One of the main principles of blockchain technology is to provide users with inviolable privacy. Bitcoin was the first decentralized cryptocurrency to rely on this basis to sell itself to a wider audience in need of a virtual currency that was then free from government interference.
Unfortunately, along the way, Bitcoin has proven to be rich in a number of weaknesses, including scalability and a changing blockchain. All transactions and addresses are written in a blockchain, making it easy for everyone to combine points and disclose users’ personal details based on existing records. Some government and non-government agencies are already using blockchain analytics to read data on the Bitcoin platform.
These shortcomings have led developers to look at alternative blockchain technologies with improved security and speed. One of these projects is Monero, usually represented by an XMR ticker.
What is Monero?
Monero is a privacy-focused cryptocurrency project whose main goal is to provide better privacy than other blockchain ecosystems. This technology protects users’ information through secret addresses and call signatures.
The hidden address refers to the creation of a single address for a solo transaction. No two addresses can be linked to the same transaction. Accepted coins go to a completely different address and make the whole process uncertain for an outside observer.
An alarm signature, on the other hand, involves mixing account keys with public keys, thus creating a “ring” of multiple signature holders. This means that the monitoring agent cannot link the signature to a specific account. Unlike cryptography (a mathematical method of securing crypto projects), the ring signature is not a new child in the block. Its principles were researched and documented in 2001 by the Weizmann Institute and MIT.
Cryptography has undoubtedly won the hearts of many developers and blockchain enthusiasts, but the truth is that it is still a new tool with fewer uses. Monero has distinguished itself as a legitimate project worth adopting because it uses the already tested Ring signature technology.
Here’s what you need to know before you start trading Monero
The Monero market is similar to the market of other cryptocurrencies. If you want to buy it, Kraken, Poloniex and Bitfinex are some of the exchanges to visit. Poloniex was the first to adopt it, followed by Bitfinex and finally Kraken.
This virtual currency seems to be mostly tied against the dollar or cryptocurrencies. Some of the available pairs include XMR / USD, XMR / BTC, XMR / EUR, XMR / XBT and more. The trading volume and liquidity of this currency are very good statistics.
One of the good things about XMR is that anyone can participate in its mining, either individually or by joining a mining pool. Any computer with significantly better processing power can mine Monero blocks with a few sobs. Don’t worry about going for ASICS (application-specific integrated circuits), which are currently mandatory for Bitcoin mining.
Although it is a huge cryptocurrency network, it is not so special when it comes to volatility. Almost all altcoins are extremely volatile. This should not worry any enthusiastic trader, because this factor makes them profitable in the first place – you buy when prices fall and sell when there is an upward trend.
In January 2015, XMR went for $ 0.25, then ran up to $ 60 in May 2017 and is now bowling above $ 300. The Monero coin, along with other cryptocurrencies, recorded an ATH (all-time high) of $ 475 on Jan. 7 before falling as low as $ 300. At the time of this writing, almost all decentralized currencies are in the process of price correction, with Bitcoin rising from a spectacular $ 19,000 ATH to $ 10-11,000.
Fungibility and acceptance
Thanks to its ability to offer reliable privacy, XMR has been adopted by many people to easily replace their coins with other currencies. Simply put, Monero can easily be sold for something else.
All bitcoins in the Bitcoin Blockchain are recorded, and therefore, in the event of an event such as theft, each coin involved cannot be exchanged by distracting them from working. With Monero, you can’t separate one coin from another. Therefore, no seller can reject any of them, because it is associated with a bad event.
The Monero blockchain is currently one of the most trending cryptocurrencies with a significant number of followers. Like most other blockchain projects, its future looks bright despite the government’s ongoing repression. As an investor, you need to do the necessary research and study before trading with any Cryptocurrency. If possible, seek the help of financial experts to help you get on the right track.