pseudo Anonymity of Bitcoin
Unfortunately, the clever technology that keeps bitcoin secure and decentralized is also the reason that your identity and finances may be at risk.
Bitcoin works differently from banks in that there is no centralized authority that validates transactions. Transactions of bitcoin are logged in a public ledger using blockchain technology. This technology uses specialized addresses to identify traders, as opposed to personal information.
Anytime a transaction occurs, specialized users called “miners” solve complex mathematical problems in order to log where the bitcoin came from, and where it’s headed. This is called a “block”. The block is then added to an immutable public ledger. Making it impossible to duplicate or change, and also making it visible to the public. Keeping people honest, and keeping bitcoin safe.
However, anytime a block is created the address of the transactor is logged along with the address of the payee. While these addresses don’t give any personal information, with the right analytical software, it is simple to trace transactions back to origin accounts.
All you would have to do would be to provide a shipping address, should you buy goods with your bitcoin or some personal banking formation, should you be buying bitcoin itself. The second that information is attached to the address the coins came from, it is also attached to the coins themselves. Because blockchain technology tracks every transaction ever made on the market, each coin has a public trail of where they came from and where they went to.
Making crypto less anonymous than it’s cracked up to be.
What is a Bitcoin Mixer?
Bitcoin mixers work by obscuring origin trails. Through the use of hundreds of microtransactions, coins become next to impossible to trace. Stick with us.
Say you open a bitcoin trading account. In order to purchase your bitcoin, you’ll have to create an online wallet (the address that functions as an account). You’ll also have to share your banking information in order to purchase those coins. Thus, tying your personal information to the coins and the wallet address and “tainting” the coins.
If you want to sever those ties, you find yourself a bitcoin mixer. Bitcoin mixers- tumblers, or cleaners- work by multiple bitcoin owners depositing these tainted coins into one central account. They are then all mixed up and the amount deposited by any given user is paid out into the wallet of their choice.
Because the original bitcoin owner receives completely different coins than the ones that they originally deposited, the ties between the coins and their personal information are severed. Making it next to impossible to trace the coins back to the original owner.
How to Use a Bitcoin Mixer
“Using a bitcoin mixer is fairly simple. The most important thing is that you ensure that whatever mixing service you choose is reputable. Double-check that the web address is correct and really do your homework when it comes to researching mixers.” BBT says.
Like all things internet, scams definitely exist. “Currently, the worst scams we’re seeing are people going to a mixing service via a non-verified web address. Then they end up depositing their coins into a fake service, losing them forever.” BBT says that as long as users ensure that they have the correct page, they shouldn’t run into any issues receiving their clean coins.
“Another problem that newer users have, is that they’ll accidentally end up depositing clean coins into a dirty wallet. So even though the coins are free and clear of identifiable information, the wallet they set up may have details that are personal.” This means that users have to be careful to use the appropriate software and operating systems when they create a wallet for their freshly cleaned coins.
Beyond that? “Clean your coins often and keep an offline wallet.” They say. Keeping you off the grid and keeping bitcoin anonymous. As it was meant to be.