Bitcoin is usually the first cryptocurrency that comes to mind when we think of cryptocurrencies.
It was one of the first of its kind, allowing users to make payments with their currencies via peer-to-peer technology.
However, there is another cryptocurrency that has grown in popularity and acceptability, owing to its privacy-focused features. Monero is the name of this cryptocurrency.
This article explains the key features, challenges, and ways to buy Monero (XMR).
- 1 What is Monero (XMR)?
- 2 Why buy Monero?
- 3 Pros and Cons of Monero (XMR)
- 4 How to Buy Monero
- 5 Where to Store Monero (XMR)
- 6 How to mine Monero (XMR)
- 7 Frequently Asked Questions (F.A.Q.)
- 8 Final words
What is Monero (XMR)?
Monero (XMR) is a privacy-focused open-source cryptocurrency that was introduced in 2014.
It is based on the concept and runs on it.
These blockchains, which are the foundation of digital currencies, are public ledgers of participants’ activity that display all of the network’s transactions.
Monero’s blockchain has been designed to be as anonymous as possible.
By hiding the addresses used by participants, it makes transaction details such as the identity of senders and recipients, as well as the amount of each transaction, anonymous.
Monero’s mining technique is based on an egalitarian principle, in addition to anonymity. This is the idea that everyone is equal and deserves the same opportunity.
When Monero was first released, its creators did not keep any of the virtual money for themselves, instead relying on contributions and community support to help the virtual currency grow.
Why buy Monero?
Monero is one of the world’s fastest-growing cryptocurrencies.
It is extremely secure, and it has managed to keep the privacy of its coins and their owners.
This currency makes use of cutting-edge technology that makes it difficult to track any of its transactions.
To protect the privacy of its owners, all Monero coins are equal and can be swapped. This is referred to as fungibility.
You can also make larger transactions with Monero. It does not have the block size constraint that other currencies do.
In comparison to other cryptocurrencies such as Bitcoin, it lacks this limitation, allowing it to process numerous transactions in a single second.
Monero will be used to play fascinating games like slots in the next few years. Perhaps bonuses will be offered in these circumstances, making gaming more exciting.
Another reason to invest in Monero is that it is growing rapidly.
Since its beginning, the number of people who support it has grown.
This is because it has demonstrated an undeniable capacity to keep its customers’ financial information secret.
People hide their financial information for a variety of reasons, which must be respected. Monero makes it a lot easier for them to do so.
However, there is an unproven claim that Monero currency is linked to illegal money, such as money used in drug trafficking.
Some have claimed that this is a money-laundering operation or a get-rich-quick scheme.
It’s basically a cryptocurrency that protects its users’ privacy. It is up to people to choose how they will spend their money.
Monero is a great long-term investment since more people are requesting that their money be kept private.
It has continued to demonstrate that it can protect its clients’ privacy far better than other currencies.
It can also prevent its worth from being revealed, making it very hard for anyone to track the amount of currency involved.
Pros and Cons of Monero (XMR)
Image credits: moerycompany
Compared to first-generation cryptocurrencies, Monero has a number of advantages and disadvantages. I’ll go through them in-depth shortly.
- Privacy – Monero uses a unique cryptography system that lets financial transactions be kept hidden from everyone, unlike bitcoin and Ethereum, which reveal transaction history to anybody who is interested. Because the Monero blockchain does not contain the signatures of past coin owners, it is impossible to censor or successfully roll back a Monero transaction in the event of a fork. Others cannot check a wallet address’ transaction history even if they know the address.
- Superior mining technology – Mining is a cryptocurrency phrase that refers to the process of confirming a transaction and keeping records. It’s the equivalent of authorizing and tracking every transaction. Monero protects this information with CryptoNight Proof of Work, an unbreakable encryption technology (PoW).
- Scaling – Monero blocks are made every 2 minutes, whereas bitcoin blocks are created every 10 minutes. Bitcoin blocks have a maximum size, and given how many transactions are completed every 10 minutes, not all of them will fit into the next block. This results in both delayed and failed payments. To accept transactions in the first available block, the Bitcoin Network requires higher transaction fees. Monero is unique in that it features an adaptive block size, which implies that no matter how many transactions occur in those two minutes, a recent transaction will always be included in the following block. The transaction time is quick, and paying additional transaction fees will not speed up the process.
To discuss the negatives, you need to be aware that it is not a common currency and that it may be difficult to use. There aren’t many wallets available for Monero. Monero is not supported by any hardware wallets or multi-crypto solutions such as Jaxx.
Despite the fact that Monero is immune to ASICs, there is still a high degree of centralization among miners. Only three networks control roughly 43 percent of the mining power.
Monero is far more difficult to store in a secure way than most other cryptocurrencies. This could explain why it hasn’t caught on with the general public.
Because Monero isn’t based on Bitcoin, developing applications that interface with its blockchain is more difficult.
How to Buy Monero
The cryptocurrency exchange Binance, as is typically the case, is the best location to purchase XMR Monero. BTC, USDT, BNB, and ETH are the four Monero trading pairings available on Binance.
