Monero is an open-source decentralized cryptocurrency developed by a team of seven developers, of which only two have revealed their identity and was released on 18th April 2014. In 2016, this crypto coin grew really big in terms of market capitalization. The Ticker symbol is XMR and the security features in the context of greater privacy is its biggest plus point. Due to this particular feature, users are able to send and receive transactions but these are completely obscured and no one from the outside can find the source or any detail pertaining to these transactions. The untraceable and fungible features make this crypto coin highly desirable amongst investors. The coin or the digital cash is actually operated by the users’ network and no third-party is involved in transactions and security-related aspects. The transactions groups are all mixed and intermingled and the addresses of shielded transactions do not get recorded in the Monero ledger.
Cover Monero Coin common issue
Just like other cryptocurrencies, this coin too has had some issues and still has:-
1. It was used in the virtual black markets to buy weapons, counterfeit currencies, drugs, and stolen credit cards. As a result in 2017, two major crypto markets or darknet markets were closed by authorities.
2. Other than illegal activities, many traders who want to evade tax authorities also trade a lot in this crypto coin.
3. It was also illegally mined by malicious hackers in late 2017 in the ransomware incident related to WannaCry, where hackers then went on to demand payments.
4. In 2018 a bug was reported in the Monero wallet but the same was resolved on an immediate basis and the company made the news public along with a warning.
5. Another incident that came to the forefront in 2018 was that actors in North Korea were involved in illicit mining of Monero which was then being sent to a university in Pyongyang.
6. This year in June, some blockchain developers claimed that fake XMR was being created and then sent to crypto exchanges. It was also found that the bug resulted in exchanges losses though it directly did not affect users and traders.
7. Another issue that has been highlighted with Monero is that it is vulnerable to a Domino effect. However, the fact that both these points were made public by Monero developers themselves was viewed as a positive move by the company for it shows the commitment levels of the cryptocurrency.
Pros and Cons of Monero Coin
Some of the advantages of the crypto coin are: –
1. One of its biggest pros is that the transactions are untraceable. Through a concept called Ring Signatures, multiple transactions being conducted at the same time by different people are digitally signed by all thereby mixing transactions and making them unlinkable to a particular address or individual. Monero uses the stealth address feature that completely obscures the private key of the sender and the receiver.
2. Monero provides complete privacy which is why it is liked by most investors. Not only are the sender and receiver information is completely hidden even the transaction amount sent and received are out of the public domain. This update was announced by the company on January 2017 and is called the Ring confidential transactions.
3. The CryptoNight protocol of the coin enables mining on individual computers.
4. The Monero blockchain does not have a limit on the block and can be changed dynamically.
5. Users and investors can choose to be selectively transparent. This means that they can make their transactions visible to whomsoever they wish to. This laudable feature of the coin makes it auditable and is a clear advantage.
6. The development team behind the coin is a strong and expert team.
7. Even when the entire supply of Monero has been mined, the miners will still be incentivized at the rate of 0.3 XMR per minute.
Cons Of Monero Coin
1. The governance of Monero is not decentralized. 43% of Monero hash rate is currently owned by three mining pools.
2. At the moment users and traders do not have many options of Monero compatible wallets, especially hardware wallets.
3. Transactions in Monero are comparatively bigger and larger than other crypto coins.
4. It is a non-Bitcoin based currency which is why it has not been accepted and/or adopted on a wide scale.
How to Sell or Buy Monero Coin?
The total Monero supply is between 18.1 and 18.4 million coins that will all be mined by May 2022.
Monero cannot be bought using fiat currency. Users need to buy this crypto coin using another digital currency. The first thing for users to do is to get their Monero wallet using which they can store as well as send Monero. The next thing to do after the Monero wallet is ready is to first buy Bitcoin through an exchange – users would be required to use the option of Bitcoin pairing with Monero. There are few other cryptocurrencies that can be paired with Monero and exchanged.
Once the user has Bitcoins or other compatible coins in his account, he can get onto the exchange option and enter the Bitcoin value that he wants to change to XMR. Then by entering their Monero wallet address, the XMR is sent to the user’s wallet and stored there.
Monero can be bought with a credit card through the same process – since it cannot be bought with fiat currency, users need to first buy Bitcoins and then exchange.
In order to sell Monero, users need to go onto the exchange and choose the Sell tab. Here users need to enter the amount of XMR that they want to sell and also mention the currency and the location in which they want to sell followed by the payment method. Once the sell tab is pressed the process is initiated and once the transaction happens it cannot be reversed.
Is Monero Coin safe for investment? /or legally approved
Monero is popular amongst users and investors for the simple reason that it facilitates anonymous transactions making things untraceable. For people who want to completely obscure their transactions, the Monero coin is a good choice as compared to the other crypto coins in the market as of now. However, the fact that the coin was involved in many illicit trading in the Darknet pertaining to the purchase of drugs, arms, and fake currencies is a reason that makes the market doubt its transparency. Also, some researchers have pointed out that Monero leaks certain amount of transaction-related information – hence the aspect of complete privacy and confidentiality has questions and doubts attached to it. Trading and investing in cryptocurrencies including Monero is susceptible to volatile market conditions and hence is a risky investment. Investors are always advised to gain thorough information about the crypto coin before investing any of their fortunes – in fact, the rule of the thumb is that one should invest only that amount that he/she can afford to lose completely.
Dealing in cryptocurrencies like Monero should be legalized in the country of residence of the users and investors. They should speak with experts and legal advisors before any kind of investment, buying or selling decisions.