Topic: Localbitcoin as mixer? - page 2. (Read 1719 times)
Uhm... I think localbitcoin is a market like another markets (coinbase,bitstamp,huobi,etc) and it is not bitcoin mixer service, although there are new wallet in every new transaction at localbitcoin. And it is different working with bitcoin mixer service.
1. Basically any service which uses multiple wallets, addresses, allow you to deposit and then withdraw coins can be used to partially mixing your coins: it can be a casino, exchange, lending platform.
2. Bitcoin mixers were created with for the sole purpose of mixing coins - but there is always question if they are not secretly gathering logs about every mixed satoshi.
3. But in the end this problem with collecting users data and activity could be potentially present on every satellite bitcoin service: mixer, casino, exchange etc.
2. Bitcoin mixers were created with for the sole purpose of mixing coins - but there is always question if they are not secretly gathering logs about every mixed satoshi.
3. But in the end this problem with collecting users data and activity could be potentially present on every satellite bitcoin service: mixer, casino, exchange etc.
Why not just use a service meant for mixing? Seems like it's a lot more complicated than using a reliable bitcoin mixer.
it is simple: because of the fees!
if you have ever used a mixing service or if you check their website like bitmixer.io you can see that when you mix your coins you have to pay the network fee and also a percentage fee which is a percentage of the amount you want to mix so you can end up paying 0.01BTC for example.
I'm not really sure if you bothered to do the research before you said that, but if you did, you'd realize that BitMixer.io charges a minimum of 0.5% transaction fee + 0.0005BTC. The second bit is so tiny that it should be ignored; as of right now, only about 30 cents. Even if you didn't go full cheapskate on the transaction fee and did the minimum 0.5% fee and used, instead, a 1% fee, you would have to be mixing 1BTC in. And if you're holding 1BTC, I hardly think that you'd be fretting about a $6 fee for anonymity.
Seriously, if you're worrying about the fees on BitMixer.io, you should stop hodling so much.
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Bitcoinmixer.io is great but what if it is run by the government and they tell you that they do not keep logs while they are keeping. One of the most experienced member posed this question so that made me worried.
I am from a country that's run by absolute idiots and incompetance, where the President, who cannot read a number from a paper that is larger than 10 000 even if he practices for a month, openly declares if he showers he will be healed from AIDS and that Africa is the biggest continent in the world by far. I doubt if they can even spell "logs" or "record keeping" or know how to get the information from another country. Maybe that's the best way to mix your coins, come stay in a 3rd world country lol. Few here know what Bitcoin is, we have a single bitcoin ATM in this country that's not working 95% of the time and only accepts deposits 
Jokes aside, I appreciate the comments above and agree with them all. Best to be 100% safe.
Even with sportsbet.io you can do this or any other casino that uses different wallets for depositing your coins and uses different wallets also for sending you the payments when you withdraw from their casino. This is helpful but still traceable.
Bitcoinmixer.io is great but what if it is run by the government and they tell you that they do not keep logs while they are keeping. One of the most experienced member posed this question so that made me worried.
Try different multibit wallets, they cannot be shown in wallet explorer as connected.
Bitcoinmixer.io is great but what if it is run by the government and they tell you that they do not keep logs while they are keeping. One of the most experienced member posed this question so that made me worried.
Try different multibit wallets, they cannot be shown in wallet explorer as connected.
One important point is still missing in this discussion: you should probably not use localbitcoins as a mixer because it wasn't designed to mix coins.
AFAIK (haven't read their whole FAQ), they do not promise not to keep logs, they're public, they're easily identifyable, they're known by the authorities.
In other words: there is no solid guarantee that they will not keep logs, and since they're known by the governement, there is a reasonable chance they would have to hand those logs over whenever law enforcement forces them to.
Bitmixer on the other hand is designed for the sole purpose of mixing coins. In their TOS it is clearly indicated they do not keep logs, they don't have contact information, so there is no door to knock on by law enforcement.
In the end, it's about you... If you just want to sever the bond between your transactions because you kinda like the anonimity, things like localbitcoins or online casino's might be sufficient to mix your coins. If anonimity is your top priority, you might want to start thinking about combining a decent mixing service with a second (and possibly thirth) "trick" to anonimise your coins.
AFAIK (haven't read their whole FAQ), they do not promise not to keep logs, they're public, they're easily identifyable, they're known by the authorities.
