Digital currencies have gained popularity because of several factors that include anonymity and privacy. Some of them help the users to conceal their identities and their transactions. Amid mounting issues regarding the anonymity of early digital currencies, like Bitcoin, users are looking for new options. With that comes private cryptocurrencies whose work is a bit different from cryptos like BTC.
What Are Private Cryptocurrencies?
Private cryptocurrency also called privacy coins, is a class of digital currencies that provide anonymous blockchain transactions. In order to clarify the origin and destination of digital currency transactions, some techniques used in trading crypto assets include hiding the real wallet balance of an address and address, and mixing several transactions with each other to elude chain analysis.
BTC and other non-private blockchains, on the contrary, provide transparency by enabling anyone to act chain analysis and see public addresses and also transactions in their network. In this way, it is possible to track deposits and withdrawals of someone for BTC and other non-private digital currencies.
However, private cryptocurrencies provide both untraceability and anonymity. Anonymity hides the real image behind a transaction, while untraceability makes it digitally impossible for third parties to follow the trail of transactions using services like blockchain analysis. Now let us have a look at the list of untraceable cryptocurrencies.
Top Private Cryptocurrencies
Now that you know what private cryptocurrencies are, let us have a look at the top private cryptos that are presently in the market and you can invest in them if you wish to. Here is the private cryptocurrency list.
Monero’s (XMR) fame has been on the upward side, primarily because of its potential to help anonymize users. Monero transactions are much harder to trace as they use stealth addresses and ring signatures. These mechanisms help to hide the identities of the sender and also the receiver. Along with that, RingCT or Ring Confidential Transactions helps to conceal the transaction amount, offering more privacy.
Trading at $236.40 as of April 28, 2022, Monero was the 26th biggest digital currency by overall market value, coming in at approximately $2.8 billion. You can consider this as the most secure cryptocurrency.
Zcash (ZEC) illustrates itself as “If Bitcoin is like http for money, Zcash is https,” defining its improved privacy and security features. Zcash has enacted a cryptographic tool known as Zero-Knowledge Proof and gives participants a choice to shield transactions. It enables participants to transact without any of them unveiling their addresses to the other(s). Zero-Knowledge Proof also obscures the transaction amount.
This crypto ranks at number 60 in the list of digital currencies with a market cap of $1.49 billion and is trading at $150.53 per ZEC as of April 28, 2022.
Formulated in 2014, DASH is a digital currency that enables the user to select whether or not their transactions are anonymous and private, using its PrivateSend feature. This enables users who would like to remain within their nation’s regulatory standards to do so. The feature operates by obscuring the origins of your funds. Selecting to use the private send feature will slightly increase the fee for the transaction. DASH attains this via a mixing protocol using an innovative decentralized network of servers known as master nodes.
As of April 28, 2022, Dash ranked 61st by market cap with a total value of over $1.46 billion. At the time of writing, it is trading at around $98.48.
Horizen (ZEN) provides privacy shielded Z-Addresses and public T-Addresses that work similarly to BTC. However, sending cryptos from a Z-Address to a T-Address will show the amount obtained. Horizen also brags a huge node network, which helps to enhance anonymity.
On April 28, 2022, Horizen traded at $33.35 and had a total market cap of nearly $776.56 million. That made it the 83rd largest digital currency.
Instead of depending on cryptographic techniques, Verge (XVG) banks on the prevailing and tested technology of TOR (The Onion Router) and The Invisible Internet Project (I2P) to safeguard users’ identities. TOR bounces the communications of a user over a distributed network of depended and tunnels operated by volunteers spread throughout the globe, thereby hiding the identity of the users. On the other hand, I2P encrypts user data prior to sending it via an anonymous cryptocurrency, P2P (peer-to-peer), and a volunteer operated globally distributed network. It enables hiding the locations and IP addresses of the transacting users.
Verge created headlines when a famous adult website adopted it to begin accepting digital currency payments. The primary purpose for the development was Verge’s privacy characteristics. As of April 28, 2022, Verge ranked 111th by market cap with a total value of $393.63 million and an exchange rate of $0.0097 cents.
While privacy is a much anticipated feature in the digital world, it brings with it the dangers of huge criminal elements. Digital currency operators have to fend off several hacking attempts by malicious users. Law enforcement regulators and agencies are also more likely to investigate people with big transactions.
Even though Bitcoin stays the most famous choice, it is by government agencies. They have become quite evident at tracing BTC transactions, formulating a strong incentive to switch to more private cryptocurrencies. Bitcoin has been a famous choice to protect the identity of a user and as an outcome, transactions are continuously being monitored and targeted by government agencies. They have become quite efficient at tracing BTC transactions, formulating a strong incentive for users to switch to the most private cryptocurrency like those that we have listed above.