There are several different ways to mix Bitcoins, but crypto mixers are the most common. To ensure security and privacy, these services work by mixing your coins with other users’ coins before sending them to you from new, unrelated addresses.
Possible risks during cryptocurrency transactions
Everyone has heard about the anonymity of Bitcoin, but few people know that this is practically a myth. The anonymity of Bitcoin lies in the absence of the need to enter personal data and the lack of system control over transactions and their purpose. But the blockchain is a database that stores the history of all completed transactions. At first glance, it is pretty safe and anonymous because the blockchain provides no personal data about coin holders. But once you link your data to a transaction, for example, pay for home delivery of goods or withdraw funds to a card, all transactions in the system can become personalized when tracked by regulatory authorities. It already provides the ability to track the method of earning, depositing, and withdrawing funds, as well as all payment destinations and available savings of each Bitcoin holder, with proof of belonging to a particular person.
How do Bitcoin blenders resolve these issues?
When using a centralized Bitcoin mixing service, funds are anonymized by mixing all user transactions. So, the user sends his funds to the service, pays the established commission fee, and receives the same amount of funds, but only in other coins.
There are the following steps for using crypto mixers:
- Select the currency for mixing
- Specify the address for receiving mixed coins
- Set commission percentage
- Set the duration of the delay
- Download the Letter of Guarantee
- Send coins to the generated address
- Get mixed coins.
So, with the advent of such a service as a Bitcoin mixer, cybercriminals have no chance to trace the chain of cryptocurrency movement from wallet to wallet.