In other words: there is no solid guarantee that they will not keep logs, and since they're known by the governement, there is a reasonable chance they would have to hand those logs over whenever law enforcement forces them to.
Bitmixer on the other hand is designed for the sole purpose of mixing coins. In their TOS it is clearly indicated they do not keep logs, they don't have contact information, so there is no door to knock on by law enforcement.
In the end, it's about you... If you just want to sever the bond between your transactions because you kinda like the anonimity, things like localbitcoins or online casino's might be sufficient to mix your coins. If anonimity is your top priority, you might want to start thinking about combining a decent mixing service with a second (and possibly thirth) "trick" to anonimise your coins.
Why not just use a service meant for mixing? Seems like it's a lot more complicated than using a reliable bitcoin mixer.
it is simple: because of the fees!
if you have ever used a mixing service or if you check their website like bitmixer.io you can see that when you mix your coins you have to pay the network fee and also a percentage fee which is a percentage of the amount you want to mix so you can end up paying 0.01BTC for example.
i don't know how localbitcoins work but usually these exchanges that give you an address, when you deposit in that address your bitcoin will be mixed automatically because your withdrawal will simply be from another (or couple of other) addresses. and what you pay is only the network fee and that would be all.
this method is not the best to mix coins, especially since the exchange may get hacked like bitfinex and you lose coins
, or they can keep logs but it is a cheap way of doing it for regular users. Great replies thanks everyone. I just used Bitmixer.io and was surprised at how smoothly everything went. Thanks again.
As for you know, behind of your explanation i think some exchange will offering a features like you can generating a new address if you're wanna for sending bitcoin and seems like that is the another features is i can say that is just a simple mixer, well you don't need for creating another address for to do that but, if you're wanna for eliminate you trace for using an exchanging site. well that is the second option for using a mixing service in my mind and that is also a simple method.
Great replies thanks everyone. I just used Bitmixer.io and was surprised at how smoothly everything went. Thanks again.
the purpose of a mixer is to get your coins as untraceable as possible
with localbitcoins your coins can still be traced as there are no guarantee the traders localbitcoins would cut the chain and use clean coins to pay you
basically,you can use any exchange as a mixer,but you have to follow certain steps (use clean addresses,exchange to altcurrency etc. etc.)
you would lose some amount due to tx fees this way or another,so why don't you pay the pros for that?
with localbitcoins your coins can still be traced as there are no guarantee the traders localbitcoins would cut the chain and use clean coins to pay you
basically,you can use any exchange as a mixer,but you have to follow certain steps (use clean addresses,exchange to altcurrency etc. etc.)
you would lose some amount due to tx fees this way or another,so why don't you pay the pros for that?
Why not just use a service meant for mixing? Seems like it's a lot more complicated than using a reliable bitcoin mixer.
That's right, especially on tax or fee caused by just rotating your money into the different address and it's can't finish just for a one step like using bitcoin mixer.
Why not just use a service meant for mixing? Seems like it's a lot more complicated than using a reliable bitcoin mixer.
Usually that works. However, because LocalBitcoins is not a mixer, you may end up still being connected. This is because they are not actively choosing to not use your Bitcoin, unlike actual mixing services.
Hi guys, apologies from this total newbie if this question has been asked in 1000 different versions before
What is wrong with the idea that it's a way of "Mixing your coins", when creating a new Receive address (A) in Localbitcoins, then sending from outside, coins to (A) and then after a day or so send from LB again to another wallet or wallets (B and C)? I see the part 2 send address from LB is totally different from the receiving(A) so they are not really connected... or are they? From what I understand from LB's support, the receive address (A) is also not labeled as one from LB anywhere, so it should be rather difficult to trace the coins? I am sure this question applies to most other exchanges or even something like Mycellium where you (can be kind of) anonymous. Thanks
What is wrong with the idea that it's a way of "Mixing your coins", when creating a new Receive address (A) in Localbitcoins, then sending from outside, coins to (A) and then after a day or so send from LB again to another wallet or wallets (B and C)? I see the part 2 send address from LB is totally different from the receiving(A) so they are not really connected... or are they? From what I understand from LB's support, the receive address (A) is also not labeled as one from LB anywhere, so it should be rather difficult to trace the coins? I am sure this question applies to most other exchanges or even something like Mycellium where you (can be kind of) anonymous. Thanks
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