Monero (XMR) is a cryptocurrency that has succeeded in setting itself apart from others through its focus on privacy, anonymity, and security. Here, we take a closer look at this digital currency’s specifics to determine whether it’s a good investment in 2024. Enjoy a complete guide to help you better understand Monero (XMR), its mechanisms, Monero blockchain, its assets, and also Monero value. Read our Monero crypto review here!
What is Monero (XMR)?
Created in 2014, Monero (XMR) is an open-source cryptocurrency focusing on the privacy and anonymity of transactions using cutting-edge technologies. Unlike other cryptos such as Bitcoin, Monero guarantees complete anonymity of transactions, meaning that information on the sender, recipient, and amount is untraceable.
Like most cryptocurrencies, Monero is based on a public blockchain but differs in that it uses a unique protocol called CryptoNote. This protocol combines several cryptographic mechanisms, such as ring signatures and stealth addresses, to ensure the confidentiality of transactions:
Ring signatures conceal the sender’s identity by mixing their public key with other users.
Stealth addresses guarantee the recipient’s anonymity by generating a unique address for each transaction.
Another notable feature of the Monero project is its consensus algorithm, RandomX, which favors using CPUs rather than GPUs or ASICs for mining. This approach makes Monero mining more accessible to individual users and prevents the centralization of mining resources. Monero regularly performs network updates, known as “hard forks,” to improve the system’s security and scalability.
The story of the Monero crypto begins in 2012, with the creation of the CryptoNote protocol by an anonymous developer using the pseudonym Nicolas van Saberhagen, that is the official Monero founder. CryptoNote presented itself as an alternative to the protocol used by Bitcoin, offering better privacy protection and a mining algorithm more resistant to centralization.
But it was in 2014 that Monero saw the light of day, under the name BitMonero, following a fork of the Bytecoin cryptocurrency. The project was then taken over by a developer known by the pseudonym thankful_for_today, who wanted to improve Bytecoin’s source code and make it more transparent. However, differences of opinion within the community led to a new fork, at which point BitMonero became Monero.
The name “Monero” comes from Esperanto and means “coin”. This choice reflects the project’s ambition to become a universal digital currency accessible to all. What about Monero staking? Since its inception, Monero has stood out for its decentralized governance, with a development team of volunteers and various stakeholders who contribute to the evolution of the project.
In 2016, the RingCT (Ring Confidential Transactions) protocol made it possible to conceal the amount of transactions and the identity of the parties involved. This innovation reinforces the anonymity offered by Monero while ensuring the traceability of coins to prevent currency creation out of thin air (double spending).
2019 marks an important milestone for Monero with introducing the RandomX consensus algorithm. This algorithm favors mining on CPU processors, making the crypto-currency more resistant to centralization and more accessible to individual users. This evolution has also reduced the environmental impact of Monero mining.
Why was Monero designed?
The Monero crypto was designed to meet a specific need: to offer a cryptocurrency that guarantees transaction confidentiality, anonymity, and security. At the time of its creation, other existing cryptocurrencies, such as Bitcoin or Ethereum, had certain limitations regarding protecting privacy.
To bridge this gap, Monero was developed based on the CryptoNote protocol, which implements advanced cryptographic mechanisms to guarantee the confidentiality of transactions. The use of ring signatures and stealth addresses masks the identity of both sender and recipient, making transactions on the Monero blockchain untraceable.
The other intention behind the creation of Monero was to combat the centralization of mining and enable a fairer distribution of mining rewards. This is why Monero uses the RandomX consensus algorithm, which favors mining on CPU processors rather than specialized hardware such as GPUs or ASICs. By making mining more accessible to individual users, Monero aims to preserve the decentralization of the network and avoid the problems associated with the concentration of mining power in the hands of a small number of players.
How does this crypto work? Monero chart
Like most cryptos, Monero is based on blockchain technology. However, it differs from the latter in using the CryptoNote protocol, which hides transaction information. In concrete terms, this means that the identity of the sender and recipient and the transaction amount are rendered untraceable on the blockchain.
Two key cryptographic mechanisms are used to ensure the confidentiality of Monero transactions: ring signatures and stealth addresses. Ring signatures mask the sender’s identity by mixing their public key with those of other users, thus forming a “ring” of signatories. This makes it impossible to determine which public key belongs to the actual sender of the transaction. On the other hand, stealth addresses guarantee the recipient’s anonymity by generating a unique address for each transaction. In this way, Monero transactions cannot be associated with a specific recipient address.
Monero also uses the Ring Confidential Transactions (RingCT) protocol to mask transaction amounts. RingCT combines the advantages of ring signatures and a technique called “Pedersen commitments” to encrypt transaction amounts. Although the amounts are encrypted, the protocol guarantees that the transactions are valid and prevents double-spending.
When creating new XMR crypto tokens, Monero uses the Proof-of-Work (PoW) consensus algorithm called RandomX. This algorithm has been designed to resist ASICs, the devices dedicated to cryptocurrency mining that can promote network centralization. By favoring mining on CPU processors, RandomX maintains a fair distribution of mining rewards and preserves network decentralization.
