Some people like to cover their tracks, especially in the financial space. That might be for security reasons or just the desire for general privacy. Some cryptocurrencies help investors shield their identities and transaction records. These cryptos are called privacy coins or private crypto. What is the most private crypto and what do you need to know before you buy a privacy coin?
While cryptocurrencies are designed to be secure with their use of blockchain technology, not all cryptos are private. In the search for privacy coins, many people have got it wrong. For example, in trying to conceal their crypto activities, some people mistook pseudonymity for privacy and failed to achieve what they wanted.
How privacy crypto coins work
Private cryptocurrencies are designed to enable people to operate anonymously in the crypto space. They achieve that by hiding the sending and receiving addresses as well as the amount transferred in a transaction.
Will private cryptos be banned?
Regulators around the world are concerned about the rise of private coins. The demand for private coins spikes whenever investors anticipate a tightening of crypto tax reporting requirements. Authorities are also worried about the use of private coins in drug trades and other illicit transactions.
These concerns have led to many private cryptocurrencies getting delisted from some exchanges. For example, Bittrex removed Monero (XMR), Zcash (ZEC), and Dash from its platform in January.
BitBay stopped offering Monero in 2019. OKEx Korea also delisted Monero, Dash, Zcash, and several other private cryptos in 2019 before it shut down.
What is the most private crypto now?
Many privacy coins were launched to meet crypto investors’ growing desire for anonymity. More privacy coins might launch in the future as the market for private cryptocurrencies expands. Below is the list of the most well-known privacy-focused coins.
- Monero (XMR)
- Zcash (ZEC)
- Horizen (ZEN)
- Pirate Chain (ARRR)
- Decred (DCR)
Many investors want to conceal their identity and activity and also discover the next cryptocurrency to explode. Therefore, some of these private cryptos are worth a little more mention.
About 18 million Monero tokens are in circulation and the crypto has an unlimited supply. If you invested in Monero five years ago, your returns on investment would be more than 13,000 percent at the altcoin’s current price of about $230. The best place to buy the XMR token with the U.S. dollar is Kraken. You can also purchase the crypto on Binance and Huobi using other cryptocurrencies like Bitcoin or Ethereum.
Some 12 million Zcash tokens are in circulation and the supply is capped at 21 million tokens, similar to Bitcoin. The private coin has gained more than 70 percent in 2021 and now trades at about $115. Its all-time high is $5,942, reached in 2016. Although some exchanges are banning privacy coins, you can buy Zcash on Coinbase, Binance, and Kraken with the U.S. dollar.
Pirate Chain (ARRR)
If you’re looking for the cheapest private coins to buy, you might want to consider Pirate Chain. Currently, its price is under $5. Despite its modest price, Pirate Chain has delivered incredible returns for investors. It boasts gains of nearly 9,000 percent over the past 12 months.
There are 185 million Pirate Chain coins in circulation and the maximum supply is capped at 200 million coins. The best place to buy Pirate Chain crypto with the U.S. dollar is Gaviex. You can also purchase ARRR token on KuCoin and Gate using other cryptocurrencies.
Finally, if you’re seeking the best privacy coin to buy, you need to carefully evaluate your options. Not all private coins offer the same level of anonymity. For a good investment, you need to assess the price prediction of the private coins.