Anonymity of the Bitcoin: myths, mistakes and safety rules

The anonymity of cryptocurrencies is a multifaceted problem, and often, the accurate picture differs from prejudices and stereotypes. In this guide, we will try to understand how Bitcoin blender works and how you can ensure the security and anonymity of transactions with your cryptocurrencies.

Anonymity on the cryptocurrency exchange

Cryptocurrencies are digital assets based on blockchain technology, offering transparency and decentralization. Blockchain is a chain of blocks that stores information about all completed transactions. The main difference between cryptocurrencies is their openness: each network participant can view the history of all transactions. It is called a public registry. “Addresses” on the blockchain can be compared to public names used to identify people. But they are created from special secret names that only the owners know. Thus, blockchain addresses do not contain personal information about the owners, such as their real names or places of residence. It helps to get anonymous cryptocurrency and maintain the privacy of address owners. Although addresses do not contain open information about the owner, they can be attributed to specific people or organizations through points of interaction with the traditional financial system: exchangers, exchanges, and wallets that require user identification.

How do cryptocurrency mixers work?

Cryptocurrency owners use crypto mixers to achieve the required level of privacy during transactions. The service will receive your bitcoins and send them from different addresses at different times to the addresses you specified, and then you will receive the amount already mixed. It makes it almost impossible to identify your identity.

Cryptocurrency mixers have many valuable uses. They allow:

  • users make their financial transactions confidential,
  • prevent discrimination and harassment by government authorities,
  • protect competitors from espionage,
  • help avoid fraud and theft of cryptocurrencies.

So, Bitcoin mixers obfuscate the traces of transactions to minimize the possibility of tracking the movements of crypto coins and obtaining specific information about the participants in the transactions.