Oftentimes, people incorrectly refer to cryptocurrencies such as Bitcoin (BTC), Ethereum (ETH), Bitcoin Cash (BCH), and Litecoin (LTC) as “anonymous” digital currencies. However, Bitcoin and other altcoins that are based on blockchain technology are only pseudonymous in nature because there are records for every single transaction on the decentralized public ledger.
This means that every Bitcoin transaction that has ever been made can be seen by anyone who uses a block explorer, such as Blockchain.info. These sites give traders access to the Bitcoin blockchain, its transaction history, the encrypted cryptocurrency wallet addresses that sent the separate transactions, and the addresses on the receiving end.
Therefore, if you actually want to spend or send BTC anonymously, you’ll have to cover your digital footprints by using an anonymous wallet that cannot be traced back to you. The only way to achieve this is via Bitcoin tumbling, the topic of our today’s article.
Why Tumble BTC?
Bitcoin tumbling is a process used to hide the source of your BTC by mixing the assets with other bitcoins that originally came from another source so that the source of your BTC transaction becomes very hard to trace. This tumbling process is also called Bitcoin mixing or Bitcoin laundering, but before you jump to any rushed conclusions, rest assured there’s nothing illegal about this activity.
To put your minds at ease, we’ll give you numerous different reasons why Bitcoin tumbling is justifiable and worth trying:
- It cuts out the link between the wallet address that sends and receives the assets, thus retaining privacy.
- It hides the source of BTC so that they cannot be linked to any crypto wallet (neither yours nor that of their previous owner/s).
- BTC tumbling makes online purchasing anonymous, regardless of whether you want to buy some products, make a VPN subscription without submitting your personal data, or exchange bitcoins for other services.
- BTC tumbling can help you make anonymous donations to a charity or an individual that needs your help, without disclosing your identity as the donor.
- You can safely send or spend your bitcoins and you don’t have to be afraid that your BTC might be frozen or seized by a government authority in order to investigate the source of your money.
- All of your personal information is totally secure from third parties. Even the BTC tumbler itself erases your order for a mixing service after 24 hours, just like it never happened.
- Tumbling can make your “spoiled” bitcoins (e.g. ones you got from gambling sites) clean again, because not all crypto exchanges, such as Coinbase, accept Bitcoin transactions with coins earned through gambling.
Bitcoin Tumbling Methods
In case you decide to mix bitcoins and keep your privacy during Bitcoin transfers, you can use one of the following three options for free.
CoinJoin Bitcoin Mixer
CoinJoin is an anonymization strategy that secures the privacy of Bitcoin users while they’re running transactions with one another, and, at the same time, it hides the destination and the source of the assets that users are trying to transfer. It’s available as open-source software and it’s continually updated by the Bitcoin community.
In order for this method to be conducted, multiple parties have to sign a digital smart contract for tumbling bitcoins in a new Bitcoin transaction, where the output of this transaction will leave the users with the same amount of coins, but with tumbled wallets addresses. This way, users can be sure that the external tracking of the origin of their coins will be extremely difficult.
BTC Tumbler Services
Simply put, Bitcoin tumbler is a platform or a website that you can use to hide the sources of your bitcoins. This service provider disconnects the link between Bitcoin wallet addresses and cleans the origin of your assets by providing you with a mix of new BTC for a certain fee.
Here are some of the best and trustworthy BTC tumbler services:
CryptoMixer offers high trading volume Bitcoin mixing services and is also known as a tumbler that almost instantly tumbles your assets thanks to its reserve of more than 2,000 crypto assets ready to clean your assets. Its tumbling service fees are usually around 0.5%, however, if the user has a larger amount of BTC, the fee can come down to 0.25%.
Blender is the most popular BTC tumbler due to the fact that its mixing services come with a lower transaction fee than the rest of the tumbling websites. Its service fees are from 0.5% to 2.5%, based on how fast you want your bitcoins to be cleaned. Blender might be the only tumbler service platform that offers users the option to choose the service fee they’re willing to pay.
This is a very fast, well-known, and effective tumbler service. Helix Light is quite easy to use because users don’t have to register an account. All they need to do is submit their wallet address with the coins they want to get cleaned to the Helix receiving address and get their new, laundered BTC back to their primary Bitcoin address. Its downside is that the service fee is too high in comparison to the previous two mixers, but you have to know that almost 95% of all Helix Light services are completed in less than 30 minutes.
Anonymous BTC Wallet
Anonymous BTC wallets are crypto wallets that are designed to help keep BTC transactions private and hidden from the Bitcoin network and blockchain ledger. These crypto wallets usually use some type of technology that changes the user’s wallet address every time they receive or send any amount of BTC through it.
Moreover, anonymous wallets can be made totally untraceable if you make use of Virtual Private Networks (VPNs) in order to cover your digital footprints in the entire network. Some of the most popular anonymous Bitcoin wallets are:
This is the most popular hardware (offline) wallet due to its high security and it can be connected via Bluetooth, moreover, it can be connected to both Android and iSO devices. Ledger Nano X is a non-custodial crypto wallet, meaning the control of the private keys is in users hands which guarantees the users anonymity during the transfer of their bitcoins.
This is a mobile wallet and its main purpose is to keep users transactions anonymous, hide users personal data, and secure their funds. Samurai Wallet gives users a PIN code and recovery phrase as a backup alternative which makes this wallet an excellent option for staying anonymous while transferring bitcoins.
How Does Bitcoin Tumbling Function?
If you choose to use the Bitcoin tumbler service for tumbling your bitcoins, here is a simple guide on how you can use it efficiently and securely:
- The first thing you have to do is to create a Bitcoin wallet on any of the platforms on the network, and then you have to deposit into the wallet the BTC you need to clean.
- Now you have to create a new wallet using a Tor browser, in order to conceal the IP address.
- Next, you need to transfer the bitcoins from the first wallet to the new one using a standard crypto transaction.
- Make a third wallet and use the Tor network again. This wallet address is where you’ll send the BTC that has been cleaned.
- In this step, you decide which Bitcoin tumbler service you’ll use and then send the assets from the second wallet to the tumbler to be cleaned. After the tumbler finishes the laundering of the assets, submit the address of the third wallet as the receiving address.
- Once the assets have been tumbled, they’re ready to be used as a payment method for exchanging other cryptocurrencies, buying products, cashing out, or investing, and you can be sure that no one will know the origin of your BTC.
A Few Words Before You Go…
In the end, you can see that Bitcoin tumbling is a very good method for staying anonymous and keeping your privacy while using your bitcoins. Unlike what many traders think, the process itself isn’t too complex and allows you to get assets that have an undetectable and untraceable origin with few simple clicks.