Transactions of many cryptocurrencies are recorded in a blockchain, so this system is quite transparent and public. But this is also a disadvantage for cryptocurrency holders who want to remain anonymous. This is what mixers were developed for, which help maintain privacy and allow the management of funds without revealing confidential data.
How mixer works
A mixer works relatively trivial: when someone makes a transaction, it is broken down into dozens or even hundreds of smaller transactions and mixed in with other users’ transactions. This principle not only allows the very first monetary transaction to be completely hidden but also confuses all subsequent transactions as much as possible.
In most cases, mixers are used to conceal the amount sent; for these services, mixers charge a commission of 1-3% of the total amount, which is pretty good. By the way, at https://yomix.io, you can mix different cryptocurrencies with the lowest commissions possible. You also won’t need to go through any verification procedure here.
Types of mixers
All mixers fall into two categories:
- Centralized – managed by one specific person who charges an average of 1 to 3% of the total transaction amount. These mixers are usually high quality and have an excellent visual design. The disadvantage is that the cryptocurrency will have to be entrusted to the administration of the service.
- Decentralized – managed through smart contracts without the participation of intermediaries. They guarantee 100% privacy, do not record data, and their creators cannot steal coins.
How to use cryptocurrency mixers?
To understand how a mixer works, you need to use it. Yo!Mix, a new and good blender will do well as a test case. The order of its work is as follows:
- Create an order – select commission, delay, and other settings.
- Send the desired amount of coins – at this point, check the order details and send the currency to be blended.
- Wait for the process to complete – this is usually instantaneous, but in some cases, you may have to wait a minute or two.
- Get your new coins – as soon as the waiting time is over, your cryptocurrency wallet will immediately show the coins you deposited before (minus commission).
To ensure the similarity of the principle of mixers, let’s also look at another famous blender – Coinomize. The process of mixing coins on it looks like this:
- First of all, you need to enter a unique code – this ensures that you will never get coins that were involved in your previous transactions.
- Next, you will need to enter an address (or multiple addresses).
- The next step is to adjust the commission. The higher it is, the higher the quality of the mixing will be.
- Next, you’ll need to set up a time delay on the payout for extra privacy. This means breaks between transactions, from no delay to several days.
Once all these steps are done, all that remains is to confirm your intention to make a transaction. To do this, you need to unravel the captcha and transfer the required amount to the appeared address, and then wait.