Bitcoin Tumbler (Mixer) Services
There are a lot of activities that can be done with Bitcoin in the cryptocurrency market as Bitcoin provides different lucrative opportunities for its users. Among these includes, Margin Trading, Mining, etc. In this article, we review another crypto strategy identified as Bitcoin Tumbling. You must have heard of this if you're a cryptocurrency enthusiast. However, if you hadn't, this review contains everything you need to know about Bitcoin Tumbling.
What is Bitcoin Tumbling
It is a strategy which allows a Bitcoin user to break the connection between a sender and receiver address on the blockchain using third-party platforms. Also known as Bitcoin Mixing, this method is used to increase anonymity in Bitcoin transactions.
Bitcoin is a cryptocurrency whose transactions are recorded on the blockchain. Although user data isn't registered, the transactions can be traced to the sender and receiver wallet. Therefore, with Bitcoin tumbling, you can increase your anonymity on the blockchain.
You send your tokens to a pool of Bitcoin belonging to multiple users and transfer it to your desired address. Bitcoin Tumbling is not a difficult task. It is a popular method used by launderers. If you understand its basics, you can transfer funds and increase your anonymity easily. How does it work? Find out in the next section.
How does Bitcoin Tumbling work?
Bitcoin tumbling involves using third-party services to anonymize the movement of funds. It encourages privacy. There are several sites involved in Bitcoin Tumbling, e.g., Bitlaundry, Bitmix, etc. There are different ways to mix your Bitcoin. You can tumble your Bitcoins by using online services, wallets, etc.
To get started, you need to anonymize your internet by using the Tor browser.
1) Create a Wallet using your Regular Browser: There are several available wallets, i.e., BlockchainInfo, Coinbase, etc. Visit the site on browsers, i.e., Mozilla, Chrome, Opera, etc., and signup for a new account in case you don't have one. If you already have an existing wallet, skip this step.
2) Fund your Wallet: Send an equivalent of the Bitcoin you want to mix to the wallet. You can purchase Bitcoins using different options, i.e., LocalBitcoins, etc.
3) Create A Wallet: Open your Tor browser and create another wallet. Recommended wallets include Electrum, etc. This is referred to as your intermediary wallet.
4) Transfer: Move your tokens from the first wallet to the receivers address on the intermediary wallet.
5) Create another wallet: Using your Tor browser, e.g., BlockchainInfo. This is the last wallet to be created for the freshly tumbled coins.
6) Signup on a Bitcoin Tumbling platform: There are many options available, e.g. Bitmix, etc. Note: Ensure that it is a trusted platform before signing up. Then, set it up using the third wallet address.
7) Transfer: Send BTC tokens from your intermediary wallet to the address generated by the mixer. The transaction would take some minutes to undergo confirmation. When confirmed, the coins should now be in your mixer wallet. Afterwards, you can send the Bitcoin to your desired wallet address.
Following the procedure above, you have successfully mixed your coins.
Is Bitcoin Tumbling legal?
There is no local or international law against Bitcoin Tumbling in particular. However, there are certain countries where Bitcoin and other cryptocurrencies are banned, e.g., China. Thus, it is safe to say that Bitcoin Tumbling is prohibited in such countries. Most times, Bitcoin Tumblers mix their tokens intending to launder money or purchase illegal items from dark web markets. These activities are in itself illegal.
Advantages of Bitcoin Tumbling
There are several notable advantages of Bitcoin Tumbling, and we have outlined some of them below.
1) Privacy: One of the reasons many love Bitcoins is because of its anonymity. However, the blockchain provides limited anonymity for anyone transferring BTC tokens. This is where Bitcoin tumbling comes in. For anyone familiar with the blockchain, it is a simple process which can be done in minutes. You can easily hide where you store your tokens and anonymize its receiving address.
2) Gambling: Bitcoins sent from gambling sites is unacceptable by some exchanges, i.e., Coinbase as stated in their terms of service. Therefore, you can mix your bitcoins before sending to your wallet.
3) Visiting Dark-Web Markets: DWM is a platform which operates via darknets, i.e., Tor, I2P. A notable example is the Silk Road, owned by Ross Ulbricht. It is essential to mix your coins before visiting any dark web market. This is because there are tools used to monitor participants in the marketplace.
Disadvantages of Bitcoin Tumbling
Although it is a good strategy aimed at providing viable solutions to anonymity, Bitcoin Tumbling has some drawbacks. These are;
1) Money Laundering: This is a punishable act by law in many countries. Criminals use the guise of the anonymity on the blockchain to move illicit funds from one place to another. Bitcoin is borderless and decentralized. Thus, you can transfer bitcoins across countries over the internet without government supervision.
2) Illegal Marketplace: Bitcoin Tumbling promotes the sale of illicit items in dark web markets. In the early days of Bitcoin, a dark web platform, i.e., Silk Road, boosted the sales of hard drugs, weapons, human parts, among others. Therefore, with Bitcoin Tumbling, it would be hard to track illicit activities and its perpetrators.
3) Expensive Fees: Bitcoin Tumbling is not free. Mixers charge incredibly high fees, up to 5%, to mix tokens
4) High Risk: There have been repeated cases of mixing services that dupe users of Bitcoin sent to their wallet. It is therefore essential to be careful before using a tumbling service.
Tips & Tricks to know about Bitcoin Tumbling
There are various mixing sites out there. However, the following are precautions you need to adhere to enjoy Bitcoin Tumbling. These are;
1) Research about the Best Tumbling services: You need to keep your Bitcoins safe. So, before using any tumbling service, ask yourself, is this Tumbler good enough? What are its transaction fees? Usually, standard Bitcoin Tumblers maintain a No Logs Policy. So, ensure to read multiple reviews about the service. After this, select the best fit for mixing.
We have discussed Bitcoin Tumbling, what it is, how it works and its various advantages and disadvantages. Tumbling helps users to increase the anonymity on the web while transacting Bitcoins via third-party services. There are multiple reasons why people are mixing Bitcoins ranging from anonymity to participating in gambling sites, etc. Bitcoin Tumbling allows a user to maintain the utmost privacy using simple procedures. It also has negative implications such as Money Laundering, promotion of illegal marketplaces. There are lots of Bitcoin Tumbling platforms. However, they have different features. Most of them offer between 0.5% - 5% transaction fees. It is therefore vital that before you choose a particular tumbler to use, carry out proper research. Since Bitcoin is unacceptable in many countries as a currency, there's nobody you can run to if any tumbling service run off with your coins. Lastly, Bitcoin Tumbling is a good strategy when utilized correctly.