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What is a privacy-focused digital currency?

Anonymous or privacy-focused digital currency, also known as “privacy coins,” is a form of digital currency designed to maintain complete anonymity for its users during transactions. Thus ensuring complete confidentiality of exchanges.

Unlike traditional digital currencies such as Bitcoin and Ethereum, where transaction details remain exposed on the public ledger (blockchain), privacy coins offer advanced features that hide users' identity and transaction information.

Bitcoin is often referred to as an anonymous digital currency, but this is not entirely accurate. Every Bitcoin transaction leaves a public record on the blockchain, which may allow wallet addresses to be linked to real identities under certain circumstances. Although there are tools like mixers that help improve the anonymity of Bitcoin transactions, it is not considered a fundamentally anonymous digital currency.