Did you know that Bitcoin can be tracked and your private information can be disclosed? If you don’t want that, you should probably consider privacy coins, such as Zcash (ZEC) or Monero (XMR).
But what are ZEC and XMR? They are the cryptocurrencies that have been invented to fix the issue of privacy. Before we take a look at them, let’s check out why you should care about these cryptocurrencies.
Why Should You Care About Privacy Coins?
Privacy coins are attractive to investors because they comes under decentralized finance and have much better security than Bitcoin and other similar coins. Some people believe that only criminals need this level of privacy, but that’s simply false. Using a private coin isn’t just a needless security measure, it helps you protect its value by hiding your transaction history.
These coins are also an opportunity for you to diversify your assets and prepare yourself for what the future may bring.
These are some of the privacy coins:
Monero is a cryptocurrency that hit the market in 2014.
The coin is based on CryptoNote, and it’s as open-source as open-source could be. The reason why Monero made this list is because it has a Public Obfuscated Ledger that allows people to send and receive the coin, but with one caveat; no one besides the participants in the transaction can see the details.
Zcash is a coin that makes use of cryptography to provide a high level of privacy for its users. While Zcash is a lot more private than Bitcoin, it still has many similarities. For example, it makes use of Bitcoin’s codebase and has the same number of total supply.
Transactions in Zcash can be viewed by third parties, but that disclosure is strictly under the control of the participant.
Dash is an open-source coin that is based on the Bitcoin protocol. The coin is also user-run by a subset of users called the Masternodes. As the name implies, Dash was created to process transactions quickly. The coin hides its transaction history from third parties.
Verge is a cryptocurrency that offers different levels of private transactions. The coin accomplishes this by hiding the IP addresses of users with Tor and by employing the use of stealth transactions, which makes the details of these transactions even more secure.
Horizen works a bit like Bitcoin but with a lot more privacy on offer. It is the 177th largest cryptocurrency available.
Beam is a cryptocurrency that is solely focused on security. All transactions on the coin are entirely private. Additionally, the coin doesn’t store any transaction information in the blockchain.
If you plan on purchasing any of these coins, you should do your research first. Thankfully, you can easily buy some of these privacy coins, e.g. BTC to ZEK, from decentralized platforms like Godex.
You should note, though, that as laws regulating cryptocurrencies have grown, crypto exchanges have delisted some crypto coins.
Privacy Coins Verdict
Every day, new coins spring up to solve problems, and these six coins are the best solutions to the problem of privacy. Now, this may seem like the best time to invest in them. But don’t forget that the best way to invest is by diversifying your investments. Before you do that, study the particulars of the cryptocurrency you want to invest in. You wouldn’t want to make a bad decision.