What is Monero (XMR) & How To Store It?

Motiur Rahman
| Editor:
July 24, 2023
6 min read

You have probably heard about the Monero coin and its contributions to the cryptocurrency industry and the global financial system. But if you still need to and have been looking for a privacy coin, which will allow you to carry out digital transactions with full anonymity, look no further because Monero is the answer.

Throughout this complete guide to Monero, we will walk you through every aspect of Monero, including its features, advantages, history, and even how to make anonymous transactions with it.

What is Monero?

Monero (XMR) is an efficient cryptocurrency developed on Blockchain technology to be open-source, allowing anyone to use it, created to achieve privacy while performing digital assets transactions.

This unique digital currency easily guarantees the privacy, anonymity, and security of cryptocurrency transactions.

Monero is a leading privacy-centric cryptocurrency

based on the Cryptonote protocol. As of November 2017, it is one of the most popular cryptocurrencies at a market capitalization of USD 1.5B. While Bitcoin, the first and currently largest cryptocurrency, explicitly identifies which coin in the transaction graph is being spent, Cryptonote allows users to obscure the transaction graph by including chaff transaction inputs called "mixins." As a result, Monero has attracted users' attention requiring privacy that is superior to those Bitcoin provides.

History of Monero

Monero's origins can be traced back to the inception of Bytecoin in 2012, which was the first digital currency to implement the CryptoNote technology. Although Bytecoin's success was limited, it set the stage for creating several renowned "privacy coins," including Monero. CryptoNote technology, a protocol that prioritizes privacy, has been integral to cryptocurrencies like Monero, enhancing the security and anonymity of transactions.

Bitmonero, later shortened to Monero, was created by seven developers who had previously been involved in the Bytecoin project. Monero has always prioritized privacy and anonymity, building on the groundwork established by Bytecoin's implementation of CryptoNote technology. As a result, Monero, also known as XMR, has grown to become a leading player among privacy-centric cryptocurrencies today.

Monero has undergone numerous upgrades in its growth trajectory to boost its privacy, security, and efficiency. These enhancements encompass the integration of bulletproofs and the implementation of randomX, among other features. Monero reached a significant milestone with the introduction of the Monero-Bitcoin atomic swap, which facilitates the trustless exchange of Monero for Bitcoin (BTC) without requiring a centralized exchange or intermediary.

Looking ahead, Monero's plans encompass the Monero-Ether (ETH) atomic swap and the integration of second-layer solutions for enhanced speed and scalability, mirroring the path taken by Ethereum. The dedicated commitment to research and development by Monero is backed by a predominantly anonymous team at the Monero Research Labs (MRL).

Monero Technology and Advantages

Monero has great features embedded in it, making it superior to many similar cryptocurrencies.

The idea behind Monero is simple: You and I should be able to give money to causes we believe in without anyone else knowing what causes we choose to support. We should be able to buy and sell things online without anyone else knowing what we purchased, who we bought it from, or what we even spent our money on.

In other words, we should have complete online payment privacy. And Monero aims to provide it.

Monero has five key features that make it the most secure and private cryptocurrency currently available, And they are as follow;

