Bitcoin is often called the anonymous digital coin. The statement is wrong for two reasons:
1. It is not a coin, but a currency
2. It is not anonymous
Each Bitcoin transaction is traced: You can verify it by visiting the Blockchain.info. If you purchase Bitcoins, you will see the transaction on the site. This can be not good for your privacy, hence you may need to hide the trace of your Bitcoins.
For the sake of clarity, if we have a website where we ask for donations showing the address next to our full name and then, we purchase some marijuana from the Dark Net. Well, every one know, we smoke pot!
Mixing Services:
One of the method to clean Bitcoins is using a shared Bitcoin container known as a mixing service, all the users of a service put their Bitcoins together, then they roll them out onto different transactions, changing the game and then deciding the amount to withdraw from the online wallet. The system works depositing a certain amount : 1-3% fee is applied, and it will take at least 6 transactions before returning available.
In other words, a registered user sends some Bitcoins to a mixing service: the latter will roll them out, making them anonymous. Once this is done, the user will receive them on a wallet they consider as the safest. You can find many interesting projects providing this service on the web.
Their quality and reliability depends on the service trust worthiness, and especially on the way they are used. Each mixing service manage transactions their own way, as well as the percentage and every thing concerning timing and graphical interface.
Be careful! When you connect to a mixer, always use the onion links and NEVER the clear net ones!
Treat the mixer service exact as the VPNs, You should not trust them completely!
Mixer service could log your transactions and compromise your anonymity.
The Bitcoin world offers another way to clean them: Coin Join is a compression method for Bitcoin transactions, designed to increase the party privacy, removing unnecessary information from them. Coin Join was created since the Bitcoin, often advertised as an anonymous payment method, is not 100% secure at all, actually; we may say that it's less anonymous than banks: at least, the latter won't publicly share updates. Coin Join is a method simply consists of connecting to a server that acts as a gathering point for people joining the same transaction: this way, it will be far more difficult to analyze all the circulating currencies; unlike mixing services, Bitcoins cannot be stolen. Besides anonymous purchases, crypto-currencies can also be used for other purposes: the most credited methods include tax evasion and money laundering. Especially for the first reason, the Bitcoin was banned by different countries (Italy is excluded to date) and is under review by the largest world banks that, together with governments, are deciding about its fate. It would make sense thinking that, in a not distant future, this currency may become totally illegal, since it can be used instead of official currencies –although Crypto-Currencies are not real money – and this would make the entire banking system crumble down. But this is another story.
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