A good magician never divulges their secrets, and a good crypto trader always uses a bitcoin mixer.
For any crypto trader who knows what they’re doing, the idea of truly decentralized and anonymous currency exchange is perhaps the most important of all factors involved. The decentralization of bitcoin and other cryptocurrencies is not only what makes the market unique, but also what makes it so provocative.
Sadly, as markets evolve, centralized powers, middlemen, and governmental forces are beginning to intervene. Looking for ways to take control and make money off of something they were intentionally left out of. But, thanks to a generation of tech-savvy investors, traders are finding a way to keep the powers that be, at bay. How? According to Best Bitcoin Tumbler, by using bitcoin mixers.
Decentralization of Crypto
Bitcoin, and all the altcoin cryptocurrencies that came after it, were designed to be free of centralized power. Which means that there is no bank, no single administrator, that has any control over transactions.
Transactions in cryptocurrencies are immutable and monitored throughout a peer-to-peer ledger. Which means to say, a record of these transactions surely exists, and while it can’t be changed, it’s also not overseen. There is no complaints department. Transactions are logged by other users in a public ledger called a blockchain. Blockchain technology is one of a kind, and is proposed for use in many other applications. Blockchain works by a network of communicating nodes that are used to process these transactions. Nodes are essentially user ran computers with software that is designed to solve complicated mathematical problems.
Each maths problem is essentially a transaction. Such as payer X, sends Y bitcoins to recipient Z. As the transactions are validated, they are locked into the ledger. Each transaction is placed into blocks which are then strung together, so that anyone can look back into the ledger and see which bitcoins were sent where. While the system is nameless- no personal information is exchanged during a bitcoin transaction, there are ways of finding out what bitcoin holder sent the currency, as well as finding out what bitcoin receiver accepted the currency.
Because of this “paper trail” certain agencies are finding ways to uncover who sent what where. Which essentially disavows everything that bitcoin stands for. At that point, the anonymity and decentralization is largely moot.
Bitcoin Mixers: How They Work
While some sceptics say that allowing cryptocurrencies to retain anonymity and decentralization makes it simple for bitcoin users to exchange currency for criminal or untoward activities, it’s not that simple. There are definitely some nefarious acts that happen within the crypto realm, specifically on the Darknet markets, but largely- most people want crypto to remain anonymous because it’s supposed to.
Bitcoin was designed with that specific purpose in mind, so that any centralized power couldn’t retain or gain any control over the transactions and what the currencies may, or may not, be used for. This is where bitcoin mixers come in.
Bitcoin mixers, bitcoin tumblers, or bitcoin launders are all names for the newest trend in keeping your bitcoin exactly what it was designed to be. Bitcoin mixers work by breaking the connection between the bitcoin address sending the coins, and the addresses receiving them.
As mentioned above, the blockchain ledger is public, which means that anyone who knows how to look can see exactly what address sent the coins. Making it simple for private organizations, public corporations, and government agencies to track addresses back to users and see when and where their bitcoin was spent.
Mixers work by trading around existing bitcoin, so essentially, the ledger is still there and the transaction is still valid, but tracing specific coins back to specific users is next to impossible. Which retains the anonymity that bitcoin was built on.
Bitcoin Mixers: Why Every Crypto Trader Needs One
To the newb bitcoin and crypto trader, it may seem a bit unrealistic that any overseeing agency could actually trace crypto back to a user. However, in reality, it’s actually a really simple process.
Tracing crypto back to an original user is fairly simple. Blockchain being public domain, crypto wallet addresses can be traced to the origin. If the same wallet and account is used for multiple crypto transactions, that wallet ID will be attached to every transaction the user has made. Essentially becoming something equivalent to a name. As more activity is logged under this specific address, the name becomes more and more clear. Organizations can track spending habits and behavior. From there, all it takes is a shipping address, and suddenly- that wallet ID now has a face, name, and address.
Using a third party mixer is the best way to keep your bitcoin clean and your digital signature non-existent. While it is technically possible to mix coin yourself, it would take more time and effort that any 1-3% commission is worth. If you’ve got crypto or bitcoin- do yourself a favor and get a mixer.