What is bitcoin mixing? And why do people use bitcoin mixer?

When bitcoin has just appeared, the most part of users believed this cryptocurrency was anonymous.

Nowadays the most competent members of the bitcoin community are aware of bitcoin is not anonymous, but rather pseudo-anonymous. A lot of people are not informed yet, why bitcoin can't be called as anonymous, until it is possible to identity the user of bitcoin, and what to do for its prevention.

Everyone, who has ever participated in a transaction with you, have an opportunity to find out the addresses of your wallets, and their balances, as well as to determine the origin of your coins and the destination address. Apart from disclosing the details of your private life it also makes you an easy target for cybercriminals.

Apart from criminals there are many people, who may be interested in tracking your financial transactions with cryptocurrency:

- law enforcement agencies. In case they have any reason to suspect you of illegal activities, the law enforcement agencies are able to track your crypto operations to identify any correlation with suspicious websites. Or they are also able to determine the addresses associated with any suspicious websites, and hunt down cashing of non-anonymous coins. Law enforcement agencies on behalf of the government can spy on you to control your income from cryptocurrency transactions or from projects in the cryptocurrency industry. Sooner or later the government will create a legislative framework for the taxation of bitcoin users.

Most financial services under pressure from the government also are forced to adhere to such policies as KYC (Know Your Customer policy incorporating among other things such procedures as Customer Identification and Monitoring of Transactions) and AML (Anti-money Laundering policy aimed to prevent, detect, and report money laundering activities), which require clients to provide identification documents in order to use the service. Even if you use cryptocurrency for purchasing physical goods only, you will still need to provide certain personal information like your delivery address, name, and contact information.

- researchers. A lot of companies are engaged in the analysis of blockchain, and in some cases they study your particular transactions. Their goal typically is to enhance and clarify methods of blockchain analysis. It is not harmful at all but more knowledge about the blockchain analysis makes it more challenging to remain out of control, and effortless for third parties to monitor your financial operations.

-cyber criminals are able to figure out the balance of your wallets and even identify you to hack your computer and steal your coins. And while the goals of cyber criminals and law enforcement agencies differ, but the methods they use are the same: social engineering and blockchain analysis.

In this situation the bitcoin mixer is the best mean, that everyone can take easily to defend and keep up his privacy.

Coin mixing or coin tumbling is using third-party service to break the connection between the address, sending coins, and the receiving address(es). Since the bitcoin blockchain is a public register recording every transaction, coins mixing is essential for those, who defend his privacy from the whole world knew exactly, where he send his coins to, where he receives them from or total amount of coins in his wallets.

The bitcoin tumbler breaks the connection between your old and new addresses of transaction and send your coins to other people and their coins to you. It is possible even to randomise transfers amount of a split transaction or apply delayed payments.

Please note the coins itself are untraceable, it is possible to track only the amounts, addresses and transactions.

Mixing bitcoins is an exchange of your coins to the appropriate amount from another source. To paraphrase, it is the disguising, where your coins came from, and this makes it impossible to study your digital track.

On a global scale, to maintain the best level of anonymity you need to mix your coins every time you are going to send or get them from a new source.

For example, if your coins purchased for cash money, it is necessary to mix them before you apply for any transfer. Thus, all correlations between the purchased coins and a subsequent transaction will be interrupted.

Or, if you wish to sell your coins, mix them before it, then no customer will be able to find out the initial source of your coins.