Anonymize Bitcoin Transactions

We asked a Bitcoin expert about bitcoin mixing and the anonymization of bitcoin payments.

Anonymization services exist since 2015. They basically perform anonymizations of Bitcoin payments. In the online Bitcoin community, knowledge is full of gaps in many places. Many comments reveal that a lot of users can use Bitcoin, but they do not know how Bitcoin works and which traces it leaves.

Everyone has the right to privatize their payments. Bitcoiners must take measures to improve the anonymity of Bitcoin. Finally, tracks can not be removed later.

We wanted to get to the bottom of the matter and therefore contacted a blockchain expert from LA university. In the following interview you will learn everything you wanted to know about bitcoin anonymization so far:

Why anonymizing transactions?

Bitcoin should bring the freedom to use censorship-free money. Nobody needs to know who I’m paying money for, and no one has to justify when someone doesn’t want to become a transparent person. Also people in a free world should have the possibility to trade anonymously with other people. That’s why certain crypto broker companies especially offer fast signups without the need to give any personal details. Those sites can be found on this website. Additionally using a vpn like PIA that doesn’t safe log files at all will make the trading actions really untracable.

Anonymization services like mixers want to enable their users to easily anonymize their Bitcoin. They take care of the privacy of their customers and delete logins as soon as possible. There is no need to create an account.

How does it work with mixing exactly?

Quite simple: The services exchange Bitcoin of thier users against Bitcoin in their „pool“. In the pool are already mixed Bitcoin. The user gets paid in Bitcoin, which can not be allocated to anyone else through their internal mixer. In addition, these paid bitcoins have no connection to the bitcoin address from which the bitcoin was deposited.

What advantage does Anonymization of Bitcoin transactions provide?

It prevents a blockchain analysis of payments. Many people want to buy services anonymously, for example a VPN. It would be crazy to buy it with Bitcoin, confused with their own identity. However, many of our users are already convinced that they will only make all Bitcoin payments anonymously.

Bitcoin is by nature „anonymous“?

Bitcoin is a pseudonym. If a Bitcoin address is linked to an identity, a blockchain analysis can be used to track where it was paid. For example, it can be tracked when paid by a Bitcoin exchange. Of course, the Bitcoin exchanges save who pays where. Any bitcoin address could sooner or later be associated with a service. The persecution is still in its infancy. Bitcoin leaves tracks forever, only caution can prevent this. Retroactively it is no longer possible.

Is it safe?

Security is a matter of trust. Trust arises only with time. You can also mix small sums of bitcoin. If you need to mix a larger amount of Bitcoin, you can do that in small increments for your safety.

How much does anonymization cost?

Services mostly charge a random fee of 2-3%. On the one hand we pay for the service and the costs of the large amount of internal Bitcoin transactions. On the other hand, the fee also protects against traceability: Finally, a blockchain analysis can also be done through the payment amount. Example: First, 0.75675 bitcoin is deposited in one place, and one hour later 0.75675 bitcoin is paid to another address. We always advise you to use several withdrawal addresses, the fee helps with further concealment.