A Bitcoin tumbler is any service that mixes cryptocurrency assets and tokens to obscure their traceable origin.
These mixers have arisen to improve anonymity of transactions, since the currencies provide a public ledger to all transactions.
Typical BTC tumbler tends to give you clean Bitcoin in exchange for a small fee, while the service disconnects links between Bitcoin wallet addresses.
How does a Bitcoin tumbler work?
For instance, suppose I send you a Bitcoin, you send it to Peter, then in turn, he sends the BTC to Mary.
Based on a fact that the blockchain is completely open, anyone who downloads it can find the transaction details.
Furthermore, if we made the transactions on a KYC platform, then the entity carrying out analysis on the chain of transactions can track us down.
Thereby, bursting our real-world identities to track the four of us down.
However, if I first send my BTC to the best Bitcoin tumbler, and we repeat the same transactions, our identities would be obscured.
A BTC tumbler routes transactions to different addresses – splitting them into small tokens, which are reassembled to varying times before forwarding them to a recipient.
Consequently, the link between two parties engaged in a transaction is broken, because there’s no chain between incoming tokens to outgoing tokens.
How to use a Bitcoin mixer
To use a Bitcoin tumbler, you’ll need as follows:
- A tor browser or tor-enabled interface
- A reliable crypto wallet with BTC for mixing
- Transition wallets.
Connect to a tor browser and create a cryptocurrency burner wallet (new transition wallet) from a wallet-provider of your choice.
Fund your transition wallet (not in any way connected to you) with your market wallet holding your Bitcoins.
The reason why you need your transition wallet is that sending your crypto directly to a tumbling service looks suspicious.
Create a second transition wallet, which is your third and final wallet.
To mix your Bitcoins, this entails sending your cryptocurrency from your first transition wallet to the mixing address.
The mixing service will require you to set various parameters, including an address where you will receive the new Bitcoins, amount you wish to mix, and duration in which the mixing should last.
Send payment to the address provided (your second transition wallet). After you can spend or send the amount, you wish.
Frequently Asked Questions
The need to tumble your Bitcoin depends on your take on anonymity, as the cryptocurrency is pseudo-anonymous.
If you want more privacy, using a Bitcoin mixer service is one necessary option available for you.
There are also several privacy coins with extensive integrated privacy and anonymity features you can transact instead.