What is Monero?
Monero is a cryptocurrency that focuses on privacy, security and decentralisation. The open-source cryptocurrency operates on the concept of blockchain. With Monero coins, transactions are untraceable back on the blockchain thanks to encryption. The identity of sender and receiver along with the amount of the transaction remain anonymous as addresses of the participants are disguised. All transactions on the network are private and there is no way to accidentally send a transparent transaction.
Monero is based on the CryptoNight proof-of-work hash algorithm, that originates from the CryptoNote protocol. CryptoNote is an application layer protocol which powers various decentralized currencies.
History of Monero
Created in April 2014, Monero was originally launched under the name BitMonero. However, it was soon shortened to Monero in order to disassociate itself from Bitcoin. The currency is known by code XMR.
Features of Monero
- Security: As Monero is decentralized, the cryptocurrency is operated securely by a network of users. Transactions are recorded on the blockchain only after getting confirmation by distributed consensus.
- Private: In order to obscure the origin, amount and destination of the transactions, Monero uses technologies like ring signatures, ring confidential transactions, and stealth addresses.
- Interchangeable: As they are associated with previous transaction, Monero cannot be blacklisted by vendors or exchanges.
- Untraceable: As addresses of senders and receivers are obscured, it is not possible to link transactions on the Monero blockchain to a particular user.
Where to buy Monero?
Monero is listed on several popular markets such as Bittrex, Upbit, Binance, Poloniex HitBTC, Livecoin and others. The market capitalisation of Monero as of April 2018 is $3,657,447,559. The total supply of the currency is capped at 15,945,484 coins.
The official Monero wallets are available for download on Windows, Mac, and Linux. The price on 1 Monero coin was $228.90 at the time of writing this article.
Just like Bitcoin, Monero coins can be mined.
Monero Price Trends
Risks associated with investing in Monero
Similar to other cryptocurrencies, Monero is volatile in nature and comprises of several risks. It is better to invest your money in mutual funds instead of taking a risk of investing in Monero.