Coin mixing for beginners

[casey15]

I know a lot of us must have been doing research about Bitcoin and bitcoin transactions and one way or the other might have come across Coin mixing.. Or maybe probably have heard about Mixers before in the forum. Let me try to break it down hopefully some veterans here can also help provide more information.

We know that Bitcoin transactions are recorded publicly on the block chain and even if names are not usually attached to them, they can still be analysed and traced depending on the situation.
Coin mixing is supposed to address that. Coin mixing is a privacy technique that is used to make tracing if Bitcoin transactions more difficult.

How does it work:
The idea is simple, multiple users send coin into the mixing system, the the coins are shuffled or combined with coins of other users which makes it difficult to trace the original source.
Then an equivalent amount minus the transaction fee is sent to the new recipient address.
Even though everything is recorded in the Blockchain, the original sender becomes difficult to link to the final transaction output.

There are centralized and Decentralized mixing services.
In centralize service, the user sends coin to a third-party provider which redistributes mixed coin back to them. It is risky because it may be a potential exut scam, your funds may be seized, and some of them are illegal.

In decentralized service, there is coordinated transaction with the use of privacy tool between the users without a third-party holding all coins. It is considered more secured as no central party is holding funds..


Although mixing improves privacy, It does not guarantee anonymity and advcnced blockchain party can detect patterns. Some exchange restrict deposits too from mixed coin as a lot of people use it for crime.
If ever you want to attempt a coin mixing service, make sure you do your appropriate research..

[MagnificentX]

There are centralized and Decentralized mixing services.
In centralize service, the user sends coin to a third-party provider which redistributes mixed coin back to them. It is risky because it may be a potential exut scam, your funds may be seized, and some of them are illegal.

In decentralized service, there is coordinated transaction with the use of privacy tool between the users without a third-party holding all coins. It is considered more secured as no central party is holding funds..


Although mixing improves privacy, It does not guarantee anonymity and advcnced blockchain party can detect patterns. Some exchange restrict deposits too from mixed coin as a lot of people use it for crime.
If ever you want to attempt a coin mixing service, make sure you do your appropriate research..

It was really interesting to get to know something like this because to be frank, this is actually the first time I came across the concept Coin mixing, and another thing that I found interesting is the aspect of the centralized and decentralized mixing services. One thing about Bitcoin is that everybody who really knows about it wants it and those who owns or have it, are very careful with it.

Seeing what the centralized mixing service meant reminded me of only one thing and that is the high level of necessity of decentralization. Its is so correct to say that the centralized service is not safe because truly, the third party may at he end not want to release the coins and that is one thing nobody prays for. Being scammed off your property which you worked hard for is never something we pray for.

So with everything said and seen, I strongly recommend the decentralized mixing service as it requires no third party and with it, coins will be safe.

[Charles-Tim]

It is worth knowing that the decentralized mixers are referred to as coinjoin. Examples are the whirlpool or so which is no more. Wabisabi is another example but not recommended on this forum anymore. I have read about Jointmarket which is also a good example.

The centralized mixers are becoming the most common and many people are making use of them. Just go for reputable ones. It is true that they are centralized but I have used many of them before and they are worth it. They do not keep logs.

[nakamura12]

It was really interesting to get to know something like this because to be frank, this is actually the first time I came across the concept Coin mixing, and another thing that I found interesting is the aspect of the centralized and decentralized mixing services. One thing about Bitcoin is that everybody who really knows about it wants it and those who owns or have it, are very careful with it.

It's because there's a reason why it's not being discussed many times nowadays. If you haven't know about it then let me share some information to you. Actually, there are mixing services that are running before but it is seized by FBI due to a reason like money laundering issues. If you read the OP, coin mixing is a way to mix coins so that it won't be easy to track down the owner and if it is used by people for illegal activities like laundering then won't someone or something will notice the service. The service isn't made for that reason but there are people who use it for illegal activities when it's good for other to have good privacy.

