A bitcoin blender is a service that allows users to mix their own bitcoins with those of other users, concealing the origin and destination of their funds. It is a variation of the tumbler service, which is a tool that helps hide the origin and destination of cryptocurrency transactions by mixing up the coins between different wallet addresses.
While mixers are often associated with illicit activities, they are primarily legitimate tools used by individuals seeking to enhance their privacy. The blockchain provides a sometimes uncomfortable level of transparency, as the identities of bitcoin addresses are tied to the spending of their respective balances. Mixers break this link by sending your bitcoins to a pool with those of other users, and then returning them back to you in new, jumbled form.
There are a number of Bitcoin blender services to choose from, including Mixtura, Coinomize, Yo!Mix, and Sinbad. They each have their own unique features, but most have a few things in common: They all require the user to send bitcoins to their mixer, and they all charge a fee for their service. Mixers also typically do not store any logs or IP addresses, which can further protect the identity of their users.
The benefits of using a bitcoin mixer can be substantial, especially in this age where financial transactions can easily be traced. It can be particularly useful for people who use their cryptocurrency to make purchases online, as a bitcoin blender can prevent malicious actors from snooping on the transactions they are making.