Why and how to secure your crypto coins with a Bitcoin mixer
Complete anonymity today is a luxury thing. To have it one ought to works very well on this. Bitcoin itself, conceptually, like most other cryptocurrencies, does not guarantee anything. At present, crypto is not the same as it was before, when it was possible to exchange it through exchanges without any KYC / AML verification. Now there are such units, and this greatly affects the anonymity and privacy of users. Passing the KYC procedure, users thereby mark their wallets and therefore identify themselves.
In order to keep your Bitcoin privacy and anonymity in safety, first you need to understand that absolutely all transactions are visible on the blockchain, connecting all the addresses that have ever been used, so just sending coins to new wallets does not solve the problem.
The moments of buying and selling both the cryptocurrency and the goods for digital coins are the most vulnerable that leave transaction traces. These are the most likely points where one can identify the crypto coin holder. When crypto cashing takes place, wallet owners are easily identified, since most often in these situations the user is forced to leave his data, and in addition, it is possible to track the route of the goods delivery.
One can easily track the movement of coins between wallets, and although it is more difficult to link addresses to real owners and the movement of goods, it is quite realistic. This is evidenced by the numerous cases of theft of cryptocurrencies from the wallets of ordinary users who do not even own large amounts. Over the past 2019, there have been many high-profile cases when in total were stolen hundreds of millions of dollars in most popular cryptocurrencies .
If you use a standard client with default settings, then all the nodes of the blockchain will know your IP address. When making a transaction, the nodes through which the transaction enters the network can establish a correspondence between your IP and the address of your wallet. If such a node was created intentionally, then you can compare this data with the one presented by the providers, namely the IP of the user and then establish the identity of the crypto wallet holder and follow the money transfer chain. Balances become open to prying eyes.
In fact, you can hide anything, since finances are usually attributed to the personal space of a person. Cryptocurrency is good because transaction information does not remain in the databases of banks and other organizations. But anyone can track where and for what you spent your money on. As you understand, this is usually done not out of idle curiosity, but in order to cause you any harm for their own purposes.
What a honest person would to hide
Various government organizations in different countries around the world disseminated false information about cryptocurrencies when they tried to ban it, and now they continue to distribute sundry fakes against the anonymity of crypto transactions in order to be able to control coin holders as they do with using the banking system. The result of such propaganda was the conviction of many ordinary crypto users that only criminals, drug dealers and terrorists need anonymity.
However, a study by Chainalysis showed that only 2.7% of the coins received from the mixer were used to pay for purchases on the darknet, and 1.9% of cryptocurrencies were withdrawn from gambling sites, which are far from being prohibited in every country.
Surely you will agree that you are against that third parties being aware of the amount of funds on your credit card. For example, if you got 10 Bitcoins, having inherited from some of your relative, you may well fall under the fraud. Such cases continually occur in real life. Virtually it is also not uncommon. Blackmail, racketeering or kidnapping can jeopardize your well-being..
In addition, rightfully claiming privacy, many do not want to divulge information about what goods they purchase. Sometimes this refers to intimate information, but in any case, this is a private matter for everyone, who may be willing to intervene in order to use this information against you. It is hard to believe, but the number of people who want to stick their nose out of business is very large.
According to a study conducted by Kaspersky Lab from November 2018 to January 2019 among more than a thousand Russian citizens, more than 80% of them prefer to remain anonymous on the Web, and not only because of the risk of becoming victims of cybercriminals. Many users do not want their relatives, friends, work colleagues, bosses or government organizations to know about their activity on the Internet. More than 50% admitted that they regularly delete the history in the browser, and almost a quarter of respondents use fictitious names when registering on various websites. Also, more than 20% prefer to communicate via messengers with encryption support, and 12% refuse Google in favor of private search engines.
Who cares about you and your money?
