Known as Bitcoin Mixer (or tumbler), it is one of the most important Bitcoin privacy tools that you should not overlook, ever.
Back when Bitcoin was introduced to the world in 2008, early adopters of the cryptocurrency were brought to believe that it not only solved the intermediary problems in the traditional financial system, it could offer anonymity to its users. Indeed, anyone transacting in Bitcoin does not have to reveal their identity to the fund’s recipient. Moreover, the underlying blockchain technology ensures that transactions are immutable and transparent, eliminating any risk pertaining to the Bitcoin transaction.
However, with the existence of publicly available blockchain explorers and blockchain analytics services, it is now possible for anyone to track one’s transaction history so long as they know the sender’s Bitcoin address. Those tools allow interested parties to piece together the origin of the Bitcoin transaction. Hence, Bitcoin users can be identified via public keys, and the Bitcoin address shared to the recipient (e.g. merchants), since public keys can be traced to the particular IP address of the owner of the Bitcoin wallet.
Many investors have also entrusted their favorite cryptocurrency exchanges, as they trade and store their Bitcoin assets on their exchange’s wallet, which makes tracking relatively easy. This is because most cryptocurrency exchanges now have to comply with regulations set by many governments, which requires exchanges’ users to undergo KYC procedure, so as to declare their actual identities to the exchange, and subsequently the government. As a result, the once-believed anonymity in Bitcoin is no longer valid in today’s context as governments and regulators doubled down on identifying users of Bitcoin and other cryptocurrencies.
In June 2020, IRS-CI Cyber Crimes Unit has published a Request for Information (RFI) to trace cryptocurrency transactions of anyone they are interested in investigating is a further evidence that points to governments and regulators awareness that Bitcoin and most cryptocurrencies can be traced with the help of blockchain analytics tools.
The right to privacy
Unfortunately, the adoption of cryptocurrency market and blockchain technologies around the world have also seen transactions of Bitcoin and other cryptocurrencies as a target for regulators and even hackers. Immutability and transparency in blockchain have instead allowed them to identify individuals easily, potentially exposing anyone dealing with Bitcoin with a variety of issues due to privacy compromises. Thus, there is a growing demand for privacy tools among crypto investors that could prevent or eliminate anyone from exploiting blockchain’s immutability to their advantage in the intrusion of one’s privacy.
Today, one of the highly sought after privacy tools for Bitcoin users is called Bitcoin tumbler (or mixer). To achieve anonymity with pseudonymous Bitcoin transactions, a Bitcoin tumbler is effective in masking transactions by mixing them so as to obscure their origin.. The process is fairly straightforward, and it is often touted as a way to transact Bitcoin anonymously, and is certainly a go-to privacy tool for those who care about their privacy.
Despite the small transaction fee as charged by Bitcoin tumblers, the assurance of anonymity and untraceability has outweighed the negligible amount of monetary contributions imposed onto privacy-conscious individuals who would rather mix their Bitcoins in order to hide, mask, and makes it especially difficult for anyone to trace their transaction activities in the digitally connected world that we are in right now.
How a Bitcoin Mixer works?
As mentioned in earlier paragraphs, a Bitcoin tumbler could break the linkage of your Bitcoin transactions, making it hard for anyone who attempts to identify you through an analysis on your Bitcoin address.
Before we delve deeper into the process of a Bitcoin tumbler, let us give you a following example of Adam, a Bitcoin trader who uses his profits often for daily purchases, and how he benefited from using a Bitcoin tumbler for his daily purchases:
Adam sent 1 BTC from his Bitcoin address (which he used as a spending wallet) to the merchant’s Bitcoin address. Although he may not have known or even seen the merchant, the latter can still view his entire Bitcoin transaction records (including the available balance and the record of the sent 1 BTC) on his spending wallet since blockchain records can be accessed by anyone through a blockchain explorer.
However, if Adam were to use a Bitcoin tumbler, he would be able to prevent the merchant from doing so and stay anonymous with the purchase. The Bitcoin tumbler would have acted as an intermediary, as it “mixed” his 1 BTC with other Bitcoins in the tumbler’s pool. After the mix is complete, a different set of 1 BTC from the pool will be redistributed to his assigned recipient Bitcoin address (ie. the merchant’s address).
