What is Monero?
Created in 2014, Monero is an open source cryptocurrency. Instead of being based on the Bitcoin system, Monero is based on the algorithm used by CryptoNote which is the CryptoNight proof of work algorithm.
The primary objective of the Monero crypto was complete privacy and it is so privacy based that many hackers have used mining codes entered in websites and apps to use the electricity of website visitors to perform mining operations, earning Monero in the process.
Monero is a cryptocurrency used in many illegal transactions because of the high levels of privacy. And those who want to hide their Bitcoin transactions also find that by converting their Bitcoin to Monero and then reverting the Monero back to Bitcoin is a perfect way to conceal their Bitcoin movements. It is believed the perpetrators of the WannaCry ransomware used this method to conceal their proceeds.
So essentially, Monero is used by some as a way to “launder” cryptocurrency.
Who is behind Monero?
As is the case for many cryptocurrencies, the developer of Monero is anonymous. The coin was started by a forum user at BitcoinTalk that goes by the name of thankful_for_today. And others jumped aboard. It was originally called BitMonero but was shortened to Monero.
The original authors go by the Monero Project, but being open source, anyone can be a part of the management of Monero.
How does Monero Work?
As I stated earlier, Monero is completely open source. Users must have software to interact and use the Monero cryptocurrency. The Monero Project provides the reference implementation of a Monero Wallet. It is in 3 parts:
- The main software… The Monerod reads the blockchain and claims the user’s transactions.
- Monero-Wallet-Cli manages the user’s account; their wallet address and generating transactions.
- Monero GUI is the system that allows interaction with the others in a user interface.
These are all made possible by the Monero Project but 3rd parties have also created implementations on mobile apps or directly through browsers.
How can I buy Monero?
The privacy behind Monero makes it one of the easiest cryptocurrencies to buy. Many exchanges such as Kraken and others allow you to buy Monero using your bank or credit card, but there are verification’s you must meet at the exchange before doing so. If you already have an account at the exchange, it is no issue.
But for those who want to buy Monero quickly, the best bet is to purchase Bitcoin and then convert it to Monero. You can do so at services like Shapeshift.io or Evercoin. You don’t even need to create an account to do so.
How can I trade Monero?
Some exchanges such as Kraken offer account holders the ability to trade Monero against other currencies or cryptos.
We will look at choosing exchanges in the next section.
How to choose a Monero Exchange?
Monero is a highly used cryptocurrency. Many exchanges offer Monero purchases and trades.
Keep abreast of all our reviews here which can help you choose. But there are 2 properties you should consider when choosing a Monero exchange:
- Where you are – Regulations on cryptocurrency exchanges are still being developed. But some exchanges will not accept investors from certain areas.
- Payment method and fees – Some exchanges may accept pay systems like Paypal, Neteller and others. And others may only accept credit or debit cards. Plus, you want to look at fees incurred such as miner fees and conversion fees.
Overall, Monero is not as difficult to buy and trade as it may seem.
If you have any questions, feel free to contact us and we can help you proceed. And research Investing Online as your questions may have an answer on our pages.