  • Stealth Address: The stealth address feature is a massive upgrade over Bitcoin's privacy. Here's the best way to think of it. With Bitcoin, you reveal your actual "home address" to send and receive Bitcoin. With Monero, you use the equivalent of a "post office box" as your address to send and receive Monero. By using a virtual P.O. box instead of your actual address, your transactions cannot be linked back to you.
  • Ring Signatures: A ring signature is a way to make sure a transaction can't be tied back to a specific individual. Think about this example. Imagine a million $100 notes with a thousand fingerprints on each note. It would be impossible to tie the note to a single person. As you transact through the network, it mixes the public information of hundreds of transactions. (Your money is still yours. It's never commingled with anyone else's.) A $100 bill with 100 sets of fingerprints on it, and yours is one of those sets. There's no way anyone can tie that $100 bill back to you. That's how ring signatures work. With each transaction, digital fingerprints (called signatures) are attached, making it impossible for anyone to prove that the transaction came from you.
  • Public-View Key: The public-view key feature separates Monero from other privacy solutions. You can share your public-view key so others can see your transactions. Here's why this is a powerful feature. A common knock against Bitcoin is that it's too open. Banks and brokers like the low costs of using a blockchain but are concerned by how easy it is to track transactions. They fear competitors might use that knowledge to poach clients. At the same time, regulators support banks adopting the blockchain because it makes auditing them easier. Monero's public-view key feature solves this problem. It gives banks total transactional secrecy plus complete openness with the regulators via the public-view key. With the public-view key, regulators can view all of the transactions.
  • Limited Supply: Unlike traditional currency, Monero will have a set coin supply and programmed inflation rate. This ensures that the value of Monero cannot be diluted by endless money creation. Over the next eight years, the supply of mined coins will be 18.4 million. (As of this writing, 14,546,692 coins have been mined.) After eight years, Monero will adopt a 0.86% annual inflation rate. This ensures a steady supply of coins to compensate miners for maintaining the Monero network.
  • Built-in Scalability: Another big knock against Bitcoin is that it limits each block's size in the blockchain to just 1 megabyte. As Bitcoin has grown, the block sizes have stayed the same. This has caused the Bitcoin network to slow down. It can't handle many transactions at once. For instance, the Visa payment network can handle up to 56,000 transactions per second. By comparison, bitcoin can only handle seven per second.

Monero has no such preprogrammed limit. It's designed with a "look-back" window. That means the network reviews the initial transactions and automatically adjusts the blocks' size to account for transaction volume.

That makes Monero scalable. And that means as more people use Monero, it will be able to overgrow.

How to Mine Monero?

Monero runs on all leading O.S. platforms, including Windows, macOS, Linux, Android, and FreeBSD. The currency supports a mining process in which individuals are rewarded for their activities by joining mining pools or mining coins individually.

Monero mining can be performed on a standard computer without specific hardware, such as application-specific integrated circuits (ASICs). An ASIC is a costly form of hardware that is commonly used to mine cryptocurrencies like Bitcoin. Instead, you can use the CPU or GPU of your computer to mine the currency. A full list of hardware that can be used is available on the Monero website; Users can also install certain monero mining software, which may cost a developer fee.

According to the company's website, Monero relies on proof-of-work mining. This is an algorithm that provides security to certain cryptocurrencies like Monero. This system prevents double-spending problems, which can skew the supply, showing there's much more than actually available.

Purchasing the currency is as easy as going on an exchange or looking for a seller willing to unload their supply. You can also buy Monero through an automated teller machine (ATM) that is enabled for cryptocurrencies.

You don't need any special hardware to mine Monero. The currency runs on all major operating systems, including Windows, macOS, Linux, Android, and FreeBSD.

Disadvantages of Monero

Despite the many advantages of Monero, it is also plagued by a few disadvantages, some of which are:

  • A few cryptocurrency wallets support Monero, seeing that only a few developed wallets are fashioned for this digital currency.
  • Monero is also confronted by the mining process's centralization, where a few miners are in charge.
  • Due to the lack of adequate wallets for Monero, its storage is tedious, making it very challenging for most users.
  • Monero-based applications are also challenging because they are not based on very popular Blockchains.

Perspectives and Takeaways

Monero was created to be more than a regular cryptocurrency. Rather, it was designed to help solve the problem that different users face while carrying out financial transactions.

As a privacy coin, Monero is the cryptocurrency of the future. It helps maintain anonymity during transactions, eliminating privacy challenges in the cryptocurrency industry.

It makes digital transactions seamless, fully secure, and private, which is exactly what many people seek in the crypto space.

Monero is the best of its kind and is functioning effectively, releasing great benefits to its users.

Monero FAQs

Is Monero Illegal?

Monero is not an illegal cryptocurrency. Unlike others, it is a privacy-oriented cryptocurrency that provides users with anonymity. This means it is not traceable. However, this characteristic makes it very popular on the darknet and for use in certain activities such as gambling and the sale of drugs.

Is Monero a Good Investment?

If you're interested in cryptocurrencies, Monero may be a good investment. The currency price jumped more than 137% between Jan. 15, 2020, and Jan. 15, 2021. It doesn't cost much to start, as you don't need any special hardware. You can mine your computer's CPU, and Monero works with all major operating systems. This will save you much money in fees.

