Blockchain technology, underpinning cryptocurrency, was conceived as a decentralized and anonymous cryptocurrency payment method. Indeed, when dealing with fiat currency, an individual’s identity is traceable in 99% of cases. However, not everything turned out so smoothly with cryptocurrencies, since it is still possible to establish the identity of the owner of the tokens. That’s why Crypto mixers services like bitcoin tumblers have emerged.
Unmasking the Myth of Anonymous Cryptocurrency: The Role of Crypto Mixer Analytics
The blockchain consists of interconnected blocks. They contain information about transactions, sender and recipient addresses. This data, in conjunction with crypto mixers analytics, is actively used to identify the participants in the operation.
Each wallet has its own address in the blockchain. Based on it, you can use special tools to find out the IP address of the device from which you logged in and performed the operation. This in turn fully reveals the identity of the sender. After all, the IP address is also unique and is allocated to each physical location.
This process is long, but still possible. There are specialists and companies, including some crypto mixers services, that do this. As a rule, their efforts are aimed at finding hackers or individuals engaged in illegal activities.
Additionally, it is worth noting the unique number of each token in the blockchain. Knowing who it belonged to, it’s easy to find out where it went. Simply enter its number into a specialized service. Since all coin movements are recorded on the blockchain, tracing them takes less than a minute.
VPN is not the solution
VPN allows you to change your IP address to a completely different one. Using a VPN, you can appear thousands of kilometers away from your actual location. However, VPNs also carry risks:
1. Free VPN services do not provide the level of privacy that would protect you. The encryption is highly conditional and therefore easy to crack.
2. The database of VPN services carries significant risks. It is enough to hack them to gain access to the real IP addresses from which users log in.
3. For complete protection, you need to understand the encryption settings. If mistakes are made, then security is reduced to a minimum level.
In addition, it is worth considering the limitations of VPN services, which are available everywhere. Some have low speed, others reduce throughput, and others set limits on operating time.
VPN does not provide 100% protection against loss of anonymity. However, it is well suited for additional measures.
Privacy protection and crypto mixers
Crypto tumbler is a special service that actually breaks the connection with the wallet when conducting a transaction. The situation can easily be compared to a journey. When you take a direct ticket from point “A” to point “B”, you can easily understand where you are going. However, if you take detours, changing the route and passing through other points, then tracking becomes much more difficult.
Cryptocurrency mixers work in a similar way. The point is that the transaction goes through their system, changing absolutely all the parameters by which it would be possible to track the route of the operation from one address to another. As a result, anonymous cryptocurrency confidentiality is ensured.
Here is an example of how crypto mixer Tumbler.io works:
1. The user sends a transaction through the coin mixing service.
2. Selects a number of parameters to change the transaction: sending time, splitting the amount, commission parameters, etc.
3. The BTC mixer swaps tokens with others, and, if needed, divides the amount into multiple parts.
4. By mixing the tokens, it then sends them to the specified user address, according to the configured settings.
Additionally, various security measures are used. For example, Tumbler.io provides three layers that provide complete coin tracking protection.
Can old cryptocurrency coins be found?
When you first apply, you will always receive completely different tokens. This prevents the coins from being returned to the user.
If bitcoin blender is not conscientious, then in the future the risk of receiving your old coins increases greatly. This may violate your privacy and you will end up wasting your money on fees.
However, good services provide a measure of protection against this. The user is given a unique code. When applying again, you simply indicate it when filling out an application for mixing. The system understands what coins you already had and does not send them to the specified address.
Each time you re-apply, a new code is provided, which must also be saved for later use. In this way, a multi-stage protection is built that does not allow any trace of the use of the cryptocurrency mixer.
The notion of Bitcoin being entirely anonymous is a myth that needs acknowledgment. The user is responsible for this independently. To do this, you need to take a number of strict measures and adhere to them constantly. If you compromise your address, then you can forget about confidentiality forever.
If you haven’t taken any precautions in the past but are now considering anonymity, what should you do? Open several new wallets and use Tumbler.io. Conduct transactions of your coins through it and receive new ones. This way you will break the connection with your old wallet and feel safe.