Coin mixers or coin mixing is a service in the cryptocurrency industry that is used to enhance the privacy and anonymity of the digital currency transactions. Coin mixers are offered by third parties and another popular industry term is also coin tumbling. With more and more people looking to preserve their anonymity, especially regarding cryptocurrencies, coin mixing is becoming more and more prevalent.

Cryptocurrency owners are looking more and more into methods that will seal their identities and protect them against uncovering. The possibility of uncovering such identities is all made possible due to blockchain analysis, linking IP addresses to cryptocurrency wallets, and wallet address clustering, amongst others.

How do Coin Mixers Work?

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Coin mixers, or coin tumblers, work on a simple but highly complicated method of obscuring the history of the tokens once a holder receives them. It is a service that does a lot to token holders because it helps preserve the anonymity of cryptocurrency holders. As soon as the coin tumbler receives the coins, it sends them to multiple addresses in smaller amounts, effectively mixing the coins with other transactions making them impossible to discover.

Coin mixing completely eradicates the history of a coin transaction because the addresses used in the process are owned by the service which mixes the coins. To make the process even more successful, the service will oftentimes mix the coins multiple times, which completely eradicates the history of one coin transaction. Coin mixers use a variety of other strategies such as adding a delay in transactions, to make the entire process even safer.

As soon as the tumbling process is finished, the service will then send the clean coins to the predetermined wallet address. Services will usually charge between one to three percent of the total amount that needs to be mixed or tumbled.

There are not many good coin mixers, but one of them is SmartMixer. If you want to learn more about it, how it works, then you can do so if you click here.

What are the Pros and Cons of Coin Mixers?

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Con mixers are popular and advised for those who have a huge portfolio consisting of dozens if not hundreds of different tokens and currencies. The reason why giant holders would use such services is to secure their identity from the rest of the world. Cryptocurrency holders absolutely wouldn’t want their large holdings to become public knowledge, and coin mixers are one way to do just that.

A blockchain is a safe place for transactions, but hackers can still get their hands on bits of information when it comes to large transactions. This is a security risk that hackers exploit to the fullest, and coin mixers do a damn good job in avoiding such situations.

Cryptocurrencies are true to the cause of making everything anonymous while on the blockchain. People who use cryptocurrency appreciate their core values, so that makes coin mixers extremely popular.

However, the biggest risk associated with coin mixers is the possibility of theft. Crypto owners need to do the one thing that they are not supposed to do, in order to use coin mixers, which is to send their digital currencies over to the service in question. This is very risky as the service could turn out to be a hoax and scam you of your precious tokens.

Always do your research before you use such service, as you never know which is legit and which a scam is.