[Hatchy]

It was really interesting to get to know something like this because to be frank, this is actually the first time I came across the concept Coin mixing, and another thing that I found interesting is the aspect of the centralized and decentralized mixing services. One thing about Bitcoin is that everybody who really knows about it wants it and those who owns or have it, are very careful with it.

Ohh how they was a time when mixing was still a thing on the forum. Now I guess many new bitcoin users may have to carry out personal research about that aspect. Mixing is simply done to improve privacy and like we know it, it's main purpose was for the good of bitcoin users who loved to keep a very simple and low profile. But then, as usual very good thing has it's bad side explored as well. Even if all service providers didn't intend evil, the rotten eggs will surly give them all a bad name. That's what happened on bitcoin and why you don't see em on here anymore..just like other have said if anyone wish to use these services they should do good research unlike before where the forum can recommend good reputable services for you to use..

[PrivacyG]

Just go for reputable ones. It is true that they are centralized but I have used many of them before and they are worth it. They do not keep logs.

Yes and no.  You could rely on the reputable ones but I am not aware of a way they can prove there are no Logs kept.  This is blind Trust instead of a provable characteristic so this should be taken with a big big bucket of salt particularly considering they are Mixers and some of them are clearly three letter agency Honey pots.

Instead.  In my opinion, with enough care a mix of multiple Mixers is much better.  If you jump an UTXO through three different Mixers, if two of them are Honey pots then the last one may not be.  There is always a possibility that even the third will be one, but the chances are much smaller.

-----

As for Centralized Exchanges cracking down on their customers who are also Mixer customers.  When you start looking for Privacy, the best way to do it is to pave two roads.  One for the particularly Privacy things and the other one for normal use.  If your Mixed Bitcoin only moves through Non Custodial software and the other Know Your Customer Bitcoin never touches it, there is no way they will ever crack down on you because at the surface level you look like any other normal person.

[EluguHcman]

~SNIP~

It's because there's a reason why it's not being discussed many times nowadays. If you haven't know about it then let me share some information to you. Actually, there are mixing services that are running before but it is seized by FBI due to a reason like money laundering issues. If you read the OP, coin mixing is a way to mix coins so that it won't be easy to track down the owner and if it is used by people for illegal activities like laundering then won't someone or something will notice the service. The service isn't made for that reason but there are people who use it for illegal activities when it's good for other to have good privacy.

Also for some sort of clarity why the mixer services are no more active here or a most talk about is at the purpose of it being banned in the forum after the security agencies had tamed it mode of service illegal due to the no traceable of transactions address even in the Blockchain while it is oversights that it is an avenue that covers illegal activities like the money laundering.

So since the bitcointalk forum stands on the sacrosanct of good reputation, Theymos as the forum admin had to place every of it Mixer affiliated services with the forum on restrictions to keep laws abiding even though mixer earns the remarks of extending extreme privacy over the Blockchain.
https://bitcointalk.org/index.php?topic=5476162.msg63251188#msg63251188

[Jaycoinz]

It was really interesting to get to know something like this because to be frank, this is actually the first time I came across the concept Coin mixing, and another thing that I found interesting is the aspect of the centralized and decentralized mixing services. One thing about Bitcoin is that everybody who really knows about it wants it and those who owns or have it, are very careful with it.

Ohh how they was a time when mixing was still a thing on the forum. Now I guess many new bitcoin users may have to carry out personal research about that aspect. Mixing is simply done to improve privacy and like we know it, it's main purpose was for the good of bitcoin users who loved to keep a very simple and low profile. But then, as usual very good thing has it's bad side explored as well. Even if all service providers didn't intend evil, the rotten eggs will surly give them all a bad name. That's what happened on bitcoin and why you don't see em on here anymore..just like other have said if anyone wish to use these services they should do good research unlike before where the forum can recommend good reputable services for you to use..

There is still a significant amount of mixing discussion and mixing service that is actively going on at the other community that is similar to this one @altcoinstalk.com. a whole lot information is being shared and some of the mixing service over there are also doing very fine although as you stated they have also being cases of fraudulent activity that is carried on many of them too to give them some kind of dent in reputation too but the basic essence of mixing is for privacy which is a great ordeal in this crypto space.

