Privacy coins are a small category of cryptocurrencies that allow for anonymous transactions by obfuscating their origin and destination. Methods that are used to create privacy and anonymity are hiding a user's real wallet balance, mixing multiple transactions and even delayed sending to elude chain analysis.
Privacy coins make up a small percentage of the cryptocurrency market. The majority of cryptocurrencies that exist are not privacy coins and are often referred to as surveillance coins.
Most people are not aware the majority of cryptocurrencies are not private. The majority of cryptocurrencies in existence (99%) use an open ledger for their transactions, which reveal the sender address, receiver address and transaction amount, hence the majority of cryptocurrencies are not private.
Why Use Privacy Coins?
The simple answer as to why you should include privacy coins in your portfolio is that you wish to keep your cryptocurrency transactions private. It should be assumed that all non-privacy cryptocurrency transactions are public and the best method to ensure the privacy of your transactions is through the use of a privacy cryptocurrency.
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What are the Best Privacy Coins?
If you are an investor interested in your privacy or the privacy of your cryptocurrency transactions, you should own at least a few privacy coins in your portfolio.
Here is our choice of the top Privacy coins:
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Are Privacy Coins Legal?
The legality of cryptocurrency is largely dependent on the jurisdiction. The question of where privacy coins are legal depends largely on where you live in the world. It's important to note, that increasingly governmental bodies have been increasingly going after privacy coins for the simple reason that they can not be tracked.
There are global regulators such as the Financial Action Task Force (FATF) which have the ability to implement new rules and regulations around the use of cryptocurrencies and privacy coins.
Conclusion
Privacy has always been a central theme in the creation and utilization of cryptocurrencies and as an investor, it's often suggested that a small portion of your portfolio includes a few privacy coins.