The cryptocurrency space has gained traction as many institutional investors are flocking to buy Bitcoin. Besides Bitcoin, projects such as Ethereum and Litecoin are also in investors’ crosshairs. According to the experts at SoFi Invest:
For investment purposes, it should be noted that all of these coins are highly speculative, risky, and can require opening a digital currency exchange account to trade them. As a general rule, the smaller the market capitalization and daily trading volume, the higher the risk.
Anonymity concerns are driving investors to seek out cryptocurrencies that have additional layers of privacy.
Monero
Monero is becoming more and more popular as the years go by. By using ring signatures and stealth addresses, the privacy coin provides anonymity to its holders.
Ring signatures are digital signatures that allow any key-holding user to transact while a stealth address prohibits public association between a transaction and the recipient’s wallet.
Monero is currently the biggest privacy coin by market capitalization and has a promising future as adoption escalates.
Zcash
Zcash is vying for the title of most private cryptocurrency. In simple terms, the technology behind Zcash allows one of the parties to a transaction to prove to the other that a function is true without uncovering anything further.
Privacy functionality isn’t inherent in Zcash and needs to be explicitly set. With four levels of privacy, there are four different types of transactions users can apply.
Dash
Considering Bitcoin was created in 2008 as a result of the financial crisis, DASH arrived on the scene six years later in 2014. The primary purpose of DASH is to achieve the status of a convenient medium of exchange. As such, DASH allows users to easily switch between whether or not to maintain the anonymity of transactions.
Horizen
Horizen is a privacy coin that works similarly to Bitcoin. It has a vast node network that reinforces anonymity while boosting stability. In early 2021, Horizen is within the top 100 crypto projects by market capitalization and has surpassed the $50 valuation per coin.
Beam
For investors looking for a higher potential return, Beam is a privacy coin to consider. Beam offers complete control over your privacy features and supports offline transactions. The project is more of an outsider than other privacy coin projects and may not be adequate for the risk-averse.
Verge
For savvy internet users that are familiar with TOR browser, Verge is a cryptocurrency that uses the same security protocol for protecting user identity. Verge has experienced a significant drop in the market standings due to some questionable partnerships. However, its innovative technology makes it one of the potential winners in the race for adoption as a privacy coin.
Investing in Privacy Coins
Institutional investors and corporate giants are buying cryptos in an effort to hedge their positions in a volatile global market. The above list of privacy coins will become more relevant over the coming years as the world transitions to a new financial system and investors seek out ways to ensure the anonymity of transactions.
