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Crypto Terms:  Letter C

What is Coin Mixer?

Meaning:
Coin Mixer - Users can utilize a coin mixer to combine transfers across various cryptocurrency addresses.
medium
3 minutes

Let's find out Coin Mixer meaning, definition in crypto, what is Coin Mixer, and all other detailed facts.

A coin mixer provides users the ability to combine transfers. As a result, they become unidentifiable and cannot be linked back to the original user.

As the majority of users are searching for ways to keep their anonymity, coin mixers are now an important tool in the cryptocurrency world. Organizations and businesses also want to be anonymous when they transfer a bigger amount of money.

In regards to that, there is a huge popularity of coin mixers among cryptocurrency whales. They do, indeed, intend on masking the amount of cryptocurrency they hold. That is because large amounts of cryptocurrency do result in an unwanted spotlight on the holder’s address, hence, becomes a bit risky.

Transactions involving cryptocurrencies are all recorded on a decentralized, public blockchain ledger. This means that these records are accessible to everybody. To be exact, if you were to put a public address in a block explorer, you would access the data regarding the trades made to and from the specific address.

The key benefit of blockchain technology is its transparency. Nonetheless, coin mixers were created for individuals who can gain from complete secrecy.

As an example, coin mixers could be seen as the software companies that are the middleman between parties searching to send and receive cryptocurrencies. 

One person may be looking for a way to transmit one Ethereum (ETH) to another person. He might use the help of a coin mixing firm. They will then send the appropriate amount of Ethereum to the coin mixer. 

This transaction will be mixed with many others by the coin mixer, collecting a larger quantity of the same cryptocurrency and then dispersing it to the designated destination address.

Clients must pay a charge to use the services of a coin mixer. It's critical to remember when transferring coins to a coin mixer. The costs will be deducted before the funds are dispersed to their designated addresses.

In that regard, the price is dependent on a percentage. Therefore, the more cryptocurrency is placed into a coin mixer, the more the customer will be charged.

Nonetheless, coin mixers remain a contentious subject in the cryptocurrency sector. According to some, it serves the objective of maintaining anonymity, which is a key idea in cryptocurrencies. Others believe that coin mixers encourage illegal activities, claiming that the software is easy to control, scam consumers, and steal their funds.

While both sides have legitimate concerns, coin mixers remain a service provided to the crypto community for the time being.