[Charles-Tim]

Yes and no.  You could rely on the reputable ones but I am not aware of a way they can prove there are no Logs kept.  This is blind Trust instead of a provable characteristic so this should be taken with a big big bucket of salt particularly considering they are Mixers and some of them are clearly three letter agency Honey pots.

Instead.  In my opinion, with enough care a mix of multiple Mixers is much better.  If you jump an UTXO through three different Mixers, if two of them are Honey pots then the last one may not be.  There is always a possibility that even the third will be one, but the chances are much smaller.

I am not a criminal, maybe some people can prefer to go for 3 mixers to block the trace but I will prefer to just have one reputed mixer. I could have named some of them but they are censored on this forum.

Let me ask you a question, among the reputed ones that had been seized before, or among all the mixers that are reputed that we know on this forum and now on the other forum, which one have you heard that helped the government during investigation before?

Although, I understood your point but I can not follow it because I am not a criminal. One reputed mixer is enough for me.

[Ambatman]

Let me ask you a question, among the reputed ones that had been seized before, or among all the mixers that are reputed that we know on this forum and now on the other forum, which one have you heard that helped the government during investigation before?

ChipM..... When seized the government claimed on having access to some datas
Likewise to exch even if it wasn't a mixer
What I'm trying to say is that even with reputation the highest one can do is trust that they don't keep logs.

I understood your point but I can not follow it because I am not a criminal.

This feels like saying only a criminal would use more than one mixer.

[Cookdata]

It was really interesting to get to know something like this because to be frank, this is actually the first time I came across the concept Coin mixing, and another thing that I found interesting is the aspect of the centralized and decentralized mixing services. One thing about Bitcoin is that everybody who really knows about it wants it and those who owns or have it, are very careful with it.

It's because there's a reason why it's not being discussed many times nowadays. If you haven't know about it then let me share some information to you. Actually, there are mixing services that are running before but it is seized by FBI due to a reason like money laundering issues. If you read the OP, coin mixing is a way to mix coins so that it won't be easy to track down the owner and if it is used by people for illegal activities like laundering then won't someone or something will notice the service. The service isn't made for that reason but there are people who use it for illegal activities when it's good for other to have good privacy.

Privacy services are sensitive topic and that's why the forum has to walk away from mixers that were actively making services and adverts on this forum. Last I check, Bitcoin isn't even the best for privacy, there is monero and it's because it's difficult to track than Bitcoin is why many centralized exchanges are compliant and delisted them, the FBI and other law enforcement agencies rarely win cases that involve coins like mixed Bitcoin, xmr and other privacy coins.

Even before administrator took that bold decision to stop them here, there alot of deposits that were been held by exchange from forum users that received money from any wallet associated with these mixers, it might not be the best decision many wanted but it's for the good of the forum which is understandable. Better to have forum a clean place than been criminal push but this doesn't make mixers a bad service, the fact it's use for bad doesn't outweigh the good side of the privacy, it's a right.

[sunsilk]

Some exchange restrict deposits too from mixed coin as a lot of people use it for crime.

I've seen those who have posted about this. They were noticed by the exchange, a centralized one, and asked them where they've got their funds.

So, these exchanges have means of detecting the funds deposited on them. By any means? we don't know and I will not do that.

Because the consequence of it is that they might ban you from using their service and you're funds will be asked to get withdrawn asap.

Don't send it to the exchange after being mixed.

[goldkingcoiner]

I know a lot of us must have been doing research about Bitcoin and bitcoin transactions and one way or the other might have come across Coin mixing.. Or maybe probably have heard about Mixers before in the forum. Let me try to break it down hopefully some veterans here can also help provide more information.

We know that Bitcoin transactions are recorded publicly on the block chain and even if names are not usually attached to them, they can still be analysed and traced depending on the situation.
Coin mixing is supposed to address that. Coin mixing is a privacy technique that is used to make tracing if Bitcoin transactions more difficult.

