The crypto industry is forcing digital coin owners to be more careful. It is because the number of cyber attacks to steal coins from crypto wallets has increased. A Bitcoin mixer has been created to maximize the protection of transactions and the safety of digital storage.
What Is A Tumbler, And How Does It Work?
Mixer is a unique platform, the technology of which is based on removing the history of the origin of digital coins and preserving the anonymity of users – owners of virtual assets. The crypto mixer mixes all the clients’ digital coins invested in it.
The mixing principle is as follows. Crypto assets are divided into several small parts, and then these parts are randomly mixed with details of other participants in this operation. The processed crypto funds are returned to all participants at the end of the mixing. After the “cleansing” of the coins, there is no way to track the crypto transaction and contact its participants.
Types Of Tumblers
Currently, there are two main types of mixers for mixing digital coins. And there is a third alternative.
It is the first generation of coin-mixing platforms. Now they are less in demand than they used to be, and this is because confidentiality is drastically reduced when accessing log logs. Their number has been greatly reduced, but you can still find crypto mixers with a centralized system.
Their working principle is as follows. The owner of the virtual assets places his digital coins in a bitcoin mixer, then pays for the mixing service, and crypto funds come to a specific address, but from another owner of the coins for the amount you invested. The degree of security of such a cryptocurrency mixer will depend on the number of coins supported and the number of users participating in the crypto mixing. The more participants, the greater the degree of anonymity. And the level of security of such a platform will entirely depend on the professionalism and honesty of the creators of this service.
Decentralized Or Peer-To-Peer
It is a more modernized version of the centralized mixer. They allow users to exchange virtual assets directly, eliminating intermediaries. This type of tumbler minimizes the actions of intruders through the use of the CoinSwap, SharedCoin, and CoinJoin protocols. These protocols allow several users to connect in a typical transaction.
Such a transaction will be carried out in several stages as the required number of users join. None of the participants saves the addresses of recipients or senders because the crypto mixer will handle this. Several mixes in a row achieve an increase in the quality of mixing.
Tumblers On Smart Contracts
These bitcoin mixers, like the previous ones, are non-custodial. But their principle of operation is significantly different. They do not accept or send customers virtual coins in a single transaction. Instead, the participant sends their virtual funds to the Bitcoin mixer and then receives a cryptographic record confirming that they invested their funds for mixing. Then, from the new address, the participant can send his transaction to the mixer, which will use this received record to withdraw funds to the new address. To further complicate the transaction tracking process, the user may not immediately, but after some time, remove coins with a “cleared” history.
What To Look For When Using A Tumbler?
When choosing and using a mixer, you should be guided by the recommendations below. When choosing a mixing service, make sure of the following:
- high service rating;
- the presence of positive feedback for an extended period;
- there is a customer support service;
- the service has various settings in its functionality that increase security and privacy.
As a rule, the minimum amount for mixing is 0.001-0.002 bitcoins. But if the participant puts less, the platform will accept this as a voluntary contribution to developing this service. Therefore, you will not receive back the invested coins. Most crypto mixers use this rule. Before depositing funds, read the user terms carefully or contact customer support for a question.
If you are new to this business, you should invest a considerably manageable amount of coins initially. First, test the platform for a small amount of money to evaluate the software’s results and honesty. If everything is in order, use the service for total amounts, for example, MixBTC.
For economic benefits, it is recommended to select services that provide various promotional discounts, bonuses, and codes for their customers. Stay tuned for the latest promotions and discounts. It is for crypto transactions that this is most relevant.
Be sure to close all tabs open in your browser and delete your email correspondence (save essential emails on your computer). The fact is that this service will confirm all performed operations for mixing virtual assets – you will be notified by mail. This message will contain the terms of the concluded transaction, the amount of payment for the mixing service, and a cipher will be written – the identifier of the transaction. You must retain this letter of guarantee to return the digital coins you have invested in mixing. This notification is the primary document confirming that you have invested your virtual funds for mixing.
In The End
From all of the above, it follows that the correct approach to choosing a platform will guarantee the anonymity and safety of your crypto storage. Never use the first platform, but always consider multiple services.