Monero has also implemented an adaptive token issuance mechanism. Unlike Bitcoin, which has a fixed maximum supply, Monero has no strict limit on the total number of tokens that can be created. Once Monero’s primary issuance reaches 18.4 million tokens, a constant issuance rate of 0.6 XMR per block will be applied to compensate for the loss of tokens due to transaction fees.
Where to buy Monero?
Here is our selection of the three best exchange platforms where to buy Monero:
Binance is one of the world’s most widely used and popular crypto exchange platforms. Established in 2017, it offers many cryptocurrencies, including Monero (XMR). Binance has the advantage of high liquidity, competitive transaction fees, and exceptionally diverse trading pairs. The platform also offers a discount program for Binance Coin (BNB) token users.
To buy Monero on Binance, create an account on the platform, verify your identity, and deposit funds in crypto or fiat currency. Once you’ve funded your account, you can buy XMR using one of the available trading pairs, such as XMR/BTC, XMR/ETH, or XMR/USDT. Binance is, without a doubt, the platform we recommend as the first choice for buying Monero.
Another well-established crypto exchange platform with a reputation for security and reliability, Kraken, was founded in 2011 and also offered Monero (XMR) purchases using different trading pairs, such as XMR/USD, XMR/EUR, or XMR/BTC. It’s a regulated platform, which is particularly reassuring for users concerned about the legality and transparency of operations.
How do I buy Monero on Kraken? You must create an account, verify your identity, and deposit funds in crypto or fiat currency. Transaction fees on Kraken have the advantage of being competitive, though sometimes slightly higher than on Binance.
An online social trading and investment platform founded in 2007, eToro lets you buy, sell, and trade various financial assets, including stocks, currencies, cryptos, and Monero (XMR). eToro has the advantage of offering an intuitive interface, including a “copy trading” function that lets you automatically copy the trades of the most successful traders on the platform.
To buy Monero on eToro, you must create an account and verify your identity. You can then deposit funds using accepted payment methods (credit cards, bank transfers, PayPal, etc.). Once your account is funded, you can search for Monero (XMR) and open a buy position. Please note, however, that transaction fees on eToro are often higher than on other platforms, especially for fiat currency transactions.
Monero Fear and Greed Index
Updated:: 24 February 2024
Now: 78 Extreme Greed
Now: 78 Extreme Greed
Yesterday: 78 Extreme Greed
Last Week: 70 Greed
Is Monero a good investment in 2024? Monero Forecast
The answer to this question depends on many factors: investment objectives, risk tolerance, and long-term vision of the crypto market.
The Monero price to USD has fluctuated wildly since its inception in 2014. It perfectly reflects the general volatility of the crypto market. Still, Monero has held its own among the leading cryptocurrencies in terms of market capitalization, thanks in part to its commitment to privacy and decentralized consensus model.
Will monero go up? As for future predictions on Monero pricing in USD or any other currency, it’s difficult to offer precise Monero crypto predictions, given the market’s uncertainty. However, several factors could have a positive influence on the evolution of the Monero price.
Growing demand for privacy and anonymity solutions for online transactions
More global adoption of crypto in general
The Monero network’s resistance to centralized mining
Government regulation: governments around the world could decide to regulate or ban privacy-focused cryptocurrencies, not least because of the risks of money laundering and terrorist financing.
Competition: other cryptocurrency projects could emerge offering more advanced or innovative privacy solutions.
Volatility: as with all crypto, the Monero price can be extremely volatile, which will tend to deter even the most cautious investors.
Our final opinion on Monero
This in-depth analysis of Monero’s stock price, history, technology, privacy features, and prospects enables us to offer a final opinion on Monero that is as objective as possible.
Monero stands out from other cryptos’ commitment to privacy and transaction anonymity. Will Monero recover? Thanks to its advanced cryptographic mechanisms, Monero guarantees confidentiality hithertounmatched in the cryptocurrency ecosystem. This is particularly interesting if you prioritize preserving your privacy during online transactions. At the same time, Monero has maintained its position among the leading cryptocurrencies in terms of market capitalization despite volatility and increased competition in the market. This is a clear testimony to the robustness of its network, technology, and community.
On a slightly more negative note this time, Monero, because it is concerned with anonymity and confidentiality, is more likely to be subject to government regulation than most other cryptos.
Our opinion of Monero remains largely positive, thanks to the crypto’s solid technology and flawless reputation.
Where can I buy Monero (XMR)?
You can buy Monero on several cryptocurrency exchange platforms, such as Binance, Kraken, Bitfinex or eToro. Choose a reputable and secure platform for your transactions.
Is Monero legal?
The legality of Monero depends on the country you’re in. In most countries, Monero is legal, but some governments have regulated or banned privacy-oriented cryptocurrencies.
What are the advantages of Monero over Bitcoin?
Monero offers greater confidentiality and anonymity than Bitcoin, thanks to its privacy protection mechanisms. Monero also uses a different consensus algorithm, called RandomX, which makes mining more accessible.
How can I mine Monero?
You can mine Monero using mining software compatible with the RandomX algorithm, such as XMRig or XMR-Stak. You can also join mining pools to share rewards and improve mining profitability.