Topic: Why not use Exchange instead of Mixer? (Read 780 times)

Well, it depends on the exchanges and the size of fund. People who prefer privacy will generally avoid the exchanges due to kyc and withdrawal limits. There is also the risk of fund being seized by the exchanges. It's quite hard to recover fund seized by exchanges that do not exist in ones country

It's not just personal preference, those who use exchanges as mixers are putting themselves at risk of locking their funds because if exchanges notice something suspicious about your transaction they could freeze your account. Mixers wouldn't hesitate to mix your transactions, they usually charge fees but you can still save more as there are certain mixers like ChipMixer for example that lets you pay fees whenever you feel like paying.

I guess a lot have been said here the reason why there are still people using the mixer services. So it is really personal preferences on how they want anonymity in terms of crypto transactions. But if you don't care about this aspect, using exchange won't be a big deal for you.

with exchange, it is quite easier to trace transactions if you know the right addresses to monitored. In as much that multi transactions happens on  exchange platforms, they are not meant to mix bitcoin transactions making it impossible to trace transactions made by anybody on the platform. Mixers on the other hand have their platforms designed strictly to mix up bitcoin transactions making it impossible for transactions made by people to the mixer platforms untraceable..

Cryptocurrency exchanges are not equipt for privacy and anonymity by design while the bitcoin mixing services were built with privacy and anonymity in mind. The bitcoin mixers are more sophisticated than cryptocurrency exchanges when it comes to protecting user privacy, security, and anonymity.  

No problem, glad to help.

Pretty much. They may have a couple of main wallets, and go back and forth between hot and cold wallets, but this is essentially the principle.

If you use any third party service, (mixer, VPN, email client, etc.) you have no way of knowing for sure exactly what logs they are keeping. The difference is that exchanges are legally required to keep logs and hand them over to the government. ChipMixer states that all logs are deleted once your seasion ends, and there has never been anything to suggest otherwise.

You are very helpful. This is the second time this week I have read helpful info from you. Thank you very much for clearing that all up for me. It's not something you can just google.

Most of what I said was theoretical and out of interest. I thought that they had a main address they scrape everything to and then payout from there I just wanted to make sure and bring up alternative theories.
I would assume that yes the exchange will know what coins you have since they know what you brought with and what you leaving behind or taking with. They even have a history for that. If they didn't do these things they wouldn't be making any profits.

So it is basically internal is what you saying. Same as chipmixer. Only those internally can see and know what is going on? Or does chipmixer mix so well not even the owner knows?


What if your government is a corrupt piece of shit?? Is laundering still for bad people then?

Is Mixer is exempted of any existing regulation? Although mixers are in favor to those who dont want to exposed their identities that their data privacy will be surely respected and protected but its looks like this kind of transaction might be abuse by the bad people as it might could be use it in money laundering.

Go to https://www.walletexplorer.com/ and look at the 4th column entitled "Gambling". Click on any one of the sites there followed by "Show wallet addresses" to see lists of thousands of addresses known to be owned by each site. These are just the addresses which have been publicly collected for free. We also know exchanges pay large amounts of money to various third parties who specialize in blockchain analysis, and so they will have a much more extensive database to compare to.

Even if you do that, it is still obvious to the exchange exactly what you have done. I've seen suggestions that exchanges will track the coins you deposit back up to 10 previous transactions, but nobody seems to know for sure.

There are endless reports of users having their accounts on various exchanges locked, frozen, or even closed entirely, because they deposited or withdrew from various gambling sites.

This is the correct answer. A good mixer liker ChipMixer will mix your coins regardless of where they come from and with much more privacy than an exchange.

how will they know if the coins you are going to depo are came from gambling/site ?

they will know it if the address has a gambling name on it ( recorded on the blockchain ) but you can always transfer it first on other wallets and then transfer it again on exchanges but that will not make sense it all since you will only waste your energy and fee  .

 better if you can only use mixers because they are not strict and also less hassel to use  .

