Re: Why not use Exchange instead of Mixer?

So, Mixers provide service of shuffling bitcoins or provide addresses loaded with bitcoins along with private keys. In short, they provide service so to create anonymity between sender's and receiver's address so that no one can trace the transaction.
My question is why not use Exchanges? When we deposit funds on exchange, bitcoins get deposited on exchange's cold wallet. But when we withdraw funds, withdraw gets processed from exchange's hot wallet. So in short, it is very easy to do anonymous transfer by depositing funds on exchange and withdrawing to other addresses. Why to pay 1-3% fees on Mixers when it could be done for much less on Exchanges. Exchanges like Binance charge just 0.0005 BTC to process withdrawals.

You can't use an exchange as a mixer because of the limits set by the exchange. If you will want to increase your limit or remove your limit you will have to verify yourself. This means that you will have to provide identification documents to the exchange. So you can eventually be tracked anyways. As far as I know, in a mixer you don't have to provide kyc stuffs and you also don't have any limits.

Unless the exchnage you use doesnt required KYC . you can easily be tracked if you will use exchange for that . and if the BTC ypu send is came from illegal activity you will be jailed,

The KYC regulations is just one of the things that makes it difficult for exchanges to mix people's coins. These exchanges keeps logs of every transaction that are done on their platform, where most Mixers have no logs of any of their transactions. The exchanges also use transaction analysis software and surveillance methods to determine where coins originate from to enforce their ToS.

Mixer services do not even look at the previous track history of the coins you are mixing, it just takes any coins and push it through a tumbler with other coins and then push out mixed coins, without asking any questions. Wink