Using Bitcoin is an excellent way to stay anonymous while making your purchases, donations without losing money through inflated transaction fees. Since the dawn of the digital age, and the fall of Silk Road, Darknet most essentially has been on the hunt for ways to improve the rigidity of their privacy status. Bitcoin activities are recorded and available publicly via the Blockchain- a comprehensive database that keeps a record of bitcoin transactions. Bitcoin is now known to be not anonymous , as opposed the general thought of people few years back; and the trail that Bitcoin leaves behind can be used to trace the transaction back to it source and in the quest of using it to pay for goods and services, you will, of course, need to provide your name and address to the seller for delivery purposes. This means a third party can trace your transactions and find ID information. To avoid this, mixing service provide the ability to exchange your bitcoins for different ones which cannot be associated with the original owner.
Bitcoin Mixer are also known as bitcoin tumblers and also also bitcoin launderers (beacuse they are used majorly in laundering money), is the process of using a third-party service to break the connection between a Bitcoin address sending coins and the address they are sent to. Before the advent of trustless alternatives, mixing services (also called tumblers) was used to mix one’s funds with other people’s money, intending to confuse the trail back to the fund’s main source. In an indigenous financial system, the equivalent would be moving funds through banks located in countries with a strict bank –secrecy laws such as the Cayman Islands, the Bahamas, and Panama
When mixing Bitcoins, you have to send your money to an anonymous service and, if they are well-intentioned, they will send you someone else’s tainted coins. So, now, whatever those coins were used for may be traceable back to you. Additionally, mixing large amounts of money may be illegal, violating anti-structuring laws
SIMPLE GUIDE TO EFFECTIVELY AND SAFELY MIXING COINS
Because of the fact that all bitcoin transactions are stored in the blockchain as a public ledger, mixing coins is very dangerous for anyone who doesn’t want the entire world to know where they send and store Bitcoins.
Mixing coins properly may seem like a very hard thing to do for a person who is not strongly vetted in the knowledge of Bitcoins, but its a very simple process that will take a few minutes for each deposit.
There are a lot of good reasons behind the mixing of coins but for those who make use of the higher power (Darkweb) in particular, Coins mixing is a necessity. With the rate at which technology is advancing new tools are being built all the time to increase the ability of the public and private corporations as well as government agencies to follow coins through Blockchain and track it, users.
Step 1 Create a wallet on the clearnet
Step 2 Buy Bitcoins and send the amount you want to mix to the wallet you created in step 1
Step 3 Create a second wallet, but this time you create it on TOR network
Step 4 Send your bitcoin from wallet one into wallet two
The reason for this is to add valid dependability between your clearnet wallets and in-person purchases. If you are vetted by law enforcement or the company from which you are buying, you can reasonably claim that you sent them to someone else who controls wallet two. And since nobody expects you to know who the controller of wallet two is for whatever reason, any transaction made with it won’t be tied to you in any way.
Step 5 Make sure you open a third wallet using Tor
Step 6 Chose a good bitcoin mixer and transact using the third wallet created.. It’s best to use multiple addresses and to set random time delays.
Step 7 Send the coins from wallet two over TOR to the address generated for you by mixer
Step 9 Check the arrival of your coins from the mixer using the blockchain.info site on Tor. Once they have, restart TOR and then send the coins to your market address (or their eventual destination)
The reason you should create an extra wallet in between your mixer and market account is in case you ever run into any type of problem with your account.
As with anything, you should do your research before using Bitcoin Mixer services and use the ones with the best reviews and highest level of trust.
DISADVANTAGES OF COIN MIXERS
The ultimate and probably the biggest disadvantage of using a coin mixer is the fact that criminals and money laundering individuals can also easily hide their transactions away from the prying eyes of the police and other people involved. However, with the continued development in the technology of tracking criminals, it is being hoped that the law enforcement will eventually find ways to catch these laundering platforms. Additionally, a coin mixing mechanism can be pretty expensive especially when it involves larger amounts of transactions. For most people, increased privacy is still worth it though.
The cryptocurrency industry has been plagued with controversy and issues since crypto transactions started. The good thing about this is that technology also continues to adapt to the various needs of the people. Some people agree that this coin mixing tool is one great way of increasing privacy and protecting the interest of those who deal with virtual coins.
In conclusion, if you are keen on protecting your privacy more than anything else, then its time to weigh the pros and cons and see what would suit you the best once and for all.