Is cryptocurrency anonymous? If yes, then why don’t states prohibit it by law? The notion of privacy is not so simple here, and why you should try a mixer https://yomix.io we’ll talk about further.
The main thing about cryptocurrency: what is it?
The main feature of cryptocurrency is the ability to store money like cash in the real world. If you keep the coins correctly, no outsider can use them – just like if you have a paper bill in your wallet. A second property also makes tokens and coins attractive: it seems to many that this whole system is completely anonymous and that no one will ever be able to find out about the exact amount of money stored in any particular wallet. However, this is a severe misconception. There are several ways in which it is possible to get information about a cryptocurrency wallet. For example, its balance.
This could happen if you were paying at some large store with your coins and there was a massive data leak after a while. But that’s not the only reason your data could fall into the wrong hands. For example, transactions in the blockchain of most cryptocurrencies are displayed to all participants in the network – the procedure’s details can be viewed by any user, as they are freely accessible. It is easy to get the addresses and balances of senders and recipients.
The cause of data leakage can also be the exchangers since many require proof of identity during registration, i.e., providing passport data, photos, etc. That’s why cryptocurrency mixers were invented – with their help, you can give yourself the highest level of anonymity. No one can find out how many coins you have on your balance. https://yomix.io is an example of a perfect mixer, and it implements blending almost instantly and has meager commissions.
Of course, other ways exist for those who want to stay anonymous. For example, you can work with confidential cryptocurrencies such as Dash, Monero, and ZCAsh because they have built-in mechanisms to anonymize transactions. With them, it is possible to conduct secret operations without the help of any additional tools. But the problem is that such coins are rare. They are used by fewer people than, for example, Ethereum and Bitcoin, but these two coins are vulnerable.
It cannot be said that a complete transition to confidential cryptocurrencies solves the security issue, which is why it is worth resorting to tools that increase anonymity – mixers. They are equally relevant for owners of small amounts of cryptocurrency and serious investors. Anonymity is a guarantee of comfort, security, and new opportunities. Keep this in mind every time you interact with cryptocurrency assets.