What is a Bitcoin Tumbler?
A tumbler is a service that increases the anonymity of your Bitcoin transactions by obfuscating the direct link between your sender and recipient’s digital wallets. This is a vital tool for anyone who values their financial privacy and security online, whether they’re partaking in illegal activity or just want to cover their tracks.
While decentralised cryptocurrency like Bitcoin is largely anonymous, your on-chain transaction history is not. Bitcoin’s public blockchain is open to anyone and, thanks to the right analysis tools, your on-chain activity can be traced back to your real-world identity. Tumblers, then, obfuscate your transaction history by mixing your coins with other users’ coins before sending them to their recipients.
There are both centralized and non-custodial tumbler services on the market, and they all work differently. Centralised tumblers — such as CoinMixer, BitSquare and Bitcoin Mixer — collect your BTC from multiple different users, then combine and shuffle the coins so it’s impossible to trace individual transactions. Then, they send the mixed coins on to your recipient’s wallet.
Non-custodial tumblers — such as Samourai Wallet’s Whirlpool feature and Wasabi Wallet’s built-in CoinJoin functionality — work in a similar way, but remove the need to trust any one entity to handle your money. They also tend to be cheaper than centralized tumblers, although they’re not without their drawbacks. Bitcoin Tumbler