To fully understand Bitcoin tumbler services, we have to bring up three interchangeable terms: scrambler, shuffler, and the titular tumbler. The common ground that these terms share is obvious, however, bringing finances into the equation adds a layer of intricacy to their traditional definitions. In this sense, they refer to services that allow people to hide the source of their coins. This is whether they send them or are on the receiving end.
It seems natural to immediately wonder if this service is necessary. When you think about it, one of the main selling points of Bitcoin is its anonymity.
The Bitcoin blockchain is continually in the public domain; what’s more, it is a public log of all transactions. Because of this, tracking someone is relatively easy if you know their wallet address.
One could make the argument that the only people who need to be anonymous are hackers or criminals. This pertains to using Bitcoin and other cryptocurrencies. Evidently, that is not a wholly accurate statement.
As a matter of fact, there are plenty of reasons for wanting to keep your transactions private. This is especially true if you are dealing with exceptionally large amounts. Think about it: do we publicly display our bank records? The answer is obviously no. We only make this information known in a selective manner, and on an individual basis if it’s absolutely necessary.
In the end, regardless your motives, privacy is a fundamental right. A right that you have an entitlement to. Now, concerning cryptocurrency, tumblers are useful for the preservation of anonymity.
What is it?
A cryptocurrency tumbler (the alternate name being ‘cryptocurrency mixing service’) is a service that mixes potentially identifiable cryptocurrency funds with others. It does this in the hope that it will conceal the trail that leads to the original source of the fund. The purpose of tumblers is to improve the anonymity of cryptocurrencies, typically Bitcoin. This is due to the currencies providing a public ledger – a blockchain – of all transactions.
Bitcoin usage is one of remaining anonymous while conducting your purchases, donations, and P2P payments. All this can be done without ever losing money by way of transaction fees inflation. With that in mind, contrary to popular belief, BTC transactions are never actually anonymous.
Any and all Bitcoin activities are put on a record and are publicly accessible via the blockchain. By the time you use BTC to pay for goods and services, you have to provide your name and address to the seller for the purpose of the delivery. This means that a third party is able to trace your transactions, as well as find information pertaining to ID.
This is where Bitcoin mixing services are relevant. To put simply, they operate on a basic mechanism of breaking down your coins into many different parts. From here, you mix these parts with other broken parts from different clients.
The idea of properly blending coins comes across as an incredibly daunting concept. Specifically for those who lack the appropriate amount of familiarity with cryptocurrency. However, the process itself is actually fairly simple to carry out. On top of that, it only requires a few minutes of your time for each deposit. Overall, the procedure should take roughly 10-15 minutes.
Basically, this process is worth executing if you value your privacy and never want to lose your coins.
Before we move forward, we will briefly mention another type of tumbler: a peer-to-peer tumbler. These function as a meeting place for Bitcoin users, rather than acquiring BTCs for the sake of mixing. The users arrange the mixture by themselves.
This model effectively resolves the issue in regards to stealing, as there is no involvement of middleman. Upon its complete formation, the bitcoin exchange between the participants commences. Setting aside the mixing server, no participant can know about the connection between the incoming and outgoing coin addresses.
How it works
Bitcoin tumbling typically involves using a third-party service as a means to break a connection. This connection is between a wallet address that is sending coins and the addresses that are receiving coins. A person not wanting the public to know the source of their coins – and/or to which addresses the Bitcoins are going to – could benefit from tumbling. The entity providing Bitcoin tumbling services is the ‘Bitcoin tumbler’.
Mixing the coins will bestow a sense of security upon you. This stems from mixing your coins with other coins that were previously sent. Alternatively, they are in their reserve and sending various coins to a specific address. When you look at the blockchain, you can see that other people sent their coins to a wallet. Likewise, others can see that you sent your coins to a wallet. That someone sends coins to the wallet you want them sent.
In the end, there’s no linkage between your wallet address and the one that you want to receive the delivery.
As you may recall, peer-to-peer tumblers are an attempt to fix the drawbacks of the centralized tumbling structure. Protocols like Coin Join, Shared Coin, and Coin Swap permit a handful of users to gather. Doing so will construct one Bitcoin exchange transaction in several steps.
Explaining how one uses Bitcoin tumbler will be through a step-by-step guide. Before we begin, there is something important to keep in mind. If you want to utilize this method to mix your coins, you will need the following:
- Bitcoins, or at the very least the ability to purchase them.