mineable cryptocurrencies like <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//buy-bitcoin-btc/">Bitcoin (BTC)<\/strong><\/a>. Mineable cryptocurrencies require users to contribute computational resources and create new data blocks to <strong>expand the blockchain<\/strong>. Miners collect transaction data that builds up in a block. The blocks are then secured using <a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-is-cryptographic-hash-function/">cryptographic hashes<\/strong><\/a> and added to the end of the chain.<\/p>\n<p>The mining process requires high electricity resources and specialized equipment. Users who engage in the mining process receive rewards for every new block. These rewards are the newly mined coins, referred to as coinbase, and the transaction is known as the <strong>generation transaction<\/strong>.<\/p>\n<p>Some cryptocurrencies like Bitcoin are based on the <a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-is-unspent-transaction-output-utxo/">unspent transaction outputs (UTXO)<\/strong><\/a> model. Each transaction is made up of inputs and outputs. The coins that the users have in their <a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-is-address/">wallet addresses<\/strong><\/a> are <strong>collections of unspent outputs<\/strong> from prior transactions. Therefore, the coinbase is a new input of the generation transaction. The coinbase output is sent to the miner&rsquo;s wallet.<\/p>\n<p>When Bitcoin was launched, the coinbase was worth 50 BTC. Bitcoin uses the mechanic known as <a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-is-halving/">halving, as the reward is getting consistently smaller with every 210,000 blocks added to the blockchain, or roughly every four years. As of February 2022, the Bitcoin coinbase is worth 6.25 BTC and is expected to be halved again by 2024.<\/p>\n<p>Coinbase is also the name of one of the biggest <a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-is-exchange/">cryptocurrency exchange<\/strong><\/a> platforms in the world.<\/p>","definition":"the number of coins awarded to miners for mining new cryptocurrency blockchain blocks.","status":"published","meta_title":"What is Coinbase (Mining)? Definition & Meaning | Crypto Wiki","meta_description":"Coinbase (Mining) meaning: Coinbase (Mining) - the number of coins awarded to miners for mining new cryptocurrency blockchain blocks.","meta_keywords":null}" :prev-section="{"id":173,"wikipedia_url":"https:\/\/en.wikipedia.org\/wiki\/Cryptocurrency","level":"easy","author_id":1,"created_at":"2023-06-19T06:58:59.000000Z","updated_at":"2023-12-27T15:25:14.000000Z","slug":"what-is-coin","title":"What is Coin?","section":"C","keyword":"Coin","content":"<p><strong>In January of 2009, the first-ever coin (<a href=https://www.bitdegree.org/"//crypto//buy-bitcoin-btc/">Bitcoin) on the cryptocurrency market was released.<\/strong> BTC utilizes a decentralized and geographically distributed ledger, referred to as the blockchain, to monitor all operations on its system. Also, it assures that no new coins may be generated by means other than the computationally costly operation of mining.<\/p>\n<p><strong>Coins are cryptocurrencies that function according to their own blockchains and are unconnected to other cryptocurrencies.<\/strong> In other words, they are virtual currencies protected by encryption, making counterfeiting or <a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-is-double-spending/">double-spending unfeasible.<\/p>\n<p>After Bitcoin was released, new coins started to appear. A few of them were based on the already existing blockchain which makes them a<strong> fork<\/strong>, others on their own blockchain.<\/p>\n<p>The most well-known forks are <strong>Bitcoin Cash (BCH) and Bitcoin Gold (BTG)<\/strong>. They are classified as autonomous cryptocurrencies since their blockchains were able to maintain functioning in a totally independent way, following the fork.<\/p>\n<p><strong>EOS and <a href=https://www.bitdegree.org/"//crypto//buy-ethereum-eth/">Ethereum, on the other hand, give users the opportunity to develop tokens. Tokens are cryptocurrencies whose functioning depends on <strong>the parent blockchain<\/strong>.