May 11, 2019 05:19 UTC
May 11, 2019 at 08:39 UTC
The basics of bitcoin mixing
Digital currencies are a way to slip out the control of money from government to your own hands. Bitcoin and other currencies do have transparency as their main component still can be very anonymous. There are many ways to be anonymous. But one of the most preferred and perhaps the easiest one is using bitcoin mixing. Bitcoin mixing helps you exchange your coins with another from a different account so that no one can connect the sending account to the receiving account.
Not many people understand what bitcoin mixing is though. In this guide, we are going to try and answer a few questions that are most basic to bitcoin mixing. Continue reading for more understanding-
What is bitcoin mixing?
Also called, bitcoin tumbling or shuffling, it is a way of changing your bitcoins with another account so that your transaction cannot be tracked. In simple terms, bitcoin mixing is just ‘confusing’ your transaction. The simple way to understand what confusing your transaction is thinking of water mixing in a jar, where multiple different size glass full of water are mixed together to fill the jar and again fill the glasses with water i.e now non distinguishable and still all glasses are full again.
In the similar way all the bitcoins you and many others want to hide into the transactions send it to a single address which then creates different outputs from different input hashes from different accounts if possible and sends the bitcoins to your desired address after mixing the transaction hashes. There are many websites that are doing this and you can do it yourself by launching a full node by yourself. One of the trusted and old websites for Bitcoin Mixing is MixerTumbler .
Why do you need bitcoin mixing?
The simplest answer to this is so that you can stay anonymous. Bitcoin itself is not anonymous, which means anyone can trace your transaction and find you in real life. Well, you want to make sure that this never happens. There are many way people use to stay under the radar. Bitcoin tumbling is the most preferred mostly because it is the easiest and works the best.
Using bitcoin mixing is not a must. It is a choice you have to make on your own based on the advantages and disadvantages of using the services. If you are not sure to trust the bitcoin mixers, you don’t have to engage them.
Why is bitcoin not anonymous?
It is easy for newbies to think bitcoin is anonymous. But savvy blockchain users understand otherwise. Bitcoin is described as pseudo-anonymous because it is not fully anonymous. There are several reasons for this.
One, bitcoin transactions involve two main components known as private keys and public keys. These are the inputs and outputs. The private keys include the passwords you use in your wallet to make a transaction while the public keys consist of your user name. For a transaction to be complete the transactions must be involved. And since the transactions are available freely on a public ledger, anyone smart enough can link them to your real life.
Secondly, when buying something online with bitcoin, you are required to give your real names and address. Such information can be used to harm you or steal your BTC. Using bitcoin mixing helps hide some of this information so that hackers and spying eyes cannot get your identity. It is a great way to stay under the radar.
Is bitcoin mixing safe?
Bitcoin mixing is a good way to stay hidden while making transaction. Many people don’t want to show merchants their actual amount of bitcoins and are using the mixing services today that may be a reason to try them out. If done from a good bitcoin mixing website or under your own full node services, it is okay to say that it is pretty safe.