What are privacy coins?

Privacy coins are a type of cryptocurrency designed to provide enhanced privacy features, ensuring that the details of transactions are hidden from public view. Unlike Bitcoin or Ethereum, where transaction data is visible on the blockchain, privacy coins use various cryptographic techniques to obfuscate transaction details such as sender, receiver, and amount. Examples of privacy coins include Monero (XMR), Zcash (ZEC), and Dash (DASH). These coins are used by individuals seeking more anonymity in their financial transactions, although they have faced scrutiny from regulators concerned about their use in illicit activities.