Domain privacy is where the domain owner information is hide from whois check, and thus your privacy is protected. Bluehost hosting offering FREE domain privacy when you sign up hosting plan with them. When registering new account, and after enter the new domain name, checked the free domain privacy button. By this the domain privacy will be activated after your sign up.
Sometime, its good to hide the information from public. However there is exception to domain privacy. Lets take a look of what wiki said: http://en.wikipedia.org/wiki/Domain_privacy
“However, this is not true anonymity. Personal information is collected by these registrars to provide the service. To some, registrars like Domains by Proxy take little persuasion to release so-called ‘private’ information to the world, requiring only a phone request or cease and desist letter.”
Domain privacy is the maximum protection that you can get for your domain. And this is a great tools to avoid domain snatching as well. Simply as for someone to thief your domain name, it require to hack into your email for the domain. And proceed from there. If he can’t get to the domain, you are initially protected. Thats one of the reason to have the domain privacy.
Protecting your privacy! And its a free feature from bluehost hosting 
Go to Bluehost.com
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