Monero (XMR) is a cryptocurrency with special properties that makes it one of the most difficult to trace currencies in the world. Learn more about the history, operation and objectives of this unique technology from this guide.
Context and definition of Monero (XMR)
Among the thousands of cryptocurrencies developed during the last 10 years, Monero (XMR) is distinguished by its ability to anonymize your transactions. Indeed, this privacy-oriented currency guarantees transactions confidential and untraceable, unlike major cryptocurrencies such as Bitcoin and Ethereum for example.
What is a cryptocurrency?
A cryptocurrency, or virtual currency, is an online medium for making payments, that is, sending or receiving money digitally. Thanks to the blockchain, a cryptocurrency can be decentralized and transparent. In addition, each transaction is immutable: it cannot be refused or canceled.
What is blockchain?
Blockchain refers to all of the transactions carried out since the creation of a cryptocurrency. It is copied hundreds of thousands of times and downloaded to “nodes” (or nodes in French) around the world. Any electronic device, such as a computer or telephone, can be a node if it is connected to the Internet and has an IP address. When you make a transaction using a cryptocurrency, that transaction is recorded in the blockchain, and is also recorded locally in all nodes. This process confirms your transaction, ensuring its permanent and immutable registration in the blockchain. You can find more information on the blockchain on this page.
What is Monero?
Monero is a cryptocurrency open source (i.e. whose source code is freely accessible) developed on the concept of blockchain in order to allow private and opaque transactions for maximum confidentiality. With Monero, anyone can make a transaction, but it is impossible for someone outside to find the source, amount or destination of this transaction, which provides real anonymity to the user.
History and operation of Monero (XMR)
Monero was created in 2014 and has quickly become the most popular private cryptocurrency. It is regularly in the top 10 in terms of market capitalization in the cryptocurrency market.
The creation of Monero
Launched on April 18, 2014, Monero was first developed under the name of BitMonero, before being shortened to Monero. The name “monero” literally means “piece” in Esperanto.
What are the principles of Monero?
Why was Monero created?
Monero was developed with the aim of allowing private transactions, unlike cryptocurrencies such as Bitcoin which broadcasts all transactions on its blockchain in a public way. Monero completely hides the origin and destination of transactions, the amounts in circulation and the contents of the wallets (or digital wallets).
How is Monero used?
Like most cryptocurrencies, Monero can be used as a medium of exchange to make and receive paperless payments. By reusing the innate properties of blockchain technology, Monero allows transactions to be carried out without the necessary authorization, and are irreversible. Monero stands out for the very high level of confidentiality you enjoy.
Monero can also be reasonably mined using normal computer components and does not necessarily require the purchase of expensive systems to participate in mining. Mining consists in verifying the validity of a transaction by encrypting the information then recorded in the blockchain.
What are Monero’s goals?
By choosing Monero, you can:
- Perform completely confidential transactions;
- Participate in the mining of cryptocurrency with standard equipment.
Where and how to buy Monero?
Monero can be purchased on many cryptocurrency exchange platforms. Below is a table comparing the most popular platforms. For more details, here is a ranking of the best buying and trading platforms to help you make your choice.
Kraken allows the purchase of Monero using fiat currencies such as the euro and the dollar. To buy Monero on other platforms, you will first need to acquire one of the cryptocurrencies listed in the available pairs, Bitcoin for example, and then convert them to Monero. If you want to make a comparison of the values between these two cryptocurrencies, you can consult our page dedicated to Bitcoin, as well as that on Monero. Beware of additional costs you might pay for doing two swaps.
|Platform||Pairs available||Conversion fees||Mobile app|
|Kraken||● XMR / EUR
● XMR / USD
● XMR / XBT
|0.16% or less||No|
|Binance||● XMR / BTC
● XMR / ETH
● XMR / USDT
● XMR / BNB
|Bitfinex||● XMR / USD
● XMR / BTC
|0.1% or less||Yes|
|Gate.io||● XMR / USDT
● XMR / BTC
Whichever exchange platform you choose, it is highly advisable to then transfer your Monero to a cryptocurrency wallet so that it can be anonymized and stored securely.
Why invest in Monero?
Monero is one of the most recognized and respected cryptocurrencies on the market. It exists for a very specific purpose: to offer a maximum level of confidentiality to its users. Here are the benefits and risks of investing in this technology.
The advantages of buying Monero
Since its inception, the value of Monero has increased from $ 0.25 at its inception to $ 475 in 2017, which is the All Time High (ATH, the highest price ever reached) of this cryptocurrency at the time of writing. this article. It is therefore an investment with potentially very attractive returns.
In addition, Monero allows payments to be made anywhere in the world in a completely private manner, with minimal transaction costs.
The risks of buying Monero
Like other cryptocurrencies, investing in Monero can be risk. It is only too advisable to anticipate the risks and consequences of investment according to your specific situation.
Cryptocurrencies are currently little regulated by governments around the world, especially those that are untraceable like Monero.
Monero (XMR) is a unique cryptocurrency by the private aspect of its transactions and its mining process accessible to all. As a result, it occupies a special place and stands out from the thousands of currencies existing in this crowded market. This is also confirmed by Kraken CEO Jesse Powell in a recent interview where he believes anonymous cryptocurrencies hold some nice surprises in the future.