Hackers are the first people who are interested in your money and personal data. They monitor wallets first of all with a sufficiently large number of coins. They will try to figure you out, hack your computer and steal Bitcoins. Both law enforcement agencies and cybercriminals use blockchain analysis and social engineering methods in their work, but their goals are different ..
Legal structures of the state. Even if you are not committing anything illegal now, there is no guarantee that completely legal actions today, tomorrow will not be on the illegal list, after which you may have problems. The software for this is provided by Chainalysis and Bitfury, which are blockchain analysis enterprises. These companies have developed algorithms that can identify addresses associated with each other with a high degree of accuracy. This puts you in a more dangerous position, as it not only identifies you, but also indicates that you are using a mixer.
Analysts are people who analyze common processes in the blockchain network. In most cases, their goal is to improve the network operation algorithm. This is a harmless activity as it is, but the more analysis methods appear, the more difficult it will be to cover your tracks. It does not contribute to your Bitcoin anonymity and safety.
What is blockchain analysis?
All transactions on the Bitcoin network, like many other cryptocurrencies, are public. This is one of the basic principles of their blockchain. On the one hand, this is good, because this contribute to the reliability of crypto, but it is open access to information about wallets and cash flows that can harm you.
Simply put, blockchain analysis is the process of collecting and processing data from transaction histories in public blocks of the Bitcoin network. For example, a person who analyzes records in the blockchain is interested in knowing who you are and where you send your coins to. If he has your initial address, then all your activity will be very easy tracked to the very last wallet.
Blockchain analysis is not just transaction monitoring, but a serious thing. Using an integrated approach to analysis, you can mark groups of addresses of Bitcoin holders, and in some cases even identify to whom they belong, and for what purpose they are used.
What opportunities exist to protect Bitcoin anonymity
- First of all, use secure Tor networks, hide your IP using a VPN and connect to the Internet via public Wi-Fi networks. This won't hide the traces of transactions, but at least prevent the determination of your physical location.
- To buy crypto use e-currency wallets, which can be registered using an anonymous phone number. This is a very effective way, but remember that a mobile phone number can be easily tracked, and such virtual wallets usually have very limited withdrawal amounts available for unidentified users.
- Create a new address for each new transaction, but this does not guarantee anything, since coins must be taken from somewhere in the new wallet. They must either be from another Bitcoin wallet, which already makes it possible to trace the ownership of coins, or purchased through an exchanger, which that usually requires your personal data or your bank card identification information.
- You can use popular mixing services, which accept cryptocurrency from several addresses and send them to several other wallets in one transfer, in which both the recipients and senders are known, but it is not known which of them, to whom and what amount was transferred. Several levels of mix Bitcoin to protect privacy provide sufficient anonymity.
When do you need to use Bitcoin mixer?
Bitcoin mixing to increase anonymity is needed every time you are going to send or receive coins from a new source. This will increase the chances of keeping your Bitcoin anonymity in safety. For example, for the first time buying cryptocurrency for fiat money, use a Bitcoin mixer before conducting further operations with them. So it will be more difficult to track the connection between you and your crypto asset. The same applies to the sale of digital currency for fiat. Mix Bitcoins so that the buyer can not track where the crypto came from.
If you do not use Bitcoin mixing service, then anyone who has certain skills and capabilities will be able to find out where you bought your Bitcoin and to whom they were transferred. This information can be applied to identify you and, accordingly, used against you.
More on cryptocurrency mixer
Bitcoin mixing service
is an online resource that allows you to make anonymous transactions on the cryptocurrency network. The principle of operation of the crypto mixer is that on its way from the sender to the recipient coins fall into the general wallet of the service, where they are mixed together and go to the specified addresses. Some of your Bitcoins are mixed with Bitcoins of other owners, after which the source of the origin of them becomes impossible to track. Simply put, a coin mixer offers a way so that no one can understand where the crypto came from to the wallet, to whom it belongs and where they go. Depending on the amount, the payment comes either in whole or in parts, which further increase the anonymity of the transaction.
