All of a sudden, Bitcoins are everywhere. Many people are going crazy over it because of its increased value. You have to know that it first appeared in 2009. It is considered as one of the first cryptocurrencies in the digital world. It started with 0 value but it eventually rose to $8,000. The thing is, it is continually increasing.
With this, there is no doubt that more and more people trade Bitcoins every day. If you want to get the most out of a Bitcoin, it is crucial that you understand all the aspects in cryptocurrency. The first thing that you need to be familiar about is the blockchain.
The importance of blockchain
Blockchain acts like a public ledger that logs all the transaction. If you own Bitcoins, you have a private key to its address on the blockchain. The key is important because with it you can withdraw the currency. However, if you lose the key, there is no way of getting your money back. Apart from the private key, each account is provided with a public key. This key allows other people to send cryptocurrency to your account.
The challenge of the blockchain
Since blockchain is public, transactions are visible to everyone. This will allow other people to look into your everyday transaction history. Even though you are completely anonymous, there are organisations that can deduce the owner of the Bitcoin address based on the external information available on the blockchain. Basically, the authorities utilise the blockchain as a lookout for illegal cryptocurrency transactions.
What you can do
If you want to remain anonymous, you can consider sending all your money to a new address and forget about the previous one. However, this is not ideal. Authorities can still track you. The best solution is to consider a third-party service that can help you conceal your identity.
You have to consider bitcoin mixer. Bitcoin mixer is employed to hide and disguise where Bitcoins came from. A mixer will cut the links between your old and new addresses. It seeks to randomise transaction amounts. However, you need to be patient because it can take some time to process the transactions.
How does Bitcoin mixer work?
There are many Bitcoin mixers available these days like Coinmixer, Grams Helix, BestMixer.io, BTC Blender, Blender.io, PrivCoin.io, Bitcoin Blender and many more. When choosing, you have to consider the fee, speed, and the anonymity. After choosing a service, you only need to send your Bitcoins to them. They will only take a small mixing fee. After a random delay, they will send you an equivalent amount of Bitcoins from other people to your new address – that is how your identity remains a secret.