A bitcoin tumbler is a service that obfuscates the transaction history of its users. This allows them to conduct online transactions with greater privacy and security, knowing that their financial activity cannot be easily traced. A bitcoin tumbler also makes it more difficult to link a specific user to a certain amount of cryptocurrency. It does this by separating your coins into a pool and mixing them with the coins of other users. Once the process is complete, you will receive your coins back, but not as the same set that you sent in initially.
Cryptocurrency tumblers are essential for those who value their privacy and want to regain some level of anonymity when using cryptocurrency. However, some users worry that bitcoin tumblers are not safe. The recent closure of Bestmixer demonstrates that not all services provide a high level of safety and security.
In a normal Bitcoin transaction, money is transferred from one wallet to another. It is possible to track this transaction by accessing the blockchain records on a Bitcoin explorer. However, a Bitcoin tumbler can make this transaction untraceable by mixing the coins from multiple users before sending them to their destinations.
A centralized bitcoin mixer will mix your coins with those of other users for a fee. It is easy to use, but it is not completely private because the mixer may eventually have to reveal the links between incoming and outgoing bitcoins. There are also risks associated with using a tumbler, and it is important to take the time to research a company before signing up.