Coin Mixer

Coin Mixer tools are used to ensure that the buying party and the selling party remain anonymous during the transaction. This process increases security by keeping the identities of the investors confidential.

What is Coin Mixer?

All transactions in the cryptocurrency market are stored in a distributed manner in a public blockchain ledger, and all transactions can be tracked. Users who want to enter the address they want to any blockchain explorer can access all the transactions that took place at that address. This is already one of the attractive aspects of blockchain technology. It is an inevitable result of blockchain technology that transactions are stored and presented to everyone in such a transparent way. However, some investors may feel uncomfortable with this transparency. In the crypto money community, coin mixers are used for investors who are uncomfortable with this situation.

How Does Coin Mixer Work?

Coin mixers are software companies that act as intermediaries in cryptocurrency trading. Investors who do not want their transactions to be traceable carry out their transactions through these companies.

Investors apply to these intermediary companies when they want their transactions to be confidential, and these intermediary companies combine this incoming transaction request with many other transactions, making the certain transaction impossible to distinguish, track, or visible.

But how? Basically, they send the number of coins processed to private pools before making the relevant transfer. In this way, it becomes more difficult to reach the original sender’s wallet ID.

They also perform coin mixer transactions when there is a sufficient and high amount of transaction demand from the cryptocurrency to be invested. In this way, investors can perform their transactions while protecting their privacy.

What Are the Disadvantages of Coin Mixer?

Low-cost transaction processing, which is one of the most important features of cryptocurrencies using blockchain technology, is not valid for coin mixer users. Because these companies, which act as coin mixers, demand percentage transactions from the transactions made, transaction costs increase for investors. This situation reveals the necessity of taking into account the commission to be taken from transactions made with cryptocurrencies. Because the fees received from the transactions made in the coin mixer are a certain percentage of the transactions performed, the commissions received increase as the transaction amount grows.

Due to the growing interest in cryptocurrencies, some large investors want to protect their privacy. Coin mixers provide a very important service for investors who make large transactions and want to remain anonymous.