Topic: What is Bitcoin Mixer used for? (Read 195 times)

Bitcoin mixing is when you mix your bitcoin with others to make it difficult and sometimes impossible to know for sure who is the owner of which particular bitcoin address.

The most popular methods are probably CoinJoin: http://www.whatisbitcoin.com/coinjoin but there are others that require you to give your bitcoin to someone else and they mix it for you for a fee.

Each transaction in Bitcoin consists of inputs and outputs; inputs point to outputs of some past transactions, and outputs become new inputs of some future transactions. Transactions that are connected through inputs and outputs form a kind of chain, which may tell an observer how coins moved, including their possible source and destination. The point of mixing is to break (or at least obfuscate) links in this chain of transactions, making it harder for an observer to determine what entities actually participated in these transactions. The bitcoin blockchain is by default transparent and pseudonymous, and mixing doesn't make it less transparent, but it tries to make it even more anonymous by breaking deterministic links between inputs and outputs. If your goal is to prevent your enemies or envious acquaintances from spying on your transactions and infringing on your private life, then you should consider using mixing tools but choose only reputable ones because with others you may not achieve what you want.

CM really doesn't ask for any fee, but the advice for those who do use it is to add some kind of fee because it will raise their privacy to a slightly higher level. This would mean that if your deposit is 0.005 BTC and if you immediately withdraw your chips and make a transaction with them, it is not very difficult for companies that analyze such things to understand what it is about.

But if, for example, you send 0.00505xxx BTC and spend the chips in a smart way (with a delay), this will make your transaction more difficult to analyze and track.

It's worth noting that this method of mixing is only used by ChipMixer. All other mixers simply consolidate all their deposits and send them around a bit before paying out. Only ChipMixer uses pre-funded addresses which helps to further break the link between deposit and withdrawal.

Unfortunately, it is outdated. When theymos wrote that post, Wasabi was indeed a decent wallet and a decent coinjoin provider. However, since then they have began cooperating with blockchain analysis companies, sharing data with these companies, spying on their users, and censoring their users, so are now a very poor choice for anyone interested in privacy.

Very good points. I advise everybody using this kind of services for the first time consider:
* getting the service URL from bitcointalk announcement page, to avoid going to a malicious clone
* make sure he reads the FAQ before using the service
* make screen captures with every step, so URL, amounts and similar things are visible, so if something goes wrong, people can see whether it was a malicious clone, a bug or a scam

I consider important taking this kind of precaution on any new service until one gets used to it, no matter it's a new mixer, new exchange or whatever.

Well here is also a list of clone and scam mixers websites. ^{[ https://bitcointalksearch.org/topic/list-of-bitcoin-mixer-or-tumbler-scamclone-websites-5163858 ]} --we should be careful of them.
All have been mentioned above regarding the bitcoin mixers --our negligence in choosing them should be our priority before picking one of them because it is hard to trust them. On this forum, try to find a bitcoin mixer that has a business here because for sure they are safe and you can complain to them anytime. Chipmixer or Sinbad.io mixer is now here ideal choice for you if you are looking for a mixer service.

Just to add some extra context (and nitpick), LeGaulois lists all mixers that aren't actively scamming users. There are mixers in this list i wouldn't touch with a 10 foot pole. You cannot blindly trust any list, especially when it comes to mixers (LeGaulois is doing a good job, but his aim is not to judge those mixers on technical details, but instead give a full list of mixers that aren't scamming @ this point in time).
If you picked a mixer from the list, and you are unsure if it's a good one: read their announcement thread (especially the first and the last couple of pages... The first ones will probably tell you some technical details, the last ones will tell you if it's still trustworthy), read their trust feedback and ASK us before sending them your money.

Far to often, people do something irresponsible with their BTC first, and ask questions later... You wouldn't believe how many times we read storys like "i invested my lifesavings in ponzy X, how do i get my money back" or "i saw a page selling an ASIC for 1/3rd of the retail price, i immediately send them all my money but now they don't send my device. How do i get my money back".
As a rule of thumb: if in doubt wether or not you should send money: ask first, pay AFTER getting our replies. What's the worst that can happen? Maybe somebody ridicules you... Still better than losing your lifesavings, right! This is also the case when picking mixers: ask first, mix afterwards

It is better to avoid scam and use only the reputed mixers, like the ones provided on the link that I provided above. They truly also charge fee. But if you want to use a mixer that do not charge fee, Chipmixer can be used, you may only just donate while making use if the mixer, but it is good to read about the mixer to know how it works, very important.

Coin control can help in privacy, but many people that use mixers are the people that send from exchanges, probably to make it harder to trace to past transactions. Although, there are other reasons to use a mixer, example is during a dust attack.

The users above have already explained what a mixer is to you, but mind you that you will be charged a certain fee by the mixing company for their services, and if you are keen on mixing your Bitcoins ensure you do so with a reputable mixing company so you wouldn't get scammed and lose your Bitcoin to them.

Having said that, if you want to maintain a certain level of your privacy without using mixers or coinjoin services, then you could prolly avoid reusing Bitcoin addresses, you could send out a new address everytime you want to receive funds and also use coin control when you want to send funds to someone so you can select the exact UTXO/address that you want to spend/reveal.

[Guide] Decent mixing methods. It is a short guide from theymos about mixing Bitcoin exclusively.

If you are new with mixing, you should know that when you make a transaction, you will have input(s) and output(s). The way you choose your input(s) and use your output(s) will affect results you get from mixing. If you recombine your outputs after mixing, you reduce your privacy.

So after mixing your coins, you should not recombine them.

One of the ways to increase privacy is to use a mixer in a way bitcoin transaction can not be traced or harder to be traced, this is achieved by either using a centralized mixers or coinjoin, while the other one but which is not a mixer is to convert you coin from bitcoin to monero and back to bitcoin which you can make use of a decentralized exchange for.

2022 List Bitcoin Mixers Bitcoin Tumblers Websites

In the above link are lists of mixers which you can use for bitcoin.

Bitcoin mixing is a way to obfuscate the trail of a transaction.
The Bitcoin network is built on a public ledger and as such anyone can check transactions which are added to the blockchain. This might not be convenient for some who would not want strangers snooping on their financial transactions and monitoring their balances. This necessitated the use of Bitcoin mixers and coinjoining services to make it difficult for one to monitor a particular Bitcoin address or public key.

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• Mixers operate by mixing different transactions together and giving users coins which were not involved in their initial transaction.
In a basic format;
Mr. Bob wants to send 2BTC to another of his address but doesn't want it traced. He runs it through a mixer and is giving an address to send 2BTC to and then giving the private keys to a new address which has been credited with 2BTC already.
This way the new UTXO cannot be linked to his address which sent out 2 bitcoins.

• Coinjoining works in a slightly different way;
Mr. Bob wants to send 2BTC, consisting of different inputs. His inputs is "joined" with that of Mr. Tom and Ms. Jane, all with their different inputs. Someone looking at the transaction would not be able you make out which of the inputs or the outputs originated from Mr. Bob.

If you "mix" your bitcoin, it pretty much makes your bitcoin's history significantly harder to trace assuming you're using a good mixing service. The downside being some exchanges blocks deposits from mixed (or "tainted", as most of them call it) bitcoins.

Actually I am new in this forum. While browsing the forum for a few days, a few projects have come in front of me whose main purpose is Bitcoin mixing. What I really want to know here is what is Bitcoin Mixing or Bitcoin Mixer? I will be very happy if someone tells me the details.