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The 7 Best Cryptos to Buy for Privacy

cryptos - The 7 Best Cryptos to Buy for Privacy

Source: PixieMe / Shutterstock.com

Cryptocurrencies are the internet’s currency. Over the past year, we have seen an explosion in their usage. However, not everyone is happy with the way cryptos have taken the world by storm.

Regulatory bodies are looking to bring digital currencies to heel by using regulatory power. If this trend continues, the demand for privacy-focused altcoins will rise exponentially.

The reasoning is simple. One of the main benefits of using blockchain technology is that it protects a user’s identity to a certain degree. Hence, if you want to stay completely anonymous on the blockchain, privacy coins are an attractive proposition.

At this point, we do not know which cryptos will come under fire due to new regulations. However, we have curated a list of popular privacy-oriented cryptocurrencies, which have several built-in features that you can use for privacy and anonymity.

  • Monero (CCC: XMR-USD)
  • Zcash (CCC: ZEC-USD)
  • Dash (CCC: DASH-USD)
  • Verge (CCC: XVG-USD)
  • Horizen (CCC: ZEN-USD)
  • Beam (CCC: BEAM-USD)
  • Grin (CCC: GRIN-USD)

Cryptos to Buy for Privacy: Monero

A concept coin for Monero (XMR) has a sparkly gold background

Source: Shutterstock

One of the most popular privacy-oriented cryptocurrencies is Monero (CCC:XMR-USD), thanks to its rich history. When it comes to privacy and anonymity, it is as popular as Bitcoin (CCC:BTC-USD) and Ethereum (CCC:ETH-USD).

Because the platform uses ring signatures and stealth addresses, it isn’t easy to trace the identities of the sender and the receiver. Monero enforces anonymity on a fundamental level and does not offer it as an optional feature.

Ring Confidential Transactions, or RingCT, helps ensure that the transaction amount is hidden from the public and providing an additional layer of anonymity.

ZCash

An image of the Zcash logo against a futuristic background.

Source: Aleksandra Sova/ShutterStock.com

ZCash is a bit different from Monero, in that privacy is optional. The blockchain divides transactions between private ones (z-addresses) and those that are transparent (t-addresses).

ZCash has implemented a cryptographic technology called Zero-Knowledge Proof that allows participants an option to shield transactions. When using this tool, you can obscure the amount and the addresses of the parties involved in the transaction.

Cryptos to Buy for Privacy: Dash

Dash 1600

Source: Inked Pixels / Shutterstock.com

Dash is a cryptocurrency that gives users the option to choose whether they want to make their transactions private or not by using the PrivateSend feature. This is particularly useful for people who wish to remain in compliance with local regulations and authority.

The one important thing to note here is that if you use DASH, you will pay higher fees than Monero and ZCash. The way the platform works is by disguising the origins of your funds.

Verge

An aerial shot of a group of popular cryptocurrency tokens.

Source: Shutterstock

Verge uses the technology of The Onion Router (TOR) and the Invisible Internet Project (I2P) to ensure privacy for users.

This two-part system uses routers to bounce information across multiple nodes in a peer-to-peer (P2P) system made possible by I2P tunneling. TOR bounces a user’s communications over a distributed network of relays and tunnels operated by volunteers, hiding the user’s identity.

I2P encrypts user data before transmitting it by an anonymous, peer-to-peer, and volunteer-run globally distributed network. The whole process results in the hiding of the locations and IP addresses of the transacting participants.

Cryptos to Buy for Privacy: Horizen

The Horizen (ZEN) crypto in front of a trading chart.

Source: Shutterstock

Horizen functions in a similar way to Bitcoin. It provides privacy shielded Z-Addresses and public T-Addresses. However, if you send funds from a Z-Address to a T-Address, the amount received will be shown.

Horizen has a large node network, which helps to increase anonymity. Due to its large number of nodes, it is one of the more secure and more anonymous blockchain networks out there.

Beam

Cryptocurrency: Pile of altcoins represented as physical coins

Source: Shutterstock

The beam is a scalable and confidential cryptocurrency based on Mimblewimble, with core features including complete autonomy over privacy and anonymity.

Every transaction is private by default, so that there are no addresses or other private information available on the blockchain.

Grin is a decentralized project that completely relies on the community and its open-source governance model. It offers superior scalability due to compact blockchain size, opt-in auditability, atomic swap and hardware wallet integration.

Cryptos to Buy for Privacy: Grin

Falling cryptocurrencies.

Source: Yevhen Vitte/Shutterstock.com

Mimblewimble birthed Grin, which has the highest standards for anonymity and privacy. How does it do that? By not storing addresses and transaction amounts.

Mimblewimble is Proof-of-Work, meaning only network participants can view transactions. To outsiders, all activities look like randomized pieces of transactions.

Since nodes eliminate redundant transaction information, no one can know the sender or receiver of a blockchain payment.

On the date of publication, Faizan Farooque did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Faizan Farooque is a contributing author for InvestorPlace.com and numerous other financial sites. Faizan has several years of experience analyzing the stock market and was a former data journalist at S&P Global Market Intelligence. His passion is to help the average investor make more informed decisions regarding their portfolio.


Article printed from InvestorPlace Media, https://investorplace.com/2021/06/the-7-best-cryptos-to-buy-for-privacy/.

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