How do crypto mixers work?

Crypto mixers are designed to enhance privacy and anonymity by mixing users' coins with others. Here’s how they do this: The user sends their cryptocurrency to the mixer's address: The first step is to send your cryptocurrency to the mixer's address. This could be Bitcoin, Ethereum, or any other supported cryptocurrency.

What are the different types of crypto mixers?

There are two main types of crypto mixers – centralized and decentralized mixers – both work differently from each other. centralized mixers: These mixers are run by a single entity and involve a central server to pool funds from different crypto users.

Are cryptocurrency mixers illegal?

Crypto mixers are not inherently illegal, though they are used for illegal activity. According to a July report from Chainalysis, cryptocurrency mixers are a “go-to tool for cybercriminals dealing in cryptocurrency” and illicit addresses account for nearly a quarter of funds sent to mixers since January.

What is a centralized Bitcoin mixer?

Centralized bitcoin mixers, also called custodial mixers, are third-party entities that accept bitcoin payments and send back different bitcoins. An example of a centralized bitcoin mixer is Blender.io . While centralized Bitcoin mixers offer a more straightforward solution to mixing and charge lower rates, they suffer from two significant flaws: