How To Buy Monero (XMR)?
A common question you often see on social media from crypto beginners is “Where can I buy Monero?” Well, you’ll be happy to hear it is actually quite a simple and straightforward process.
Step 1: Create an account on an exchange that supports Monero (XMR)
First, you will need to open an account on a cryptocurrency exchange that supports Monero (XMR).
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In order to sign up, you will need to enter some basic information, such as your email address, password, full name and, in some cases, you might also be asked for a phone number or address.
Note: On specific exchanges, you might need to complete a Know Your Customer (KYC) procedure in order to be able to purchase cryptocurrency. This is most commonly the case with licensed and regulated exchanges.
Step 2: Deposit funds into your account
Many cryptocurrency exchanges will allow you to purchase Monero (XMR) with fiat currencies, such as EUR, USD, AUD and others. Furthermore, they will also provide you with multiple deposit methods through which you can fund your fiat account, such as credit and debit cards, ewallets or direct bank transfers.
Note: Some payment methods will have higher fees than others, such as credit card payments. Before funding your fiat account on your chosen exchange, make sure to do your due diligence to find out the fees involved with each payment method to avoid unnecessary costs.
Step 3: Buy Monero (XMR)
This process is similar across almost every cryptocurrency exchange. All you have to do is find a navigation bar or a search bar, and search for Monero (XMR) or Monero (XMR) trading pairs. Look for the section that will allow you to buy Monero (XMR), and enter the amount of the cryptocurrency that you want to spend for Monero (XMR) or the amount of fiat currency that you want to spend towards buying Monero (XMR). The exchange will then calculate the equivalent amount of Monero (XMR) based on the current market rate.
Note: Make sure to always double-check your transaction details, such as the amount of Monero (XMR) you will be buying as well as the total cost of the purchase before you end up confirming the transaction. Furthermore, many cryptocurrency exchanges will offer you their own proprietary software wallet where you will be storing your cryptocurrencies; however, you can create your own individual software wallet, or purchase a hardware wallet for the highest level of protection.
For more in-depth instructions, our ‘Absolute Beginner’s Guide To Cryptocurrency Investing‘ will take you through the process step-by step. In addition to providing instructions for sending and receiving your cryptocurrency.
And if you’re completely new to crypto our beginner, intermediate and advanced level articles will get you up to speed with everything you need to know about the cryptocurrency space starting out.
What Is Monero (XMR)?
This is Monero’s appeal. It still uses a blockchain to track the movement of funds, but it leverages some neat cryptography to obscure transaction sources, amounts, and destinations.
A very brief history of Monero
How does Monero work?
When researching Monero, you’ll stumble across the terms “ring signature” and “stealth address.” These are two of the key innovations that underpin the anonymity of Monero transactions. In this section, we’ll give a high-level overview of both concepts.
Ring signatures and Confidential Transactions
Bob wouldn’t be able to do this with a regular digital signature. By comparing it with his public key, anyone could say with certainty that only Bob’s private key could have produced the signature. He could face severe consequences for blowing the whistle on the Prime Minister’s activities. However, if the other cabinet members’ keys were used in a ring signature scheme, you couldn’t determine which one sent the message. Still, you could say that a cabinet member leaked the information, thus proving its authenticity.
It used to be that the outputs included in the ring had to be the same size. Otherwise, it would be easy to figure out what was going on, as transaction amounts were visible. For instance, you might have a ring where only outputs of 2 XMR were included or one where only 0.5 XMR forms the ring.
Suppose that you use the same address for your e-commerce store for every order. Anyone that made an order could see the balance you’re holding and tell other people that it’s your business’s address. This could make you a target.
Stealth addresses hide the destination of funds. They do this by having the sender generate a one-time address based on a public address used solely for that transaction. The public address might look something like this:
Monero vs. Bitcoin – what’s the difference?
As cryptocurrencies, Monero and Bitcoin present some similarities. But in reality, there are many aspects unique to both.
In many digital currencies, it gets a bit more challenging to determine fungibility. Units in Bitcoin are fungible at the protocol level, as the software doesn’t make any distinction between each BTC unit. Where it gets more ambiguous is at the social and political levels. Some contend that Bitcoin is non-fungible because each output is unique, whereas others argue that it doesn’t matter.
In some circles, it’s thought that these practices could break some of the properties that make public ledger cryptocurrencies appealing. “Clean” coins that have been freshly mined (and thus, have no history) could be seen as more valuable than older “dirtier” ones.
Monero avoids these shortcomings from the get-go. Since observers can’t tell where funds came from or where they’re going, it’s perhaps more akin to cash than to non-privacy coins. Even in businesses with rigorous analysis policies, XMR from questionable transactions can be exchanged without issue.
Blocks and mining
Of course, forks are just protocol upgrade mechanisms. They’re often necessary to resolve critical bugs or to add new features. In Bitcoin, though, users prefer to avoid them as they can cause division, and may pose a threat to decentralization. Generally, hard forks in Bitcoin arise when a group wants to create a new cryptocurrency from the existing network. Other than that, they’re usually reserved for patching urgent vulnerabilities.
In Monero, however, frequent hard forks are very much a part of the roadmap. This ensures that the software can quickly adapt to changes and roll out security upgrades. Some view “mandatory” protocol updates as a weakness, though Monero hard forks don’t really carry negative connotations as they sometimes do in other cryptocurrencies. That’s not to say that they’re foolproof – frequent hard forks increase the risk of a vulnerability going unnoticed, and can push non-upgraded users off the network.
As with Bitcoin, Monero’s development is open to all. Anyone can contribute to the source code and documentation. The community decides which features to add, remove, or amend. At the time of writing, the project has over 500 contributors. The Core development team is made up of developers such as Riccardo Spagni (aka FluffyPony), Francisco Cabañas (ArticMine), and pseudonymous devs NoodleDoodle, othe, and binaryFate.
Official website: https://www.getmonero.org/