What are Privacy Coins?

Privacy Coins are type of cryptocurrencies with a characteristics of anonymity and untraceability. The goal of these cryptocurrencies is to be used without exposing the user's activities on their blockchain systems. The amount of Privacy Coin traded will only be known by the parties involved, so any outside party will not be able to know or even trace the transactions. These characteristics made them very popular with user's who value their anonymity when dealing with crypto.

How Do Privacy Coins Work?

Even though there are numerous ways these coins obtain their anonymity, the main methods are:

• By generating new addresses for every transaction

• By mixing different transactions together and redistributing them

• By proving transaction without divulging information regarding the involved parties

Which Coins are Privacy Coins?

There are a number of Privacy Coins that are circulating at the moment but these are the best and well known: 

• Dash (DASH)

• Monero (XMR)

• Zcash (ZEC)

• Beam (BEAM)

• Grin (GRIN)

• PIVX (PIVX)

Final Thoughts

For people who value their privacy and anonymity, Privacy Coins provide the ultimate purpose. But it is very important to keep in mind their legality when using these coins. Countries like South Korea prohibits the trade of Privacy Coins on crypto exchanges, therefore, it is ideal to familiarize oneself with laws and regulations when dealing with these coins.   

Please share your comments and experiences regarding Privacy Coins, I would really love to hear from you. 

Disclaimer

I am not a financial advisor. The information found here are for educational purposes and cite my personal opinion and it should be considered as such.