The problem with most cryptocurrencies is that they’re not truly private or anonymous. Monero is a secure, private, untraceable currency whose transactions are confirmed by distributed consensus rather than proof-of-work mining. It protects users’ privacy better than any previous currency by obscuring the sender, recipient, and amount of every transaction in one place.
This article will discuss everything you need to know about Monero – from how it works to its benefits and drawbacks. You’ll also learn how to get started using Monero today!
How does Monero work?
Monero is part of the CryptoNote family of cryptocurrencies. This means it’s different from Bitcoin and Ethereum (the two biggest). Both use proof-of-work mining, but Monero uses a tweaked version called “proof-of-work with ring signatures.”
In a traditional proof-of-work system, miners compete to solve a cryptographic puzzle to produce the next block in the chain. In this case, Monero uses RingCT instead of transparent legacy transactions to obscure senders and recipients. It also hides the amount being sent, though the system still has to account for transaction fees.
Drawbacks of using Monero
Monero isn’t widely accepted yet – when you buy XMR tokens, you’re gambling that they’ll increase in value over time. This isn’t a problem for speculators, but people who want to use the currency as part of their daily lives will have a tougher time.
Benefits of using Monero
Unlike fiat currencies, Monero’s transactions are completely private and anonymous. This is great for people whose safety depends on keeping their financial information out of the hands of criminals.
How to Buy XMR Coins
Monero is only available on a handful of cryptocurrency exchanges. These include HitBTC, TradeOrgre, Poloniex, and Bittrex.
Monero also has its own official Monero Marketplace where you can buy or sell goods or services with XMR coins. Keep in mind that the most active trading pairs are BTC/XMR and LTC/XMR, so the best option is to buy Monero with a more popular cryptocurrency.
How do I Mine XMR?
Because Monero uses proof-of-work with ring signatures, it’s not nearly as easy to mine Monero coins. Unless you have a computer graphics card with an enormous amount of video RAM, mining is best done very specifically on the CryptoNote algorithm.
You’ll need a dedicated mining computer or rig for starters. You can find GPUs that’ll work well with Monero here. Make sure to calculate the price of the GPUs (and other equipment like cooling systems, etc.) plus your electricity costs to determine if mining is worthwhile in your area.
History of Monero (XMR)
Monero was founded by a group of seven developers with expertise in cryptography and blockchain security. Four were from the academic world, two were anonymous and independent, and one was David Latapie, an active Monero community member.
The developers created Monero to address many of the privacy problems associated with Bitcoin. Monero Original (XMO) was the first iteration of Monero. The developers created this forked version to correct some mistakes made with the launch of Monero. A brief hard fork wasn’t enough, so they ended up creating a new coin.
Monero Classic (XMC) emerged due to several influential members of the Monero community splitting off to maintain an earlier version of Monero that was more closely aligned with how it started.
The future of Monero looks bright – it’s quickly gaining acceptance with many cryptocurrency exchanges, and several devoted developers are working on improvements. Monero is designed to be completely secure and untraceable, which gives it major potential for widespread adoption in the future.
Monero (XMR) FAQ
How is Monero Different from Bitcoin?
Monero’s biggest difference from bitcoin is its emphasis on privacy and security. With Monero, you can’t see the sender or recipient, and the amount sent is completely hidden as well. The blockchain uses ring signatures to obscure where transactions are going while still allowing for transparency between senders and recipients.
Bitcoins, on the other hand, are pseudonymous. Anyone can access the blockchain, and transactions are linked to bitcoin addresses rather than people’s names. This means that anyone can tell how much someone else has in their wallet or how many transactions they’ve sent–but they don’t know who is sending it.
How long does it take to mine 1 XMR?
The time it takes to mine 1 Monero depends on the amount of memory available in your machine. This number can change since Monero’s price is rising rapidly, making mining more profitable.
What are Ring Signatures?
Ring signatures are part of cryptography that makes sending and receiving an XMR transaction private between users in a group. Signatures are generated so that no one can prove who made the transaction, but everyone in the group is convinced that it came from one member of the group. So while transactions can be traced, they cannot be linked to specific individuals.
What is Monero Mining?
Monero uses proof of work mining like Bitcoin; only it’s more memory-intensive. This means that a successful miner needs a powerful machine to run their algorithms and mine XMR effectively.
Should I mine Monero or ethereum?
Monero has just recently become profitable to mine, whereas it was much more difficult to turn a profit with Ethereum mining. That being said, the power consumption is almost the same.
How do I turn XMR into cash?
Once you’ve mined 1 Monero or bought some through an exchange service like ShapeShift, you can sell your XMR on one of the exchanges that offer a BTC/XMR pairing (ShapeShift is one of these). Once your XMR is exchanged for BTC, you can withdraw it to an exchange where you can trade it for cash or other cryptocurrencies.
Where do I store Monero?
Since Monero is a decentralized cryptocurrency, there are many wallets available to choose from. For beginners, the easiest option is MyMonero – an online web-based wallet. If you’d rather use a desktop client, Monerujo is an open-source app supporting Android and iOS devices.