Being able to conduct untraceable transactions securely is one of the key reasons for using cryptocurrency. However, not all crypto coins are untraceable by their nature. Naturally, if you create a Bitcoin wallet, you are not required to provide identification papers. However, this doesn’t mean that your wallet cannot be tied to your identity by someone interested in it. For example, because information about all BTC transactions is stored in a public ledger, it can be viewed with specialized tools. As a result, anyone can figure out how often a particular wallet transfers coins or how much it has on the account. In combination with other information, this data can be used to connect the wallet with a particular person or to plan a cyber-attack. Consequently, selling and buying Bitcoin anonymously becomes important. This can be achieved by using coin tumblers, which are a specialized service allowing you to operate untraceable cryptocurrency.
What are Bitcoin Mixers?
There are various kinds of bitcoin mixers, but the main principle of their operation is the same. They obscure the source of the transaction by breaking it down into many small parts. Consequently, it becomes impossible to trace which wallet the transaction came from. They can also use additional obfuscation methods to protect their clients, for example, to hide the size and time of the transaction.
How to Use a Coin Tumbler?
To use a BTC mixer it will be a good idea to learn about several services of this kind to choose the best one. There are many coin mixers on the market, which can differ in details, such as commissions, reliability, and convenience. Thoroughly study what other users write about coin mixing services and try to find recent reviews. Here are the steps you need to follow to use a bitcoinmixer:
- Select the best Bitcoin mixer. There are several criteria to consider. Firstly, the main difference you need to know about is centralized mixers vs decentralized ones. You can use both types to buy Bitcoin anonymously, however, decentralized ones are more reliable, as they use more complicated obfuscation methods, and they cannot be forced to reveal user data by the authorities. Before using a coin mixing service, read its terms of service and compare service fees.
- Use additional tools to protect your anonymity. If you want to buy crypto anonymously, you may want not to rely on the coin tumbler only. Use a reliable VPN service to hide your online activities and the data about the websites you visit. You may also want to create a new crypto wallet to use with a coin mixing service.
- Send your coins to the coin tumbler, including the service fee. Each service will have its wallet address. Some of them generate several addresses to obfuscate the transaction further. Consequently, it is important to follow the instructions on the BTC mixer’s website to make sure you won’t lose your coins.
- Wait for your transaction to be completed. It can take time because to make a cryptocurrency anonymous, tumblers can add some variation to the transaction time, to make it impossible to figure out who and when has sent it. Processing transactions also takes time.
Are Coin Mixers Legal?
The legality of buying Bitcoin anonymously and using a coin mixer is considered a gray area. Using Bitcoin tumblers isn’t considered illegal per se. However, sometimes they can become part of illegal operations, such as money laundering or financing criminal activities. Consequently, authorities can be suspicious of them. They may enforce centralized mixers to conduct KYC procedures or disclose information about clients. This is why decentralized coin mixers become more popular. In most cases using such a service is safe, but it is always useful to read up on local laws and keep them in mind when you buy and sell crypto. Coin mixers will help you to remain untraceable when selling and buying bitcoin, and will protect your identity in the world of crypto.