Are you planning to trade in Monero cryptocurrency? Here’s the basics to help you get started

One of the key principles of blockchain technology is to ensure that users have unwavering privacy. Bitcoin, as the first ever decentralized cryptocurrency, relied on this premise to market itself to a wider audience, which at the time needed a virtual currency that was free from government interference.

Unfortunately, along the way, Bitcoin was fraught with several weaknesses, including the non-scale և variable blockchain. All transactions և addresses are written in a blockchain, thus making it easy for everyone to connect points և Users’ personal information based on their existing records. Some non-governmental agencies are already using blockchain analysis to read Bitcoin platform data.

Such shortcomings have led developers to look for alternative blockchain technologies with improved security and speed. One of these projects is Monero, which is usually represented by XMR ticks.

What is Monero?

Monero is a privacy-based cryptocurrency project that aims to provide better privacy than other blockchain ecosystems. This technology protects users’ information through secret addresses և Ring signatures.

A secret address refers to the creation of a single address for a single transaction. No two addresses can be attached to one transaction. The received coins go to a completely different address, which makes the whole process incomprehensible to an outside observer.

Ring signature, on the other hand, refers to mixing account keys with public keys, thus creating a “ring” of multiple signatories. 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 does not block a new child. Its principles were studied and recorded in 2001 by the MIT at the Weisman Institute.

Cryptography has certainly won the hearts of many programmers and blockchain enthusiasts, but the truth is that it is still a new tool with several uses. Because Monero uses the already tested Ring signature technology, it has distinguished itself as a legitimate project that is worth accepting.

What you need to know before you start selling Monero!

Monero market

Monero’s market is similar to other cryptocurrencies. If you want to buy it, Kraken, Poloniex և Bitfinex are some of the visitor exchanges. Poloniex was the first to adopt it, followed by Bitfinex and finally Kraken.

This virtual currency is mainly associated with the dollar or cryptocurrencies. Some of the available pairs include XMR / USD, XMR / BTC, XMR / EUR, XMR / XBT and many more. The trading volume and liquidity of this currency are very good statistics.

One of the great 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 in a few clicks. Do not worry about going to ASICS (application-specific integrated circuits), which are currently mandatory for bitcoin mining.

Price volatility

Despite the huge network of cryptocurrencies, it is not so special when it comes to instability. Virtually all altcoins are extremely unstable. This should not bother any greedy seller, as this is the first factor that makes them profitable. you buy when prices fall and sell when they tend to rise.

In January 2015, the XMR cost $ 0.25, then in May 2017 ran some up to $ 60, and now bowling exceeds the $ 300 mark. Monero hit $ 475 (ATH) on January 7, before falling to $ 300, along with other cryptocurrencies. At the time of writing, virtually all decentralized currencies are in the price correction phase, with bitcoin fluctuating in the $ 10-11k range from its glorious ATH of $ 19,000.

Interchangeability և Acceptance

Due to its ability to offer reliable privacy, XMR has been adopted by many people, who will easily replace their coins with other currencies. Simply put, Monero can be easily exchanged for something else.

All bitcoins are registered in Bitcoin Blockchain, և, therefore, when such a theft occurs, each involved coin will avoid operating, making them irreplaceable. With Monero you can not distinguish one coin from another. Therefore, no seller can refuse any of them as it is related to a bad incident.

The Monero blockchain is currently one of the most trending cryptocurrencies with a significant number of followers. Like most blockchain projects, its future looks brighter than the pressure it expects from the government. As an investor, you need to do your due diligence և research before trading in any cryptocurrency. If possible, seek help from financial experts to find the right path.