There are many reasons why people choose cryptocurrency over fiat money. Some want to secure their assets in a form that is not tied to any government entity, such as National Banks. Others just obtain a small amount of crypto for their daily purchases. But for many users, one of the main reasons to enter the crypto world is protecting their privacy. If you know how to buy crypto anonymously, your transactions cannot be traced, so no one will be able to tie your purchases to your real-world identity. However, to achieve this, you need to educate yourself about protecting your anonymity when you want to sell or buy Bitcoins. There is no centralized entity regulating crypto transactions or enforcing rules and laws, consequently, the security and safety of the crypto users depend mostly on their caution and knowledge.
Basic Advice on Protecting Your Anonymity
One of the most effective ways to protect your privacy and buy BTC anonymously is using a crypto mixer. These services, also called crypto tumblers, help to make your transactions untraceable. However, before discussing their usage deeper, let’s review some other basic rules to protect your cyber-security when using crypto:
- When transferring coins, always check the address of the wallet to ensure the money goes to the right target wallet.
- Learn about various types of crypto wallets, their differences, and their purpose.
- If you want to hide what websites you are visiting, use a VPN service with a no-logs policy.
- Use two-factor authentication whenever possible and do not share your data with other people.
The Reason to Use Coin Tumblers
However, even if you follow the measures described above, there is one risk tied to the nature of cryptocurrency itself. The blockchain data is public and can be viewed by anyone. It can be used to verify transactions; however, this data can be used with malicious intent as well. For example, someone can find out which wallet often receives a huge quantity of coins and make it a target of a cyber-attack. To protect yourself from this type of threat, you need to use bitcoin mixers. They make your transaction untraceable by obscuring their source and other characteristics.
How Do Bitcoin Tumblers Work
There are various types of batch mixers on the market, but all of them work similarly. To become untraceable, each transaction is processed in the following way:
- The transactions of all users are submitted to the common pool.
- They are mixed to obscure their initial source. Some coin tumblers use an untraceable cryptocurrency as an interim step, to make the coin tumbler more effective.
- The common pool is split into smaller parts again, and each user gets their part.
- As a result, a BTC mixer is making it harder to find out who got crypto coins from which source, because now each user has acquired coins coming from various addresses.
How to Choose a Reliable Bitcoin Mixer
It is also useful to know about the difference between centralized and decentralized coin mixes. Services of the latter type are preferable because you do not need to rely on a centralized entity entrusting it with your money, and there is no risk of the service revealing the logs to a third party.
There are also several other factors to consider. Study information presented on aggregator websites that provide reviews about crypto mixers and exchanges. Read about other users’ experiences to learn more about how the particular service works. It is also a good idea to study certain documents, such as local laws and coin tumblers’ Terms of Service. This will prevent you from encountering unexpected problems while looking for a place to buy crypto anonymously.
The best BTC mixers use additional measures to obfuscate each transaction and make tracking harder. For example, they can apply a variable service fee, so even if anyone finds out how much you have paid, they will be unable to deduce, what sum you were transferring. Transaction delay is used for the same purpose. In addition to standard transaction processing, some delay is applied, so it becomes more difficult to find out when the coins were sent and received. A reliable coin tumbler is a service, which uses several coin shuffling and obfuscating methods, preferably in a decentralized way.
Using Bitcoin Tumblers is Legal
For some people, coin tumblers have a dubious reputation, because they can be used for certain illegal activities, for example, for laundering money that was obtained from some suspicious source. However, this is a mere minority. For most users of BTC mixers, these services are just one of the regular security measures that they use to protect their assets.
Using a reliable crypto mixer will help you to make your transactions untraceable and protect your anonymity while selling or buying Bitcoin or conducting other operations.