How does it work:
The idea is simple, multiple users send coin into the mixing system, the the coins are shuffled or combined with coins of other users which makes it difficult to trace the original source.
Then an equivalent amount minus the transaction fee is sent to the new recipient address.
Even though everything is recorded in the Blockchain, the original sender becomes difficult to link to the final transaction output.

There are centralized and Decentralized mixing services.
In centralize service, the user sends coin to a third-party provider which redistributes mixed coin back to them. It is risky because it may be a potential exut scam, your funds may be seized, and some of them are illegal.

In decentralized service, there is coordinated transaction with the use of privacy tool between the users without a third-party holding all coins. It is considered more secured as no central party is holding funds..


Although mixing improves privacy, It does not guarantee anonymity and advcnced blockchain party can detect patterns. Some exchange restrict deposits too from mixed coin as a lot of people use it for crime.
If ever you want to attempt a coin mixing service, make sure you do your appropriate research..

It just goes to show how you can build on top of cryptocurrency. Perhaps not a good example to some but an example nonetheless.

Mixing coins really only serves the purpose of beating a dead horse. And I am confused as to why the government even cares when their own fiat paper money is 100% untraceable.

[MusaMohamed]

How does it work:

For learning about the mixing concept, basically people can learn the concept with this guide which was written years ago in 2019 and many things have changed since that year, but let's emphasized, I introduce that topic for concept reading.

[Guide] Decent mixing methods.

In addition, there are scam tumblers too, so be careful when using any paid tumbler services.
List Bitcoin Mixers Bitcoin Tumblers Websites.

For newest update, follow ⭕ BitList.co - Mixers ' Exchanges ' Services ' Casinos

[Ving8]

It is worth knowing that the decentralized mixers are referred to as coinjoin. Examples are the whirlpool or so which is no more. Wabisabi is another example but not recommended on this forum anymore. I have read about Jointmarket which is also a good example.

The centralized mixers are becoming the most common and many people are making use of them. Just go for reputable ones. It is true that they are centralized but I have used many of them before and they are worth it. They do not keep logs.

Thanks for sharing! Do you have any sources about Jointmarket legitimacy? Couldn't find much info.

[Charles-Tim]

Thanks for sharing! Do you have any sources about Jointmarket legitimacy? Couldn't find much info.

I do not know much about Jointmarket but all I know is that it is available for full node runners I think. If you want better accurate answers, you can create a new topic about it so that more people can see it. People that have experience about it will reply you on the thread.

You can read about this, probably they will be helpful:
https://bitcointalk.org/index.php?topic=919116.0
https://en.bitcoin.it/wiki/JoinMarket
https://www.joinmarket.net/

[Cryptohygenic]

It was really interesting to get to know something like this because to be frank, this is actually the first time I came across the concept Coin mixing, and another thing that I found interesting is the aspect of the centralized and decentralized mixing services. One thing about Bitcoin is that everybody who really knows about it wants it and those who owns or have it, are very careful with it.

Ohh how they was a time when mixing was still a thing on the forum. Now I guess many new bitcoin users may have to carry out personal research about that aspect. Mixing is simply done to improve privacy and like we know it, it's main purpose was for the good of bitcoin users who loved to keep a very simple and low profile. But then, as usual very good thing has it's bad side explored as well. Even if all service providers didn't intend evil, the rotten eggs will surly give them all a bad name. That's what happened on bitcoin and why you don't see em on here anymore..just like other have said if anyone wish to use these services they should do good research unlike before where the forum can recommend good reputable services for you to use..

Hatchy your inputs are well valid on points, although I did not meet those days when the mixer was active in the forum but have come across series of discussions about it and how it has been a running service in here down to it being being restricted due to accusations of users being used it for evil doings.
It is indeed a welcomed crypto technology that enhances users privacies just as bitcoin itself was technologically projected to privatize users profiles but it is quite unfortunate that contaminated minded people tends to user the services as a means of hideout to execute their illegal monetary activities just to hide their identities.