<\/p>\n<p>The main benefits of cryptocurrencies are less expensive and speedier money transfers, as well as the <strong>decentralized structure<\/strong> that keeps functioning even if there is an event of failure.<\/p>\n<p>However, some argue that the major drawbacks of cryptocurrencies are the large amount of energy consumed for <a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-is-mining/">mining, criminal activity, and price fluctuations.<\/p>","definition":"Coins are cryptocurrencies that function according to their own blockchains and are unconnected to other cryptocurrencies.","status":"published","meta_title":"What is Coin? Definition & Meaning | Crypto Wiki","meta_description":"Coin meaning: Coin - Coins are cryptocurrencies that function according to their own blockchains and are unconnected to other cryptocurrencies.","meta_keywords":null}" :model="{"id":174,"wikipedia_url":"https:\/\/en.wikipedia.org\/wiki\/Cryptocurrency_tumbler","level":"medium","author_id":1,"created_at":"2023-06-19T06:58:59.000000Z","updated_at":"2023-12-27T15:26:40.000000Z","slug":"what-is-coin-mixer","title":"What is Coin Mixer?","section":"C","keyword":"Coin Mixer","content":"<p><strong>A coin mixer provides users the ability to combine transfers.<\/strong> As a result, they become unidentifiable and cannot be linked back to the original user.<\/p>\n<p>As the majority of users are searching for ways to keep their anonymity, coin mixers are now an important tool in the cryptocurrency world. Organizations and businesses also want to be anonymous when they transfer a bigger amount of money.<\/p>\n<p>In regards to that, there is a huge popularity of coin mixers among cryptocurrency <a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-is-whale/">whales. They do, indeed, intend on masking the amount of cryptocurrency they hold. That is because large amounts of cryptocurrency do result in an unwanted spotlight on the holder&rsquo;s address, hence, becomes a bit risky.<\/p>\n<p>Transactions involving cryptocurrencies are all recorded on a decentralized, public blockchain ledger. This means that these records are accessible to everybody. To be exact, if you were to put a public address in a<a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-is-block-explorer/"> block explorer<\/strong><\/strong><\/a>, you would access the data regarding the trades made to and from the specific address.<\/p>\n<p>The key benefit of blockchain technology is its transparency. Nonetheless, coin mixers were created for individuals who can gain from complete secrecy.<\/p>\n<p>As an example, coin mixers could be seen as the software companies that are the middleman between parties searching to send and receive cryptocurrencies.&nbsp;<\/p>\n<p>One person may be looking for a way to transmit one <a href=https://www.bitdegree.org/"//crypto//buy-ethereum-eth/">Ethereum (ETH) to another person. He might use the help of a coin mixing firm. They will then send the appropriate amount of Ethereum to the coin mixer.&nbsp;<\/p>\n<p>This transaction will be mixed with many others by the coin mixer, collecting a larger quantity of the same cryptocurrency and then dispersing it to the designated destination address.<\/p>\n<p>Clients must pay a charge to use the services of a coin mixer. It's critical to remember when transferring coins to a coin mixer. The costs will be deducted before the funds are dispersed to their designated addresses.<\/p>\n<p>In that regard, the price is dependent on a percentage. Therefore, the more cryptocurrency is placed into a coin mixer, the more the customer will be charged.<\/p>\n<p>Nonetheless, coin mixers remain a contentious subject in the cryptocurrency sector. According to some, it serves the objective of maintaining anonymity, which is a key idea in cryptocurrencies. Others believe that coin mixers <strong>encourage illegal activities, claiming that the software is easy to control, scam consumers, and steal their funds<\/strong>.<\/p>\n<p>While both sides have legitimate concerns, coin mixers remain a service provided to the crypto community for the time being.