What Will Be the Best Way to Mix Bitcoins in 2025?
It's widely acknowledged that Bitcoin transactions are not inherently anonymous. With the implementation of KYC regulations and advanced on-chain analysis methods, Bitcoin transactions have become even more transparent and easier to trace back to their origins. For those unaware of how easily Bitcoin transactions can be backtracked, please refer to our previous articles: The Role of Bitcoin Anonymizers, Bitcoin Transaction Tracking, or Why Do We Need Bitcoin Mixing?
So, what challenges will privacy-conscious Bitcoin enthusiasts face in 2025, and what will be the best way to protect Bitcoin transactions from unwanted scrutiny? How can one best anonymize Bitcoins in 2025?
CoinJoin: Still the Best Way to Mix Bitcoin
CoinJoin refers to a coordinated Bitcoin transaction involving many unknown participants, often using the Tor network to maximize privacy.
This protocol has been integrated into several privacy-focused Bitcoin wallets, such as Wasabi and Samourai. It has also been incorporated into hardware wallets like Trezor, and Bitcoin mixers like Shifty are built on top of the CoinJoin protocol.
CoinJoin eliminates many privacy issues that arise from the inherent transparency of the blockchain. Most crypto exchanges can easily link your real-world identity to your Bitcoin transactions based on the data they collect. These exchanges can track your transactions even after you have withdrawn your funds or share your information with third parties. However, CoinJoin prevents such surveillance and unwanted monitoring. CoinJoin works in two ways, and Bitcoin mixing services may typically offer a "Mixing CoinJoin" or a "Spending CoinJoin."
- Mixing CoinJoin is used to make Bitcoins anonymous and is mostly powered by Bitcoin mixers. Once you deposit your funds with the crypto mixer, it will mix your coins using the CoinJoin protocol and send them back to the address you provide.
- Spending CoinJoin is used at the time of payment, where a recipient receives mixed Bitcoins directly from a sender as the output of a CoinJoin process built directly into a wallet like Wasabi or Samourai. The Trezor hardware wallet with Trezor Suite allows you to create a CoinJoin account, where you can mix your Bitcoins and use them when needed.
Some users prefer to use a Bitcoin mixer to anonymize their Bitcoins, while others prefer to make anonymous payments only. A Bitcoin mixer can be used by anyone and will effectively mix your Bitcoins no matter where you are located or what software or hardware you are using.
Other Bitcoin mixing options that include privacy-focused wallets have their limitations. For example, the Samourai wallet is only available for Android. The popular Wasabi wallet is only a desktop application, and the Trezor wallet is the first hardware wallet to integrate the CoinJoin protocol.
In this era of increased surveillance, where your information is being collected and potentially used against you, financial privacy and anonymous payments are fundamental elements that require your full attention. It's evident that many Bitcoin projects are under pressure to collect more data, but what you do with your Bitcoin is your business, isn't it?
Bitcoin Mixing with Samourai Wallet
Samourai Wallet is a Bitcoin-exclusive Android wallet that seamlessly blends privacy and security features. Although it currently lacks hardware support, upcoming versions promise to enhance the overall user experience.
Samourai employs a CoinJoin process known as Whirlpool, which distinguishes itself by adopting a unique approach to enhance privacy in Bitcoin transactions. Unlike traditional CoinJoin implementations that involve one large pool, Whirlpool is designed around many small and fast pools.
In Whirlpool, the CoinJoin process is broken down into multiple smaller cycles, allowing for quicker and more frequent Bitcoin mixing. This approach aims to achieve a higher level of privacy.
Samourai was among the first to adopt SegWit transactions, reducing costs and paving the way for the Lightning Network. As it approaches its 1.0 release, anticipation builds for a new era in Bitcoin wallet functionality.
Bitcoin Mixing with Wasabi Wallet 2.0.5
Just before Christmas, Wasabi Wallet unveiled its latest version 2.0.5. This release places a strong emphasis on fortifying security, privacy, and the overall user experience in Bitcoin transactions.
From refining coin selection algorithms to enhancing CoinJoin functionality, Wasabi consistently raises the bar for safeguarded and confidential financial management. Augmenting user privacy stands as a hallmark for Wasabi, employing cutting-edge techniques like the CoinJoin protocol.
Breaking new ground with version 2.0.5, Wasabi introduces the revolutionary "Buy Anything" button, empowering users to effortlessly conduct transactions using Bitcoin.
As it unveils version 2.1.0, Wasabi ushers in advanced privacy features, lightning-fast transactions, an intuitive user interface, and a comprehensive transaction analytics dashboard, reshaping the landscape of user interactions within Bitcoin transactions.
Bitcoin Mixing with Trezor Wallet
Trezor stands as the pioneering hardware wallet that has seamlessly integrated the CoinJoin protocol, offering users a unique and secure method to enhance the privacy of their Bitcoin transactions. With the introduction of Trezor Suite, users now have the capability to create a dedicated CoinJoin account, streamlining the process of mixing their Bitcoins.
Known for its robust security features, Trezor enables users to directly utilize their mixed Bitcoins for payments through the CoinJoin account facilitated by Trezor Suite. This innovative approach not only bolsters transaction privacy but also simplifies the user experience by providing a straightforward means of conducting transactions with mixed Bitcoins directly from the dedicated CoinJoin account.
CoinJoin-Powered Bitcoin Mixers
Anonymous Bitcoin wallets allow users to mix their Bitcoins so they can pay with clean coins, but if you want to anonymize your Bitcoin holdings, you should use a Bitcoin mixer. One of the best things about a Bitcoin mixer is that it requires no registration or installation, and you can mix your coins with just a few clicks.
CoinJoin-powered Bitcoin mixer Shifty is a no-KYC, zero-knowledge platform that does not require any personal data or biometrics. Moreover, Shifty doesn't require any downloads or installations like some privacy-focused Bitcoin wallets.
Shifty has integrated the CoinJoin protocol, which works on the same principle as the Wasabi, Samourai, or Trezor wallets. Users can choose how thoroughly they wish to mix their coins and how long it will take. The Bitcoin mixing process is straightforward: enter the address to receive mixed coins, deposit your funds to the address generated by the mixer, and start mixing. Once your coins are mixed, they are sent to the address you provided.
Shifty does not support money laundering or terrorist financing. Our commitment is evident in response to FinCEN's recent labeling of Bitcoin mixers and CVC mixing as primary tools for money laundering and terrorist financing. We have implemented a one Bitcoin mixing limit. This limit reflects our dedication to primarily serve regular users who wish to anonymize their transactions in this environment of intense scrutiny and surveillance.
Conclusion
Without a doubt, the best way to mix Bitcoin in 2025 will be to use a CoinJoin-powered Bitcoin mixing service. CoinJoin has proven to be the most effective method to anonymize your coins. For those seeking absolute privacy, we recommend combining the above coin anonymization services. Therefore, the optimal approach to anonymize your Bitcoins is to use a Bitcoin mixer and then send the mixed funds to one of the aforementioned privacy-focused Bitcoin wallets.