Riccardo Spagni created Monero with six developers. It appeared in April 2014 due to the split (fork) of the Bytecoin cryptocurrency, its original name was BitMonero. It differs from Bitcoin, this algorithm carries significant differences regarding its anonymity functions.
Benefits of Monero Cryptocurrency
There are Several Advantages of Monero:
- Privacy: No one will see the amount of money by looking at the blockchain.
- Security: irreversible cryptographic mathematics protects transactions and storage locations.
- Not Tracked: Transfers cannot be traced back to the blockchain due to encryption.
- Decentralization: bundles or wallets are equally eligible for verification.
- Security and anonymity.
Most electronic money is in a wallet not directly associated with a specific holder, but balances and transfers are publicly available. This is the so-called quasi-anonymity, however, it completely disappears when you pay for something with such a cryptocurrency, being physically present. For example, when paying for a pizza in a restaurant, the cashier will notice that the Bitcoin address from which they paid belongs to you. Now she knows the balance, and has the ability to track transactions.
On the other hand, transactions and balances are closed by default. Thanks to ring signatures (it is created by several people, but it will not be known who exactly signed up), on which the confidentiality of the cryptocurrency is based, the sender, the recipient and the amount sent are not detected, and transactions are not tracked.
In fact, the currency uses three different security technologies:
- ring signatures;
- secure transactions (RingCT);
- and hidden addresses.
Fungibility is a real problem for users of Bitcoin and other transparent cryptocurrencies. Imagine someone pays with bitcoins that have been linked to some kind of criminal activity. Due to the fact that the bitcoin ledger is public, everyone knows that bitcoins come from this illegal sphere of income and will refuse to accept them, effectively reducing their value. Since Monero turnover is not trackable, you can be sure there will be no “good” or “bad” coins.
How to Buy? Where to Find?
Monero can be found on crypto marketplaces. Before issuing currency, you need to open an account and verify your identity. In addition, you will need to set up your wallet. The purchase process, including account creation, identity verification, and payment, can take anywhere from a few minutes to several weeks, depending on the market.
There are different types of cryptocurrency platforms where Monero (XMR) is purchased and where you can exchange monero to bitcoin. Let’s consider some of them.
Exchanges allow you to buy from traders – without any personal contact with each other. Cryptocurrency exchanges are often targeted at professional traders and provide advanced trading options that are difficult for newbies.
Brokers sell out of their assets. This means that when you buy from him, no trades are executed with other traders, but a brokerage service takes place. While cryptocurrencies usually offer an easy-to-use interface and a variety of payment methods, they charge premiums and fees that are higher than the exchange ones.
Finally, peer-to-peer directories are platforms that can be purchased directly from traders. However, working with a P2P directory is risky due to the lack of a third link.