A subset of cryptocurrencies known as privacy coins allows for private and anonymous blockchain transactions by hiding the source and destination of the transaction. These anonymous privacy coins use are concealing the balance and address of a user's real wallet and combining multiple transactions to avoid chain analysis, to remain anonymous. Privacy coins are untraceable. Privacy coins are cryptocurrencies designed to protect the privacy of the user and their transactions. Privacy Coins There is a concern that even with their identities disguised, users can still be identified based on their activity within a blockchain. This is why some people turn to privacy coins - cryptocurrencies that provide users with a higher level of anonymity.