People can trace your Bitcoin transactions if they know your wallet address. A person could review the blockchain and find the trail of wallet transactions you complete, helping someone understand how you’re spending money with Bitcoin.
In short, Bitcoin isn’t always as anonymous as you wish. But you can anonymize all your transactions with Bitcoin when you use a Bitcoin laundry service. An outside Bitcoin laundry service will assist you by mixing the details in your transactions to create an anonymous report.
STEPS FOR HOW IT WORKS
The process for how to use a Bitcoin laundry to anonymize transactions entails a few steps:
* State the Bitcoin address where the currency you have is located. Some of the best bitcoin laundry does this.
* Create a new address through an anonymous communication browser. The Tor browser is a popular choice.
* List the new Bitcoin address you want your laundered currency to enter. You can use multiple addresses if you prefer, so long as you create them through the Tor browser.
* Specify when you wish to receive your laundered or “clean” currency. You can request more time for laundering to enhance the anonymity of your transaction.
* The laundry service will take your currency from the original address and move it between many existing addresses. It can move the currency to several addresses, possibly hundreds. The transactions are scheduled at random. The work allows the coins to mix with many other coins in the same blockchain, keeping the data harder to trace.
* After the time period you specify, the laundry service will send the new Bitcoin to you. The Bitcoin will come from an unintelligible trail that hides your identity.
The effort provides a mixed series of coins that will go to your new address. The trail between the original deposit address and the new ones you produce will become too complicated to where anyone can follow the content. The design ensures no one can identify your Bitcoin transactions.
POINTS TO NOTE
A Bitcoin laundry can be useful, but you’ll have to watch for how your laundry service works (as seen on coinmama). There are many aspects to note surrounding the work:
* You will pay a fee for the laundering service. The fee can be up to five percent of the value of the Bitcoin you’re laundering.
* You can use as many target addresses as you wish, plus you can request more time for laundering before receiving your funds. But you would spend more fees if you use more time or addresses.
* A laundry service should ensure your order information isn’t stored on a server. A service should delete any logs surrounding your transaction.
* Laundering is essentially even if you’re using a VPN. While you can hide your IP address and other details through a VPN connection, your Bitcoins could still be traced if you don’t launder them first.
* You’ll need to confirm the transaction at some point to keep things moving forward. It won’t take long to complete this part of the process.
The Bitcoin laundry service you hire will ensure your coins are managed well and that you can receive new ones that are completely anonymous. The effort ensures no one will track your data.