What are The Best Cryptocurrencies for Anonymous Transactions?

Most people believe that all cryptocurrency transactions are anonymous and no one can trace them. This idea is strengthened by the media and the establishment. They insinuate that cryptocurrencies are something that’s mostly used by criminals, even when experts assert the coin may be useless for criminal activity. But most cryptocurrency transactions are not anonymous. And that includes market leaders like Bitcoin and Ethereum. If you want to achieve total privacy then you have a few options and we will take a look at them here.

Before we begin let’s make one thing clear, this article doesn’t in any way endorse illegal behavior. There are many legitimate reasons to protect your privacy.

Here are 3 cryptocurrencies that actually can offer anonymous transactions:

Monero

With Monero you will achieve complete privacy. The transactions that take place on the blockchain are concealed. The public will never know who made the payment or who received it. The anonymity is built into the system and works by default.

Monero clearly has a utility problem. The mining algorithm is very complicated with the consequence that users face problems to safely secure their coins. I don’t know of any hardware wallet on the market with the ability to store Monero. As the situation is today you will have to store the coins on your computer.

There are rumors that Monero already is the most popular cryptocurrency in organized crime circles. Maybe they will get the same role in the underground economy as the D-mark once had?

anonymous transactions
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Image credit: Marta Branco /Pexels

Zcash

Here transactions are not private by default like they are with Monero. Instead, you have the option to choose whether or not a transaction should be private. Users can also choose to selectively disclose information about their transactions. We are talking about an optional transparency.

There are some question marks surrounding Zcash. First, we have the technological aspects. There has not been much of a peer review with cryptography experts. Another potential problem is the requirement of a so-called trusted setup. Currency users must trust the Zcash team and their ability to set up the system properly.

Dash

This cryptocurrency is known for fast transaction speed. It’s originally a fork of the Bitcoin software.

It offers a function called PrivateSend (for a small fee). This function increases privacy. But there is a risk that you can see the receiver of the coins even if you use PrivateSend. Because the whole network isn’t private and both parties must use PrivateSend to obtain complete privacy.

Limited Supply

From an investment perspective, Zcash and Dash look like the best options. There are some technological question marks regarding Zcash. If you buy this coin as an investment you must keep your eyes open to see how things develop. The supply of Zcash is limited to 21 million (like Bitcoin) while the supply of Dash is limited to 18.9 million.

From a transaction perspective, the criminals might be right. Monero is probably best for anonymous transactions. But I would not recommend Monero as an investment or an instrument to store value. Besides the storage problems, it’s worth noticing that the supply is not limited. There exists a small inflation rate in this coin.

Disclaimer: The comments, views, opinions and any forecasts of future events reflect the opinion of the quoted author or speaker, do not necessarily reflect the views of BlockTelegraph or any affiliated entities, are not guarantees of future events, returns or results and are not intended to provide financial planning or investment advice.

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Hans Norén is a staff writer for Block Telegraph. He covers cryptocurrencies mainly from an investment perspective. Norén has been an active investor in the stock market for over 25 years. He is also the author of several books and eBooks about investing.

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