This is a general assumption people think that using cryptocurrencies to pay for services or goods online will keep them anonymous but is that really true the answer is unfortunately no and here's why every transaction that ever happens in a cryptocurrency network is stored in a public record called theBlockchain and anyone can literally search this public record and get all the information about all your transactions yes you heard it right it's all public but then why are cryptocurrencies considered to be a safer and a privacy oriented way of finance before answering that question let me take a moment to thank theSponsors of this video this video is sponsored by currency.com currency.com is an innovative and a reliable trading platform which allows to trade cryptocurrencies and invest in tokenized assets you can make crypto operations as well as credit your currency.com account using both fiat funds and cryptocurrencies for example you can buyTokenized amazon shares using bitcoin ripple or tether tokens on the currency.com platform it is also possible to trade with leverage from 1 to 500 times and it is powered by a responsive 24x7 customer support they also have a separate training section with useful materials for beginners active youtube and telegram channelsWith news publications and market analysis all the links can be found in the description below you can also open a demo account on currency.com that functions just like a real account and you can test your strategies on your demo account before committing to the real account currency.com also holds promotional events and publicCompetitions for traders the winners of which will receive pleasant rewards now there is a promotional event going on called give crypto get crypto and the conditions are very simple you basically refer a friend to currency.com and once he registers deposits an account and makes at least one trade within 30 daysAfter registration both of you will get a bonus there is also a fully functional mobile app of this trading platform available for both android and ios so all the links will be in the description below make sure you check it out the main purpose of cryptocurrencies likeBitcoin or ethereum is to eliminate the centralized nature of the traditional banking system and give all the power to individuals instead of relying upon authorities like banks and governments so it is meant to give the users the privacy and the security that they deserve while making online payments butThis doesn't mean that you cannot be tracked while paying with crypto online cryptocurrencies like bitcoin and ethereum only offer pseudo-anonymity but not complete anonymity let's take an example suppose you are sending some ethereum to alice in exchange for some service you have an ethereum wallet where you have some ethereum and youSend alice whatever is the cost of that service in ethereum this transaction is now saved on the ethereum's blockchain and everyone can see it but don't get confused here though people can see the details of this transaction they don't necessarily know that this payment is sent by you to aliceAll they see is a valid address from where the ethereum is sent the amount of ethereum that is sent and the other valid address where the ethereum is received that's it unless you are somehow publicly associated with this valid address people do not know that you own thisAddress same goes with alice if alice is somehow already known publicly to be the owner of that address then obviously people will know that she is on the receiving end of this transaction so it is very important that you do not associate yourself with your valid addresses but in a real-time scenario itIs actually very hard to keep your personal information unlinked from your crypto assets the reason is very simple almost all the services that sell crypto like coinbase binance for xerx etc they require you to complete a kyc wherein you have to provide them your personal identity before you can purchase cryptoFrom them and this just completely destroys the privacy aspect of cryptocurrency because now your personal identity is indeed linked with your valid addresses on that platform so all the transactions that are associated with this wallet address are clearly associated with you and there are many scenarios like this where you can beEasily tracked if you don't use cryptocurrency correctly and this is where mixers come in a mixer as the name suggests will mix your transactions and will make them anonymous hence protecting you from getting tracked to understand this let's consider the same scenario where you are sending a payment in ethereum to aliceBut in this case let's say your valid address from where you're sending the ethereum is publicly associated with you which means you can be personally identified with this address but you don't want to be seen sending this payment to alice so instead of sending the ethereum directly to alice you sendIt first to an ethereum mixer this mixer will already have a reserve of ethereum which is gathered from all its users when you send your funds to this mixer they will be added to this reserve and once the funds are added the mixer will now send the ethereum from its reserveTo alice and this completely breaks the connection between you sending the ethereum and alice receiving the ethereum on her end for all one knows you are sending ethereum to a newly created address and alice is receiving ethereum from a random valid address which has no link to your wallet addressSo your transaction to alice cannot be tracked back to you most mixers also have an option called time delay using which you can set a delay before your funds reaches the destination this helps in oppositing the transaction even more and making it even harder to track so that is how mixersWork in general alright so that is it for this video hope you liked it and hope you learned something new if you did like this video please do not forget to leave a thumbs up below and also leave a comment in the comment section below if you are not yet a subscriber ofMy channel please hit that subscribe button and also turn on the bell icon to receive instant updates from me i'll see you in the next video until then cheers