Monero is a cryptocurrency just like Bitcoin, but the only thing that makes it different from Bitcoin is its untraceability. Any transactions that happen on Monero, are secure and away from anyone who tries to sniff the network. The addresses, no matter how cryptographically secure, are always hidden from the eyes of general public. If you want to buy Monero, check out our guide.
With Bitcoin, it is not the case. If a user reveals his Bitcoin address on any public forum, his entire history becomes very easy to trace with the available information. The history might include the number of Bitcoins he has, the number he traded, or transferred or the number he sent or received from other addresses as well. This is what makes the Bitcoin network very vulnerable and risky. The address otherwise looks like a jumbled concoction of numbers and alphabets. But if it becomes known to the world, who that address belongs to, that person’s information is no longer private.
This is an issue that Monero deals with, pretty amazingly. Monero coin hides all the addresses in such a manner that receiver and sender’s addresses are hidden even from the receivers and senders themselves. Nobody on the network can view anything at all. The Algorithm it uses is known as CryptoNight, which is famous to provide anonymity to users. Unlike Bitcoin that uses Proof of Work (PoW) algorithm.
All About Monero (XMR)
Monero coin (XMR) started in 2014 at a price of $2 per coin, and right now, as of early 2018 it is trading somewhere at $400, which is around 20 times of what it was 3 years back. 20 times is a fruitful return, and an amount that not even high-profile companies might be able to provide within such a less time.
Monero cryptocurrency uses ring signatures to make the transactions invisible. It inter-mixes sets of transactions in such a way that nobody can recognize which address belongs to whom. This is how the addresses are hidden from public eye. To hide balances and money amounts, Monero coin uses stealth addresses that are one-time random addresses. They cannot be linked or associated with any particular person. Monero cryptocurrency has two keys known as – spend key and view key. In spend key, the user can spend his Monero coins, while using View key, he can provide selective visibility to certain individuals. Selective transparency gives the user complete freedom and power to control the cryptocurrency, the way he wants.
Monero (XMR) vs Bitcoin (BTC)
Monero has many advantages over Bitcoin, and some notable ones are as follows –
- Private Transactions – With complete privacy and absolute anonymity, Monero coins provide the users what Bitcoin cannot. And that is – the freedom to spend their currency wherever they want.
- Kovri Technology – Kovri is something that Monero uses at IP level of a user. It conceals all the information from every web browser. It is so effective that it makes impossible to trace which IP Address made what transaction.
- Free sized block size – Also known as dynamic block size, Monero’s blocks do not have a static dimension. The size of the block is easy to adjust, adhering to the number of transactions and traffic on the network. This not only speeds up the process of verifying the transactions, but it also helps the Monero miners to work in harmony.
- Fast Transactions – With free sized block, transactions are faster, robust and more dynamic, than Bitcoin.
- ASIC Proofing – Unlike Bitcoin miners, Monero miners do not need high computing power to mine Monero coin. They can also be mined easily using a GPU or even a CPU.
Advantages of Privacy
Some users are concerned that anonymity encourages users to indulge in illegal activities, while the actual concern is even bigger than that. Complete transparency makes thousands and millions of users vulnerable to dangerous hackers and malware attacks. The government especially is free to spy on all the information of the users, because it is readily available. With complete end to end encryption available on WhatsApp, you never want to go back to plain text messaging. Such is the case with Monero coin that provides anonymity so perfectly, that once the users are comfortable trading in it, they will never want to move to another cryptocurrency.
Buy Monero Coin
Monero has a wide support of many exchanges like Coinbase, Bittrex, Bitfinex, Binance etc. These exchanges not only support Monero coin, but they also allow the user to store it and imitate a Monero wallet. There are specific Monero wallets also available to store Monero coin for future usage. The most popular Monero coin wallet is – MyMonero, that is specific for Monero coins only. Monero coins are also easy to store in other offline cryptocurrency wallets like Jaxx and Electrum. They provide a private key to the user, which makes it easy to manage the wallet.
As per expert suggestions, Monero coins should not remain in any online Monero exchange for long time. Because the probability of attacks and vulnerability is high. Offline wallets are better, and if the user decides to invest in hardware wallet like – Trezor, KeepKey or Ledger Nano S, that is the best deal possible. Hardware wallets are like pen-drive, which come with complete instruction manual that helps user to transfer his Monero coins from online exchange to his hardware Monero wallet.
Monero has a long road ahead, and a lot of backing from some popular names because of which it is in high anticipation by the investors. Alt coins and Monero cryptocurrency will definitely witness a rising popularity in future, as the number of investors will grow. Monero coin price however, is difficult to predict for the future because of many factors that decide the value of any commodity. Demand and supply greatly influence any market, hence the true Monero value of or any other cryptocurrency value will also solely depend upon the public popularity.