<\/p>","definition":"Users can utilize a coin mixer to combine transfers across various cryptocurrency addresses.","status":"published","meta_title":"What is Coin Mixer? Definition & Meaning | Crypto Wiki","meta_description":"Coin Mixer meaning: Coin Mixer - Users can utilize a coin mixer to combine transfers across various cryptocurrency addresses.","meta_keywords":null,"author":{"id":1,"user_id":1,"created_at":"2023-05-03T14:30:55.000000Z","updated_at":"2023-05-11T07:18:20.000000Z","title":"Editor-In-Chief","slug":"aaron-s-editor-in-chief","description":"<p>Having completed a Master&rsquo;s degree on Economics, Politics &amp; Culture for the East Asia region, Aaron has written scientific papers with a comparative analysis of the differences between US&rsquo; Western and Japan&rsquo;s Collective forms of capitalism, 1945-2020.<\/p>\n<p>With close to a decade of experience in the FinTech industry, Aaron understands all of the biggest issues and struggles that crypto enthusiasts face. He&rsquo;s a passionate analyst who is concerned with data-driven and fact-based content, as well as that which speaks to both Web3 natives and industry newcomers.<\/p>\n<p>Aaron is the go-to person for everything and anything related to digital currencies. With a huge passion for blockchain &amp; Web3 education, Aaron strives to transform the space as we know it, and make it more approachable to complete beginners.<\/p>\n<p>Aaron has been quoted by multiple established outlets, and is a published author himself. Even during his free time, he enjoys researching the market trends, and looking for the next supernova.<\/p>","user":{"id":1,"first_name":"Aaron","last_name":"S.","email":"aaron@bitdegree.org","email_sanitized":"aaron@bitdegree.org","email_verified_at":"2023-12-01T09:40:20.000000Z","must_verify_email":false,"is_registered_with_wallet":false,"status":"active","country":"LT","last_connected_ip":"88.119.132.125","image_id":2641,"referral_token":"05TMu2NysXOCn525","referred_by":null,"created_at":"2023-05-03T14:30:55.000000Z","updated_at":"2024-01-09T15:22:21.000000Z","full_name":"Aaron S."}}}" :chapter-list="[{"id":1,"title":"Blockchain","slug":"blockchain","updated":null,"chapter":"crypto\/assets\/crypto-book\/chapters\/learn-blockchain.jpg","chapter_simple":"crypto\/assets\/crypto-book\/chapters-simple\/blockchain-101.jpg","rating":100,"sections":[{"chapter_id":1,"order":1,"slug":"what-is-blockchain","title":"What is the Blockchain?","status":"published","modified_content":null},{"chapter_id":1,"order":2,"slug":"decentralized-blockchain","title":"Anonymous & Decentralized Blockchains: The Cornerstone of Crypto","status":"published","modified_content":null},{"chapter_id":1,"order":3,"slug":"blockchain-transaction","title":"What is a Blockchain Transaction in Crypto?","status":"published","modified_content":null},{"chapter_id":1,"order":4,"slug":"crypto-fees","title":"The Different Types of Crypto Fees Explained","status":"published","modified_content":null},{"chapter_id":1,"order":5,"slug":"what-is-bridging-in-crypto","title":"The Key Notion Behind the Concept of Bridging in Crypto","status":"published","modified_content":null},{"chapter_id":1,"order":6,"slug":"types-of-blockchains","title":"Different Types of Blockchains: What to Look Out For?","status":"published","modified_content":null}]},{"id":2,"title":"Cryptocurrencies","slug":"cryptocurrencies","updated":null,"chapter":"crypto\/assets\/crypto-book\/chapters\/learn-cryptocurrencies.jpg","chapter_simple":"crypto\/assets\/crypto-book\/chapters-simple\/cryptocurrencies-101.jpg","rating":100,"sections":[{"chapter_id":2,"order":1,"slug":"what-is-a-cryptocurrency","title":"What is a Cryptocurrency?","status":"published","modified_content":null},{"chapter_id":2,"order":2,"slug":"how-does-cryptocurrency-work","title":"How Does Cryptocurrency Work?","status":"published","modified_content":null},{"chapter_id":2,"order":3,"slug":"is-cryptocurrency-a-good-investment","title":"Is Cryptocurrency a Good Investment? 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Wallet?","status":"published","modified_content":null},{"chapter_id":4,"order":2,"slug":"hot-wallet-vs-cold-wallet","title":"Hot Wallet VS Cold Wallet: Which One to Pick?","status":"published","modified_content":null},{"chapter_id":4,"order":3,"slug":"non-custodial-wallet","title":"What are Non-Custodial Crypto Wallets?","status":"published","modified_content":null},{"chapter_id":4,"order":4,"slug":"what-is-metamask","title":"Metamask: The Leading Non-Custodial Wallet","status":"published","modified_content":null},{"chapter_id":4,"order":37,"slug":"how-safe-is-cryptocurrency","title":"The Key