A Bitcoin mixer, also known as a tumbler, is a service that helps enhance the privacy of Bitcoin transactions. When someone sends or receives Bitcoin, the transaction history is recorded on the blockchain, making it traceable.

This traceability can compromise user privacy. Bitcoin mixers work by pooling funds from multiple users and mixing the coins together. When a user deposits their Bitcoin, the mixer sends back an equivalent amount of Bitcoin from a different pool. This breaks the direct link between sender and receiver, making it difficult to trace the origins of the coins.

Users typically pay a small fee for this service. Mixing improves privacy for people who are concerned about their financial transactions being monitored, but it can also attract scrutiny because it’s sometimes linked to illicit activities. While mixers can enhance privacy, it’s essential for users to choose reputable services to minimize the risk of fraud or loss of funds.