Binance does not currently offer a direct fiat currency trading pair, such as XMR/USD.
As a result, you’ll need to first obtain some Bitcoin or Ethereum. After that, you can send it to Binance and use it to purchase Monero with it.
While there are some drawbacks to using this method to buy Monero, such as trading fees, the XMR/BTC and XMR/USDT trading pairs on Binance are quite liquid. Because there is a lot of volumes, you will be able to execute your trades at the price you wish.
Purchasing Monero with US Dollar
There is a cryptocurrency exchange that offers a direct USD/XMR trading pair if you wish to buy Monero directly.
Kraken, a San Francisco-based company, is in charge of this exchange.
Kraken is a reliable exchange with a long history of reliability, available to everyone in the United States except those who live in New York.
They provide users the option of funding their accounts with dollars by wire or bank transfer. While it’s convenient to utilize dollars instead of Bitcoin, some users have complained about the low trade volume on Kraken.
For example, the XMR/USD pair on Kraken was trading at only 1/20th of the volume of the XMR/BTC pair on Binance at the time of writing.
This isn’t a big deal for modest orders of a few hundred dollars. Larger orders, on the other hand, are more likely to be delayed.
Using a Credit Card to Purchase XMR
The safest and simplest way to buy Monero using a credit card is to first purchase Bitcoin and then trade it for Monero.
International cryptocurrency traders can sign up for Binance and purchase Bitcoin using a credit card.
Binance is a wonderful alternative because it is a trustworthy exchange with a simple user interface.
How to Buy Monero With a Credit Card in the US
Regulators prevent Americans from purchasing Bitcoin on Binance.
Instead, residents of the United States can use CEX.io to purchase Bitcoin with a credit card.
CEX is a cryptocurrency exchange based in the United Kingdom that has been functioning since 2013.
They have a solid security record and are one of the most dependable exchanges on the market.
While CEX has received numerous inquiries on how to purchase Monero, they have not yet opened up XMR trading.
However, they do allow consumers to buy Bitcoin with a credit card.
After purchasing Bitcoin on CEX, transfer it to your Binance Bitcoin wallet and swap it for Monero.
There is a third alternative if none of the above options appeal to you.
The third option is a fantastic solution for traders and investors who want to buy Monero but don’t want to sign up for an exchange.
How to Purchase Monero in Local Area
Monero is sometimes mislabeled as a cryptocurrency for criminals, while its true purpose is to serve as digital cash. A $10 bill has the advantages of being fungible, having no history (as described in the introduction), and being untraceable.
When you buy Monero on an exchange, it remains untraceable; nevertheless, there will always be a record that you purchased Monero, as well as a record of the Monero address to which you delivered it.
Some people may not care, but those who wish to keep their privacy intact can acquire Monero locally. There are a number of options for doing so.
LocalMonero is the most popular way to buy Monero in your area. This is a website that has been around for a long time and has a strong following among both buyers and sellers.
The fact that users can buy Monero in a variety of ways is one of the reasons why LocalMonero is so popular.
- Face-to-face meeting: In person, meet the seller and hand over cash in exchange for Monero. Before you let the seller go away, double-check that you can see the Monero in your wallet.
- Send money through the mail: It may sound unsafe, and it isn’t for everyone, but you can send cash to the seller using the USPS mail system. The seller will deliver the Monero to your wallet as soon as they receive the money. Only transact with reliable dealers if you’re intending to use this payment option.
- Western Union / MoneyGram / PayPal: Aside from cash, there are a variety of online payment options that can be used to obtain Monero. While these options are more convenient than meeting a merchant in person or sending cash over the mail, they are less anonymous.
Where to Store Monero (XMR)
Finding out how to buy Monero is only one part of the puzzle. After you’ve purchased it, you’ll need to store Monero in a secure location to prevent it from being stolen or otherwise compromised.
Monero is a little more difficult to keep securely due to its privacy characteristics than other coins like Bitcoin or Ripple, therefore it’s worth taking the time to learn about good security precautions.
- Don’t brag about your cryptocurrency holdings: Even the best cryptographic protection won’t be able to stop the $5 wrench attack. For better or worse, cryptocurrency is sometimes linked with riches, and those who hear you’re invested might assume you’re a potential robbery target.
- Store it on a Ledger: Despite the fact that the Trezor hardware wallet supports Monero XMR, the interface is not very user-friendly. That’s why storing Monero on a Ledger hardware wallet is a better idea. The wallet address is embedded right into the wallet UI for the Ledger, making integration a breeze.
If you are interested in reading more about hardware wallets then check out our detailed article.
How to mine Monero (XMR)
There are 17,997,800.93 XMR in circulation at the time of writing. This figure will continue to rise until 18.4 million Monero coins are in circulation.
So, how do new Monero currencies come into being?
The answer is straightforward: Monero mining!
Miners for Monero are responsible for two crucial tasks:
- Assume you deliver $10 to Ava by bank transfer in the previous scenario. In this case, it is the bank’s responsibility to ensure that you have the funds to make the $10 payment to Ava. When the bank confirms the transaction, they keep a record of it so that it can be referenced later.