Crypto Wallet Safety Practices: How Safe Can Crypto Be?","status":"published","modified_content":null}]},{"id":5,"title":"NFTs","slug":"nfts","updated":null,"chapter":"crypto\/assets\/crypto-book\/chapters\/learn-nfts.jpg","chapter_simple":"crypto\/assets\/crypto-book\/chapters-simple\/nfts-101.jpg","rating":100,"sections":[{"chapter_id":5,"order":2,"slug":"how-to-trade-nfts","title":"NFT Trading: The Ins and Outs","status":"published","modified_content":null},{"chapter_id":5,"order":3,"slug":"buying-nft","title":"Tips and Tricks of Choosing the Right NFTs","status":"published","modified_content":null},{"chapter_id":5,"order":4,"slug":"how-to-store-nft","title":"How to Store NFTs: Best Practices","status":"published","modified_content":null},{"chapter_id":5,"order":5,"slug":"how-to-create-an-nft","title":"How to Create Your Own NFTs?","status":"published","modified_content":null},{"chapter_id":5,"order":6,"slug":"how-to-make-passive-money-with-nft","title":"Making Passive Money with NFTs","status":"published","modified_content":null}]},{"id":6,"title":"dApps & Defi","slug":"dapps-and-defi","updated":true,"chapter":"crypto\/assets\/crypto-book\/chapters\/learn-dapps.jpg","chapter_simple":"crypto\/assets\/crypto-book\/chapters-simple\/dapps-defi-101.jpg","rating":80,"sections":[{"chapter_id":6,"order":1,"slug":"what-are-nfts","title":"What are Non-Fungible Tokens 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Cryptocurrencies?","status":"published","modified_content":null},{"chapter_id":7,"order":2,"slug":"how-to-invest-in-crypto","title":"Investing in Crypto: What Investing Options Do You Have?","status":"published","modified_content":null},{"chapter_id":7,"order":3,"slug":"ico-vs-ido","title":"ICO vs IDO vs IEO: Which One is the One?","status":"published","modified_content":null},{"chapter_id":7,"order":4,"slug":"what-is-an-airdrop","title":"What are Crypto Airdrops and How to Get Them?","status":"published","modified_content":null},{"chapter_id":7,"order":5,"slug":"how-to-get-free-crypto","title":"How to Get Free Crypto Assets?","status":"published","modified_content":null},{"chapter_id":7,"order":6,"slug":"how-to-arbitrage-crypto","title":"What is Crypto Arbitrage: The Main Principles","status":"published","modified_content":null},{"chapter_id":7,"order":7,"slug":"what-is-a-perpetual-contract","title":"Perpetual Contracts: Futures Contracts Without an Expiration Date","status":"published","modified_content":null},{"chapter_id":7,"order":8,"slug":"what-is-fud","title":"What is FUD: How to Use It to Your Advantage While Investing in Crypto?","status":"published","modified_content":null},{"chapter_id":7,"order":9,"slug":"investing-in-cryptocurrency","title":"Investing in Cryptocurrency: How to Manage Your Risks?","status":"published","modified_content":null},{"chapter_id":7,"order":10,"slug":"what-is-a-rug-pull-in-crypto","title":"What is a Rug Pull in Crypto?","status":"published","modified_content":null},{"chapter_id":7,"order":11,"slug":"how-to-avoid-rug-pulls-in-crypto","title":"How to Spot and Avoid Rug Pulls?","status":"published","modified_content":null},{"chapter_id":7,"order":12,"slug":"how-to-avoid-crypto-taxes","title":"The Key Legal Techniques of Avoiding Crypto Taxes","status":"published","modified_content":null}]},{"id":8,"title":"Crypto 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Mining?","status":"published","modified_content":null},{"chapter_id":9,"order":3,"slug":"what-is-staking-crypto","title":"An Advanced Look into What is Staking Crypto","status":"published","modified_content":null},{"chapter_id":9,"order":4,"slug":"what-is-proof-of-stake-vs-proof-of-work","title":"Proof-of-Work VS Proof-of-Stake: The Differences That Matter","status":"published","modified_content":null},{"chapter_id":9,"order":5,"slug":"what-is-crypto-mining-rig","title":"Crypto Mining Rig: What It is and How to Build One?","status":"published","modified_content":null}]},{"id":10,"title":"Crypto Terms","updated":false,"chapter":"crypto\/assets\/crypto-book\/chapters\/crypto-101-glossary.jpg","chapter_simple":"crypto\/assets\/crypto-book\/chapters-simple\/crypto-glossary-101.jpg","rating":100,"sections":["A","B","C","D","E","F","G","H","I","J","K","L","M","N","O","P","Q","R","S","T","U","V","W","X","Y","Z"]}]" current-chapter="C" current-section="what-is-coin-mixer">