Many cryptocurrency users have the idea in their minds that using crypto is entirely anonymous and safe. However, this is only partially true. Using many coins can make you quite vulnerable, especially regarding, for example, Bitcoin or Ethereum. You can easily steal your savings if robbers find out you have a lot of currency in your account. You can improve privacy with crypto-mixers. Incidentally, https://yomix.io is an example of a perfect one because, in addition to almost instantaneous transactions, it also imposes minimal fees, which, among other things, can also be regulated.
But why do cryptocurrencies have vulnerabilities at all?
The fact is that blockchains are open and publicly available. Anyone can get into them and examine the records of all transactions made since the cryptocurrency’s launch. For many people, this transparency is more of an advantage than a problem, which is why blockchain developers are not looking to fix it in any way. However, for those who value anonymity, the public nature of blockchain presents a huge disadvantage.
The development of cryptocurrency mixers is a symmetrical response to this publicity. But there have been other options for how to maintain anonymity. For example, people have invented fully private blockchains, such as Monero and Zcash. They contain special tools aimed at increasing privacy. But the problem is that not everyone will want to use these cryptocurrencies – they do not have the same liquidity as Bitcoin, Ethereum, etc.
How do mixers work?
You need to understand how they work to be bold and use such innovative services. The mixer breaks up the incoming coins into small batches and mixes them with the currencies of other users, which they also send during their transactions. After mixing, the chosen wallet receives the amount of cryptocurrency sent, and this seriously complicates the tracking and breaks the connection between coins and the person who sent them. But it is worth realizing that the administration of mixers charges a fee for providing the favor. It varies from service to service, but it can be adjusted to suit you at any suitable place – the higher, the stronger the security.
Variety of mixers
As for what mixers are, there are two main types: centralized and decentralized. The first is services that accept cryptocurrencies and send the recipient other coins for a commission. In this case, a person manages the processes, so there is a risk of getting scammed. Decentralized mixers use protocols like CoinJoin, which allow a large group of users to pool coins and then redistribute them so that everyone gets back the amount deposited.
But why would I even want to use a mixer?
In the early days of the cryptocurrency industry, many coins were considered anonymous financial transaction tools. However, most have lost their confidentiality due to their increasing spread. Thus, more and more countries oblige cryptocurrency exchanges to introduce mandatory KYC checks for all users, which implies providing identifying documents. Passing the verification increases the safety of assets and serves as additional protection in problematic situations. However, not all users are willing to sacrifice their anonymity, and this is where cryptocurrency mixers come to the rescue.