A bitcoin mixer is a service that reroutes your cryptocurrency before it reaches its destination. It uses a web of transactions to jumble up your coins, making it very difficult (if not impossible) for anyone to trace your transaction history. Mixing services are a great tool for those who want to keep their cryptos anonymous, but they should be used with caution as they can expose users to theft and scams.
The main purpose of bitcoin mixers is to increase your transactional privacy by hiding the link between the wallet address you sent your funds to and the recipient’s address. However, using one does not guarantee that your money will be completely safe from hackers and thieves. This is because a mixer can be hacked or shut down, and the service providers can also be compelled to share user data by authorities or blockchain forensics experts.
In the United States, mixing services are regulated as money transmitters and must comply with FinCEN regulations. This is why it’s important to choose a trusted mixer that has been tested and vetted by other users. The best mixers will allow you to specify how many hops your coins will take before they are returned to your wallet.
The most popular bitcoin mixers include Yo!Mix, Coinomize, Sinbad, and Unijoin. They offer low minimums and fast withdrawals, support TOR, and are easy to use. They also don’t store your transaction logs or IP addresses, and some even offer an auto-delete function after 72 hours.