Every crypto user will agree that Bitcoin mixers are some of the essential tools today. Unless you have no interest in protecting your digital assets, you probably use a bitcoin mixer while making transactions.
Bitcoin mixers, or tumblers, as they are also known, help crypto users to remain anonymous on the blockchain. You are probably wondering, ‘doesn’t blockchain technology provide enough anonymity?’ Well, if you are one such reader, then you haven’t been keeping up with the latest.
Contrary to what most people thought, Bitcoin transactions are not entirely anonymous. It is for this reason that Bitcoin mixers came to be. These crypto trading tools help traders to remain anonymous, thereby increasing the security of their digital assets.
If you are looking to protect your Bitcoins, then you will find this guide quite helpful. We will delve into some of the best Bitcoin mixers that you should check out. But first, what is Bitcoin Mixing?
Bitcoin Mixing Explained
When Bitcoin was still an infant concept, one of the features that drew people the most was the idea of anonymous transactions. The digital currency promised users that they could transact on the blockchain, without leaving any traces of your identity. However, as the use of Bitcoin gained popularity, it became apparent that anyone on the blockchain could track transaction histories back to the owners’ wallet addresses.
If you understand how the blockchain technology works, you can bypass the simple security measures in place. This loophole made it easier for hackers to target crypto users on the blockchain using their wallet addresses and even IP addresses that could give them information on physical locations.
Bitcoin mixing is also called tumbling. This crypto service involves using a third-party service to mix your Bitcoins so that your transactions cannot be traced back to you, thus protecting you against different scamming techniques. Crypto tumblers work by combining Bitcoin transactions so that no one can figure out the origins.
Say, for example, you obtain some Bitcoins from someone on the blockchain. To maintain your anonymity, you will send the Bitcoins to a tumbler. Here, they will mix with other coins from other transactions on the blockchain. The Bitcoin mixer will then send a different set of digital currencies to your wallet. The amount you receive will be slightly less than your original coins since the mixer charges you a small fee. The new coins have no connections to any of your past transactions, which makes you more secure on the blockchain.
Types of Bitcoin Mixers
When choosing the best Bitcoin tumbler to use for your trading, you will need to be aware of the different types that are available on the market. Bitcoin mixers can be divided into two categories – centralized mixers and peer-to-peer mixers.
These mixers usually allow users to send in their bitcoins and send back a different set of coins. A user will send their Bitcoins and pay a small commission. The mixer will then choose different currencies from the pool and send them to the specified address. These mixers rely on a large pool to increase anonymity. However, centralized tumblers have to store user data such as IP and wallet addresses, which also compromises user anonymity.
Unlike the centralized tumblers, these don’t need an intermediary. Instead, users pool together and create a standard transaction. For instance, a group of 200 users on the blockchain can decide to send 0.1 BTC to a specific Bitcoin address. Once all the Bitcoins merge, the users get back their 0.1 BTC, but they cannot tell where each coin came from. Peer-to-peer mixers are advantageous over the centralized ones since there’s no risk of not getting back your Bitcoins.
Best Bitcoin Mixers
Now that you are aware of the importance of having a Bitcoin mixer, which one should you go for? Like most of the other products in the crypto industry, there are several options available for you. Choosing the best one for your trading may be a challenge, but it helps to have a little help in the right direction.
It is worth mentioning that Bitcoin mixers work differently. Some will have the transactions complete in a few seconds, while others will have you wait a while. Either way, here are some of the best Bitcoin tumblers that you should consider.
Bitcoinmix.org has to be the best choice of a crypto tumbler you are going to make. Unlike most of the other centralized tumblers, Bitcoinmix doesn’t store complete Bitcoin transactions. Besides, after you have received your mixed coins, the platform deletes all logs, thereby increasing your anonymity. Additionally, the new Bitcoins will be sent via a random address that you have never interacted with before to help deter hackers even farther.
The commission charged for the mixing services is random and will range from 2-5% of your transaction. One of the best things about Bitcoinmix.org is that the algorithm is full-proof, so you don’t have to worry about ending up with some phishing scams. Besides, the entire process is automatic, and you can use the mixer for Bitcoins, Litecoins, and even ETH coins.
When you submit some coins for mixing, you will wait for between 10 minutes to 24 hours to have them back. If you need your Bitcoins in a hurry, this may not be the best choice for you. However, you can be sure that the service you get is full-proof.
The Samourai Whirlpool falls into the second category of bItcoin mixers – the peer-to-peer tumblers. Samourai uses a mixing technique called CoinJoin, which operates in a similar way to Bitcoin mixing. Through CoinJoin, users on a blockchain get to discard all traces of present and future bitcoin balances. One of the most significant advantages of CoinJoin is that users who aren’t actively mixing their coins also benefit from the service.
The Samourai wallet integrates the CoinJoin service. It also goes further to implement Whirlpool, which can be integrated into the wallet as well. Samourai is advantageous over its competitors since it provides three liquidity pools to ensure that everyone is covered. You get to choose the best Whirling pool, depending on the number of coins that you want to mix. Samourai Whirlpool is also extremely fast, seeing as it works around several small, fast CoinJoins as opposed to one slow cycle.
Another bonus point for Whirlpool is that the platform charges a flat fee. Therefore, the more the coins you mix, the less the commission that you pay.
Wasabi is a Bitcoin wallet that works uniquely by providing users with a trustless platform to mix their coins. This means that Wasabi only oversees the coin shuffling and doesn’t get concerned with the input and output of the coins. To increase anonymity, Wasabi operates on the Tor network.
Wasabi is a unique service that implements ZeroLink technology and is the first crypto wallet to apply this technology effectively. ZeroLink uses both pre-mix and post-mix wallets to ensure that this service is more effective. Users provide both the input and output addresses for the pre-mix wallets. Once a user sends their coins to Wasabi, the tumbler mixes the coins with others. Wasabi then uses mathematics to calculate the outputs and distributes them to the post-mix wallets. This way, the mixer is blind to the addresses of the origin and the destination, as well.
Wasabi verifies the transaction data by providing a cryptographic bling signature at every step along the way. ZeroLink technology also allows the wallet to maintain Bitcoin’s fungibility. Currently, Wasabi exists as a desktop wallet that functions on Linux, Windows, and OSX. The development team says that they won’t be releasing a hardware wallet unless the need for more client privacy arises.
Anonymix is one of the Bitcoin tumblers that allows you a variety of options to increase your anonymity on the blockchain. The tumbler uses both Clearnet and Tor network to ensure that your Bitcoin address is safe. Like all other centralized mixers, you send your Bitcoins and receive new coins in their place.
Although the platform is relatively new, it comes equipped with several lucrative features. For starters, you can choose a timed or random delay to ensure extra security. Anonymix also lets you multiple addresses. You can, for example, deposit your Bitcoins from different addresses, into the tumbler and choose to receive them in up to five other separate addresses.
Although Anonymix keeps transaction logs for up to one week, you can delete these logs at any time. However, the platform automatically gets rid of everything after the week is up. Anonymix also has a high capacity reserve that handles both hot and cold storage. You can, therefore, mix up to 120 BTC at a flat rate of 0.03%
If you are looking to protect your digital assets, Bitcoin mixers are the way to go. These platforms allow you to get rid of any trace that your Bitcoin transactions may have left on the blockchain. By doing so, you get rid of any loopholes that hackers may use to get to you.
There are several mixers that you can use, and it is always essential that you pick one that won’t compromise your assets. Well, we’ve just highlighted four of the best that are out there, so why don’t you check them out and choose the one that works best for you.