If you’ve heard about the recent spike of Monero in value, you’re probably wondering what is it and how is it different from Bitcoin. This cryptocurrency provides greater security and privacy than bitcoin. Although bitcoin is also fairly secure, each transaction is publicly displayed. This is obviously a problem if you’re a private person.
Even if you’re not the private type, you might not want someone you know, such as a landlord, tracking your bitcoin spending. Continue reading to learn more about what this is, how it can benefit you and how to obtain this cryptocurrency. We also have some easy tips on leveraging the platform for you.
What Is Monero?
Also known as XMR, this is an open source cryptocurrency that is untraceable, safe, and private. Each transaction is secured cryptographically. When you create an account, you’re given a 13-25-word mnemonic seed to protect it. A mnemonic seed is like a password, but a more secure one. On the off-chance that account files are stolen, they are worthless. This is because they’re encrypted with a passphrase.
All such transactions are private. They’re not displayed on a public block-chain like on other cryptocurrency platforms. Monero transactions also feature ring signatures, which make them untraceable. Ring signatures work by grouping cryptographic signatures together in which only at least one is the real participant. Others can’t figure out which one is real because they all appear valid. It also uses ring confidential transactions to hide how much each transaction was.
Who Uses Monero?
Financial privacy advocates and other individuals who have an interest in cryptocurrencies use Monero. Most people who use this digital currency tend to be private persons. This doesn’t mean that they’re doing something wrong. It’s a difference in personality. However, it should also be acknowledged that as with all forms of technology, the cryptocurrency can be abused by lawbreakers who want to cover their traces while drug dealing, selling stolen goods, or other illegal activities. Regarding this, WIRED declared the following.
A quick browse through the market today shows dealers of everything from stolen credit cards to heroin to handguns accepting the stealthier cryptocoin. That increase in illicit users also illustrates Monero’s privacy potential, says Riccardo Spagni, one of Monero’s core developers.
Monero’s privacy features are very beneficial for law-abiding citizens too. For example, you may pay your rent in bitcoin. In this case, your landlord could figure out how much you earn by analyzing your bitcoin transactions. They may choose to increase your rent and use the excuse that you can afford it. Because all transactions are kept private on Monero, your landlord can’t snoop around in your finances.
How to Obtain Monero
You can obtain this cryptocurrency coin through mining, trading, or buying. To get started you must first download the platform from their official website. You can access the specialized wallet Wallet from Monero.exe. MoneroD.exe enables you to interact with the block-chain. When you open this Wallet for the first time, it will display your mnemonic seed. You should store this code in a safe place because it’s what provides you access to your account. If you lose the mnemonic code, you’ll lose your Monero coin. After giving you a mnemonic seed, Monero Wallet will generate a initial.address.txt file in the working directory. From this file you can grab your Monero address for receiving money.
You can use three reputable platforms to obtain XMR through trading. These are Shapeshift.io, Poloniex, and Bitsquare. If you would rather mine to obtain Monero, then check if your system can handle it. Monero mining requires investment in mining hardware. You’ll need a GPU (graphics card) to mine XMR. Not all Monero mining is profitable, so you must calculate your potential profits with a particular hardware using the Mining Calculator and Profit Calculator.
4 Tips for Using and Managing Monero Successfully
- Anonymously Pay People in Bitcoin. You can consider this a clever usage of this cryptocurrency platform. Peter Todd, an encryption and cryptocurrency consultant, explained that you can transfer bitcoins into a Monero account. You can also use the Shapeshift exchange tool to convert them back into bitcoin once they reach the recipient.
- Don’t use non-official mobile wallets to store your Moneroj (plural form of Monero). It’s risky to use a non-official mobile wallet for your cryptocurrency. It might not be able to assist you if you encounter any technical difficulties or other problems while using a non-official mobile wallet. They can only provide help if you’re using an official wallet.
- Receiving payments works differently than other cryptocurrency platforms. A new recipient address isn’t created with each transaction due to Monero’s high levels of security and anonymity. Merchants will provide the buyer with a payment ID, which is 64 characters long. If you’re the one seeking payment, then generate the payment ID and let the buyer know what the payment ID and the specific address are. You can check your Monero account for payments by the payments command and entering the payment ID or IDs that you want to check.
- XMR is one of the few cryptocurrencies that’s fungible. This means that all transactions are equal and they are private. Its units can be mutually substituted regardless of past transactions. XMR also meets the three ideal qualities of electronic cash: decentralized, digital, and private.
To Sum It Up
Monero has differentiated itself from bitcoin through ring signatures and ring confidential transactions. It also uses other technology to protect each person’s privacy and anonymity. Transactions are virtually impossible to trace. One can’t even view how much moneroj was in the transaction. You don’t have to mine this cryptocurrency to take advantage of its privacy benefits either. You can also benefit from the Shapeshift exchange tool. The option allows you to transfer bitcoin through the platform discreetly to prevent it from being traced. This cryptocurrency platform is excellent for those who don’t want others being able to see everything they purchase and when.
Have we sufficiently answered your question on what is Monero? Let us know in the comments below if you have any questions. Also, feel free to share your thoughts on Monero coin if you’ve ever owned this cryptocurrency before.
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