Majority of people know bitcoin as an anonymous cryptocurrency. This perceived fact is a false myth. But somehow the currency has acquired the reputation of being anonymous. So what’s the solution? Bitcoin mixing service. Unless the user integrates this service, his transactions will remain traceable.
The fact that crypto enthusiasts think that bitcoin is anonymous has exposed ignorance in the crypto space. Users should really evaluate their understanding of bitcoin before using it. This way, they can get around this and other untrue statements surrounding bitcoin that mislead many bitcoin beginners.
Gladly, for you, there is a significant number of bitcoin traders with an impeccable crypto market understanding who know the true nature of bitcoin- as pseudo-anonymous.
There is a possibility that all your transactions can be tracked and information used in real life. Since its common knowledge that every single transaction on the bitcoin network is recorded on a public ledger, as long as one can access the full chain, then it’s possible to access transactions from other users and thereby trace bitcoin origins.
How Your Identity Can Be Tracked
Your transaction is available on the public ledger, therefore anyone acting on interest can access it. But that also depends if they have a full blockchain. If they do, then it can only be easy.
Another way to easily identify an account is through the data that is being constantly stored when you use your account. Government agencies are constantly on the lookout for suspicious activities and when it comes to accounts that have been used for a long time, users are identified seamlessly.
lastly, identifying anonymous bitcoin users. You see, when a user purchases an item online via bitcoin, it is required that they provide a name for the delivery purpose. This is a loophole that third parties exploit in tracing bitcoin users.
Bitcoin Mixing Service
Although not fully anonymous, you can avoid loads of trouble while transacting. Thanks to the third company’s invention, you can now transact anonymously. The bitcoin mixers, as they are commonly referred to, are the best when anonymity is your major concern.
What they essentially do is provide an opportunity for you to exchange bitcoins. The bitcoins you get are anonymous and cannot be traced to original owners.
Bitcoin mixing is not a new concept, it has been here for quite a while now, probably before the invention of blockchain or bitcoin itself.
Before trust-less alternatives for money transactions, mixing services were being used as a working alternative for anonymity. Funds were basically being mixed up with other people’s money in a move that would confuse the trail if there was any.
The same concept is in use today for bitcoin transactions. You only need a website offering these services, and they are quite a lot.
How The Services Work
Bitcoin mixing may be a risky process that needs precision and a comprehensive understanding. Nonetheless, it is a very simple process.
All you need is to send a specific amount to a bitcoin mixing website. They, in turn, send you coins from a different account. You are then needed to create two accounts anytime you use a bitcoin mixing service. No one can trace these coins back to you.