Cryptocurrency

An in-depth look at Monero cryptocurrency

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Monero (XMR) proves that it’s a secure and reliable cryptocurrency as it takes hold of the 14th position among the top cryptocurrencies this 2021. With its growing popularity, crypto traders are keen to know more about this digital asset. So, what makes it unique and how can you acquire it? Get the chance to know more about the Monero cryptocurrency below.

History of Monero

It all started in 2012 when the CryptoNote whitepaper was published under the name Nicolas van Saberhagen. Bytecoin was then created as the first cryptocurrency that used CryptoNote, a proof-of-work hashing algorithm.

Bytecoin had a limited supply of 184.47 billion BCN and in 2014, 80% of it had already been mined, meaning there were no longer enough coins to keep the network running.

To resolve this issue, Riccardo Spagni, David Latapie and five anonymous developers decided to fork the blockchain and named it Bitmonero. It had a final issue of 18.4 million coins and was renamed Monero.

What makes Monero so special?

There are a lot of special features that make Monero unique among other cryptocurrencies. Find out more about them below:

Multiple keys

To make a user’s privacy the main priority, Monero uses multiple keys such as the public and private view keys, public and private spend keys, as well as stealth addresses. Here are some of their functions:

  • To the users who want to check the blockchain and verify if their funds have been received, the trader can use a private view key. Additionally, a private spend key is used to create outgoing transactions.
  • If you want to verify the signature on a transaction, a public spend key is needed.
  • To prevent other users from tracking your transactions, the Monero network makes use of one-time addresses (stealth addresses). Afterwards, this address is then destroyed so that the transaction cannot be traced back to the user’s public address.

Ring signatures

Known for using the CryptoNote protocol, Monero uses an application layer called ‘Ring Signatures’ that allows the anonymity of transactions. An actual signer and non-signers are unified to form the ring.

Actual signers are one-time spend keys that agree with the output from the sender’s wallet. On the other hand, non-signers act as decoys in the ring signature.

ASIC Resistance

Unlike Bitcoins that can only be mined using specialized mining equipment known as Application Specific Integrated Circuit (ASIC) chips, Monero uses an alternate hashing algorithm to Bitcoin called CryptoNight.

ASIC resistance is the main objective of the hashing algorithm to reinforce CPU relevance. As a result, Monero mining is unprofitable if miners don’t use CPUs and GPUs (Graphics Processing Unit). Subsequently, it gives Monero the potential to be more decentralized than other cryptocurrencies such as Bitcoin.

Things to consider when investing in Monero

Using Monero can be difficult, especially for beginners. Fortunately, there are now tons of ways to buy, spend, and store this cryptocurrency. Find out more about it below!

Where to buy and spend Monero

Monero can be purchased on many exchanges, here are some of the most popular exchange sites where it can be purchased and sold:

  • Binance

Launched in 2017, Binance is one of the most popular cryptocurrency exchanges out there today that supports transactions in Monero (XMR). Here, users can deposit BTC, ETH and other coins to convert them into Monero cryptocurrency.

  • Bitfinex

Bitfinex is one of the leading and the most popular Asian cryptocurrency exchanges out there. Established in 2014, it is known for providing users with the option to trade more than 30 cryptocurrencies/pairs in exchange for XMR, USD, EUR, ETH or BTC.

  • Bittrex

Established in 2014, Bittrex is now one of the leading cryptocurrency exchanges in the market. Designed with security and scalability in mind, this exchange provides individuals and businesses with a variety of cryptocurrencies like Monero that they can buy with ease.

Where to store Monero

Once you have acquired Monero, you should also have a secured place to store it. Luckily, there are a number of options for users who are looking to store their XMR. Here are some of the most popular wallets you can use:

  • Exodus Wallet

Exodus is a multi-currency hot wallet that has been providing users with the best services ever since it was established in 2015. The wallet has a simple interface that allows any user to interact with it seamlessly.

  • Ledger Nano S and Ledger Nano X

Ledger Nano Model S and X is a popular hard wallet that enables secure cold storage for a range of cryptocurrencies including Monero. Compatible with both desktop and mobile devices, this is a small portable device that keeps your crypto assets safe at all times. This USB-like device keeps all private keys and requires a PIN-code or a 2-Factor-Authentication (2FA) to access.

  • Monero GUI Wallet

Monero GUI Wallet is a popular hot wallet among macOS, Windows, and Linux users. Overall, this wallet has a simple interface and is suitable for crypto novices. So, if you want to receive and send XMR quickly while having control over your funds, then a Monero GUI wallet is the right choice.

  • Freewallet

Unlike other storage devices, Freewallet provides instant access to major cryptocurrencies in the form of separate wallets. As the name states, this wallet is absolutely free to use and can be installed on any devices.

  • MyMonero

MyMonero is a digital wallet popularly used among the Monero community. Launched in 2014, this is compatible with most major operating systems including macOS, Windows, and Linux.

Final thoughts

Throughout the years, Monero (XMR) has become the go-to cryptocurrency for those seeking secured digital assets. With hundreds of developers committed to increasing the confidentiality of its users’ transactions, rest assured that you will be able to use this privacy-based digital currency with ease.

Learn more about the latest news and updates in the crypto market right here at BTC Post.

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