Cryptocurrency exchanges are a great place to convert one coin to another or a coin into fiat. It also is a place teeming with brisk business. However, cryptocurrency exchanges are not safe. When using them, then consider employing a cryptocurrency, Bitcoin Mixers as well.
Everyone in the cryptocurrency space is well aware of the caution that goes round that exchanges are not a safe place to leave your coins. This is true. However, for dealers that trade in small amounts of cryptocurrencies at any one time, it is pointless investing in the expensive gear and secure vaults such as the Trezor Bitcoin wallet.
So, if you belong to this category of traders, or if you have to shift your coins to and fro, what are the security options available to you?
Well, over time, bitcoin mixers have come in handy in securing transactions and heightening privacy. However, for cryptocurrency dealers that are using exchanges to facilitate their deals, the process may not be as straightforward as it applies to coin users that are sending coins to others or those that buy goods and, or services online.
This narrative will look at how to apply bitcoin mixers when dealing cryptocurrencies through online exchanges.
Smartmixer.io has this unique concept of using not just one, but three separate coin-pools. Coin-pools are basically the coin-reserves which a mixer uses to send clean coins to users.
So when a user sends his/her unclean coins to Smartmixer, these coins are stored in an appropriate coin-pool, and the user is sent different coins from one of the pools. These new coins are in no way linked to the older coins sent by the user.
Users get to choose the exact coin-pool they’d like to receive the coins from, it depends on the service fee a user chooses to pay.
Cryptocurrency Mixing and Bitcoin Mixers as a Measure of Protecting Assets
Because trading in cryptocurrency can be very profitable, traders soon become the targets of scammers that want to reap where they have not sown. To be on the safe side, it is wise to mix your coin stashes when bringing in taking them out of the exchanges.
Cryptocurrency mixing refers to the process of passing crypto through a Bitcoin mixer or tumbler in order to disguise your transactions. There are many credible cryptocurrency mixers available online. What these tools do is to mix your coins in a pool containing other coins to make the chain of transactions difficult to trace.
Trading cryptocurrencies requires security. While hardware wallets are great for holding your coins when you are not trading, the ball game is a whole lot different when you transfer your wealth to the trading floors. You need to exercise precaution in order to conceal your dealings. Doing so will ensure that no one can trace your wallets or even decipher the number of coins contained therein. Cryptocurrency mixing is your best shot in heightening security.
Blockchain Analysis and the Privacy Challenge
People desire privacy for various reasons. A cyberpunk, for instance, believes that one should be identified only if or when he or she chooses to be. Money matters are a little different. Most people prefer that no one else knows the amount of cryptocurrency they hold. And, this is for safety reasons, both physical and monetary.
In some cases, an individual may be hiding his or her transactions and stash from a corrupt third-party such as a government body or law enforcement agency. As TrustNodes, an online magazine on cryptocurrency explained in this article, finding out about an individual’s spending habits can be very useful to corporations, businesses, and government agencies, but for the wrong reasons.
Knowing how much you have in your wallets can direct criminals where to target. Cases of kidnappings have been reported. In an instance, a cryptocurrency dealer and analyst were kidnapped and his release secured only after a $1 million ransom was paid.
Such an incident speaks of the importance of privacy in digital transactions. However, Blockchain analysis is by no means the end game. There are several anonymization techniques at your disposal that include the traditional Bitcoin mixers, shared coin joiners, and Monero.
Curtailing Blockchain Analysis Using Cryptocurrency Mixing
According to the Bitcoin Blender, mixing cryptocurrency refers to the process of disguising the source of your coins, making your digital trail too cumbersome to follow. Most cryptocurrency mixing solutions support Bitcoin only. There are a few like SmartMixer, that take in about four cryptocurrencies, including Ethereum, Bitcoin Cash, and Litecoin.
Hopefully, the other platforms in the market will soon follow suit.
Bitcoin Mixers Importance to your Privacy and Security
As long as crooks and government agencies are interested in cryptocurrency dealings, blockchain analysis will remain relevant. The process, however, need not make you feel vulnerable. You can still protect yourself in the face of emerging un-anonymization algorithms. Ensure you get a good cryptocurrency mixing service that will obscure your cryptocurrency transactions all the time. And, choosing a credible mixing service should not necessarily be complicated. Identify your coin mixing needs and align them with the service provider whose qualities resonate with your objectives.