A bitcoin blender or cryptocurrency tumbler is a service that allows you to mix your coins with those of other users. In the end, you get a new set of coins that can’t be traced back to your original ones. This will add an extra layer of privacy to your transactions.
The way mixers work is quite simple. A large number of people send their bitcoin to the same destination address. Then those bitcoins are sent to several other bitcoin addresses and mixed up. The result is that it’s very hard for someone to figure out where a particular set of coins came from. This is why bitcoin mixers are often used to launder money.
But although they can be used for illegal activities, bitcoin mixers are largely legitimate tools for individuals who want to protect their privacy. The fact that your bitcoin transactions are publicly recorded on the blockchain can reveal a lot about your behavior, from buying pizza to paying for a cremation. This explains why mixers are so popular among bitcoin users.
Some mixers are decentralized while others are centralized services that charge a fee for their mixing service. Using a decentralized bitcoin mixer is more secure but can also be more expensive. Typically, centralized mixers such as Blender or Wasabi Wallet charge between 0.6% and 2.5% of the amount they mix for their services. On the other hand, Yo!Mix offers a low minimum amount and has a no-logs policy.