Cryptocurrency is the future of money. It is a digital currency used as a medium of exchange. It employs encryption techniques to control the generation of currency at the same time to verify the transfer of funds. Many people find this appealing because it operates independently. This means there are no central banks or financial institutions involved.
Overview of Bitcoin
There are many types of cryptocurrency like Bitcoin, Litecoin, Ethereum, Ripple, Dash, Monero and many more. The most famous one is the Bitcoin. Bitcoins first appeared in 2009. It started with virtually 0 value but it rose to $8,000 recently. With this, many people are becoming interested. Successful traders became millionaires with Bitcoins.
Aside from trading, Bitcoins can also be used as a form of payment these days from shopping in Overstock to paying plane tickets and hotel through Expedia. Many merchants accept Bitcoin as a form of payment and this made the Bitcoin even more valuable. You have to note though that all transactions are logged in a public ledger called blockchain.
The nature of blockchain
Blockchain provides information. Essentially, any transactions are visible to everyone. If you send or sell Bitcoin, that information is publicly available on the blockchain. It is kind of anonymous because although your transactions are visible, your identity in the real world is not revealed. For verification, others will know exactly how much value has been transferred from one person to another. This is where bitcoin tumbler or Bitcoin mixing comes to the picture.
The introduction of Bitcoin mixing services
You heard about Bitcoin tumbling or mixing. These things are the same. It refers to the process of employing a third-party service to hide or disguise where the Bitcoins came from. A mixer or tumbler attempts to cut the links between your old and new address by sending coins from you to other people or the other way around. It can also generate random transaction amount but this will inevitably lead to delays.
Is it really needed?
If you want to disassociate any Bitcoin transactions from your identity, Bitcoin mixing is needed. Although transactions will take longer, you are assured that your identity remains a secret. With this, you are preventing other authorities or persons to track you.
What are some mixing services?
You have to know that there are many mixing services that you can consider. Mixing services include Coinmixer, Grams Helix, BestMixer.io, BTC Blender and many more. When choosing a mixing service, you have to remember three things – speed, anonymity and the fees.