The safety of using bitcoin mixers

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The safety of using bitcoin mixers

The pseudo-anonymity of cryptocurrencies has made them the main means of payment for darknet and black market. They are often used to carry out illegal transactions, but transactions can be easily tracked through the main registry. In order to anonymize payments, special services were developed – cryptocurrency mixers.

Bitcoin Mixer is an anonymizing service that, by crushing coins into small amounts and sending them repeatedly to various cryptocurrency wallets, makes tracking impossible, or rather significantly complicates it.

How to keep anonymity

Bitcoin transaction anonymity disappears upon its first encounter with the real world. Once you connect your data with a cryptocurrency wallet or coin, all transactions can be monitored by state control authorities. It would seem that the problem was solved by cryptocurrency mixers, but in most cases they do not solve the problem of anonymity even by half.

The main drawback of cryptocurrency mixers is the participation of a centralized service and a third party. The rules of most services indicate that they do not collect or store information about users, but in fact, many sites survive through advertising, connect Google Analytics or Yandex. Metrics that track attendance, save all entered data on the site, and also collect Information about the actions of visitors. When using cookies, mixing coins on the service simply does not make sense.

Not all services mix coins equally well. In many cases, the anonymity of transfers depends on the number of persons involved in the transaction. If there are only a few depositors in the mixing pool, then even prolonged mixing will not lead to sufficient anonymity.

Due to the high level of competition, services try to reduce the mixing time for users, often neglecting security, they introduce additional services. For example, they connect chat support using third-party services that store correspondence and track user actions, which can later be a compromise.

Popular is the transaction timing service. Systematic transactions are easily tracked using algorithms developed by Chainalysis and Bitfury. In 98% of cases, addresses associated with each other, and transactions committed by a certain algorithm are tracked.

A security measure is also controversial – a letter of guarantee with a code by which you can appeal a transaction with a service. This letter is stored both by the user and on the service. Usually, a service indicates the nth amount of storage time, but only the developer knows how much time they are actually stored.

Criteria for a Good Bitcoin Mixer

A cryptocurrency mixer must meet all the criteria of anonymity. Service should be:

  • Automated. Everything should work stably without operator intervention.
  • Random. All transactions should be carried out exclusively in a randomly specified order and period of time. Pending transactions are not allowed.
  • Without analytics tools. A mixer connected to third-party services and collecting cookies is obviously not anonymous. If you find ads, live chat or user statistics, mixing on the service does not make sense.

Mixcoin is the most anonymous mixer

Mixcoins is one of the few services that has all the qualities for 100% anonymous mixing. The service has been operating since 2017. More than 100 transactions are made on it monthly.

The service uses a special mixing algorithm. The user’s coins are transferred to the reserve fund of the mixer, and the user is paid clean coins from the exchanges. Before the cleared coins get to the recipient’s wallet, they are mixed through exchanges with exchange for other currencies and receiving net BTC. This ensures anonymous receipt of absolutely clean coins without history.

The complete process of clearing Bitcoin takes from 20 minutes to 3 hours. Amounts from 0.5 to 5 MTC are allowed for mixing. The commission for mixing is 3%, in addition to the final amount, a commission for sending over the network will be deducted.

All operations with coins are carried out exclusively in random order, and a letter system with a code is not used to track operations, which excludes the possibility of deanonymization during data storage. After creating the request, the user receives a unique link that can be left open in the browser to track the transaction. The service does not store transaction data, it is deleted within 7 days after mixing, along with all requests for technical support.

For security and anonymity purposes, a system has been introduced to the service that does not allow users to use the same cryptocurrency address for withdrawal. Thanks to this, the system cannot be compromised by any of the participants, user actions are not systematized, therefore it is impossible to track them using third-party algorithms. It is these parameters that are often neglected by most cryptocurrency mixers, which is why the service system is easily tracked.

Mixcoin is not connected to analytics systems, does not keep user records and does not collect cookies. Information about transactions is stored no more than 7 days after completion and only for the purpose of providing technical support to users.

If you have questions, the user can always turn to those. Support for the service, but this is not a third-party online chat, but a specially developed site function. To access the chat, a private key is generated, after which a window for dialogue opens.

Conclusions

Bitcoin anonymity is a conditional concept that is lost in contact with the real world. If you are not sure about the legality of receiving funds or the recipient of a transfer, then you should think about security and conduct transfers through a mixer. But here, not everything is so simple. The mix service must be reliable and meet the basic criteria of anonymity. Otherwise, its use will only once again compromise the coins.

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