A bitcoin mixer is a service that allows users to send their cryptocurrency funds into a mixing pool with other users’ transactions, obscuring the connection between the sender and the recipient. Once the transaction is complete, the user receives new, untraceable bitcoins from the mix. Mixers typically charge a fee for their services, ranging from 1% to 5%.
The blockchain acts as the ledger for Bitcoin, which records all transactions in units known as blocks. Although the blockchain is publicly viewable, it is not untraceable and could be used to identify the owner of a wallet or an address. As a result, the use of mixers is highly recommended for those looking to increase their privacy and security.
While there are many legitimate reasons to utilize a crypto mixer, these services have been associated with money laundering and other criminal activity. As a result, several exchanges have banned or severely restrict transactions involving bitcoin mixers.
Coinomize is a popular bitcoin mixer that offers a number of features to protect users’ anonymity. It does not record any transaction logs or IP addresses and only requires one confirmation for withdrawals. It also has low platform fees and supports Tor for additional security.
A decentralized bitcoin mixer is a tool that can be used to mix coins automatically and in real time. It works by collecting multiple bitcoins from a variety of users into a single mixing pool and then distributing the coins back in smaller chunks after jumbling. Users can then use the pool’s jumbled bitcoins to pay for goods or services online.