The main reason for using cryptocurrency is to partake in anonymous transactions and to avoid too many bureaucracies that are common with other monetary institutions such as banks and money transfer agents. Bitcoin is meant to be anonymous, meaning that you can not trace transactions back to their source. Unfortunately, Bitcoin, like many other digital currencies are not completely anonymous. All Bitcoin transactions are recorded on a public ledger. Anyone with adequate knowledge of cryptocurrency transactions can use this information to trace any Bitcoins back to the owner.
When you carry out any digital transactions, you use an address that is linked to your wallet. Your wallet is a digital storage of your digital coins. It is this address that you send to the party you are transacting with. You do not have to reveal any information to this other party, so they cannot know who you are. However, with your address, you live a digital footprint that they can use to trace back to your wallet. Your wallet contains some of your personal information such as your bank details, your physical address and your email. It is this information they can use to link up to you. Bitcoin transactions are for this reason pseudo-anonymous. You can use a person’s IP address to trace transactions back to their personal computers.
Bitcoin Cryptocurrency Anonymizer
It is not all gloom for these transactions though. If you want to still hide your identity and do so completely, there are a few tricks that you can use. One of these tricks is using a Bitcoin anonymizer. An anonymizer is an online service that helps you hide your identity. It is a software that first converts your Bitcoins into a completely anonymous coin, in this case, Monero, then converts the Monero back to new and fresh completely untraceable Bitcoins. The whole process takes about six hours. You will pay a service fee of 5%. You can get this service from the tumbler site. Ideally, you simply send your Bitcoins to the software, allow them to sit there for six hours, then transfer new Bitcoins to any address less the services charge and without your address.
A second method involves mixing your Bitcoins with other coins. Remember, your coins can be traced if there is evidence of your address in your transactions. This software takes these addresses and mixes them up making it very difficult to identify specific transactions. The software then sends these coins to random accounts but based on the amount each wallet is supposed to receive. You can even send them back to your wallet. It is possible to identify where the coins came from since the mixing cuts off any existing links that are formed in the course of transactions. The process takes about three hours for you to get clean and untraceable coins. You will pay from 1 to 2.5% of your Bitcoins for this service. So, if you intend to send a particular number of Bitcoins to another wallet, you should include this fee to ensure that the recipient receives the specific amount they are to receive.
Is It Safe?
Bitcoin mixing and anonymizing are safe, but you have to be careful about the service provider you use. not every online service offering the “clean up” service is safe to use. Some are just conmen and fraudsters that are out there to swindle you of your hard-earned money. Remember, every one person transacting online and wishes to remain anonymous will use these services, meaning that your coins can and will be mixed with those of both legal and illegal transactions. Several online companies providing this service have closed down, and they have done so with people’s coins. If you by chance end up using an unverified company, and they shut down, then you will end up losing your coins, and you cannot report such cases to any authority. Just as there is no regulating authority of any cryptocurrency, there is also no authority checking on the services of Bitcoin mixing services.
Is Bitcoin Cleaning Legal?
There are no governing rules or laws regulating Bitcoins mixing or hiding the identity of individuals transacting. Any person with legal or illegal businesses can use these services. Governments are concerned about money laundering and illegal businesses like drug dealing and selling weapons. However, you cannot be directed, or even cautioned by any authority for using these services. The only action that governments can take is closing down sites suspected of “cleaning” Bitcoins in a bid to transact in illegal businesses.