- The Tor browser
- The capability of creating a new Bitcoin wallet, both with the use of Tor and on the clearnet. An alternate technique is using Blockchain.info and their Tor hidden service to build all or some of your wallets.
From here, we can segue into the tutorial.
Guide to BTC tumbling
- Design BTC Wallet #1.
- Purchase some coins and then transfer them to Wallet #1.
- Create BTC Wallet #2 through the Tor network.
- Transfer your coins from Wallet #1 directly to Wallet #2.
- Create BTC Wallet #3 through the Tor network.
- Choose a mixer service and establish your transaction by employing the address(es) from Wallet #3. It would be wise to use multiple addresses and to set irregular time delays. Furthermore, you should always be absolutely sure that you are using the appropriate .ONION links.
- Send the coins from Wallet #2 through the Tor browser to the address that the mixer generates for you.
- You can utilize Blockchain.info’s Tor hidden service as a way to watch your coins arrive from the mixer. As soon as you have them, restart Tor. From here, you send the coins to their ultimate destination.
Probably the only weakness that remains at this point is that the mixing company has records of your transactions. They allegedly delete them shortly after the completion of a transaction. However, it is entirely possible they may have a trail of where exactly your coins went. There is a way for you to negate this, though. Basically, you repeat the process with an additional mixing service.
Popular mixing platforms
There are a wide variety of Bitcoin shufflers that are currently in use. Each one is different in their own way, so this places a crucial decision on a user’s shoulders. Like with other choices, the user should take several factors into consideration coming to a final decision. Above all else, the most prominent factor is the coin type that you are using and the source of funds.
If the funds are clean, then there really is no reason to mix up the Bitcoin. Especially since there are no likely suspicions that will come of this. However, let’s assume that you are a darknet market user who operates using certain sites. If so, then you should research the market you are using to see if it has an inherent tumbling service. Additionally, you can see if the site has any external coin mixing service recommendations. If it does not, then you should do some more digging so that you remain safe in the future.
Here are five of the most popular Bitcoin tumbler services.
1 – Bitcoin Laundry
This service provides users with low fees, a friendly user interface, and cutting-edge security. The way they work is that they sever the link between your old addresses and new addresses. Whenever a mixer breaks a connection between the two, your transaction chain disappears, thus your identity becomes untraceable.
Bitcoin Laundry is a service that thrives on donations. They do not charge any service fees; only a transaction fee of .0002 BTC with each payout address. Moreover, it supports transactions from .0005 to 38 BTC.
For an extra layer of anonymity, users have the ability to send their coins to up to 5 payout addresses. They determine what percentage of their payment will end up going to each address. Users are also able to choose a preset or random delay for their payout for each address. This effectively makes it that much harder to trace the transaction.
The service maintains a log for one week as a means to offer user support. Following this, they go through automatic deletion. Regardless, users still have the option of deleting their mix logs at any point in time.
2 – SmartMixer
This blender service aids in concealing the traces of your crypto transactions by way of mixing them with other fund transfers. This platform is dissimilar from others, providing three pool assignments:
- Standard Pool – Client’s coins are mixed with incoming funds of other users.
- Smart Pool – Client’s coins are mixed with incoming funds of other users, private reserves of the service, and coins from investors.
- Stealth Pool – Client’s coins are mixed only with private reserves of the service, and coins from investors.
The mixing process on this service is easy and it only takes mere minutes to complete. To start, you choose one of the three acceptable coins: Bitcoin, Litecoin, and Bitcoin Cash. Then, you enter the recipient’s address and prolong the transaction for up to 72 hours. Finally, you send coins to the indicated address and wait for their final destination delivery.
There is no requirement for sign-ups on this service and it ensures full confidentiality to all users. Mixing fees are comparatively reasonable and come from the miners’ fee, which is evidently very comfortable. Furthermore, during the first transaction, you will receive a Smart Code. This will ultimately reward you with a discount on any additional mixing. The Letter of Guarantee supports every transaction and information about it experiences deletion after 24 hours, guaranteeing anonymity.
Some other advantages of SmartMixer include a friendly customer support team that works nonstop. Another is a referral program with arguably one of the highest commissions, which can reach 70%.
3 – SmartMix
This service provides all the privacy and protection you would want from a Bitcoin tumbler. On top of that, it has plenty of extra features that you will not find anywhere else. As is the case with other mixers, SmartMix exchanges the coins you send them with those belonging to other users. Whenever you use a new receiving address, the coins you receive are totally separate from your previous history on the blockchain. This effectively makes it near impossible to connect your transaction history with your identity.
