Tumbler is a type of cryptocurrency service that allows users to mix their transactions and make them difficult or impossible to trace. Also known as coin mixing, tumbling, or laundering services, these services are used by many people around the world who wish to maintain their privacy when using cryptocurrencies.
In order for a user to use a tumbler service, they will first need to send their coins from an exchange or wallet into the tumbler’s address. The tumbler then combines all incoming deposits together before sending out new payments which cannot be traced back to specific addresses. This process also involves adding several additional steps such as randomly assigning different fee amounts and swapping UTXOs (unspent transaction outputs). All of this helps make it virtually impossible for anyone else on the blockchain network to track where these funds originated from and where they went after leaving the tumbling service.
The main advantage of using a cryptocurrency tumbling service is that it provides anonymity while transacting with digital currencies like Bitcoin. Since most cryptocurrencies are recorded in public ledgers, third parties can easily view your previous transactions unless you take measures to protect your identity and privacy online by utilizing one of these services. Additionally, with increased regulations being placed on exchanges around the world regarding KYC/AML compliance requirements, some users have found themselves unable or unwilling to trade on certain platforms due to lack of personal information disclosure requirements needed for account verification purposes – making coin mixing services even more attractive options for those looking for extra security when trading digital assets online without revealing too much about themselves in the process.
It’s important however that users understand there can still be risks associated with using such services if not done correctly – including unintentionally sending coins directly from an exchange instead of transferring them into another wallet first (as recommended) prior taking part in any kind of money-mixing activity; thus bypassing any possible protection offered by such providers altogether since direct transfers between exchanges do not require entering credentials nor two-factor authentication codes as part of standard protocol practices when engaging in crypto trades between wallets connected through external networks outside traditional custodial solutions provided by centralized authorities like banks & other financial institutions operating within regulated markets today worldwide