Amongst the undeniable advantages of cryptocurrencies which made them so popular are security and privacy. For the first time, users got an opportunity to override banks and gain control over their investments as well as protect their identities if needed. However, recent data privacy concerns have also affected the crypto world: high Bitcoin standards became insufficient for some members of the community. This is how the best privacy coins have emerged in the modern cryptocurrency market.
Bitcoin was originally launched as a secure and decentralized way of payment but it appeared to have problems with transaction privacy, high fees, and processing speed. When users perform financial operations on the Bitcoin ledger, they leave two forms of evidence: those visible on blockchain and those that aren’t. Blockchain-based data reveals data that is able to link different transactions among each other. Private information such as identity is not available on the blockchain and treated as the “external knowledge”. However, when traders send or receive funds they automatically leave their private information which connects their personal information to a transaction they carry out. This is how interested parties can figure out how much BTC users have, how they manage their funds, and whom they purchase their cryptocurrencies from.
The openness of Bitcoin transactions means that the system is vulnerable to unauthorized tracking and monitoring. It disturbs those members of the cryptocurrency community who acknowledge the technology behind Bitcoin but seek for better privacy.
Choosing the top privacy coins from a long list of options is not an easy task for a beginner. At the same time, adding them to your investment portfolio is a smart strategy that can be beneficial in both the short and long run. We are here to help you to select the best privacy coins which will become a great addition to your crypto portfolio.
What is a Privacy Coin?
If in the right hands, blockchain can greatly advance many spheres of modern life. However, its openness and accessibility make many users raise important security concerns. Specialized services, scammers, and even individual users can freely trace transactions and check the sender’s identity when trading digital assets.
As a result, many cryptocurrency enthusiasts have devoted themselves to the development of top privacy coins which would enable users to better hide their identity and operations. Privacy cryptocurrency is an altcoin that protects users’ information — their names as well as digital coins that are stored on their wallets.
These are decentralized payment platforms with high protection levels and advanced settlement layers which is optimized through the utilization of cryptographic algorithms. Due to advanced protocols and security instruments, it becomes complicated or totally eliminating the possibility to track operations performed within the network.
The best privacy altcoins put a great emphasis on transaction security which empowers users to confidently trade their crypto funds. The quantity and quality of privacy coins are constantly growing in the cryptocurrency market. Developers with experience often experiment with numerous protocols and advanced features to offer greater confidentiality and anonymity. That is why it is sometimes hard to distinguish between the best privacy coins with great performance and other minor coins.
The most widespread cryptocurrencies such as Ethereum or Bitcoin publicly disclose user transaction information, which signifies that anybody is authorized to trace your operations by easily checking your wallet address. In contrast to well-established cryptocurrencies, top privacy coins suggest advanced tools to support user secrecy.
In modern days, people care about their financial privacy more than ever before. The best privacy coins offer an innovative solution to the long-standing issue of crypto-security. Many users also consider them as an alternative way for directly avoiding taxes for the reason that government agencies can not monitor their financial operations and the exact place where they keep privacy altcoins. Privacy altcoins have growing trading volumes, prices, and liquidity and the numbers are predicted to multiply in the coming years.
Check how you can exchange cryptocurrencies anonymously in 2020.
Top privacy coins to choose
Monero (XMR) is a revolutionary privacy coin that prioritizes security principles as its key features. This altcoin involves an innovative form of cryptography to make sure that an absolute number of its transactions become inconspicuous and unlinkable. A big number of crypto enthusiasts claim XMR to be the best privacy coin that offers instruments like stealth address, Tails OS, and ring signature for enhanced security. Initially created as a Bytecoin fork, Monero also offers an alternative mechanism of processing transactions by dividing the deposits into several smaller amounts and dealing with every amount as a different transfer.
ZCash (ZEC) is a decentralized privacy coin focused on delivering enhanced transparency and anonymity. This coin is built on zk-SNARKs, or Zerocoin protocol, which makes all transactions 100% transparent and protected. The network is kept secure and does not disclose the identity of users, passwords, or amounts involved. Information on transactions is encrypted without the need to disclose spend-parties. Moreover, users can utilize zk-SNARKs technology to ensure that the operation was open and transparent.
Originally launched as Darkcoin and XCoin, Dash is an open-source cryptocurrency which offers a variety of advanced privacy-oriented features. With PrivateSend algorithm integrated into this privacy coin, the users can anonymously send and receive funds without the need to reveal their identity or wallet address. PrivateSend feature developed by the Dash founder Evan Duffield mixes up the transactions carried out by different users to make the coins untraceable and undistinguishable.
Zcoin (XZC) is an open-source digital coin focused on security and anonymity. Based on the innovative technology called Sigma, this privacy coin provides better scalability and eliminates the requirement of secure setup. Because the transaction record is not linked to particular coins, the transfer of funds can only be confirmed by the two parties participating in trading (sellers and recipients). Lelantus, a new anonymous protocol card, was also launched by Zcoin project to upgrade Sigma’s technical performance and openness.
Godex.io for secure trading
Finding a reliable cryptocurrency exchange is as important as choosing the best privacy currency for your investment portfolio. With over 200 different digital coins to choose from, Godex.io offers fast and anonymous cryptocurrency trading without the need to reveal users' private information, who are not required to verify their identity and register an account in order to start trading. Monero, Dash, PIVX, ZCash, and many other top private coins are also available on Godex.io at their best exchange rates which are fixed while the transaction is being processed.
Originally published at https://godex.io
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