A coin mixer protects the identity of Bitcoin owners during transactions with each other by hiding the sources and destinations of the cryptos used in the transaction.
Coin mixing involves carrying out a bulk crypto transaction where all parties to the transaction send crypto in a uniform manner such that the origin of the coins is difficult to trace. The address that the crypto is sent from is referred to as an input.
Coin mixing helps provide privacy for public crypto transactions of people who want an extra level of anonymity and protection from hackers. Coin mixers help by mixing your crypto transaction with several other crypto transactions before sending your crypto to your recipient’s address.
To make use of a coin mixer for your transactions, you need to contact reputable coin mixing companies to avoid being robbed of your assets. Examples of coin mixing companies include Coinmixer.se, Helix, and Bitcoin Blender.
How Bitcoin Mixers Work
You should also know coin mixers charge some fee for their mixing services. When sending your cryptocurrency to a coin mixer, you need to consider their service fees, which will be removed from your crypto before sending it to the recipient’s address.
Here is an instance of a coin-mixed transaction. “A” sends crypto to “B”, “C” sends crypto to “D”, and “E” sends crypto to “F”. Without a Coin Mixer, the public blockchain ledger would record three separate transactions for each input-output match and it can be traced externally. But with the use of a Coin Mixer, only one single transaction is recorded. The ledger would show that crypto was paid from “A”, “C”, and “E” addresses to “B”, “D”, and “F”, obfuscating the true path of the funds.