Privacy coins represent a category of cryptocurrencies that prioritize user privacy through sophisticated methods such as stealth addresses, ring signatures, and zero-knowledge proofs. Unlike Bitcoin, which is pseudo-anonymous but can ultimately link transactions to real-world identities through address clustering and blockchain analysis, privacy coins obscure transaction details (such as sender and receiver information) and amounts to provide a higher level of anonymity. Some notable privacy coins include Monero, Zcash, and Dash.