Monero can be purchased from a number of exchanges and/or can be bought directly using dollars or euros. First, let’s look at what Monero is before discussing how to buy it.
Monero was released in April 2014 and is an open-source, privacy-oriented cryptocurrency, which operates on the blockchain. Developers, when launching Monero didn’t set aside any stake for themselves, rather, they relied on donations and community support for further development.
Monero uses anonymity to obscure the details of senders and receivers and the transaction amount. Any individual mining Monero gets rewarded either by joining pools or mining individually. Monero mining does not require any specific hardware and it can be performed on a standard computer. Monero is compatible to work on different OS platforms like Windows, macOS, Android, Free BSD, and Linux.
Monero uses two concepts known as “ring signatures” and “stealth addresses” that facilitate privacy concerns.
Ring signature is a type of digital signature that can be used to provide an anonymous signature. Monero is a platform that combines account and public keys acquired from a blockchain using a triangular distribution to make it unique and private. As Monero considers all ring members as equal and valid, it is impossible to determine which of the group members’ key was used to produce the signature and this makes sure that transactions are untraceable.
Stealth addresses enable a sender to create a one-time address for each transaction on behalf of the recipient. These addresses hide the destination address of a transaction and also the identity of a receiving participant.
How is Monero Different from Bitcoin?
The most popular cryptocurrency – Bitcoin, works on a protocol that uses pseudo name addresses to hide participant’s identity. This approach is limited and not fully private because as a participant performs a few transactions over a period of time, it becomes easier to track his/her identity. Also family, friends, and the public can become aware of a participant’s identity, trends, and address. However, Monero conceals the identity of a sender and also the receiver receiving payments – entirely.
Fungibility is another advantage of Monero over bitcoin. According to Investopedia, Fungibility is a good or asset’s interchangeability with other individual goods or assets of the same type.
An example for fungibility is currency. Suppose person A has borrowed $20 from person B. It is agreeable if person A returns the money to person B with another $20 bill – as all $20 bills are considered equal in worth. Also, person A can return the money to person B in the form of 1 $10 bill and 2 $5 bills, as in the same manner, the worth of these bills is considered equal to the worth of the $20 bill. The dollar has fungible properties. However, for non-fungibility, if person A lends a car to person B, person B cannot return a different car to person A even if it is of the same model as that of the original car lent by person A. Therefore, cars are not fungible with respect to ownership. However, the gasoline that powers the cars is fungible.
Let us discuss how to buy Monero. Purchasing Monero will cost less if it is bought directly from a Monero trading exchange. But, for larger purchases, using an exchange is recommended.
How To Buy Monero
Step 1: Find an exchange
- LocalMonero – LocalMonero is a new website launched in August 2017, which helps to bring together local buyers and sellers handling Monero. LocalMonero offers a wide variety of payment options and allows users to buy Monero both offline and online.
- Kraken – Kraken is a cryptocurrency exchange platform that allows fiat deposits from users and then helps to buy Monero directly. This website requires all users to go through a verification process. Kraken also offers trading of XMR/BTC, XMR/USD, and XMR/EUR since January 2017.
- Fiat -An alternative method to buying Monero is to buy bitcoins first with fiat (i.e., USD, EUR, GBP) and then exchange these bitcoins for Monero.
- Credit Card – For people living in the United States, Bitcoin can be bought with a credit card via Coinbase or Coinmama and then Changelly can be used to exchange bitcoins for Monero. Buying Monero using a credit card directly on Changelly would be very expensive.
- BitPanda – Similarly, European customers can buy bitcoins through BitPanda or CEX.io using a credit card or any other options and then exchange bitcoins for Monero via Changelly.
- Bitfinex – Bitfinex is one of the leading websites for buying or trading cryptocurrencies. It allows users to make deposits in dollars and cryptocurrencies. Bitfinex provides a platform to trade XMR/BTC, XMR/USD.
- Poloniex – Poloniex provides a pure crypto to crypto exchange and is based in the United States. This website has a lower trading fees of 0.25% and deposit and withdrawal fees to the blockchain’s specific minimum transaction fee.
Step 2: Get a Monero Wallet
- Monero’s official website offers users with a range of desktop wallets that are developed by Monero developers. These desktop wallets are designed to suit Windows, Mac OS, Linux, ARM, and FreeBSD. It also provides mobile or light wallets and dedicated hardware wallets. MyMonero web wallet is a hardware wallet which is convenient to use for a lower level of privacy as it doesn’t require downloading Monero.
- Ensure to make a secured backup of the wallet’s seed for easy recovery and also note down the payment ID associated with Monero’s receiving address.
Step 3: Buy Monero
- After buying Monero through any one of these exchanges ensure to move the coins into a wallet as leaving coins on the exchange is risky and often coins get “lost” or are stolen.
Monero is the 13th largest cryptocurrency in the world. Due to its privacy-rich advantages, Monero is adopted widely. However, these privacy features and non-traceability allows Monero to be used for certain illegal events like fraud, gambling, theft, drugs, and more.
On the lighter side, Monero is recognized as a useful digital currency. Monero has grown 40x its market cap in 2016 and trades with high volume and liquidity.
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