Now, who would validate and record the $10 transaction if you sent it to Ava using Monero? Monero miners are the answer! Banks will no longer be required to confirm transactions as a result of this.
- What’s in it for the miners is a frequently asked question. Each time they validate a transaction on the Monero network, they are rewarded with XMR coins. They have rewarded with fresh new Monero coins every time they use their capabilities to confirm a group of transactions (called a block).
The Benefits of Mining Monero
Verifying (mining) 1 transaction block now pays roughly 4.99 XMR + a transaction fee of 0.06573 XMR.
So, after all, 18.4 million Monero coins have been mined, what happens to the miner’s reward?
The good news is that after the process reaches 18.4 million XMR coins, fresh coins are added at a rate of 0.3 XMR each minute.
These additional currencies will be used to reward miners and keep them interested in continuing to mine.
Do you know how long one Monero coin takes to mine?
Every two minutes, a Monero block is mined, and the current payout for mining transaction blocks is 4.99 XMR. So, using simple math, we can calculate that one XMR is mined every 24 seconds.
How to Mine Monero
You do not need to buy any special hardware to mine XMR.
Monero can be mined by anyone with a computer. As a result, the more powerful the equipment is, the better.
There are various methods for mining Monero, but first, you must understand what a Monero mining pool is.
You must first pick whether you will mine Monero on your own or will join a Monero mining pool before you begin mining.
A mining pool is formed when a group of Monero miners joins together to pool their computing resources.
This increases their chances of successfully confirming transactions (yeah, the market is very competitive!).
The prize they obtain from mining is also shared among the mining pool members. Most mining pools will charge you a pool fee, which is usually between 0 and 2%.
For novices, solo mining (mining by yourself) is not advised.
Unless you’re willing to invest a lot of money in mining hardware, solo mining will not provide any results.
Ways to Mine Monero
The most crucial aspect of mining is having the appropriate Monero mining hardware.
You’ll also need Monero mining software to join a Monero mining pool, in addition to the hardware.
Mining Monero does not require specific Devices, as I previously stated.
It can be accomplished with either a CPU or a GPU.
But first, you must understand the two most critical criteria to consider when choosing your hardware.
Look for the following:
- High hash rate – You can think of mining power as the hardware’s processing capability.
- Low electricity use – The most expensive aspect of mining is electricity.
You have the option of using your present CPU or purchasing a new one.
If you’re looking for a new CPU, AMD Opteron and Intel Xeon are two options.
After you’ve chosen your CPU, you’ll need to download Monero mining software. You might try XMR-STAK-CPU, which is one of the most popular Monero mining programs.
Using a GPU is a preferable alternative if you are serious about Monero mining.
Despite the higher initial investment, it provides a much higher hash rate.
XMR-STAK-AMD is also the finest Monero mining program for GPU hardware.
Frequently Asked Questions (F.A.Q.)
Is it illegal to buy Monero?
Monero isn’t a prohibited cryptocurrency.
It is a privacy-oriented cryptocurrency that gives users anonymity, unlike others. This means it can’t be tracked.
This feature, on the other hand, makes it particularly popular on the darknet and for use in certain activities like gambling and drug sales.
Is Monero 100% Anonymous?
Unlike competitors that are only partially transparent, Monero is the only cryptocurrency that is anonymous by default.
Every transaction’s sender, receiver, and amount are disguised thanks to the usage of three key technologies: Stealth Addresses, Ring Signatures, and RingCT.
Monero cannot be traced since every transaction is private. As a result, it is truly fungible money.
Merchants and people who accept Monero do not have to worry about their currency being blocked or corrupted.
How is Monero different from Bitcoin?
The main distinction between Bitcoin and Monero is that Bitcoin is pseudonymous, whereas Monero is completely private.
Monero has used a variety of techniques to achieve complete privacy, including the anonymity of senders and recipients, as well as transaction quantities.
Fungibility is another important aspect of Monero, which means that any unit of the XMR coin is identical to any other XMR token.
Is Monero mining worth it?
Monero mining is seen as a profitable operation in most situations.
While there are certain disadvantages and cons, you will most likely earn profits because of the high demand for privacy, tokens, and gear.
To summarize, in the vast majority of circumstances, it is preferable to buy Monero on a cryptocurrency exchange and invest in it that way.
Many people are interested in investing in cryptocurrencies. However, Bitcoin’s popularity—and price—could be a turnoff.
However, there are a variety of other virtual currencies that you can buy and trade that may be easier to invest in, including Monero.
I hope you learned a lot more about the most popular cryptocurrency with a privacy focus. I made an effort to keep the technical details to a minimum.
Hope you enjoyed and learned something from this Monero guide!
Monero has the potential to be a very effective tool of resistance as well as a convenient way of payment for a variety of goods and services.
In fact, if you want to send money with Monero, you’ll almost certainly need to own some of the cryptocurrency first!
What are your thoughts on Monero now that you’ve learned so much about cryptocurrency? Is this a notion with a future, or will governments all across the world try to criminalize it?
I’d love to hear your thoughts on the subject in the comments below!