“Bitcoin transactions are anonymous”- This statement is not quite right when you look into it. Regular bitcoin transactions are very transparent, while mixed transactions are not.
In this article, we look at how bitcoin mixers operate and why they are important for your privacy.
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Are Bitcoin Transactions Anonymous?
Bitcoin transactions are not anonymous unless you use a bitcoin mixer. Regular transactions are pseudonymous. They do not give away your identity but can be traced to you.
The world of financial technology is filled with several identity verification requirements and tracking by states and organizations alike.
Most cryptocurrency users opt for centralized exchanges that take records of their personal information and real-world identity. These elements make it very easy for transactions on the blockchain to be linked to people.
For example, sending transactions from or to your exchange account after verifying your ID ties you to the external wallet.
As a result, blockchain analysis companies who use deanonymization methods to trace users and their transactions on the blockchain have sprung up.
Also, bitcoins’ fungibility is at risk since the transaction history of each bitcoin is traceable. “Tainted” bitcoins can be valued less than other bitcoins, possibly undermining bitcoin’s value proposition as money.
However, bitcoin transactions could be untraceable when you use a bitcoin mixer.
What is a Bitcoin Mixer?
A bitcoin mixer is a tool that allows you to mix your coins with other users while making a transaction to make them anonymous.
When you send bitcoin, the route of the transaction can easily be traced since it starts from your wallet and ends with the receiver.
However, bitcoin mixers make this route complex by generating multiple transactions before the final one to make tracking impossible.
A bitcoin mixer adds your coins to a pool of other coins and creates several transactions between them before finally sending your transaction.
In the end, the receiver will be unable to trace the transaction back to your wallet.
BitMix.Biz – The Ultimate Bitcoin Mixer?
The bitcoin mixer uses new mixing but tested technology to make your transactions opaque. First, you have to visit the site. After that, you can select the cryptocurrency you wish to mix, enter your final receiving address, and deposit your coins.
BitMix.Biz offers quick mixing services compared to other platforms with several great reviews. Transactions are instant because BitMix has an existing reserve of clean coins. These coins are sent to your receiving address immediately after you make a deposit.
You can mix any amount of coins more than 0.005 BTC, LTC, and DASH. A unique code is assigned to you after your initial exchange. This code makes sure that you will never receive any of the previous coins you have added to BitMix’s reserves.
Also, bad actors can analyze the blockchain to find the exact sum transferred and link the transaction back to your account, provided they know the service fee. BitMix makes this impossible with their custom fee feature that allows you to select fees between 0.4 to 4 percent.
Bitcoin mixers provide great utility for everyday bitcoin users. Anonymous transactions protect you against potential hacks and tracking of your personal finances.
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The post Believe It Or Not, Bitcoin Transactions Are Not Private appeared first on BlockNewsAfrica.
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