Several years ago when Bitcoin was first introduced, very few people used it. Ever since, the digital currency industry has experienced constant growth, and now Bitcoin can be found almost everywhere globally. One of the major reasons why cryptocurrency trading became very popular is because of the security of transactions.
Bitcoin transactions are recorded and permanently stored in a Blockchain network. This means that users within the network can access the record of your transactions and even your bitcoin balance. You only become anonymous in bitcoin trading if you keep safe information about yourself and your identity.
Thanks to technology, bitcoin mixing services have been introduced that keep user information within a network anonymous. You might be wondering if these services are safe and if they will keep your anonymity. Here is what you need to know about bitcoin mixing services. But first…
Can your bitcoin address be traced?
Everyone prefers to have their financial information kept private and confidential. While for a long time now, information on bitcoin trading has been on the Blockchain network for the users to see, most people now prefer to keep this information private and secure. Because of this need for anonymity, bitcoin mixing services have been introduced. Without a bitcoin mixer, your bitcoin address can be traced either by the government, exchanges, or even cyber criminals.
What is a bitcoin mixer?
Bitcoin mixing services were first introduced in 2015 and the main objective was to keep private information and your bitcoin address safe. These services use complex algorithms to shuffle your bitcoins, thus keeping your identity safe. This way, hackers cannot gain access to your Bitcoin address. You can use a bitcoin mixer while doing cryptocurrency trading on sites like nakitcoins.com.
Online purchases are transactions that require a high degree of anonymity. As you know, any online transactions can be subjected to threats from cyber criminals, and that is why you need a bitcoin mixer. The bitcoin mixer also comes in handy when you are making peer-to-peer payments or donations. The mixer works by blending different bitcoin transactions, confusing the trail and making it extremely hard for someone to trace.
What are the reasons behind bitcoin trading being not completely anonymous?
Bitcoin uses the Blockchain network, which keeps a record of all transactions once they have been approved. This record is available for everyone within the network to view. If they are available for everyone to see, the address linked to the account holder can be seen as well. Another reason why Bitcoin cannot be anonymous is because users use their personal identities to set up their accounts. Finally, web cookies keep the details of your online activities and sends the information to social media and Google accounts, thus reducing the chances of anonymity.
How to use a bitcoin mixer
Just as the name suggests, a bitcoin mixer is all about mixing bitcoin transactions. Payments of different users can be mixed, making it hard for anyone trying to trace the transactions to find out who is making payments. The bitcoin mixers are supposed to be used by the individual making payments as the money has to pass through the mixer before it reaches its destination. Since its introduction, the bitcoin mixer has been largely successful in providing security and anonymity of transactions with plans underway to also create an Ethereum mixer.
