What are crypto mixers, how do they work and add an extra layer of privacy
Currently, the popularity of using cryptocurrencies as a means of payment for goods and services is growing. In light of this, a high level of confidentiality is required. Any cryptocurrency holder knows that the recipient can track the history of transactions, it is enough to know the sender’s wallet address.
Since any cryptocurrency works on the basis of the blockchain, each transaction is recorded on its network. Hacking a block and accessing the data stored there is difficult, but there are vulnerabilities that can be exploited.
If there was a way to keep transactions anonymous! As it turned out, there is such a method. It is called a crypto-mixer.
As the name suggests, crypto mixers mix different types of cryptocurrencies to hide traces of the source of the transaction. In practice, everything is not so simple.
There are different ways to combine cryptocurrencies, but the goal is always to ensure confidentiality. Let’s take a look at several platforms available to understand the concept in practice and what unique features they offer.
One of the most modern and reliable cryptocurrency mixing services. It not only mixes different types of coins to confuse traces, but also combines coins with randomly selected money transfers. Smartmixer accepts only three cryptocurrencies: Bitcoin, Litecoin and Bitcoin Cash.
The mixing process is fast and clear. Customers can choose from three types of cryptocurrency mixing. They can combine their funds with the funds of other users. Or combine them with funds of other users and cryptocurrency investors and reserve services. Finally, you can combine your own funds only with reserve services and investor coins, which the platform calls a secret reserve.
The usability of this service is at a high level. You need to select one of the three coins mentioned above and send them to the desired address. If desired, you can delay the transaction for up to three days. The platform takes 1% of mixed cryptocurrencies for its services.
A platform for those who want to carry out completely anonymous Bitcoin transactions. Anonymix uses a combination of hot and cold wallets to create a sophisticated backup system. This system supports mixing up to 100 bitcoins, which are completely impossible to track. User bitcoins are mixed with bitcoins from the backup storage.
If this is not enough, Anonymix provides even more serious opportunities to hide traces, allowing you to set delays and send bitcoins to more than one wallet. This option is called Bulletproof Mixing. Here, an algorithm opposing the analysis of the blockchain is used to ensure the highest quality mixing of currencies.
In addition, in order to attract more users, the platform charges only 0.3% per transaction.
One of the most reliable mixers. Its goal is to provide untraceable bitcoin. For this, the bitcoins of users and other people are mixed to give them a different, but at the same time the same amount of BTC. Bitmix calls this coin laundering, making the transparent BTC network anonymous.
Bitmix charges 0.4% – 4% for mining and 0.0005 BTC for addresses that cover all the transactions of miners. Mixing usually occurs instantly, but sometimes takes up to 24 hours, depending on the amount of BTC the user has. The minimum value for mixing is 0.007 BTC, the maximum is 1000 BTC.
When you mix your coins with others, there is a chance that you will get the same coins that you had. The Bitmix service takes care of this. The user receives the code that is needed to work with the service. The same code is responsible for ensuring that you do not receive your own coins.
Cryptocurrency mixing seems to be a fairly reliable tool to ensure confidentiality and protect transactions. These platforms do not maintain logs and records regarding users and transactions. This adds another layer of protection to the cryptocurrency ecosystem as a whole.