Back when Bitcoin originally emerged, over 11 years ago at this point, cryptocurrency transactions were believed to be fully anonymous. This belief stuck around for years to come, but today, we know that, in most cases — this is no longer the truth.
Since the invention of blockchain explorers, it became possible to track every Bitcoin transaction, all the way back to the genesis block. This came as a part of blockchain transparency which promises to eliminate corruption, theft, and other such issues.
However, there is still a need for a certain level of privacy, as people like to keep their wealth to themselves, and not let everyone know how much money they have, or how much they sent for whatever purpose. This is why many are now using crypto tumblers, or mixers.
What do crypto mixers do?
As the name suggests, crypto mixers/tumblers mix up the coins in order to hide/disguise/make it difficult to discover where the coins came from. Things like the amounts, transactions, and wallet addresses to and from which the coins travel are fully traceable, which is why tumblers exist.
In a way, you could say that mixers can add an extra layer of privacy while using Bitcoin, Ethereum, Litecoin, and many other cryptocurrencies. There are many Bitcoin mixers, as well as mixers that focus on these other cryptos, specifically, such as Ethereum mixers. There are also services that offer mixing for multiple coins.
But, they all work in the same way. When you obtain your coins through purchase within exchange (where your identity is known due to current regulations), the exchange knows exactly who you are and how much money you have. The same is true for everyone else who has the authority to request such data from the exchange.
If you simply transfer the funds to your private wallet, anyone will be able to track this transaction. They will see where the funds came from, where they went, and what amount made that trip. With your identity known on the exchange, it is easy to conclude that the wallet address belongs to you as well.
If you send the money to a mixer first, however, it will still deliver the money to your wallet, but it will change the time of the second part of the transaction, as well as the amount that arrives, and the path from the exchange to the wallet will be interrupted.
This brings additional security and privacy, and makes your use of crypto difficult to track.
Keep your identity safe with cryptocurrency tumblers
Using tumblers for cryptocurrencies has a number of benefits. For example, it allows you to stay anonymous. It can also discourage hackers, who would otherwise be attracted by your wallet if they knew that significant amounts are going in and out. It would also allow you to stay private, as people would be able to see that the coins are entering or leaving, but they would not know whose those coins are. As a result, you can spend them without the transactions being traced to your name.
Not to mention that you still need protection from the real-world criminals, who might go after you if they discover that you own a wallet filled with coins that have become highly-valued.
Shopping with crypto is also becoming more and more popular, with the number of merchants accepting coins growing almost on a daily basis. With additional privacy that comes from the use of Bitcoin tumblers, you can easily purchase anything online without people knowing that it was you.
Bitcoin fungibility
Finally, you can also use crypto tumblers to make your Bitcoin more fungible. The fungibility issue has attracted the attention of many, as people ask the question of whether a certain quantity of BTC can be swapped for another of equal value. Of course, the answer is yes. All Bitcoins come with the same value, regardless of whether the coin you gave is the same that you got back or not.
But, due to the protocol that makes each coin have its own unique hash and signature, it is still possible to track a particular coin. That is why using mixers to give away your particular coins and get others that have the same value can help you stay truly anonymous. No one will know who you are, even if they know where your coin came from, which gives you the ability to hide your identity completely.
Image by WorldSpectrum from Pixabay
The post Trusted Crypto Tumbler To Protect Your Wealth appeared first on Global Coin Report.
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