Cryptocurrency

What is Monero? – Beginner’s Guide [Updated 2020]

Monero protects your privacy compared to other digital assets

Monero (XMR) is one of the most popular cryptocurrencies in the world in terms of market value and also use cases. The virtual currency has been growing over the last years and it now became one of the most useful cryptocurrencies in the market. 

Monero is basically a cryptocurrency that focuses on privacy and that allows users to send and receive virtual currencies without having to be worried about their information being public. It is worth remembering that most of the digital currencies in the market work on top of public blockchains where information is accessible to everyone. 

In this guide, we will be explaining what Monero is, how it works and why you should consider it as a useful digital asset. 

What is Monero?

As we have mentioned before, Monero is a cryptocurrency that focuses on privacy, a topic that is very important for the entire crypto community. In the last years, Monero became useful to help users protect the information about the transactions they were making. 

For example, if you use Bitcoin (BTC) to send and receive payments, then, all the information about the sender and receiver will be available to everyone. Your address will be public as well as the address where you are sending the funds. 

Moreover, the transaction information is also going to be published there, including the funds you hold, the funds that are left in your wallet after the transaction and the transaction itself. If that was not enough, people will also be able to see the fees you paid for a specific transaction. 

This is, of course, something that could be very dangerous. Indeed, if stealers and hackers get information about your IP address, email account and so on, they can easily target you with phishing scams and other attacks to steal your funds. 

With Monero, this doesn’t happen. Monero is considered to be cash for a hyperconnected world where transactions can be processed fast, privately and securely. That means that you are going to be your own bank and to handle it as you consider without being worried about other parties getting information about your funds, or tracking your activity. 

Monero Features

Monero has a different number of features that would make of it a very secure digital currency. The first thing to mention is the fact that Monero is decentralized and secure. There is no centralized party controlling the network and it is going to be very difficult to attack it. 

Furthermore, as we have already mentioned before, Monero is private. That means that all the information and data stored in the Monero network is going to be protected from those that want to have access to it for different reasons. 

That makes Monero an untraceable digital asset. Transactions cannot be linked to particular users or real-world identities, making it possible for users to remain private as when they use cash transactions. 

In addition to it, Monero is a fungible cryptocurrency as it is private by default. If Bitcoins are stolen from ane exchange, it is possible for companies to trace these BTC and blacklist them. In this way, these BTC are out of the network and it would be very difficult – if not impossible – to use them once again. 

With Monero, this cannot happen. Users cannot blacklist this digital asset considering that it does not provide information about previous transactions or data about the wallets handling the virtual currency. 

Monero in the Cryptocurrency Market

Monero is currently the 16th largest virtual currency with a price per coin of $64 and a market valuation of $1.14 billion. During the last years, Monero grew to incredible levels. The virtual currency was able to reach an all-time high of $495 on January 7, 2018.

Since that moment, the virtual currency fell to $30 a few weeks ago when the Coronavirus hit the world and the entire crypto market was hit by this issue. In terms of Bitcoin, Monero has been in a downtrend since mid-2018, which seems to be close to an end. 

The larger the number of users handling Monero, the higher it is expected its price to reach. That means that if you are investing in Monero, you will have to understand which are the possibilities for this cryptocurrency to expand and grow in the market. 

Furthermore, there are other digital currencies such as Litecoin (LTC) that are planning to add privacy features as well. This would make LTC more fungible and would be a competitor to Monero in the coming months. 

Tags

Related Articles

Back to top button