The cryptocurrency market is moving forward and it is attracting a large number of traders and investors. One of the largest groups of digital currencies is privacy coins. These private-focused virtual currencies aim at providing traders and users with the necessary privacy in order for them to protect their data and financial information. In this article, we will share with you what to expect from privacy coins in 2020. The virtual currencies that we will take into account in this article include Monero (XMR), ZCash (ZEC) and Dash (DASH).
2020 started with a great push for Bitcoin and virtual currencies. Indeed, cryptocurrencies were able to end their bear market and enter a new bull trend. Bitcoin (BTC), the largest digital asset in the market surpassed $10,500 and it could continue growing in the coming months before and after its halving event. As altcoins are leveraging this new bull trend and enthusiasm in the space, privacy coins could also capitalize these gains. What does it mean? Privacy coins could also expand and work as a block compared to other virtual currencies. These digital currencies are very useful because they focus on the privacy that other digital assets do not currently offer. While Bitcoin, Ethereum (ETH) and Litecoin (LTC) can be very useful, they are not protecting users data as other cryptocurrencies.
This is the most popular and recognized privacy coin in the market. At the moment, Monero is the 14th largest virtual currency in the market and it has a valuation of $1.48 billion. In addition to it, each XMR can be purchased for $85. Monero protects users’ privacy and data by using a blockchain network that hides the main information about trades. Users’ addresses and funds moved are protected, only those involved in a transaction can see this information. For example, companies such as Chainalysis would not be able to run a detailed analysis of the network. This is due to the fact that Monero hides all the information used by users. In this way, there is no data regarding who is transacting, from which wallet, where and how much funds they are moving. At the same time, Monero is a recognized digital asset that has been in the market for a long period of time and it has a large number of developers behind it.
Zcash - also known as ZEC - is also one of the most popular digital assets in the market that can be used to protect privacy. This cryptocurrency is not as private as Monero but it is certainly very useful for users to handle their funds in a more private way. At the time of writing this article, Zcash is the 26th largest virtual currency with a market capitalization of $582.12 million and a price per coin of almost $65. The technology used by ZCash is known as zk-SNARKs and it allows users to perform transactions without having to show their private and sensible information. Indeed, the blockchain can entirely run without disclosing the parties or amounts involved in these transactions. By using zk-SNARKs it is possible to prove that a transaction is correct and that the information is accurate without having to show it to all the parties in the network as Bitcoin and other virtual currencies do. This virtual currency was launched back in 2016 by Zooko Wilcox. Moreover, it has a team of developers working so as to make this virtual currency better every single day.
Dash is also one of the most popular privacy-focused coins in the market. This cryptocurrency is going to be very useful not only for privacy but also to process fast transactions. Indeed, it offers users two main features:
These two features help users send fast (immediate) transactions and protect their privacy as well. This is why this is considered to be a useful privacy coin in the space. At the time of writing this article, DASH is the 19th largest cryptocurrency in the market and it has a market capitalization of $1.07 billion. Each Dash can be acquired for $114.54.
In this article, we aimed at sharing with you which are the most popular privacy coins in the market and how they could start growing in the future. It is always recommended to have a diversified portfolio and never invest more than what you are able to lose.
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