Planning To Trade Monero Cryptocurrency? Here Are The Basics To Get You Started
One of the core precepts of the blockchain technology is to provide users with unwavering privacy nft project. Bitcoin as the first ever decentralized cryptocurrency relied on this premise to advertise itself to the wider audience that was then in need of a digital currency that is clear of government meddling.
Unfortunately, on the way, Bitcoin proved to be rife with several weaknesses including non-scalability and mutable blockchain. All of the transactions and addresses are written on the blockchain thus which makes it easier proper to get in touch the dots and unveil users' private details based on the existing records. Some government and non-government agencies happen to be using blockchain analytics to read data on Bitcoin platform.
Such flaws have led to developers looking into alternative blockchain technologies with improved security and speed. One of these projects is Monero, usually represented by XMR ticker.
Monero is really a privacy-oriented cryptocurrency project whose main aim is to provide better privacy than other blockchain ecosystems. This technology shield's users' information through stealth addresses and Ring signatures.
Stealth address describes the creation of a single address for a solo transaction. No two addresses can be pinned to a single transaction. The coins received get into a completely different address making the entire process unclear to an external observer.
Ring signature, on the other hand, describes mixing of account keys with public keys thus making a “ring” of multiple signatories. This means a monitoring agent cannot link a signature to a certain account. Unlike cryptography (mathematical way of securing crypto projects), ring signature is not really a new kid on the block. Its principles were explored and recorded in a 2001 paper by The Weizmann Institute and MIT.
Cryptography has certainly won the hearts of numerous developers and blockchain aficionados, but the stark reality is, it's still a nascent tool with a handful uses. Since Monero uses the already tested Ring signature technology, it has set itself apart as the best project worth adopting.
Things to understand before you start trading Monero
Monero's market is similar to that of other cryptocurrencies. If you want to buy it then Kraken, Poloniex, and Bitfinex really are a some of the exchanges to visit. Poloniex was the first to adopt it followed by Bitfinex and lastly Kraken.
This virtual currency mostly appears pegged to the dollar or against fellow cryptos. A few of the available pairings include XMR/USD, XMR/BTC, XMR/EUR, XMR/XBT and many more. This currency's trading volume and liquidity record excellent stats.
One of the good things about XMR is that anyone can take part in mining it either as an individual or by joining a mining pool. Any computer with significantly good processing power can mine Monero blocks with a few hiccups. Don't bother choosing the ASICS (application-specific integrated circuits) which are still mandatory for Bitcoin mining.
Despite being a formidable cryptocurrency network, it's not so special when it comes to volatility. Almost all altcoins are incredibly volatile. This would not worry any avid trader as this factor is what makes them profitable in the first place-you buy when prices are in the dip and sell when they are on an upward trend.
In January 2015, XMR was choosing $0.25 then did some jogging to $60 in May 2017 and it's presently bowling above the $300 mark. Monero coin recorded its ATH (all-time high) of $475 on January seventh before it started slumping alongside other cryptocurrencies to $300. At the time of the writing, practically all decentralized currencies have been in price correction phase with Bitcoin teeter-tottering between $10-11k from its glorious ATH of $19,000.
Fungibility and adoption
Because of its ability to offer reliable privacy, XMR has been adopted by lots of people making its coins to be easily substituted for other currencies. In simple terms, Monero can be easily traded for something else.
All Bitcoins in Bitcoin Blockchain are recorded down, and therefore, when an event like theft transpires, every coin involved is going to be shunned from operating making them nonexchangeable. With monero, you cannot distinguish one coin from the other. Therefore, no seller can reject any one of them because it's been associated with a bad incident.
Monero blockchain happens to be one of the most trending cryptocurrencies with an important amount of followers. Like the majority of other blockchain projects, its future looks great albeit the looming government crackdown. Being an investor, you need to do your due diligence and research before trading in virtually any Cryptocurrency. Where possible, seek help from financial experts to be able to tread on the right path.
Rodgers is a budding Forex and cryptocurrency writer with a writing experience spanning over three years. His mission is always to writer practical and information-packed content that adds value to the lives of his readers.