Where Can I Buy Monero?

You can purchase Monero through a digital or virtual currency exchange. Or you can search for an individual seller or an ATM enabled for cryptocurrencies.

How Long Does It Take to Mine One Monero?

Mine one coin can take about two minutes, although there is no maximum block size.1

Can XMR Be Traced?

Monero, or XMR, is untraceable. Unlike other coins, such as Bitcoin, Monero has a non-traceable transaction history. This characteristic offers participants a much safer network where they don't risk having their held units be refused or blacklisted by others.

The Bottom Line

Cryptocurrencies are a very popular investment for many people. But the popularity and price of Bitcoin may be a turnoff. But there are plenty of other virtual currencies you can purchase and trade that may be easier to invest in, notably Monero.

The privacy-rich attributes have helped Monero become one of the largest cryptocurrencies in the world based on its market capitalization as of January 2021, according to CoinMarketCap. Investors can trade in Monero on leading cryptocurrency exchanges like Kraken, Poloniex, and Bitfinex. However, it's important to remember that what makes Monero so popular—namely, its privacy features—can also lead to some major challenges, such as its use in illegal activities.

Investing in cryptocurrencies and other Initial Coin Offerings ("ICOs") is highly risky and speculative. This article is not a recommendation by the writer to invest in cryptocurrencies or other ICOs. Since each individual's unique situation, a qualified professional should always be consulted before making financial decisions.

How to Store Monero?

The following are the essential characteristics to look for in an optimal Monero (XMR) Wallet:

1.) Monero Coin Support: The wallet should accommodate Monero coins.

2.) User-friendly Interface: The interface should be easy to navigate, encompassing all necessary features.

3.) Privacy: The wallet should secure the user's identity through advanced privacy features.

4.) Security: The wallet's security measures should be current with market standards, including a backup feature for wallet recovery in case of loss.

5.) Customer Support: Responsive and efficient customer support is essential.

6.) Development Team: The wallet should be supported by a skilled development team for future enhancements.

7.) Customer Reviews: Consider recent customer reviews of the wallet.

Among the available options, the Atomic Wallet is an excellent choice for storing Monero, satisfying all the above criteria. It is a multi-asset, non-custodial solution with a growing user base, making it a top-tier Monero wallet. Supporting over 300 coins and tokens, the Atomic Wallet offers a user-friendly interface and compatibility with all major operating systems, including Windows, Mac, and Linux, with mobile apps for Android and iOS.

In addition to an intuitive interface, Atomic Wallet offers several features, including decentralized private key storage, a built-in option for crypto purchasing with a bank card, and Atomic Swaps. Its uniqueness lies in the support for Atomic Swaps, a novel decentralized exchange technology based on hash timelock contracts.

Storing Monero is straightforward with Atomic Wallet. Follow these steps:

1.) Visit the Atomic Wallet website and click "Download" for Android or iOS devices. Proceed with account creation.

2.) Review the security information of your login details.

3.) Write down your private login key and re-enter it in the designated space to successfully create a wallet.

4.) To deposit your XMR into the wallet, copy the address at the top of the account screen.

5.) Navigate to the exchange or wallet withdrawal section you are sending the XMR from.

6.) Paste the previously copied address into the withdrawal field.

7.) Specify the amount you wish to transfer and finalize the necessary confirmations.

8.) Congratulations! You have initiated an XMR transfer, which will be securely received in your Atomic Wallet.

Monero Price Prediction for 2025

Monero is estimated to reach around 1,397 USD by 2025. 2021 and 2022 are the rising years in the world of cryptos, where they might experience a rise like never before. Monero should make it to the $900 mark by 2023.

While other cryptocurrencies in circulation are pseudonymous, Monero is an anonymous cryptocurrency that has gained prominence recently. With teeming crypto users looking for anonymous cryptocurrencies in the nearest future to perform their transactions, industry experts recommend that investors invest in Monero at the current price to get huge returns in the nearest future.

In Summary

Monero is what the world needs to thrive in the cryptocurrency industry due to its unique features and advantages over other cryptocurrencies.

Once utilized, it could efficiently carry out cryptocurrency transactions with great security and privacy.

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