Monero (XMR) is a privacy-focused, open-source cryptocurrency that uses cryptography to ensure the anonymity of transactions and hide the identities of participants. Unlike other cryptocurrencies such as Bitcoin, Monero transactions cannot be traced. For this reason, Monero is highly favoured by many crypto enthusiasts.
How Does XMR Work?
XMR is built on blockchain technology, which is a distributed public ledger (a digital record of transactions) enforced by a distributed network of computers. All transactions occur independently on the blockchain network. The tasks to manage and maintain XMR occur across the distributed network of computers. Because of this, there is no need for the authority of a central bank.
Use cases of Monero (XMR)
1. Anonymous Transactions: Monero’s privacy features make it ideal for users who value their financial privacy, as transactions are difficult to trace and link to a specific user.
2. Remittances: Monero can be used for cross-border transactions, providing a secure and fast way to send and receive money without the need for intermediaries.
3. Investment: Monero is also seen as a valuable investment by some, as its privacy features and limited supply make it an attractive option for those looking to diversify their portfolios.
4. Everyday Payments: Monero can also be used for everyday transactions, such as paying for goods and services online or in-person. Its fast transaction times and low fees make it a convenient alternative to traditional payment methods.
History of Monero (XMR)
XMR was founded in April 2014 by anonymous founder “thankful_for_today”, Riccardo “Fluffypony” Spagni and six other anonymous people. There was no pre-mine, instead, the launch was fair and pre-announced. It was initially launched under the name Bitmonero. Monero is based on the CryptoNote protocol, published by Nicolas van Saberhagen. Its aim was to provide the benefits of Bitcoin but with complete privacy.
Monero’s software is completely open-source. It has the third-largest community of developers, following Bitcoin and Ethereum.
Pros and Cons of Monero (XMR)
Completely anonymous: Monero is special compared to other cryptocurrencies as every user is anonymous by default. This differs from other cryptocurrencies, such as Zcash, which are only selectively anonymous.
Decentralized: In the traditional banking system, a bank can decide to freeze your account and seize your assets at any moment. Your identity is also tied to any transaction you make with your bank card. As long as you hold your crypto on a decentralized exchange (DEX) or hardware wallet, it cannot be seized because it is in your custody.
No middleman: Monero eliminates the need for middlemen by using decentralized, peer-to-peer networks to facilitate transactions. These networks use distributed nodes to verify transactions, without the need for a central authority or intermediary.
Faster, cheaper transactions: Thanks to their blockchain technology, cryptocurrencies such asMonero enable users to make local and global money transfers much quicker than using a bank. TransferringMonero is also a lot cheaper than bank transfers.
Opportunities for big gains from investments: The crypto market cap (total value) has skyrocketed over the past decade, with its quickest growth in 2021 when it reached $3 trillion. Many crypto stocks are priced below $1 when they are first released and have the potential to increase to hundreds or thousands of dollars like Bitcoin or Ethereum.
Prone to hackers: Because of the earning potential that comes from holding coins like Monero, crypto wallets and exchanges are often targeted by cybercriminals who want a piece of the pie.
Volatility: It’s very common to suffer financial losses with cryptocurrency because they do not have a stable price. For example, you could buy a crypto coin at $190 one day only for the price to drop to $10 the next day.
Lack of user protection: Monero transactions are irreversible, so there is no way to reverse or cancel a transaction once it has been completed.
Where To Buy Monero (XMR)
You can trade Monero on major crypto exchange platforms. You are able to buy, sell or use the token for trading on both centralized and decentralized exchanges.
3. Huobi Global
Before buying cryptocurrency, it is important for users to know the risks involved. Because centralized exchanges hold your private keys, you are at risk of losing access to your assets if there is a hack. Holding your cryptocurrency in your own hardware crypto wallet is recommended, but you put yourself at risk of losing your assets forever if you lose your private key or are targeted by hackers unknowingly. In any case, it’s important to do your research before investing in any crypto project; this article is for guidance only and should not be seen as investment advice.
Current supply: 18.21 million
Max supply: Unlimited
Monero is constantly in the top 20 list of cryptocurrencies. There are many XMR trading pairs on crypto exchanges.
XMR Developer Engagement
The Monero team keeps its users engaged with constant updates to the protocol. Monero developers are very active and quick to fix bugs.
XMR Network Speed
Transaction Time: 30 minutes
Monero disbursement is unknown as the balances are hidden.