March 7, 2023
6 min read
You have probably heard about the Monero coin and its contributions to the cryptocurrency industry and the global financial system at large. But if you haven’t, and have been looking for a privacy coin, which will allow you to carry out digital transactions with full anonymity, look no further because Monero is the answer.
Throughout this complete guide to Monero, we will be walking you through every aspect of Monero, including its features, advantages, history, and even how to make anonymous transactions with it.
Before we do that, let’s begin with…
WHAT IS MONERO?
Monero (XMR) is simply an efficient cryptocurrency developed on the Blockchain technology, to be open-source, allowing anyone to use it, created to achieve privacy while performing digital assets transactions.
This unique digital currency guarantees the privacy, anonymity, and security of cryptocurrency transactions with ease.
Monero is a leading privacy-centric cryptocurrency
based on the Cryptonote protocol. As of November 2017, it is one of the most popular cryptocurrencies at a market capitalization of USD 1.5B. While Bitcoin, the first and currently largest cryptocurrency, explicitly identifies which coin in the transaction graph is being spent, Cryptonote allows users to obscure the transaction graph by including chaff transaction inputs called
“mixins.” As a result, Monero has attracted users’ attention requiring privacy that is superior to those Bitcoin provides.
BRIEF HISTORY OF MONERO
Monero is a cryptocurrency that originated from a cryptocurrency called Bytecoin, which was first released in 2012, using the CryptoNote technology as its underlying technology.
With the help of this technology, the full privacy of transactions carried out with the Bytecoin and any other CryptoNote based coin is guaranteed since it combines different keys while processing a transaction so that it will be impossible to track the origin of a transaction.
Due to some challenges with the supply of the Bytecoin, a team of 7 developers consisting of Riccardo Spagni and David Latapie and five others, who are well experienced in the digital assets industry, resolved to the creation of an even better digital currency. Bitmonero, popularly called Monero, a word that means coin in Esperanto, was created by forking the Bytecoin Blockchain.
XMR TECHNOLOGY AND ADVANTAGES
Monero has great features embedded in it, which makes it superior to many similar cryptocurrencies out there.
The idea behind Monero is simple: You and I should be able to give money to causes we believe in without anyone else knowing what causes we choose to support. We should be able to buy and sell things online without anyone else in the world knowing what we bought, who we bought it from, or that we even spent our money on.
In other words, we should have complete online payment privacy. And Monero aims to provide it.
Monero has five key features that make it the most secure and private cryptocurrency currently available, And they are as follow;
Stealth Address: The stealth address feature is a massive upgrade over bitcoin’s privacy. Here’s the best way to think of it. With bitcoin, you reveal your real “home address” to send and receive bitcoin. With Monero, you use the equivalent of a “post office box” as your address to send and receive Monero. By using a virtual P.O. box instead of your actual address, your transactions cannot be linked back to you.
Ring Signatures: A ring signature is a way to make sure a transaction can’t be tied back to a specific individual. Think about this example…Imagine a million $100 notes with a thousand fingerprints on each note. It would be impossible to tie the note to a single person. As you transact through the network, it mixes the public information of hundreds of transactions. (Your money is still yours. It’s never commingled with anyone else’s.) A $100 bill with 100 sets of fingerprints on it, and yours is one of those sets. There’s no way anyone can tie that $100 bill back to you. That’s how ring signatures work. With each transaction, digital fingerprints (called signatures) are attached to the transaction… effectively making it impossible for anyone to conclusively prove that the transaction came from you.
Public-View Key: The public-view key feature is what separates Monero from any other privacy solution. You can share your public-view key so other people can see your transactions. Here’s why this is a powerful feature. A common knock against bitcoin is that it’s too open. Banks and brokers like the low costs of using a blockchain but are concerned by how easy it is to track transactions. They fear competitors might use that knowledge to poach clients. At the same time, regulators support banks adopting the blockchain because it makes auditing them easier. Monero’s public-view key feature solves this problem. It gives banks total transactional secrecy plus complete openness with the regulators via the public-view key. With the public-view key, regulators can view all of the transactions.
