The growing popularity of cryptocurrencies and blockchain began with the creation of Bitcoin in 2009. However, since that time, the world has begun to witness the birth of many more cryptocurrencies. Various Blockchain networks have sprung up since then, providing bespoke services to a growing amount of crypto users globally. However, privacy and anonymity are some of the demands of crypto users, as they want transactions to remain very confidential. Fortunately, Monero is the cryptocurrency that has provided solutions to this problem. In this article, we will be discussing extensively how secure and anonymous Monero and the $XMR token is in the crypto market.
What Is Monero?
Monero is a cryptocurrency launched in 2014 to provide crypto users with an anonymous Blockchain platform. It is a decentralized cryptocurrency that utilizes a public distributed ledger embedded with privacy-focused technologies to achieve anonymity. It is also an open-source network that ensures that observers cannot decode transactions and activities regarding its cryptocurrency. Monero’s blockchain design is unique, and all transaction details from sender to receiver are kept private. Despite possessing similarities with popular cryptocurrencies like Bitcoin, Monero is quite different in its operation. It currently has the largest community of developers, behind Bitcoin and Ethereum. Like Bitcoin and Ethereum, users can mine Monero, and the process is purely egalitarian. The native and governance token of the blockchain is Monero (XMR). At the launch time, the developers did not reserve any XMR for themselves, as they relied solely on community support.
How Does Monero Work?
Monero relies on proof-of-work mining, an algorithm that provides security to the cryptocurrency. This consensus mechanism prevents problems surrounding double-spending, which can skew the supply. When this happens, it will show much more than actually available tokens. Monero uses ring signatures and stealth addresses to ensure user privacy. The concept of ring signatures centers around concealing the information of a person in a group of people. It is like a digital signature from the individual that keeps others in the dark concerning the transaction.
Monero uses a portion of the transacting person’s account and other external details to generate a privacy-focused ring signature. Ring signatures are remarkably anonymous and do not reveal or keep a history of these transactions. Alternatively, Monero uses stealth addresses to add additional layers of privacy. Stealth addresses are one-time generated recipient-focused addresses. While senders use ring signatures, recipients utilize stealth addresses. Ring signatures focus on keeping the sender’s address anonymous. Stealth addresses do the same for the receiver. Monero also uses the Ring Confidential Transactions (Ring CT) to ensure transaction values are unknown.
Monero Vs. Bitcoin
While Monero and Bitcoin are similar because they are both cryptocurrencies, differences still exist. Listed below are a few ways Monero and Bitcoin differ;
Pseudonimity vs. Privacy
While Bitcoin records transactions pseudonymously, Monero takes a different approach to achieve complete privacy. In the pseudo nature of Bitcoin, there is a usage of random alphabets combined with letters to shield transaction details. However, this approach is not entirely private like Monero, as this transaction is still visible on the blockchain. Alternatively, Monero uses world-class technologies to ensure that these details remain as confidential and anonymous as possible.
Bitcoin is not a fungible cryptocurrency, while Monero is fungible. A clear example of this is two $1 bills of the same value but with different serial numbers. In that scenario, they are not fungible, and this defines Bitcoin. Alternatively, two gold bars of the same quantity and size are equal and fungible. This is a typical example of a Monero token.
How To Mine Monero
Mining Monero is not a complicated or tedious task, and it is straightforward to do. There is also no need to download any mining software or connect to any special. To get started with mining Monero you will head to the downloads page on its website and download a wallet. The two available wallets there are the GUI and CLI wallet. While the GUI wallet caters to the needs of primary users, advanced users can utilize the CLI wallet. On the Monero network, new blocks with no maximum size mints every two minutes. Transactions do not also slow down in Monero, as there is no congestion in the network. Alternatively, users who feel they want to achieve faster results can go ahead to buy purpose-designed mining hardware. Alternatively, they can also join a mining pool to maximize effort.
What is the $XMR Token?
XMR is the token that powers and governs the Monero ecosystem. The token is available for purchase on many exchanges, and investors can mine it too. There was no initial token sale held for XMR, as no tokens were pre-mined too. The total circulating supply of the token is 17,703,471, a figure that would hit 18.4 million in May 2022. It currently has no fixed supply and is programmed by the Monero network to continue to create.
How To Buy Monero (XMR) Token
Buying XMR is straightforward and does not require any technical know-how. The token is available for purchase on Kraken, Binance, OKX, Hotcoin Global, Mandala Exchange, and Bybit. However, listed below are the three easy steps to buy XMR on the popular crypto exchange, Kraken.
Firstly, you will have to sign up for a Kraken account if you do not have one. Signing up is easy and you should finish it after submitting a few KYC details. Setting up a strong password is also crucial in making this process seamless.
You will need to verify your account after submitting these details and then fund the account. To Fund your account, you will need to click on the funding tab in the list of tabs on the page. Funding your account is relatively easy and can be done with a bank transfer or a credit/debit card.
You will then use the funded account to purchase XMR on Kraken. The purchased XMR is now on your account, and it’s also available for trading automatically. It is important to note that Kraken does not operate a wallet service. This means that you will need a wallet to store your purchased digital assets.
Why Should I Buy Monero ($XMR)?
Monero is a cryptocurrency that captures the attention of tech lovers. This is because the cryptocurrency’s application of cryptography is unique. The token is currently attracting crypto investors who value the stringent privacy features of the network. According to CoinMarketCap, the token is now amongst the top 40 cryptocurrencies in the market. Despite falling from its all-time high (ATH) price of $517.6 in May 2021, it is still performing decently. It has bounced back from its all-time low price of $132.7 trades around the $182 mark this week.
That meteoric rise has also seen a 24hour trading volume surge high as $239,073,046.18, a 14% increase this week alone. In the same vein, its market capitalization is now a whopping $3,360,128,297. As crypto analysts predict, the token will likely go on a massive price rally this year. It could end in 2022 on the $300 mark if that ever happens. WalletInvestor expects the token to hit $360 by mid-2022 and up to $450 by the end of the year. They also believe that should the coin go on a bullish run; it shouldn’t end the year with less than $320. However, while nothing is 100% certain, investors will need to commit funds they can spare to buying XMR.
Monero is an open-source, privacy-oriented cryptocurrency that launched in 2014. Its blockchain is opaque and privacy-focused with details. This makes transaction details and the amount of every transaction anonymous by disguising the addresses used by participants. Users can mine Monero by downloading either the GUI or CLI wallet from its website. Crypto analysts expect the token to end in 2022 tremendously, the same way it started it.Is Monero XMR Truly Anonymous? Here’s What to Know About $XMR!