Coin Mixing is a common activity in the crypto space. Quite many crypto enthusiasts use cryptocurrencies because of the anonymity attached to them. They can transfer money without worrying about people knowing the identity of those that sent it.
The issue comes with the transparency of the blockchain. When transactions are done on a blockchain, people can check the transaction data on the network. To do this, they use a blockchain explorer website.
Coin mixing solves this issue as it improves the anonymity that is linked to transactions.
This process works with coin mixers, software firms that act as an intermediary between people who want to send and receive tokens.
Trader A sends the token to the coin mixer to ensure that the transactions are anonymized instead of directly sending it to Trader B. The coin mixer then combines their tokens with others that were sent to them to make the transactions untraceable. They mix the tokens and send them to the recipients, thereby reducing the paper trace.
Usually, multiple people send their tokens to the mixing services. The crypto mixing services then mix the multiple cryptocurrencies from Bitcoin to Ethereum and other cryptocurrencies, then redistribute them to the recipients.
To use a crypto mixer, the user should note that they charge commissions for their services. It is also necessary to check the credibility of the coin mixing services to ensure that it is credible. When sending the token, remember that these software companies charge fees. They deduct their fees from the coins sent to them to mix and add more anonymity to them. Their fees may be percentage-based.
Before opting for coin mixing services, do your due diligence to ensure that you are not breaking any laws.