[MagnificentX]

It was really interesting to get to know something like this because to be frank, this is actually the first time I came across the concept Coin mixing, and another thing that I found interesting is the aspect of the centralized and decentralized mixing services. One thing about Bitcoin is that everybody who really knows about it wants it and those who owns or have it, are very careful with it.

Ohh how they was a time when mixing was still a thing on the forum. Now I guess many new bitcoin users may have to carry out personal research about that aspect. Mixing is simply done to improve privacy and like we know it, it's main purpose was for the good of bitcoin users who loved to keep a very simple and low profile. But then, as usual very good thing has it's bad side explored as well. Even if all service providers didn't intend evil, the rotten eggs will surly give them all a bad name. That's what happened on bitcoin and why you don't see em on here anymore..just like other have said if anyone wish to use these services they should do good research unlike before where the forum can recommend good reputable services for you to use..

Well the idea of personal research on coin mixing if one would like to use it is not really a bad idea but I think it is expensive most especially for beginners who still have just but a little knowledge on Bitcoin and it's other related components. Now if the forum was still allowing it, it would have been easier and even safer as good, trustworthy and reliable mixers would have been recommended by members of the forum for a person who is in need but on this other hand, one will have to work and make findings for a good mixer and maybe after the effort and everything, at the end the person might even get scammed.

I don't really support the idea of personal research if you don't know much yet because it is definitely at owners risk and it is not safe but however, there is nothing one can do as the best platform (the forum) to get to know about these things no longer allows it.

[Doan9269]

Privacy is needed and should be achieved by us, except that we wish not to maintain it and lose any other benefits we may serve to enjoy from it, because part of the reasons for the creation of bitcoin was for us to take control of our financial assets and we can be more well to do by being in charge of the coins we have, and not in giving a third party access to take over our finances, we need privacy for real.

[m2017]

I know a lot of us must have been doing research about Bitcoin and bitcoin transactions and one way or the other might have come across Coin mixing.. Or maybe probably have heard about Mixers before in the forum. Let me try to break it down hopefully some veterans here can also help provide more information.

If mixers are banned by regulators, then is training in their use a criminal activity? One day, humanity will come to the point where the right to privacy and confidentiality will be considered crimes.

We know that Bitcoin transactions are recorded publicly on the block chain and even if names are not usually attached to them, they can still be analysed and traced depending on the situation.
Coin mixing is supposed to address that. Coin mixing is a privacy technique that is used to make tracing if Bitcoin transactions more difficult.

I don't mean to be a bore, but why complicate your life with bitcoin and mixers when there are (suddenly) privacy coins like monero or zcash available on the crypto market?

Every job requires the right tool. You're welcome.

How does it work:
The idea is simple, multiple users send coin into the mixing system, the the coins are shuffled or combined with coins of other users which makes it difficult to trace the original source.
Then an equivalent amount minus the transaction fee is sent to the new recipient address.
Even though everything is recorded in the Blockchain, the original sender becomes difficult to link to the final transaction output.

You forgot to mention the service commission (on average 2-6%), as well as the limit on the minimum amount (not less than 0.001BTC) and Withdraw Fee (0.0003-0.0007BTC, in some cases 0).

There are centralized and Decentralized mixing services.
In centralize service, the user sends coin to a third-party provider which redistributes mixed coin back to them. It is risky because it may be a potential exut scam, your funds may be seized, and some of them are illegal.

There are old and proven mixing services. They're unlikely to scam you just to secure a single trade. I think it's more likely that the mixing service will simply be banned by law enforcement at the time of your exchange, and you'll lose your deposit.

Although mixing improves privacy, It does not guarantee anonymity and advcnced blockchain party can detect patterns.

But why do they “hunt” for ordinary users?

Some exchange restrict deposits too from mixed coin as a lot of people use it for crime.

Yes, mixed coins can become "stigmatized" in the eyes of most exchangers (which seems idiotic to me).

If ever you want to attempt a coin mixing service, make sure you do your appropriate research..

There are services that have already collected information about mixers - bitmixlist, for example.