Bitcoin addresses cannot be blocked or reissued, and transaction histories remain permanently in the public blockchain. If a user's identity is linked to an address by an exchange or a third party, this link cannot be undone retroactively.
To maintain privacy, users should avoid reusing addresses and combining different asset domains in a single transaction. A common mistake is 'sweeping'—transferring the entire balance at once—which merges separate transaction histories into a single cluster, linking all assets to the owner's identity.
Anonymization services offer different approaches. CoinJoin combines inputs and outputs from multiple participants in one transaction to obscure links. However, analytical services can recognize this pattern, and centralized exchanges may flag such transactions as high-risk.
Mixers, such as Mixer.Money, operate by splitting incoming funds and distributing them to other investors and traders. The client then receives liquidity from different exchanges, breaking the direct on-chain link between the deposit and the payout.