Often, users understand Bitcoin as a method of anonymous transactions. But how anonymous is it?
Anonymity against confidentiality
First, it is helpful to distinguish between anonymity and confidentiality in the context of financial transactions. We can only call a transaction anonymous if no one knows who you are, and a confidential transaction leaves unknown the amount of money you spent.
Cash or barter is the most confidential and anonymous transaction, and some financial transactions are private but not anonymous. Among them is the charitable wall at the local art museum, on which the names of donors are listed but have yet to be donated amounts.
However, Bitcoin is anonymous but not private: developers never record personal information about the BTC holder. This is not even written in the Bitcoin protocol, but each transaction is visible in a distributed ebook known as the blockchain.
If you want to keep your Bitcoin transactions anonymous and private, we advise you to https://yomix.io. It is an innovative mixing service with a little commission in the market, and it provides anonymity for each user on these networks.
How Bitcoin mixers work
First, holders of Bitcoin wallets deposit their coins into the mixer. Also, they mix them with other transactions to sever the link between the original sender and the intended recipient.
From the non-professional point of view, a mixer for Bitcoins is a special algorithm that consists of programs that mix a network of transactions before the designated funds reach the recipient.
Features of excellent crypto mixer
When choosing the perfect Bitcoin mixer, several factors must be considered, including:
- complete anonymity,
- fair fee,
- multiple addresses,
- zero transaction fee,
- no mixing logs or user records,
- quick transactions.
There are several benefits of privacy and anonymity of Bitcoin transactions, but keeping them off the radar of fraudsters remains the most practical.
Bitcoin mixers types
There are two types of crypto mixers, such as centralized and decentralized.
Centralized crypto mixers
Centralized Bitcoin, called custody mixers, are third-party organizations accepting payments and sending back different Bitcoins. Centralized crypto mixers offer a more straightforward solution for mixing and have small commissions for users.
Decentralized crypto mixers
Also called non-custody, decentralized Bitcoin mixers do not require third-party involvement. They use smart contracts and protocols that help in the issue of encrypting cryptocurrency transactions. Typically, decentralized mixers bring together large groups of users who plan to mix a certain amount of Bitcoins.
Regardless of the type, crypto mixers do not store user information and do not provide anonymous addresses for Bitcoin transactions. Understanding how Bitcoin transactions are executed is a complex topic for most users. However, the information that we have described in this article will be helpful to anyone who is trying to deal with cryptocurrencies.
Both beginners and professionals can successfully use a Bitcoin mixer. When using this platform, you should remember network fees and transaction costs when using mixers. However, this tool will still be helpful for you. It will give you complete privacy with your electronic money. So it would help if you did not neglect this, so your anonymity is never threatened.