Privacy Tokens: Introduction to Anonymous Tokens

Privacy Tokens: Introduction to Anonymous Tokens

Privacy tokens or coins are cryptocurrencies that provide complete anonymity. They hide the information and identity of their users. They also hide the amount of cryptocurrency that is being traded or stored in a wallet.

When talking about cryptocurrencies that provide anonymity, the first tokens that come to mind is Bitcoin or Ethereum. While they do provide some level of privacy, they are not considered privacy tokens. 

The identity of people who transact with Bitcoin and Ethereum can still be traced with the use of computer software that can link a user’s Bitcoin or Ethereum public address to their real identities. Transactions made with Bitcoin and the coins held in a wallet can also be viewed by the public. The case is not the same for the privacy tokens. 

Example of Privacy Tokens

Examples of privacy tokens are Zcash, Dash, Monero (XMR), Verge (XVG), and Beam.

  1. ZCASH (ZEC): This coin allows users to choose whether to carry out a transaction publicly or privately. Most exchanges only allow a public transaction for security reasons and some users prefer to use the public transaction option. Zcash is based on Bitcoin’s code and it does not guarantee 100% anonymity.
  2. Dash (DASH): Dash was launched in January 2014 as xcoin before it was it was rebranded to darkcoin and then finally as Dash. It uses the private send protocol to provide privacy to it’s users. It provides complete privacy and anonymity but a transaction can be traced if the sender or user does not use the private send function.
  3. MONERO (XMR): This was the first altcoin created that provided untraceable transaction. It uses cryptonote to provide it’s privacy. During any transaction, the addresses are mixed with others thereby preventing an observer from determining the real sender. The amount used in the transaction is also private.
  4. VERGE (XVG): It was created in 2014 under the name dogecoin dark. It is an open-source privacy coin with a team of international developers. It hides transactions IP addresses and location with the use of its anonymity tool TOR and its anonymous network layer I2P.
  5. BEAM: This private token is based on the Mimblewimble protocol. It gives the users complete control over their privacy allowing them to decide on what information they want to share with the party or not.

How To Buy Privacy Tokens

There are several places to buy Privacy Tokens from but we recommend using crypto exchanges since they are safe and reliable. The crypto exchange recommended is Binance since you can easily buy Privacy tokens using your local currencies. To sign up on Binance click here and begin your journey.

Disclaimer: The information in this article should not be considered financial advice, and FXCryptoNews articles are intended only to provide educational and general information. Please consult with a financial advisor before making any investment decisions.

Share this :