Within the cryptocurrency market there is a large number of digital currencies that we have available to carry out our operations. While we know that the virtual currency par excellence is Bitcoin, however, as a result of its launch, many have been those that have followed in their footsteps and have positioned themselves properly within this market.
Among the many that we can name, today we are going to focus specifically on Monero. It is a cryptocurrency that has been in operation for several years and has gained popularity and more and more users are using it to make their investments.
It is a very comfortable and simple digital currency and also offers us good tools so that all the movements that we need to make are a real success. Taking into account the particularities and characteristics that Monero presents, we can not miss the opportunity to work with it and for this reason, we have prepared this article so that you know everything we can achieve with this great digital currency.
- 1 What is Monero?
- 2 How does Monero work?
- 3 Monero Advantages
- 4 How to invest in Monero?
- 5 How to buy Monero?
- 6 Monero Wallets
- 7 How to mine Monero?
- 8 Conclusions
What is Monero?
The first thing we are going to do in this article, is to find out what exactly Monero is, so that we know all the characteristics that he has and how this cryptocurrency came about. In this sense, we have to say that Monero is a digital currency that has several years of experience, since, always bearing in mind that the base system is the one that presents Bitcoin.
It was precisely this digital currency that made Monero emerge, since its founders began to analyze the Bitcoin system to offer users another system, improved, where the updates prevail and, above all, anonymity.
This is the main characteristic that Monero has, since it is presented as one of the few cryptocurrencies that does not reveal, at any time, the identity of the users or the amount of digital currency that will be used in each of them. the transactions that are carried out through this system.
When has Monero born?
The anonymity is so important that, even today, since it was launched for the first time in April 2014 and has been on the scene for more than 3 years, the names of the creators of Monero are still unknown.
In this matter, the only information we have in this regard is that this cryptocurrency is closely linked to Ricardo Spagni, an expert in software manufacturing and who has a great reputation in this sector.
We must also name Francisco Cabañas, who is a physicist born in Canada and seems to have something to do with the launch and operation of Monero. But on this subject we can not say much more.
Taking into account the privacy and confidentiality of the cryptocurrency system, Monero has become the digital currency of the financial black market. We say this because there are many users who use this cryptocurrency to carry out transactions, more or less fraudulent and that cannot be caught, due to the characteristics of this system.
As you can not know the identity of that person or the amount with which you work, it is much easier to transfer large batches of Moneros and send them to the address that corresponds without any suspicion.
Knowing all this, we can say that Monero has three exclusive features, unique in this market. On the one hand, the privacy to which we are referring so much, on the other the exhaustive anonymity and in addition, the specific security measures with which it works.
The combination of these three elements makes Monero is used a lot on the black market, although we must also say that a large number of users make use of this cryptocurrency without any fraudulent purpose.
Although, today, Monero has its own identity, it is true that it started being a complement to Bitcoin, for this reason, the first time it was launched on the market it was based on the system that presents the pioneer cryptocurrency, so much so, which at that time was known as BitMonero, although step by step it was making its own hole in the market and nowadays, it is an independent cryptocurrency with which we can get a large number of benefits.
How does Monero work?
We continue with our Monero review and in this section we will talk about how the system works. Before getting into the subject, you should know that working with Monero is very simple and we will not have any kind of difficulty when carrying out our operations.
That said, the first thing we’re going to discuss is what the Monero system is like. In this sense, you should know that this system is completely independent, since, as we have told you, Monero has already made a hole in the market individually, moving away more and more from Bitcoin.
In addition, as with most cryptocurrencies, it is within a decentralized program, therefore, there is no public entity that regulates the proper use of this financial activity.
Even so, we must bear in mind that, once again, we find a cryptocurrency that works with the famous blockchain system. In this case, the corresponding blocks are recreated from the multiple transactions that are carried out through this system, but with a great particularity, and that is, in this case, we do not have limitations when it comes to group such transactions.
In fact, the blocks are created by performing a specific calculation automatically, so it is the system that determines when a block has been completed. Monero allows us to carry out a greater number of transactions per second and also, the creation of blocks does not usually take more than 2 minutes, so it is a fairly fast system, compared to similar ones.
In order to make a transaction, we must have a specific address, so that, whenever we are going to carry out any of these movements, they will have a specific code. All this has caused Monero to experience a remarkable growth in the market in recent years, reaching today, over 18 million currencies.
As we told you, privacy is one of the key factors of this system, for this reason, it works with a protocol known as CryptoNote. This protocol allows us to carry out all the transactions that we want without any kind of signature, so we will never leave a trace in our movements.
However, we can find out who the receivers are or the quantities with which we are working, everything will be well saved and access to this information is practically impossible.
The CryptoNote protocol is very important within the functioning of Monero, a system that has been available in the sector since 2012 and was created by Nicolas Van Saberhagen. Actually, this protocol works by dividing the figures into 2 parts, always keeping in mind that both parties will never be equitable.