Resultantly, should the merchant try to lookup on Adam’s address, the former would not be able to view his actual transaction records. Instead, the merchant would only be shown the tumbler’s address instead, which can never be traced to his Bitcoin address which the “unmixed” 1 BTC originates from.
Steps to using a Bitcoin Mixer
Currently, there are dozens of Bitcoin tumblers that are available online. And most of these tumblers are similar in features (with the exception of service fees). MyCryptoMixer is one of those tumblers that are trusted by users worldwide who are looking to mix their Bitcoin transactions in order to make their transactions untraceable and anonymous. In addition to that, MyCryptoMixer also offers one of the lowest rates while offering a reliable and quick mixing process.
What’s more interesting is that MyCryptoMixer has the most user-friendly platform and has consistently ranked among the top service providers with heavy emphasis on a pleasant customer experience. Below is a summary on their famous 4-step mixing process:
Step-1: Check that web address is accurate
First, the user shall navigate to the Bitcoin Icon which can be seen on their homepage (https://mycryptomixer.com and http://mymixerxtukle6mo.onion).
Step-2: Set up your recipient addresses
You may then set up to five recipient Bitcoin addresses, Transfer Time Delay, Funds Distribution, and the user-defined service fee (between 0.50% to 5.00%). MyCryptoMixer’s straightforward interface allows the user to complete the relevant fields easily, either by text input or adjusting the values through a slider.
Step-3: Send funds to the Bitcoin Mixer
In order to enhance the anonymous process, users would be shown the required BTC amount as indicated by the mixer. This is to ensure that every transaction is unique, eradicating any possibilities of tracking these transactions through the user’s activity pattern.
Step-4: Finalising the mixing process
Finally, the user would be shown a status page that reflects the mixing status. No action is required from the user end at this point. As long as all information as furnished by the user is accurate, the mixing process is deemed as completed.
Additional points to note: Before using the Bitcoin mixer, it is advisable to add an extra layer of privacy protection by accessing the tumbler’s platform via a TOR browser, get ready your Bitcoin wallet, and up to five unique recipient wallet addresses.
Is Bitcoin Mixing Safe?
Just like how Bitcoin was associated with criminal activities and darknet markets by the mainstream media, Bitcoin mixers had its fair share of skepticism as it has been indicted for money laundering conspiracy, that such mixing services are used by criminals for wash trading and other nefarious acts.
However, despite the negativity and risk associated with Bitcoin mixing services, it is far from the truth that Bitcoin mixers are used for illegitimate purposes. In reality, a study by blockchain analysis firm, Elliptic, discovered that only 16% of the funds entering the Bitcoin tumblers are derived from illicit sources. The rest of the 84% mixed Bitcoins are performed by regular users attempting to improve their privacy using a Bitcoin tumbler.
A further analysis on these illicit Bitcoin funds have revealed that the vast majority of Bitcoin laundering takes place on unregulated cryptocurrency exchanges, rather than using a cryptocurrency tumbling service. Another source titled “Cryptocurrency Anti-Money Laundering Report” by CipherTrace has shown that from January 2009 to September 2018, close to 97% of laundered Bitcoin is processed using unregulated exchanges.
In this case, criminals are more often found to send illicit Bitcoins to an unregulated exchange, swap it between several altcoins, execute numerous trades, then send it on to anonymous wallets to cash out their “dirty money”.
Should you consider using a Bitcoin Mixer?
Overall, if privacy remains the utmost concern for your online transactions using pseudo-anonymous Bitcoin, then using a Bitcoin mixer is certainly a no-brainer as it explicitly blocks out any possible threats that you may face should your transactions activities be viewable by anyone who knows of your Bitcoin address. With negligible service fee, you may leverage on a Bitcoin mixer to safely transact using Bitcoins online, while hiding your traces, transaction activities and more easily and anonymously with the crypto privacy tool.
For more information on how to mix Bitcoins on MyCryptoMixer, do check out our useful guide “How to Mix Bitcoins?”.