You hand over the coins
You send your BTC to the operator's address. They hold it. They send fresh coins back to you. A custodial BTC mixer is simple to use, usually fast, often with adjustable delays and output-splitting options.
The trade-off is plain: for the time your coins are with the service, you're trusting a single party not to disappear, not to get hacked, and not to get raided. Most of the mixer takedowns and operator prosecutions in the last several years have hit custodial services specifically.
- + Easy, fast, minimal technical setup
- + Tunable delays and split outputs
- − Counterparty risk for the duration of the mix
- − Higher regulatory exposure for operators and users