Once you have done this step, mix the parts with the numbers provided by other users, and the combination of all these figures makes it impossible to proceed to the code decoding. Along with this protocol, Monero also works with the Ring Signatures technology, popularly known as a ring signature.
In this case, what this system does is mix a large number of signatures and only one of them is the real one, the real one, hence the difficulty of being able to find the issuers and the receivers of the transactions made.
With what we have just commented, we can already get an idea of all the advantages that we have if we decide to work with Monero. Although taking into account the unique features that this cryptocurrency presents, we will now detail many other advantages that we should know about this digital currency.
Anonymity: once again, we have to re-emphasize the great anonymity that Monero offers us, without a doubt, one of its greatest advantages. It is clear that this is the main attraction of this cryptocurrency, since it has a system that allows us to carry out a large number of transactions and will never be able to know who we are or the amounts that we are working with.
Privacy: logically, when we speak of anonymity, we must also irremediably refer to privacy, another of the advantages of this digital currency, since the system that Monero presents us stores all the information that we introduce in it and does not allow other users to access it to these personal data.
Fast Operations: likewise, we must highlight the speed of execution of operations that Monero has. As we have already mentioned, it is one of the fastest cryptocurrencies available, which makes it easier for us to carry out a greater number of transactions, in the shortest time possible, we have already referred to those 2 minutes maximum, in the creation of blocks.
Decentralized: of course, it is important to remember that Monero is a decentralized cryptocurrency, which means that the value it presents in the market will always depend on the law of supply and demand established by users. Do not forget that this market is not regulated by any public entity, so everything will depend on the number of transactions made by users in a certain period of time.
IP Addresses Hidden: Similarly, another feature that Monero has called a lot of attention, is that all IP addresses that are part of the movements that are carried out within the system, are also going to be hidden. With which, here we have one more proof of the importance that the system gives to anonymity and privacy, something that we find quite interesting since it is fundamental that we can preserve our identity and everything we are going to do with Monero.
There is no doubt that the advantages of this cryptocurrency system are quite good and that is why we need to know how we can carry out investments with Monero, since, taking into account all that we have just commented, we will surely be able to get a large number of benefits.
That said, in the next section we will discuss the ways we have available to make these investments.
How to invest in Monero?
As a general rule, when we decide to work with cryptocurrencies, mainly what we do is acquire them or exchange them, but we can not forget that these digital currencies are also very useful to obtain profits, that is why it is convenient that we invest in them whenever the occasion demands and require.
In this matter, we have to say that with Monero we can carry out our operations in the best possible way, since most of the brokers that we have currently available in the sector, allow us to make these movements. Although we also have to comment that we will be able to use Contracts for difference, if finally, we decided to bet on this cryptocurrency.
The brokers are those supports that offer us all kinds of financial services so that we can carry out our investments. In this case, many have included cryptocurrencies within the different markets that we have available to operate, since they have realized that digital currencies are assets that are increasingly demanded by users and very simple to use.
Among the long list that we find in these brokers, without a doubt, Bitcoin is the majority cryptocurrency, but we also have the possibility of investing in other known ones such as Ethereum or Litecoin.
Precisely Monero has crept into that ranking, since every time is betting more for this cryptocurrency. To invest in it, all we have to do is choose a good broker that allows us this option and also, we will have exclusive tools and good financial leverage.
Contracts for difference
Although brokers allow us to invest directly in this market by providing the right tools, we must also refer to Contracts for Difference (CFDs). These are very beneficial, because they allow us to bet on any asset, without having to acquire them physically.
The usual thing is that CFDs are used to invest in markets such as stocks or commodities, but due to the popularity that cryptocurrencies have acquired, we now also have the opportunity to do the same with them. In this sense, we have a great variety of digital currencies in which to invest and among the many that are available, Monero is one of them.
How to buy Monero?
Investing in Monero is a very advantageous activity, but we must also take into account the places we have available to buy this cryptocurrency. We can not forget that if we do not have in our Moneros account, we will not be able to carry out some operations, such as making transfers or exchanging with other digital currencies.
For this reason, before deciding what type of operation we want to carry out. It is important that we get a good amount of Monero. And it is now when we ask ourselves, where can we acquire this cryptocurrency?.
The moment we start talking about exchanges, the first thing we think is that they are authorized places so that we can carry out our exchanges. Sometimes we can only do it with other cryptocurrencies and at other times, they allow us to make these movements using fiduciary coins.
But we must also know that there are many exchanges that offer us the possibility of buying cryptocurrencies. It is true that these operations, normally, are carried out with digital currencies such as Bitcoin or Ethereum, but as we have already told you, the Monero is getting stronger in this market and many users have opted to work with this digital currency.
For this reason, the exchanges have included it so that we can buy the amount we need, provided that previously, we register in the exchange that we have chosen to carry out this operation.
