4 Reasons for all Bitcoin Users to Explore JoinMarket

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Achieving privacy as a Bitcoin user is never straightforward. A lot of people rely on centralized mixing services, but there are more viable alternatives out there. JoinMarket is such a concept and one that can be lucrative for liquidity providers too. 

How Does JoinMarket Work?

As the name indicates, JoinMarket is a continuation of the CoinJoin idea. CoinJoin is a very popular technology for mixing coins and adding a layer of privacy to them. However, to perform such transactions, other people need to take part in the process. Finding those willing to explore this option is not difficult, but expanding the circle of “eligibility” is never a bad idea. 

Rather than having to wait for sufficient liquidity in the right place at the right time, JoinMarket creates a “market” for allocating these resources. That is good news for Bitcoin users, especially those who do not actively use their BTC today. Moreover, it helps decentralize this approach even further, as more participants mean less centralization. 

Paid-for CoinJoin Transactions

One intriguing aspect of JoinMarket is how it can help users make money. To be more specific, the project is designed to source BTC liquidity from as many sources as possible. This makes it easier for smaller BTC holders to contribute resources to those who want to explore CoinJoin transactions.  

As “customers” make these transactions with someone providing liquidity, the provider will collect fees. It is the same as being a market maker on an exchange or trading platform. Fees are paid by those who want to CoinJoin instantly, as they act as market takers. A very straightforward concept, but one that can help Bitcoiners all over the world make some money in the process. 

Significant Transaction Potential

One aspect to consider when engaging in CoinJoin transactions is how much BTC can be processed per transaction. That is always difficult to determine, as it depends on how much liquidity is available at any given moment.  Thanks to the different approaches by JoinMarket, it is possible to instantly CoinJoin several hundred BTC in one go without issues.

More importantly, all of this is achieved in a non-custodial manner. Users will always retain control of their private keys throughout the process. This approach ensures security is prevalent and also keeps overall service fees down to more acceptable levels. Additionally, the JoinMarket also supports PayJoin transactions, for those who wish to explore that option. 

Multiple Powerful JoinMarket Scripts

The JoinMarket project provides access to CoinJoin services in many different ways. The most obvious option is through the Joinmarket-Qt client, which is a GUI to create wallets and send transactions. It looks very similar to a simple Bitcoin wallet, effectively lowering the barrier to entry for those who seek more privacy. 

Other scripts have been developed over time as well. One focuses on letting Bitcoin holders collect fees, whereas another script is used to send single CoinJoin transactions. There is also a Tumbler script to add more RNG to creating CoinJoin transactions and their amounts. All in all, it is a complete solution that checks a lot of the right boxes. 

None of the information on this website is investment or financial advice and does not necessarily reflect the views of CryptoMode or the author. CryptoMode is not responsible for any financial losses sustained by acting on information provided on this website by its authors or clients. Always conduct your research before making financial commitments, especially with third-party reviews, presales, and other opportunities.