How do privacy coins like Monero and Zcash work?

Privacy coins use cryptographic techniques to hide transaction details. Monero employs ring signatures, stealth addresses, and RingCT to obscure the sender, receiver, and transaction amount on the blockchain. Zcash offers optional privacy through zk-SNARKs (zero-knowledge proofs), allowing users to verify transactions without revealing addresses or amounts. Unlike Bitcoin, where all transactions are publicly visible, privacy coins mix transaction data so observers cannot trace fund flows. This makes them useful for confidentiality but has attracted regulatory scrutiny. Most exchanges have delisted privacy coins due to compliance concerns, limiting their trading accessibility.