There are many exchanges that allow us to make these movements, although two of the most popular are Poloniex or Bittrex, since they offer us many suitable tools to buy Moneros and also work with a large number of cryptocurrencies, therefore, the options are very wide .
Besides the exchanges, in the network there are specialized pages that allow us to carry out these operations with Monero. In this sense, we must comment that this cryptocurrency does not have its own software, so it always has to help third parties.
This is where these types of portals become important, since they offer us the possibility of carrying out different operations with this cryptocurrency. One of them is the purchase of Moneros and among the many specialized portals that we have found on the Internet, MoneroForCash is one of the best.
It allows us to carry out this operation, maintaining at all times the privacy that characterizes this cryptocurrency and where we have the opportunity to register without having to enter our personal data.
In addition to these two routes, due to the popularity that cryptocurrencies are acquiring, there are physical stores and ATMs that allow us to buy them. Today, most of these places offer services to acquire the majority cryptocurrencies and have more value in the market, however, little by little other digital currencies are gaining ground in this sector.
Monero is one of them, one of the cryptocurrencies that has experienced a remarkable growth in the market and that is why every time we have more ways to buy these virtual currencies.
As with most cryptocurrencies, in the case of this digital currency, the wallets are also fundamental pieces, since they are what allow us to store the cryptocurrencies that we accumulate through our operations.
In this case, we have to say that we have a large number of Monero wallets available in the sector, although, as is logical, some will be much more complete and provide us with more options and tools to operate.
Taking into account the importance of these digital wallets and the popularity that Monero has today, we are going to tell you which are the best wallets you can choose if you want to work with this cryptocurrency in a fast, simple and adequate way.
MyMonero: the first wallet that we are going to speak about is MyMonero. That it is the most recommended if we want to operate with this cryptocurrency, since it is Monero’s own virtual portfolio, with which, all the tools that we will have available are destined to work with this cryptocurrency in particular.
It is an exclusive portfolio for Moneros, for this reason, it is the most used by users and the one that is better valued. It is the best-known portal of Monero, among other things, because here we will not only be able to carry out the storage process, MyMonero also allows us to perform other operations, such as the purchase of this cryptocurrency or even the exchange with others similar.
In addition, it must also be said that all the movements that are carried out within MyMonero, help maintain the network of this cryptocurrency.
Monero Address: as with the previous wallet, in the case of Monero Address it is a virtual wallet that works exclusively with this cryptocurrency, with which, we will also have a large number of very complete tools to carry out our operations.
Although we have very good services to perform all these movements, the biggest difference is that Monero is the only one that is available on the network and does not allow us to carry out these operations online.
However, if we are thinking of specializing only with Monero and do not seek to make flexible investments with other cryptocurrencies, it can become one of the best services available to us.
LightWallet: It is the last wallet of this cryptocurrency that we are going to comment, since it also offers us good services so that we can easily store all the Moneros that we have obtained.
This happens with the intention of being able to provide a service that is up to the demands of professionals who think about working with Monero. And step by step they have managed to make themselves known, although it is clear that there is still a long way to go in this direction to increase their presence in the Monero market.
How to mine Monero?
To finalize our guide, we must refer to Monero mining, or what is the same, to the mining process of this cryptocurrency. This process does not differ much from that we find in other similar digital currencies, since we are going to need practically the same elements to be able to carry out mining properly.
The first thing we should know is that the miners are those devices that are in charge of verifying the transactions and creating the blocks and, in general, these miners are usually computers that have an adequate CPU and also a powerful GPU.
In the case of Monero, the ideal is that we carry out the mining process through the GPU, since it is a specific graphic card that allows us to decipher the codes in a much faster way, with what we are going to have the opportunity to verify a greater number of transactions in less time.
Although there are many suitable graphics cards that will help us to mine Moneros, one of the best is known as AMD. Likewise, we also have to say that in the network, we have specialized programs that can facilitate this work and, although we can carry out the mining process individually, it is advisable that we enter a Monero Mining Pool.
What is known as a mining pool, where several miners are grouped to perform all these movements. Thus, we will have the opportunity to obtain a greater number of benefits.
After having carefully analyzed the Monero cryptocurrency, we are quite clear that it is a digital currency that has settled in the market and today has a greater popularity and many users who use it to perform their operations.
Among the many peculiarities that Monero has, without a doubt, the biggest advantage it offers us is that we will be able to carry out our transactions anonymously, since the system is committed to the privacy of users and amounts at all times.
In some cases, this can be a double-edged sword, since it has also favored Monero’s entry into the financial market, but if we operate properly and use the right tools we will be able to carry out successful operations and we will be able to obtain multiple profits.
For this reason, it is important to make a good decision about the different purchase methods available for Monero, the wallets and other features that can be accessed with this cryptocurrency. Making good decisions will be what can lead to our success or not when we are investing our budget.