Cryptocurrencies have gained significant popularity over the past few years. Even with the current plunge of the cryptocurrency, it still accounted for over 800 billion market cap per coinmarketcap.com as of 6/20/2022. While cryptocurrency is a revolutionary form of payment, some users are concerns about the lack of privacy associated with blockchain transactions. Remember, Bitcoin is pseudonymous: if someone looks at the publically accessible blockchain for long enough, they could track you down.
As new cryptocurrencies emerge, users can now select cryptocurrencies with features that protect their privacy and provide anonymity. So, here are the best cryptocurrencies that actually protect your privacy.
Verge aims to improve on the original Bitcoin blockchain.
Among its many attractive features including speedy transactions and low fees, Verge hides its users’ identities using the Tor network and the I2P network. These methods obfuscate IP addresses and locations during transactions.
Zcash focuses on confidentiality and enhanced privacy features, allowing users to shield transactions and keep financial information private.
Using Zcash, users can choose either transparent transactions, in which all transaction information is visible to the public, or shielded transactions, which allow transacting parties to conceal their addresses along with the transaction amount and the encrypted memo that accompanies a shielded transaction.
Launched in 2014, Monero is a cryptocurrency that puts privacy, security, and decentralization at its forefront. Its privacy and anonymity features have made it particularly popular in the cypherpunk and crypto community.
Monero obscures transaction details using stealth addresses, ring signatures, and zero-knowledge proofs. Transacting parties’ identities, transaction amounts, transaction histories, and address balances are all hidden from outsiders, ensuring complete anonymity.
Dash is a popular cryptocurrency known for its fast transactions and low fees.
Dash also offers the attractive privacy-enhancing PrivateSend feature, which uses coin mixing to obfuscate the source and destination of sent funds.
While PrivateSend does not offer complete anonymity since transactions can still be tracked by law enforcement, PrivateSend is a useful feature for people wanting privacy in certain situations, such as making an anonymous donation to an organization.
Beam is a cryptocurrency that prioritizes privacy and confidentiality.
All transactions are private by default, with users able to select regular anonymity or maximum anonymity.
Beam’s blockchain does not store information such as wallet addresses, transaction information, or transaction history. Only those engaged in a transaction can see the sender, receiver, and transaction value, with this information hidden from outsiders.
Horizen allows users to choose their level of privacy when making transactions.
Horizen’s token, ZEN, offers users two different types of addresses: T-Addresses, for transactions that are public on the blockchain, and Z-Addresses, for private transactions between these types of addresses.
Transactions between Z-Addresses hide the addresses of both the sender and receiver and the amount sent between these addresses.
The Secret Network claims to be the first blockchain with privacy-preserving smart contracts. Users also have the opportunity to choose what information they share about their accounts and transactions.
The Secret Network encrypts the amount transferred, address balances, and token metadata for transactions. Privacy is the default on the Secret Network, and users have the option to generate “viewing keys” to allow outsiders to view details of their transactions and account data.
Do Your Research First
Cryptocurrencies are constantly evolving to suit user needs and requests. However, before purchasing any cryptocurrency, users must do their research first. If you’re looking for cryptocurrencies that protect your privacy, you must look beyond Bitcoin and Ethereum!