Bitcoin mixer will be especially useful against the background of toughening requirements in the attempts of the state to control all processes and all people. Government officials are unlikely to track every transaction. However algorithms with fairly tight frameworks can easily cope with this task and if you or your transactions are interested, they will be able to highlight the necessary information.
Many mixers typically offer additional features to protect the anonymity of their users. It is not necessary to apply them, but it is desirable. This will help get rid of all possible electronic traces. One of the best Bitcoin mixer today is BitMix.Biz, a service operating since 2017 that offers the most effective additional features to protect Bitcoin anonymity:
1. Random commission for Bitcoin mixing service
If someone wants to understand where the money came from wallet A, passed through mixer B. He knows that mixer B charges 2% for his services. So he should look for transaction on wallet C in the blockchain in the amount of the incoming amount, subtract 2% - it’s easy. But the task will become more complicated if the mixing fee is generated randomly and fluctuates within a certain range. For example, as on BitMix.Biz from 0.4 to 4%.
2. Pending transaction function
A deferred transaction also makes it difficult to find your transfer in the registry. When sending instantly, the one who wants to identify you can logically track the necessary transaction in the network, just waiting for the transfer for the same amount be recorded into blockchain. If you select the deferred transaction function, then the pursuer will have to wait several hours or sometimes even days, before your transaction is written to the block. During this time, several transactions may appear in the registry for the same amount as yours.
To protect Bitcoin anonymity crypto mixer BitMix.Biz can send its customer trace-free coins in several transactions via a few addresses if you choose the increased randomization function. This method is one of the most effective, which greatly complicates the work of the trackers.
How to use a Bitcoin mixer
If you, as almost 90% of users do not use crypto for any illegal operations, then you can safely use Bitcoin mixing service on the open Internet. In this case, your goal will simply be to lock a vulnerability that criminals who track the movement of coins can use. Most often, popular mixing services on the open Internet are reliable and secure, especially if they are registered as a legitimate business. Such Bitcoin mixers take legal responsibility to protect your personal information, which means that you will be less likely to become a victim of criminals.
In such cases, connect via Tor or VPN. Nevertheless working with crypto mixer on the open Internet has its drawbacks. Anyone with the appropriate skills or authority will still be able to figure you out. A legal online business may receive a court order to issue information about its customers. This means that at the slightest hint of traces of shadow transactions on your coins, the Bitcoin mixer will be forced to provide the authorities with all the available data.
Make sure your wallet is configured to work through Tor. This will prevent anyone from associating transactions with your IP address. Tor encrypts requests, separates them, and forwards them through multiple addresses on the network, making tracking difficult. Even if the service you selected was hacked and the information was decrypted, your IP address will be hidden. In the worst situation, the one who hacked the Bitcoin mixing service will be able to track only the addresses where the coins sent. But as one of the best Bitcoin mixer, BitMix.Biz does not store the transaction history, longer than it will be confirmed in the blockchain.
Using the example of BitMix.biz, we suggest you figure out how to mix cryptocurrency.
1. Go to the page https://bitmix.biz/
and select the type of cryptocurrency to mix, for example Bitcoin.
2. After the first mixing on this service, you will receive a unique code that guarantees that in the future you will not receive the coins that were sent by you to the Bitcoin mixer earlier. If you have already cleared your crypto here, then enter this code in the space provided, if not, do not enter anything.
3. Enter the address of the wallet to which the mixed coins should come. You can add several addresses between which mixed Bitcoins will be distributed.
4. Set the transaction delay up to 72 hours. The service recommends setting a delay of at least 1 hour in order to increase Bitcoin anonymity.
5. Select a crypto clearance fee from 0.4% to 4%. The higher the commission you choose, the more transactions you will receive from more reliable sources such as crypto exchanges or institutional investors.
6. To better protect Bitcoin anonymity, enable increased randomization to get more than one transaction to your address. You can also use automatic mode.
7. Now click on the “Start Mixing” button and the cleaning process starts.