Monero Cryptocurrency: The Ultimate Beginners Guide

Cryptocurrency is the new form of making money in this era. If you are interested in the new form of cryptocurrency, the Monero cryptocurrency, then you have come to the right place. This is the ultimate beginner’s guide for Monero cryptocurrency.

What is Monero cryptocurrency? How does it work? How does it compare to Bitcoin? How to buy Monero? If these are the questions in your mind, then search no further. Find out all that you want to about the Monero cryptocurrency here.

What is Monero Cryptocurrency? How does it work?

While a lot of cryptocurrencies have launched in the recent years, Monero has gained a special kind of place in the minds of investors all around because it offers excellent privacy features. Monero keeps the privacy feature strictly implicit and has achieved a high level of acceptance and popularity because its features are privacy oriented.

Monero was launched in 2014 as an open source, privacy-oriented cryptocurrency. Like other cryptocurrencies, it also works on the blockchain concept, the underlying technology for cryptocurrencies.

Monero was designed specifically to be opaque, meaning that the identity of the recipients and senders, as well as the amount of every transaction, is anonymous.

The concept of mining the Monero cryptocurrency is egalitarian meaning that everyone gets equal opportunities.

The developers of the cryptocurrency did not keep any stake for themselves hence all people interested in mining the cryptocurrency can have a try at it. A standard computer can be used for mining the cryptocurrency.

Monero improves privacy by using the concept of stealth addresses and ring signatures. The Ring signature allows a sending participant to conceal his identity form all the other participants in the group. These Ring signatures are anonymous digital signatures that help to maintain privacy.

Another way to ensure additional privacy is Stealth addresses. These are randomly generated addresses and are created for each transaction. This conceals the actual destination address of the transaction.

All in all, Monero cryptocurrency is a safe, private means of cryptocurrency that differs from Bitcoin regarding privacy.

What to Know Before Trading Monero?

While a lot of cryptocurrencies have had their ways of dealing with privacy issues, Monero has topped the list. While Bitcoin was expected to have high-class privacy requirements, it was known that law enforcement agencies could easily track the bitcoin transactions using blockchain analytics.

By contrast, Monero is private by default and has achieved a widespread status for being anonymous. Apart from privacy features, Monero also offers the feature of fungibility.

It means that each individual unit of a currency can be substituted for another. That means that each coin has equal value. Due to the untraceable nature of Monero, no two coins are distinguishable from one another. This is one thing to know before trading Monero.

The market of Monero cryptocurrency also operates like many other cryptocurrencies. It can be purchased through exchanges like Kraken, Bitfinex, and Poloniex. Like other cryptocurrencies, Monero offers the interested parties to mine blocks. People can join mining pools and also choose to mine the cryptocurrency by themselves.

Monero uses a proof of work (PoW) algorithm that was designed to be accessible by a wide range of processors. This ensures that mining is open to many parties instead of large mining pools only.

Since its inception, the cryptocurrency has increased from $0.25 to $60 from 2015. It saw a 70% increase in the past month while it has climbed up to 1300% market value since it began trading.

Development Original author


Nicolas van Saberhagen


Initial release


18 April 2014


Latest release


25 October 2017


Operating System


Windows, Linux, macOS, ARM, BSD


Symbol


ɱ


Ticker symbol


XMR


Issuance


Decentralized, block reward


Block time


2 minutes


Market cap


US $5 billion +


Check also: What is IOTA, How to buy IOTA?

Monero vs. Bitcoin

Image Credit: Cryptopost.

Monero is a cryptocurrency just like Bitcoin. However, unlike Bitcoin, Monero does not have a finite supply. Unlike Bitcoin, Monero is untraceable and focuses on the privacy aspects. Monero does not use any logs or servers to store transactional history. However, Bitcoin has a transaction ledger which is publicly accessible.

The use of Monero also solves problems of constant supply, scalability, and anonymity. Monero is also end-end anonymous, unlike Bitcoin. It offers a feature like unlinkability, traceability and, transactional privacy. Due to encryption, Monero coins cannot to traced back to blockchain due to encryption. It is both fungible and decentralized.

Check also: What is Bitcoin Cash? How is it Different From Bitcoin?

How to Buy Monero Cryptocurrency?

Step 1: Find an exchange

There are some exchanges that sell the Monero cryptocurrency. You can choose to buy or sell monero using Local Monero, a marketplace that allows you to find a wide variety of payment options.

Another exchange worth considering is Kraken, which allows you to purchase Monero directly after going through the exchange verification process. Another way to buy Monero is first to obtain Bitcoin and then exchange Bitcoin for Monero.

You can buy Bitcoin using exchanges like Coinbase, Coinmama and then finally use Changelly to exchange Bitcoins with Monero. European customers can use BitPanda or Cex.io to buy Bitcoins and then use Changelly to trade Bitcoins for Monero.

If you do not want to use Changelly, then you can use the exchanges like Bittrex, Bithumb, Bitfinex, Poloniex, Kraken or HitBTC.

Step 2: Get a Monero Wallet

If you don’t already have one, then you should obtain a Monero wallet. It is recommended that you download the official desktop wallet from Monero devs. However, if you are not much concerned about the level of privacy, then the My Monero web wallet is a convenient alternative.

For recovery purposes, make sure that you make a secure backup of your wallet’s seed. Note down the payment ID associated with the receiving address of your Monero.

Check also: The 10 Best Ethereum Wallets

Step 3: Buy Monero

After buying Monero from the selected exchange, make sure that you move it to your wallet. Do not leave the coins in exchange as they won’t be under your control if you do so.

All in all, buying Monero seems to be a useful and legitimate option and is undoubtedly set to stay around for about four to five years to come.

You know!  How to Buy Bitcoin?

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