Cryptocurrency is good in that transaction information is forever recorded on the blockchain in the public domain and therefore Bitcoin can be trusted. At the same time, there are no records about your transactions in the databases of banks and government organizations in order to increase Bitcoin Privacy. But in fact, anyone can track how much and what you spent your digital assets on, and then use this information to harm you.
Danger of Blockchain Transparency
Bitcoin seems to be initially anonymous since it does not require personal data from users and does not limit the purpose of using coins. But this is only true as long as your wallet cannot be associated with your personality. It has been known for several years that the governments of many countries seek to control their citizens and therefore monitor their activity. As you know, the government is trying to do this and it has all the means for this. Many in the community because of this began to develop and use other coins so that their transactions could not be traced.
It would seem, well, what is it that someone will know about the operations of your Bitcoin wallet, especially if you have nothing to hide since it does not display any personal data in it. But in fact, the data is safe until you give yourself away by somehow revealing your name or physical address.
Such simple and popular operations as using an exchanger, where you provide the system with your card or account information, and then immediately pay from the wallet on that you have the balance. This immediately allows one to associate your identity with your bitcoin addresses. Withdrawing money to a credit or debit card or paying for goods with delivery, when you cannot but disclose your data, immediately deanonymize you.
When a person is tied to an address, hackers, and other types of cybercriminals can watch your wallets and if they receive a serious enough amount, they can steal your crypto coins or arrange other problems. For example, if you acquired several bitcoins, having received an inheritance from your grandfather, you may well fall under the scam of rogues.
It is no secret to anyone that an attacker who finds out that you have money can even abduct you or your family members and use other blackmail or extortion. Such cases occur every now and then in both virtual and real life, which can jeopardize your well-being. This is why Bitcoin Mixer is a useful and even necessary service for any, even the most honest and open cryptocurrency user.
Bitcoin Mixer anonymize received coins. Your personal data and privacy will be protected from someone else’s intrusion. If attackers usually simply steal your money or personal data, but governments are tightening their controls more and more, violating our personal boundaries and the right to privacy. In many states, the frames established by the government are becoming ever closer when it is almost impossible to breathe. Then it becomes necessary to maintain the confidentiality of citizens’ financial transactions and their purpose, even if they are absolutely legal.
Myth of Illegality
Regulatory government bodies often convince ordinary users that since the main goal of the Bitcoin Mixer is to “confuse” the traces of financial transactions and prevent tracking the real owner of the cryptocurrency, that it is an instrument of criminals and terrorists. Many people believe that since they do not use cryptocurrencies to acquire something illegal, then they do not need to use Bitcoin Mixer.
However, think about this – would you like it if the balances on your bank account were accessible to the general public as simple as transaction data on the blockchain? Most likely the answer is no, but why then should you like to flaunt the status of your crypto finances? This is very unsafe.
Imagine if you were going to the criminal area late in the evening and telling every passerby how much money you had with you. You would be robbed very quickly. This is not the only thing that attackers can do with you, knowing how much money you have. That is why the laws of many countries protect the integrity of personal data and the privacy of financial information.
In addition to the security of digital money, many users generally want to keep secret what goods they purchase. Often this refers to very intimate information that third parties do not need to know. Oddly enough, the number of people who want to stick their nose out of their business is very large, and the ethics of the subsequent use of other people’s personal information is nowhere lower.
In reality, the “illegality” of clearing cryptocurrency from traces, providing Bitcoin Anonymity, is not at all as scary as government organizations are trying to suggest. According to a study by Chainalysis, less than 3% of the coins received from the mixer were used to pay for purchases on the darknet.
Protect Bitcoin Privacy
Anyone who analyzes the blockchain wants to know who and where is sending their coins to. If he will be able to associate your identity with your Bitcoin wallet, having received your “starting” address, then all your further and past activity will be tracked simply. Anyone who has ever entered into a smart contract with you will know the address of your wallet and will be able to monitor the balance and movement of funds.
All nodes in the blockchain will know your IP address if you use a standard client with default settings. The nodes through which the transaction enters the network, when committed, can establish a correspondence between your IP and wallet address.
Hackers specifically create a node so that they can match this data with the provider’s data, namely data about the IP-address of the user. This is how Bitcoin Privacy is lost and attackers establish your identity and get the possibility to trace your money movement.
A comprehensive analysis of the blockchain can mark groups of addresses of bitcoin holders, and then identify how they are used and to whom they belong. If you do not use Bitcoin Mixer, then anyone who has certain skills will be able to find out where you bought your cryptocurrency and where they were transferred.
This information may be used against you. A third party can track and analyze your online activities. And this is a breach in protecting your safety and a chance for any attackers to make you very unpleasant in any way.
Bitcoin Mixer is a service that offers a way to confuse traces and prevent you from watching your crypto coins. It doesn’t matter for what purpose you use your cryptocurrency. The main thing is that fewer people will know the address of your wallet, the amount of money on it, as well as how you use them, the less chance of unpleasant consequences.
When you first start using cryptocurrency and purchase it for fiat money, it is better to pass them through a Bitcoin Mixer, for example, BitMix.Biz. Mix coins and clear of traces to protect your personal data before further operations with them. So it will be more difficult to trace the connection between you and your Bitcoin addresses. Every time you are going to send or receive Bitcoins from a new source, mix coins. This will greatly increase the chances of maintaining Bitcoin Privacy.
These Options will Help Reduce the Likelihood of Identification
The principle of many Bitcoin Mixers’ work is largely similar, but you should choose the one that offers the highest level of protection for your personal data. What options make BitMix.Biz one of those that offer the highest level of Bitcoin Anonymity?
- Multi transactions. Mixers that have this option send their “mixed” coins to the customer in several transactions across multiple addresses. This method greatly complicates the work of the pursuers, increasing the complexity several times.
- Random fee for services. When someone wants to understand where the money passed through the mixer came in, he can determine the amount of the transaction due to the fact that he will know the level of fee for mixing. The random commission, however, will not allow this, because it will be different each time.
Deferred transaction function
A deferred transaction also does not allow attackers to immediately determine where the crypto coins were transferred from. Fraudsters have to spend several hours or even days to find a record of your transaction on the blockchain.
These are just some of the features that help you get more security from Bitcoin Mixer, such as BitMix.Biz. In the near future, we will continue to acquaint you with the features of Bitcoin mixers and transaction anonymization.
Having obtained a diploma in Intercultural Communication, Julia continued her studies taking a Master’s degree in Economics and Management. Becoming captured by innovative technologies, Julia turned passionate about exploring emerging techs believing in their ability to transform all spheres of our life.
