A key goal of the cryptocurrency industry had to do with privacy. Satoshi Nakamoto and other crypto “evangelists” believe that fiat-based currencies do harm by giving government agencies too much power. Still, popular cryptocurrencies like Bitcoin have some privacy loopholes that have been breached by actors like the FBI. So, let us look at the top 3 privacy cryptocurrencies to buy.
Monero
Monero (XMR/USD) is the biggest privacy-focused cryptocurrency in the world. It has a total market capitalization of more than $4.5 billion, making it the 45th biggest cryptocurrency in the world.
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Monero uses strict encryption that makes it relatively impossible for anyone to track transactions. Indeed, the Internal Revenue Service (IRS) was deeply concerned about the coin that it paid $600k for people to crack its network.
However, Monero price has not done well in the past few months. Its price has crashed by about 55% from its highest level in 2021. Its ranking has also been in a downward trend even as the volume of Monero transactions has risen.
This sluggish performance is partly because Monero is a proof-of-work (PoW) network and that it is not a sexy cryptocurrency. Unlike many others, it rarely makes headlines.
Decred
Decred (DCR/USD) is a leading privacy-focused cryptocurrency that combines proof-of-work (PoW) and proof-of-stake (PoS) technology. Its PoW mechanism has a BLAKE-256 has an algorithm and is mined exclusively by ASIC miners. It also uses a proof-of-stake technology that ensures that blocks must be verified by 3 or more tickets.
The Decred price did well in 2021 as it jumped by about 100%. It has now declined by about 71% from its highest level in 2021. This drop has also dragged its ranking among cryptocurrencies. Still, there is a likelihood that it will bounce back in January 2022.
ZCash
ZCash (ZEC/USD) is the second-biggest privacy coin in the world after Monero. It has a combined market capitalization of more than $1.8 billion. It rose to an all-time high of $260 in 2021 and then erased most of those gains and is trading at $70.
ZCash uses a simple approach to boost security of its network. It has two transaction types, known as t and z. Z-addresses start with a z while t transactions start with a t. A Z-to Z transaction appears on the public blockchain but the addresses and memo are not visible. A t-to-t transaction happens like Bitcoin and its details are seen in the public blockchain.
Where to buy right now
To invest simply and easily, users need a low-fee broker with a track record of reliability. The following brokers are highly rated, recognised worldwide, and safe to use:
- Etoro, trusted by over 13m users worldwide. Register here >
- bitFlyer, simple, easy to use and regulated. Register here >
