Monero is amongst many of the privacy-based cryptocurrencies and has gained a massive following throughout the many years it has been trading. Monero has been labelled as a secure, private and untraceable cryptocurrency system that uses a very special cryptography to establish that 100% of its all transactions will be 100% anonymous. Privacy based coins like Monero are becoming increasingly popular due to the very open and transparent world in which we live in today, and Monero is a way to give people back some of their privacy and freedom from being spied on. One of the many unique and great features about Monero is that it grants the user complete control over their transactions and makes the user responsible for their money. When talking about Monero, a lot of people point out that it is fungible too, which means that it is interchangeable with other individual goods or assets of the same type.
To elaborate on Monero’s fungibility if we suppose that you borrowed $20 from a friend, and over time you give that same friend back a $20 note, which is fine. You can also pay him back with 1 $10 note and 2 $5 notes, which is also fine. However, if you were to ask that same friend if you can borrow his or her Playstation 4, and then come back and return an Xbox One a problem would arise because they are not fungible assets.
However, Monero is still a strong cryptocurrency to own, with some of the benefits being the privacy that it offers the users, as well as the transactions not being linkable or traceable. Apart from the privacy side of things, which is a main seller, the Monero blockchain doesn’t have a block limit and is dynamically scalable, which means that it is capable of handling major changes such as hard forks. Furthermore, it also has some drawbacks too that include the fact that Monero transactions are much larger than many other cryptocurrencies such as bitcoin, and this is due to the amount of encryption that is involved in order to give transactions the cloak of privacy.
Choosing a Monero Wallet
As always, it is recommended to first sign up to a digital wallet, in particular a hardware digital wallet. However, there isn’t a Monero hardware wallet available yet. Ledger is believed to be working on a hardware wallet for Monero, but as yet there is no date scheduled for release.
There is an official Monero wallet which is no longer confined to the command-line interface. It now features an attractive graphical user interface (GUI) and makes Monero far more accessible to new users
The recent release of the Monero GUI 0.11 wallet syncs a lot faster with its blockchain list of mined blocks since the creation of Bitcoin.
For further information and more in-depth digital wallet reviews, please visit our Crypto Wallets page.
Recommended Monero Wallets
Until Ledger bring out the hardware wallet, you are limited for choice in Monero wallets. If you don’t already have a Monero wallet, Coindummies recommends the official desktop wallet from the Monero developers. It is important to make a secure back up of your wallet’s seed
Choose a Monero Exchange
In looking at the whole how to buy Monero process, probably the most important part is finding an exchange. Kraken allows fiat currency deposits which then allow you to purchase Monero directly. This means that you will be required to go through the exchange verification process.
Another method to buy Monero is to buy Bitcoin first with fiat, then exchange your Bitcoin for Monero.
When choosing a Monero exchange, there are five important factors to consider:
- Mare sure that the exchange allows users from your country.
- Check the payment methods that are available.
- Know the costs of three fee types -deposit, transaction and withdrawal
- Check and compare the exchange rates as they differ wildly
- Be prepared to complete the Know Your Customer (KYC) process. ID and proof of residency is generally all that is required, but some exchanges request proof of income.
Recommended Monero Exchanges
Always do your research on the reputation of the exchange. For full in-depth reviews, check out our best crypto exchanges.
Make a Monero Trade
The final part of the how to buy Monero process is storing your Monero in a secure wallet as soon as you have purchased Monero. Keeping your Monero secure should be of paramount importance and although there is no hardware wallet in place yet, storing your Monero in your own self hosted digital wallet is recommended.