Technology Glossary Term

A crypto mixer, also known as a cryptocurrency mixer or a bitcoin mixer, is a service that aims to enhance the privacy and anonymity of cryptocurrency transactions. The standard steps in operating a crypto mixer include:

  1. Pooling Funds: Users send their cryptocurrency to the mixer’s pool along with other users’ funds.
  2. Mixing Process: The mixer then shuffles and mixes these funds with those of other users, making it difficult to trace the original source of each transaction.
  3. Output: Once the mixing process is complete, users receive their cryptocurrency from the mixer’s pool, typically in multiple transactions or different wallets, further obfuscating the trail.

The primary goal of using a crypto mixer is to break the link between the sender and receiver addresses, enhancing privacy and making it more challenging for third parties to track or analyze cryptocurrency transactions. While crypto mixers can provide an additional layer of privacy, they may also be associated with money laundering or illicit activities, leading to regulatory scrutiny in some jurisdictions.