*obligatory not financial advice*
What is Monero?
Most people believe that Bitcoin transactions are untraceable but this is not true at all. Every Bitcoin transaction is public which means that everyone can trace how you spend your BTC if they know the address of your wallet. This is not only a problem if you plan on doing something illegal because if you would use cryptocurrencies for everyday transactions advertisers could target you better with ads and all your friends and employers could see it if you spend money on a premium membership of an adult site.
For crypto to be truly usable as a currency it requires the same level of privacy that cash offers, this is why privacy coins are a thing. Monero is what most people believe Bitcoin is because its transactions are actually untraceable.
Monero works by splitting each transaction across multiple validators and creating fake transactions so that only the sender and receiver of a transaction can know who, when and what was sent and for what for. This privacy is a default part of the network that can't be turned off, this makes it different from coins like Zcash and DASH that have optional privacy.
This level privacy is currently uncontested and no other cryptocurrency beats XMR in that regard. And this private consensus mechanism is also frequently improved further, earlier in August 2022 were was a hard fork implemented that increased the number of users that are verifying transactions while also making Monero slightly faster.
The blockchain uses a proof of work mechanism like Bitcoin does too, but it is much more ASIC resistant meaning that it is more profitable to mine XMR without special equipment which helps to keep the network more decentralized. Transactions with XMR are also relatively fast and cheap to use, so it could actually be used as a currency.
Privacy will be essential to make cryptocurrencies go mainstream because some privacy is a basic need. Monero provides this basic need.
However, there are many competing privacy coins, Zcash offers optional privacy by having both transparent and shielded addresses that everyone can use, Dash offers private sent were normal transactions get shielded in exchange for a higher network fee and Litecoin, one of the most used and know cryptocurrencies, is also getting a privacy feature. But most competing projects have only optional privacy while Monero offers privacy by default which can't be turned off.
Privacy coins will likely gain more popularity as more people start to use crypto, but they are also at the highest risk to be regulated or removed from an exchange or maybe even banned. In any case an investment in XMR would make most sense for the long run but its use-case isn't as an investment but as an actual digital currency.
You can buy Monero on the Binance and Kraken exchanges and you can store your coins in the official Monero Wallet.
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