Limited Supply: Unlike traditional currency, Monero will have a set coin supply and programmed inflation rate. This ensures that the value of Monero cannot be diluted by endless money creation. Over the next eight years, the supply of mined coins will be 18.4 million coins. (As of this writing, 14,546,692 coins have been mined.) After eight years, Monero will adopt a 0.86% annual inflation rate. This ensures a steady supply of coins to compensate miners for maintaining the Monero network.
Built-in Scalability: Another big knock against bitcoin is that it limits each block’s size in the blockchain to just 1 megabyte. As bitcoin has grown, the block sizes have stayed the same. This has caused the bitcoin network to slow down. It just can’t handle a lot of transactions at once. For instance, the Visa payment network can handle up to 56,000 transactions per second. By comparison, bitcoin can only handle seven per second.
Monero has no such preprogrammed limit. It’s designed with a “look-back” window. That means the network reviews the initial transactions and automatically adjusts the blocks’ size to account for transaction volume.
That makes Monero scalable. And that means as more people use Monero, it will be able to overgrow.
How to Mine Monero
Monero runs on all leading O.S. platforms, including Windows, macOS, Linux, Android, and FreeBSD. The currency supports a mining process where individuals get rewarded for their activities by joining mining pools or mine coins individually.
Monero mining can be performed on a standard computer and does not need any specific hardware, such as the application-specific integrated circuits (ASICs). An ASIC is a costly form of hardware that is commonly used to mine cryptocurrencies like Bitcoin. Instead, you can use the CPU or GPU of your computer to mine the currency. A full list of hardware that can be used is available on the Monero website;https://mymonero.com. Users can also install certain software, which may cost a developer fee.
According to the company’s website, Monero relies on proof-of-work mining. This is an algorithm that provides security to certain cryptocurrencies like Monero. This system prevents double-spending problems, which can skew the supply, showing there’s much more than actually available.
Purchasing the currency is as easy as going on an exchange or looking for a seller who’s willing to unload their supply. You can also buy Monero through an automated teller machine (ATM) that is enabled for cryptocurrencies.
You don’t need any special hardware to mine Monero. The currency runs on all major operating systems, including Windows, macOS, Linux, Android, and FreeBSD.
DISADVANTAGES OF MONERO
Despite the many advantages of Monero, it is also plagued by a few disadvantages, some of which are:
PERSPECTIVES AND TAKEAWAYS
Monero was created to be more than a regular cryptocurrency. Rather, it was designed to help solve the problem that different users face while carrying out financial transactions.
As a privacy coin, Monero is the cryptocurrency of the future. It helps ensure that anonymity is maintained during transactions, eliminating the privacy challenges in the cryptocurrency industry and beyond.
It doesn’t just make digital transactions seamless but also makes them fully secured and private, which is exactly what many people are looking for in the crypto space.
Monero is the best of its kind and is functioning effectively, releasing great benefits to its users.
Is Monero Illegal?
Monero is not an illegal cryptocurrency. Unlike others, it is a privacy-oriented cryptocurrency that provides users with anonymity. This means it is not traceable. However, this characteristic makes it very popular on the darknet and for use with certain activities such as gambling and the sale of drugs.
Is Monero a Good Investment?
If you’re interested in cryptocurrencies, Monero may be a good investment. The currency price jumped more than 137% between Jan. 15, 2020, and Jan. 15, 2021. Additionally, it doesn’t cost much to start, as you don’t need any special hardware. You can use the CPU of your computer to mine it, and Monero works with all major operating systems. This will save you a lot of money in fees.
Where Can I Buy Monero?
You can purchase Monero through a digital or virtual currency exchange. Or you can search for an individual seller or an ATM enabled for cryptocurrencies.
How Long Does It Take to Mine One Monero?
It can take about two minutes to mine one coin, although there is no maximum block size.1
Can XMR Be Traced?
Monero, or XMR, is untraceable. Unlike other coins, such as Bitcoin, Monero has a non-traceable transaction history. This characteristic offers participants a much safer network where they don’t run the risk of having their held units be refused or blacklisted by others.
