A bitcoin tumbler is a service that mixes your cryptocurrency transaction with others thereby eliminating the ability for someone to trace the origin of your coins. This is important because Bitcoin is a public record and if you use your cryptocurrency in an illegal or unethical manner then it can be traced back to you. This is why tumblers are so popular – mob bosses for example often want their employees paid in Bitcoin but don’t want to risk getting caught by the authorities and hence use a tumbler to make their transactions anonymous.
This article will go over how a tumbler works and give you some tips on what to look out for when selecting a bitcoin tumbler. In addition, we will also touch on the legality of using a bitcoin tumbler since there are some services that have been used by criminals to launder money.
What is a Tumbler?
A tumbler, or bitcoin mixer is a service that makes it difficult for someone to trace the source of your Bitcoins. This is done by mixing them with a large pool of other Bitcoins. Generally speaking, a tumbler will cost between 0.29% and 3.00% of the amount mixed.
The need for tumblers is becoming more and more prevalent as regulators around the world impose strict rules on the transparency of Bitcoin. Although tumbling Bitcoin to eliminate its past and expand protection is not illegal, there are some laws that prohibit it. Additionally, some services may be viewed as mechanisms for tax avoidance for cryptocurrencies.