Investing your privacy coins in March 2022

Investing your privacy coins in March 2022

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Chris
Chris

An editor at Coincrop


22 Mar 2022 | 7 min read
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C

ryptocurrencies have found popularity due to a number of benefits, including anonymity and privacy. In this guide we look at several of the most popular privacy coins and how you can earn returns.

In this guide:

Disclaimer: All of the information written on Coin Crop is without influence and based on our analysis. No guarantee is offered concerning the accuracy of this information and therefore, any individual following up on it does as such completely at their own risk. Rates are correct at time of publication.

What are privacy coins?

A privacy coin is defined as a digital asset that can be exchanged between two parties without a third party being able to determine anything about the transaction.

Whilst many individuals believe that Bitcoin has privacy properties, these are limited. The nature of the public blockchain means that anyone can see the transaction value and the addresses of the sending and receiving wallets. It is possible for a determined individual with sufficient resources to conduct chain analysis in order to reveal the individuals behind the wallet addresses.

It is the limitations of the Bitcoin in respect of privacy that led to the creation of so-called privacy coins.

Are they legal?

This is not a straight forward question. 

Given the nature of privacy coins, some exchanges refuse to support them potentially fearing attention from authorities. For instnace, Coinbase UK delisted Monero and Zcash.

Some jurisdictions such as South Korea prohibit the trading of privacy coins in order to prevent money laundering. However, just because other countries haven’t banned them doesn’t mean that they are necessarily endorsing them.

In the United States, the government has taken the approach of building tools to remove the anonymity on transactions in order to determine the parties involved.

It should not be assumed that transactions utilising privacy coins do not necessarily involve illegality – some individuals simply value their privacy.

Decred

Decred is a forked form of the Bitcoin protocol. It uses a hybrid consensus technique in order to achieve decentralisation, sustainability and self-ruling.

At the time of writing, Decred is trading at $DCR - $65.95.

The following table shows products that can be used to earn a return on your Decred assets:

OrganizationTermsRatingAPY Rate
MyContainer

Staking

Flexible

25.1%

KuCoin

Saving

Flexible

2.07%

Horizen

Horizen makes use of privacy shielded Z-Addresses and public T-Addresses in a similar way to Bitcoin. However, sending funds from one another to another does show the amount received. Horizen has a large node network in order to improve anonymity.

At the time of writing, Horizen is trading at $ZEN - $53.14.

The following table shows products that can be used to earn a return on your Horizen assets:

OrganizationTermsRatingAPY Rate
MyContainer

Staking

Flexible

8.00%

Staked

Staking

Flexible

6.88%

AAX

Saving

Fixed (30 days)

4.00%

AAX

Saving

Fixed (14 days)

3.50%

AAX

Saving

Fixed (7 days)

3.00%

Monero

Monero ($XMR) holds the reputation for being the best of the anonymous cryptocurrencies. It utilises a suite of privacy features that include stealth addresses, ring signatures and ringCT in order to ensure anonymity.

The strength of the tokens anonymity is apparent by the unusual $625k bounty that the United States Revenue Service (IRS) issued to anyone that could compromise the technology.

At the time of writing, Monero is trading at $XMR - $218.67.

The following table shows products that can be used to earn a return on your Monero assets:

OrganizationTermsRatingAPY Rate
CoinLoan

Saving

Flexible

7.20%

OKEx

Saving

Flexible

1.00%

Oasis Network

The Oasis Network is described as a layer 1 decentralised blockchain with a focus on scalability, privacy and versatility.

At the time of writing, Oasis Network is trading at $ROSE - $0.2911.

The following table shows products that can be used to earn a return on your Oasis Network assets:

OrganizationTermsRatingAPY Rate
P2P Validator

Staking

Flexible

20.0%

MyContainer

Staking

Flexible

19.0%

Chorus One

Staking

Flexible

15.0%

Everstake

Staking

Fixed (7 days)

12.0%

CoinDCX

Saving

Fixed (7 days)

6.00%

Secret

Secret Network is a blockchain that facilitates privacy-centric smart contracts. The contracts are calculated by nodes within a trued execution environment. 

At the time of writing, Secret is trading at $SCRT - $5.56.

The following table shows products that can be used to earn a return on your Secret assets:

OrganizationTermsRatingAPY Rate
Staked

Staking

Flexible

33.5%

Staky

Staking

Fixed (1 day)

32.5%

CoinDCX

Saving

Fixed (7 days)

15.0%

MyContainer

Staking

Flexible

11.4%

Zcash

Zcash dates back to 2016 as a fork of Bitcoin. It was developed by the Electric Coin Company. This coin makes use of the energy expensive proof-of-work (PoW) mechanism to confirm transactions.

Transactions can be hidden via privacy and un-traceability techniques known as shielded transactions.

At the time of writing, Zcash is trading at $ZEC - $195.13.

The following table shows products that can be used to earn a return on your Zcash assets:

OrganizationTermsRatingAPY Rate
ApeSwap

Yield Farming

Flexible

27.5%

ApeSwap

Yield Farming

Flexible

17.7%

AAX

Saving

Fixed (30 days)

4.00%

AAX

Saving

Fixed (14 days)

3.50%

AAX

Saving

Fixed (7 days)

3.00%


Chris

Chris

An editor at Coincrop
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