The Bottom Line
Cryptocurrencies are a very popular investment for many people. But the popularity and price of Bitcoin may be a turnoff. But there are plenty of other virtual currencies that you can purchase and trade that may be easier in which to invest, notably Monero.
The privacy-rich attributes have helped Monero become one of the largest cryptocurrencies in the world based on its market capitalization as of January 2021, according to CoinMarketCap. Investors can trade in Monero on leading cryptocurrency exchanges like Kraken, Poloniex, and Bitfinex. However, it’s important to remember that what makes Monero so popular—namely, its privacy features—can also lead to some major challenges, such as its use in illegal activities.
Investing in cryptocurrencies and other Initial Coin Offerings (“ICOs”) is highly risky and speculative. This article is not a recommendation by the writer to invest in cryptocurrencies or other ICOs. Since each individual’s situation is unique, a qualified professional should always be consulted before making any financial decisions.
HOW TO STORE MONERO
Features of the best Monero Wallet are as follow;
First and foremost, your wallet should support Monero coins.
a.) The user interface should be simple for users to use and should have all the essential features.
b.) Privacy feature of the wallet so that the user’s identity is safe and secure.
c.) Security features of the wallet should be up-to-date with the latest available in the market. Also, look for the backup feature so that you can recover your wallet if lost.
d.) Good customer support.
The wallet should be backed by an expert development team so that there is always scope for future enhancement of the wallet.
e.) Look for the latest customer reviews of the wallet
The best wallet to be used when storing Monero is the Atomic Wallet, as it has all the features above.
Atomic Wallet is a new multi-asset, a non-custodial solution with an actively growing user base and one of the best Monero wallets. Atomic Wallet already supports 300+ top coins and tokens that can be managed in an intuitive, user-friendly interface.
Atomic Wallet is available for all major OS: Windows, Mac, and Linux. Mobile apps for Android and IOS
Apart from the intuitive U.I., Atomic Wallet has offered a wide range of features, such as decentralized storage for private keys, a built-in option to buy crypto with a bank card, Atomic Swaps, instant exchange via Changelly or Shapeshift, and an interface for custom tokens. What makes Atomic Wallet so unique is Atomic Swaps’ support, a relatively new decentralized exchange technology based on hash timelock contracts.
The storage of Monero has become easier and better, as we will go through the necessary steps.
The first step is to head to Atomic Wallet and then click on “Download”, on your Android or IOS devices, respectively. Proceed to create an account.
Then go through the details on the security of your login details.
Correctly write your private login key and then re-enter it into the provided space, and then you have successfully created a wallet.
To send your XMR into the wallet, copy the address at the top of the account screen.
Head to the exchange or wallet you send the XMR from, and navigate to the withdrawal section.
Paste the earlier copied address in the withdrawal space
Enter the amount you wish to send and then carry out the necessary confirmations.
Congratulations, you have successfully sent out XMR, which will safely arrive in this wallet.
MONERO PRICE PREDICTION 2025
Monero is estimated to reach around 1,397 USD by 2025. 2021 and 2022 might be seen as the rising year in the world of cryptos, where they might experience a rise like never before. It is expected that by 2023, Monero might make it to the $900 mark.
While other cryptocurrencies in circulation are pseudonymous, Monero is an anonymous cryptocurrency, which has gained prominence in recent times. With teeming crypto users looking for anonymous cryptocurrencies in the nearest future to perform their transactions, industry experts recommend that investors should invest in Monero at the current price in other to get huge returns in the nearest future.
Monero is what the world needs to thrive in the cryptocurrency industry due to its unique features and advantages over other cryptocurrencies.
Once utilized, it could be very efficient in carrying out cryptocurrency transactions with great security and privacy.
For more information about Monero, navigate to http://getmonero.org/.
Head to https://twitter.com/monero to be on top of the recent happenings on Monero via Twitter.
To participate in Monero related discussions, join the Monero subreddit https://reddit.com/r/monero.
To engage with other users in the Monero telegram community, head to https://t.me/Monero.
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