In recent years, several Cryptocurrencies have launched in the market. While many of them have been aiming to improve confidentiality and anonymity, they haven’t achieved the same level of success. Some of them allow the public to see all the transactions and others offer privacy features on an optional basis. Amongst all of this, the Monero cryptocurrency has attained lots of admiration and approval because of the privacy features it offers.
Launched in April 2014, Monero is one of the top cryptocurrencies when it comes to security and privacy. Most current cryptocurrencies in the market, such as Bitcoin and Ethereum are transparent and can be used to purchase almost anything on exchanges like Bitcoin Lifestyle (Read more about it here: https://insidebitcoins.com/bitcoin-robot/bitcoin-lifestyle ). However, Monero makes use of cryptography to make sure that the sender and receiver’s address and transaction amount stay private and secure. So if you are interested in buying Monero (XMR), let’s begin.
How Does Monero Achieve Its Anonymity?
Monero can be categorized as anonymous coins since they can’t be tracked publicly. But how does Monero achieve it? They use several methods including:
Publicly Unlinkable Stealth Addressing
Address reuse is one of the usual privacy issues faced by Bitcoin users. When they receive several payments on one address, anyone who knows their address can track their transactions and balance. Even other addresses in your wallet might not be safe. However, there are no such troubles with Monero. All the destination addresses stay hidden so that only the sender and receiver could recognize them. In its place, only a unique cryptographic hash for every transaction can be seen. They can only be decoded into real addresses by the sender or receiver. These hidden addresses are known as Stealth Addresses.
Monero Ring Confidential Transaction or RingCT
The amount in any Monero transaction stays obscured by ring confidential transaction or RingCT. In this, instead of showing the actual amount that is being sent, the user transfers only a small casual-looking piece of information. This information makes sure that the amount sent is legit and the actual amount stays private.
Untraceable payments with Ring Signature
Ring Signatures helps in hiding the sender’s identity in Monero. Whenever a user signs in with a Monero transaction, further signatures are added to the user’s signature to make it impossible to identify who sent the transaction. All this put together makes it almost impossible for anyone to track the address of the transaction.
How to buy Monero (XMR)?
Now that you know the ways Monero uses to keep the users’ information secure and private if you are thinking about buying this cryptocurrency, here are the steps:
1. Obtain a Monero Wallet
There are different types of Monero wallets available such as Hardware wallet and software wallet. They include ledger wallets, Monero core wallets, etc. The most secure way to store your Monero cryptocurrency would be a hardware wallet. Nowadays, only Ledger wallets are supporting Monero. When you use a hardware wallet, it will provide you with the security of having your private key for access like your password. With this wallet, you can easily send Monero using a desktop interface when required.
However, perhaps the negative point about Hardware wallets is that it would cost you some bucks. On the other hand, if you want to try something else other than a hardware wallet, you can go for a free software wallet. If you are okay with a standard level of privacy, you can go for the MyMonero web wallet. It is suitable and you won’t have to download the full Monero desktop wallet. With MyMonero, you can access I from any device provided that you have your private login key with you.
Along with obtaining a Monero wallet, you would also need your Monero or XMR address. The address will be a lengthy sequence of letters (they would be case sensitive) and numbers starting with digit 4.
2. Time to find a Monero or XMR exchange
Next, you would have to find an XMR exchange. It is a marketplace that helps buyers and sellers come together and do the transaction. You would get access to a variety of payment options so as to buy XMR. The exchange might allow you to have fat deposits. You can buy Monero directly with them. One of the other ways to buy Monero is that first, you purchase Bitcoin or Ethereum with your fiat currency such as USD, GBP, etc. Then you can exchange them for Monero using Binance. There are many other options available as well.
Best exchanges for Monero or XMR
You can easily buy your Monero cryptocurrency if you know where to go to buy them. It is fundamentally a form of advancement on the main principles of decentralization and secrecy on which Bitcoin is based. Some of the popular exchanges that provide Monero buying or selling facilities are Binance, HitBTC, and Kraken.
On the downside, there are no exchanges in the US that will allow you to buy Monero using your credit card. However, as a trader, you also have other options for purchasing Bitcoin using a credit card at exchanges such as Coinbase and then you can log into Changelly that will help you get Monero in exchange for Bitcoin in just 10 minutes.
You can buy Monero using Bitcoin or Ethereum through Binance by following these steps:
- Go ahead and open an account with Binance.
- Next, go to Deposit and choose Bitcoin or Ethereum.
- Then transfer your coins to the address you will be receiving.
- Now, click on Funds so as to authenticate the transaction.
- Now go to the exchange and look for Monero/Bitcoin or Monero/Ethereum offers.
- Then click on the Buy option and Monero coins will be sent to your Binance digital wallet. Now you have successfully bought the Monero coins in your wallet.
3. Withdrawing your coins
Once you have bought your Monero cryptocurrency, you can take out your coins from the exchange you have chosen. Ensure that you move the coins into your wallet. It is recommended not to leave your coins on an exchange, as you might lose control over them. Once you have the coins transferred in your wallet, you have bought your Monero cryptocurrency.
At present, Monero is not as popular as Bitcoin, or Ethereum. Nevertheless, it has been making its own set of loyal fans for quite some time now, especially those who are looking for a high level of privacy and anonymity. Give it some time, and it will take no time to reach top securities and give you true worth for your money.