Not usually. Yes, each account has its own deposit address. In good exchanges, that deposit address will either automatically change after every use, or you will have the option to request a new deposit address, so you never have to use the same address twice, which is good for privacy reasons. However, most exchanges periodically sweep the funds from every user's deposit address in to a main, central wallet, and then pay out withdrawals from there. Leaving coins in each individual user's address would either leave them with huge amounts of dust, or leave them having to take coins from other users to pay a large withdrawal. So no, you don't usually get back the exact same coins which you deposited.

The answer is still probably not. Although that might be cheaper and make more sense, most exchanges deposits and withdrawals are automated and don't have somebody making decisions at the other end. Simply put, you deposit to the address they give you, all deposit addresses are swept to a main wallet, and the main wallet pays out any withdrawals. Even if you try to withdraw exactly what you just deposited, the likelihood is the automated system would still perform as above.

Changing currency isn't the stumbling factor to using an exchange for privacy. The stumbling factor is the exchange, and anyone working there or anyone they share data with, can see exactly what you've done. It doesn't matter it you deposit BTC and withdraw BTC, or deposit BTC, trade to ETH, withdraw some as ETH, trade the rest to XMR, and withdraw the rest as XMR. The exchange can still link all your activity, all your addresses, and all your coins.

Yes, but everything is traceable unless you use something like Monero where you can transfer anonymously between a couple wallets before you finally send some to an exchange to convert back again. Sending the "same" amount in would also be a stupid thing as well as doing it within a short time frame. You'd need to spread it around over time to mask it. Well, that's assuming you had some largish amount. You'd probably be fine with small amounts.

Don't they bind addresses to your account? So when with deposit eth and trade for something else and come back at some point to sell something for eth then you get that eth back. If you just deposit and not trade won't they just send it back using the same address you just sent it to? I think it is best if you go from one currency to another and either keep that or trade that currency back to a second exchange and withdraw from there?


This is what I am talking about with using another currency instead(see above)

Don't know why people are talking about exchanges and mixers to try and make coins untraceable. If I remember correctly, a few years back someone stole some BTC I think it was, or maybe it was NXT? Doesn't really matter but they transferred it into some exchange, bought Monero and withdrew that. From there they were able to just make it all disappear.

You might be able to do anonymous transfer within the exchange like you rightly said, but that is only not visible to the public, it is still very visible to the exchange itself, so the government can still get details of a transaction from an exchange if they force them to do so through court, but with cheap mixer, even the exchange itself will not be able to trace the transaction, like the way binance was not able to trace the transaction when the hacker stole that huge amount of money from their client’s wallet.

You can see that they tried everything possible but to no avail, which they later found out that the hacker used cheap mixer to actually take out the fund through their exchange. So I don’t think using exchange directly will be able to provide the full anonymity as you think.

Exchange market have different fees for every transaction depend on which one altcoin we make withdrawal, you can use altcoin for get lower fee transaction like litcoin, ripple and doge, many trader use doge when make withdrawal their coin from one exchange market to the other exchange market for every transaction.

Perfect explanation mate, that is reality in addition for this if I am not wrong exchange are not allowing or accepting coins came from the gambling. So gambler need to use mixer before to transfer their winning fund unto the exchange, but I do not know why exchange not accepting coins derictly from the gambling.

There are almost 0 fees when you compare a mixer to an exchange and almost 0 downsides as well.

Exchanges will sometimes charge a deposit fee, definetly a fee if you want to exchange your crypto-currencies, and another withdrawal fee which may vary. Mixers will be able to set their fees from 0 to 10 percent with some mixers (Chipmixer being a good example) making their fees completely optional.

This simply comes down to mixers are anonymous, exchanges are just not.

Can't afford you meant?

Discarding all privacy issues of using an exchange as mixer, they in most cases charge a pretty steep withdrawal fee. ChipMixer doesn't charge any fees by default at all (donation based business model), so it's pretty much a free way to obtain an extra layer of privacy, so not being able to afford the fees of a mixer (which generally are low already) is not an issue here.

The only fee that occurs is the on-chain transaction fee forth and back, which you would pay when you would use an exchange too.

cryptocurrency exchanges are not good for anonymity. though they are combining users' transactions similar to mixing services but they are not doing that for the purpose of anonymity while bitcoin mixers are specifically designed for that, to anonymize user transactions for more privacy and security.