What could be said about Monero? It is certainly one of the hottest cryptocurrencies in existence right now.
We often tend to look at cryptocurrencies based on the defining focus of their services. With Ethereum and NEO, the focus is on smart contracts.
Ripple is more oriented toward making transactions convenient and efficient. We know Monero primarily because of its focus on giving traders the highest level of privacy possible.
So far, this has proven to be a massive selling point for Monero. Who would not fancy a cryptocurrency that affords a high level of privacy?
Monero even uses innovative mechanisms such as the ring signature to maintain anonymity and safety for its users. But before you go ahead and get some for yourself, it is good to familiarize yourself with how Monero actually works and then decide if you want to buy it.
Although it is fair to emphasize on Monero’s obsession with anonymity, the fact is that all cryptocurrencies lend some kind of anonymity to their users. Some just happen to be better at it than others. Ever since its launch in 2013,Monero’s key design principle has been to afford the highest level of privacy possible for users.
2016,in particular, was a good year for Monero, as it received acceptance as a method of payment by the darknet market alphabay. Monero has since been given comprehensive updates and improvements to its ring signature and gained immense popularity.
Monero is arguably one of the most popular cryptocurrencies currently operating. So how does it compare to the daddy of cryptocurrencies, bitcoin? Their levels of privacy are certainly comparable. But this is where Monero starts to edge ahead. Unlike Bitcoin, Monero does not reveal the recipient’s holdings to the sender. Instead, the funds are sent via a random account created for that specific transaction. Plus, Monero’s ledger only remembers that one-time address and does not link it to either the sender or recipient.
So are you completely sold on Monero? Are you keen to get yourself some? Now all that is left to figure out is how you can actually acquire some XMR. Unfortunately, this where you may run into a bit of a snag. As it turns out, it is a lot simpler to buy prominent cryptocurrencies like Bitcoin and Etherum, using US currency than it is with Monero.
Instead of making a direct purchase, you will usually have to purchase bitcoin first and then exchange BTC for XMR, for which you need a cryptocurrency exchange.
You should always be cautious when using a cryptocurrency exchange. Most are fairly reputed and safe, but some are just plain crooked. Even if you manage to find one that is very trustworthy, it is advisable to take as many precautions as you can to secure your investment.
Now if it comes to purchasing bitcoin prior to Monero, you are going to have to learn how to purchase bitcoin. One of the most popular methods is with Coinbase, one of the biggest exchanges for cryptocurrency anywhere in the world.
From Coinbase, you can buy cryptocurrencies such as Bitcoin, Litecoin, or Ethereum with your credit/debit card or bank transfer, which are simple enough methods even for novice traders. Coinbase charges 3.99% for cards and 1.49% for the transfers.
However, a point of concern for those intending to buy Monero is the ID verification process enforced by Coinbase, a typical requirement of most reputed cryptocurrency exchanges. The idea behind it is to discourage criminal activity such as money laundering.
So if privacy is an all-important factor for you, you can buy bitcoin via a peer-to-peer exchange like localbitcoins. However, you will be compromising on the level of security offered by an exchange like Coinbase.
Once you have purchased your bitcoin, you can focus on how to buy Monero. There are some reputed places where BTC can be exchanged for XMR. One such source is called Kraken and it does require a verification process to be undertaken prior to trading.
Once again, there is an alternative for the more private users. It is called Bitsquare, and once again, its lack of a verification process means it is also a less secure option. You will have to rely not only on other users of Bitsquare but also on Bitsquare’s own Arbitration system.
It would also be more helpful for you to open an account with a highly reputed cryptocurrency broker like Plus500 that counts a healthy variety of cryptocurrencies among its services.
Whichever one you choose, the next step will remain the same: switching from BTC to XMR. All you have to do here is open up a trade for your selected exchange and wait for your offer to be taken up by another trader. Once that is done, you will receive your Monero.
It is important to remember that using an exchange does carry an element of risk considerable enough to warrant extra safety precautions for your computer. It is best to always allow two-factor authorization and distribute your coins among multiple wallets.
Also take care not to leave any coins in your exchange wallet, unless of course, you intend to trade them. A Hardware wallet or cold storage is the best way to secure your cryptocurrency. With these, you can store your cryptocurrency offline.
But in any case, no matter how safe and efficient your plan may be, you should never be tempted to risk trading more than you can afford to lose. A risk factor is certainly present in many stages of purchasing and dealing with cryptocurrencies, as they are still highly volatile commodities. There is the ever-present threat from the market to move against you and return a significant loss on your trades.
All things considered, investing in Monero is much the same as investing in most other things. Your main principle should always be to invest only as much as you can afford to give up, never more.
Wins and losses are part of the game, and you want to make sure the effects of a loss are as minimal as possible so that the effects of a win are magnified as much as possible. Take this and other necessary precautions, and you can virtually guarantee your success as a trader.