A crypto mixer is a smart contract that is used to hide your blockchain transactions. Mixers are important for user privacy but are also used to hide criminal transactions.
How do crypto mixers work?
Crypto mixers work by allowing you to send your crypto currency to it. In exchange you’ll get a “deposit receipt” for withdrawal. Your crypto then becomes mixed in with everyone else’s crypto thus making it impossible to track transactions. When enough time has passed to allow for thorough mixing, you can then withdraw the crypto using your “deposit receipt” to other wallets. This makes it almost impossible to track crypto transactions.