Many users consider cryptocurrency more secure than fiat money. However, if you ask if Bitcoin is anonymous, there is no simple answer. While there is no personal information attached to each transaction, in contrast to what happens with common credit card purchases, all transactions are still recorded on a blockchain. This makes it possible to track which Bitcoin wallet has sent the money, and which one received it. Consequently, using additional tools, it may be possible to connect the wallet address to personal information and identify the user.
The First Coin Tumblers
However, the need to buy crypto anonymously exists on the market, and a service to cater to this need was developed. They were called coin mixers or crypto tumblers. The technology has been developing with time. The first BTC mixers still had some disadvantages which allowed them to track the transactions, albeit with some additional effort. Modern services of this nature make it possible to conduct completely untraceable cryptocurrency transactions.
The first coin tumblers operated pretty straightforwardly. The funds of users who needed to conduct an anonymous payment were transferred to the common “pool”. Then the coins from the pool were sent out to the target addresses for each transaction. However, this technology allows anyone to track the source of the coins based on the time of the size of the transaction. Consequently, more advanced types of Bitcoin mixers were developed.
How Do Bitcoin Mixers Work?
The basic operation principles of the best Bitcoin mixers remain the same as it was described above: the coins of multiple users are pooled together, and then the target transactions are sent out from this pool. However, several layers of security allow the use of truly anonymous cryptocurrencies:
- The coins are split and recombined. As a result, the coins sent out are not the same that were pooled. It becomes impossible to establish a relation between the deposited coins and the ones that went to the final address.
- The commission size also varies, so it becomes impossible to identify a transaction size through it.
- The transaction can be postponed, so the time cannot be used for identification purposes.
Other security measures can be involved as well. As a result, it becomes possible to buy Bitcoin anonymously and remain completely untraceable in the crypto world. You can use such services to hide the source of the money you have received as well as to transfer untraceable money to others.
Why Do You Need Coin Mixers?
There are several reasons someone may be interested to know how to buy bitcoins anonymously. Even if you do not think that you need to hide the sources of your transactions, consider the security of your account. As all Bitcoin transactions are stored in a public ledger, hackers can trace the wallets that have received a significant number of coins and then target the owner. If you do not hide your transactions, you have a higher probability of becoming a target of phishing attacks or other fraudulent activity.
Even if you are trading coins not very often or are a beginner in the crypto world, it will be useful for you to learn how to buy crypto anonymously, as it will help you to remain anonymous and protect your account from possible hacking attempts. In the world of cryptocurrency, there are no centralized controlling entities, so protecting their assets depends on the user themselves and their digital literacy.
How To Choose a Bitcoin Tumbler?
Here are several rules you need to consider if you want to use a crypto mixer to buy BTC anonymously. As with other services in the world of cryptocurrency, due to the decentralized nature of the system, your safety is in your hands. So, it is up to you to do the due diligence and check the information about the coin mix you plan to use.
- Check reviews on several websites and social networks. Look for detailed reviews to get a better understanding of other users’ experiences.
- Read the Terms of Service and try to familiarize yourself with how a particular BTC mixer
- Try to learn in advance, what will happen if some problems arise, for example, if the recipient does not get their transaction. It is better to know before sending out your money.
- Ensure that the coin mixing service suits your needs in terms of commissions, transaction delays, and other factors.
Considering these points, you will be able to choose the Bitcoin mixer to make your crypto transactions untraceable and protect your identity online.
Is It Legal to Use Bitcoin Mixers?
The legality of buying bitcoins anonymously depends on the particular country the user and the crypto mixer are located in. Some governments enforce KYC (know your client) procedures, demanding each transaction be identifiable. It will be useful to gather information about regulating laws in your country and the real practices existing in this area. Anonymizing cryptocurrency transactions can be tied to money laundering activities, and due to this regulating entities can be suspicious towards such services.
Consequently, when choosing the best Bitcoin mixer to use, it is important to study the information about the service, reviews, as well as local laws. However, if you find a reliable coin tumbler, it becomes the basic instrument for protecting the security and anonymity of your transactions online.