With that in mind, SmartMix goes the extra mile. Not only does it have the basic functionality of a Bitcoin mixer, SmartMix offers an abundance of extras. These include the following:
- It accepts both BTC and BCH. Whatever your preference is when it comes to currency, SmartMix accepts it.
- It has a referral program. You can share your anonymous referral link and earn crypto rewards as a result. For every mix that you complete with your link, you will obtain 50% of the service fee.
- You will receive loyalty rewards. You can use your anonymous SmartClub code each and every time you mix. Doing so will grant you discounts on the service fee. To put simply, mixing more means that you will save more.
SmartMix is a service with competitive rates. It only charges 0.5 % of your mix plus 0.0001 BTC / 0.00005 BCH with each output address. You can divide your payout between up to a total of five addresses. Moreover, their ‘no logs’ policy basically means that you are able to delete all your mix information upon completion.
There are a lot of mixers on the market, but SmartMix is prominent for its dependability and additional features.
4 – Anonymix
Are you someone who needs true anonymity when it comes to Bitcoin? Then Anonymix may be the ideal bitcoin tumbler for you. Because of their complex reserve system with both hot and cold storage, they are capable of handling high capacity mixes. Some of these mixes go up as high as 100 BTC. This guarantees that, regardless of what you need mixing, they will always be able to deliver bitcoins without a trace.
Along with first-rate mixing, Anomymix provides the opportunity to win more than you pay. For every 100th mix, you receive an additional bonus of 25%. With that said, mixing your bitcoins as often as possible will increase your chances of winning.
There are some other pieces of information that you should know about:
- It has bulletproof mixing. In order to make your mix difficult to trace, Anonymix supplies a wide variety of delay settings. Furthermore, it offers the option of sending your bitcoins to multiple addresses.
- The fees are low. The fees that Anonymix charges are .3% and the transaction fee is .0001 BTC per payout address.
- It provides a certificate of origin. Anonymix provides documentation proving that the bitcoins that you are receiving are coming from them.
5 – BitMix.Biz
This mixing service is one that preserves the safety of your crypto. The platform will mix your Bitcoin with various deposits and will give you the same amount of Bitcoin in return. Its overall design helps cut back on bitcoin tracking and “clean” your coins. Furthermore, it also helps establish anonymity on the transparent Bitcoin network.
A bitcoin tumbler service of this kind will acquire your Bitcoin, then give you different Bitcoin in return. The platform collects everyone’s bitcoin deposits before mixing them up into a singular central account. Afterwards, it then returns the Bitcoins back to the users. You will essentially get the same amount of Bitcoin (minus a fee), but various Bitcoins from different sections of the blockchain.
With BitMix.Biz, you will receive a letter of guarantee. That letter functions as proof of the obligations pertaining to BitMix.Biz. Upon giving you their bitcoin address, they will then provide a confirmation that is digitally-signed. The generation of this address is genuine and was done by the server. That letter always has a signature from the BitMix.Biz main Bitcoin account. It’s important to note that this account is publicly available on BitMix.Biz.
Additionally, this service utilizes a special 12 symbol “code.” This “code” basically ensures that you will get your Bitcoin back whenever you use the service. It would be wise for you to save that code. It also completely forbids you from receiving your own coins at any point in the future.
So, is a Bitcoin tumbler necessary? What’s the general appeal?
There are plenty of reasons as to why mixing coins is a good idea. However, for those who frequently use darknet markets, it is actually a necessity. There is continuous development of new tools as a means to boost the publicity. From private corporations to government agencies, it encourages following coins by way of the blockchain. Moreover, track those who use it.
Admittedly, it may come across as a waste of time. Though, in the near future, its mechanics might end up being be simple for a lot of people (employers, law enforcement, etc.). It will allow them to track every one of your BTC transactions and see what their final destination is. Severing the connection between the coins’ destination and your addresses and mixing them is a precaution that users should take.
The Bitcoin tumbler can help enforce the disconnection between any BTC you purchase and your identity. Looking back on the process, it is about as basic as one might expect. After sending a Bitcoin mixing service your coins, they will take a small mixing fee. Following a random delay, they send you an equal amount of bitcoins from other people to your new address.
Generally speaking, it’s a private procedure. These services send you new money to your secret identity to replace the money they take from you.
Overall, bitcoin tumbler services provide a solution for the drawbacks that come from using funds from “unclean” sources.