Monero is one of the most well-known projects in the world of blockchain based digital money. Its most characteristic feature is to provide the sender and recipient of funds with certain level of anonymity. In terms of popularity, the Monero project also has no reason to complain, despite the presence of many potential competitors.
In this article, we’ll explore in more detail what is Monero and how you can buy it anonymously (without ID).
Main Takeaways: How to Buy XMR
- Step 1: Find a Monero wallet to use. You'll need a safe place to store your Monero. Find a wallet that works best for you; we recommend GUI Wallet.
- Step 2: Begin working with an exchange. You will need to find an exchange that works with XMR (e.g. SimpleSwap.org) so that you can purchase it. SimplesSwap allows you to swap BTC for XMR instantly and anonymously.
- Step 3: Send the XMR to your wallet. Now that you have a place to put your XMR and an exchange to trade with, purchase XMR and send it to your wallet.
What is Monero?
Monero (XMR) was launched in 2014 as an open-source, privacy-oriented cryptocurrency built and operated on the concept of blockchain. These blockchains form the underlying technology behind digital currencies and are public ledgers of activities of participants showing on the network.
Monero’s blockchain is configured intentionally to be opaque. It makes transaction details such as the identity of senders as well as recipients, and the amount of every transaction anonymous by disguising the addresses participants used.
Along with its anonymity, Monero’s mining process follows an egalitarian concept — the principle that believes all people are created equal and deserve equal opportunities. In the launch of Monero, its developers kept no stake for themselves and settled on contributions and community support to develop the currency further.
Monero supports a mining process that rewards individuals for their activities by joining mining pools, or to mine Moneros individually. Monero mining can be done on a standard computer, and requires no specific hardware like the application-specific integrated circuits (ASICs).
Monero runs on all leading OS platforms which include Windows, macOS, Linux, Android, and FreeBSD.
How to Buy Monero
You can buy Monero (XMR) using Bitcoin (BTC) or any other cryptocurrency. We will teach you how to do exactly that, but first:
Get a good wallet
You’ll need a safe place to store your XMR. Popular choices include GUI Wallet, Exodus, Coinomi and others. As with all cryptocurrencies, exercise caution in choosing a wallet and in your security measures. Look for wallet solutions that include 2-factor authentication, which will alert you via mobile or email if someone has your password and attempts to open your wallet. Hardware wallets like Ledger are recommended. A good google search will reveal more wallet options.
Buy Monero with SimpleSwap
SimpleSwap is a fast and relatively anonymous cryptocurrency exchange service that allows you to exchange almost any cryptocurrency out there with Monero. They require no form of identification or even sign-up so their platform is pretty straight-forward and easy to use.
How it works: Select on the left drop-down list 'Bitcoin' or any other Cryptocurrency that you own. on the right side, select XMR. Then, you will need to enter your desired XMR address, and afterwards make the payment. you will recieve your XMR shortly after.Pros: Secure, fast, No sign-up, over 200 cryptos to trade
Cons: Does not accept fiat (normal money)
Available countries: Worldwide
Transfer methods: Cryptocurrency-based
How Does Monero Work?
Monero uses an obfuscated public ledger, which means transactions can be broadcast or sent by anybody, but an outside observer will not be able to tell the source, the amount or destination. Monero issues new coins through a Proof of Work mechanism which also incentivizes miners to secure the network and validate transactions.
Monero Vs Bitcoin
Since comparisons cannot be avoided, here’s a look at how Monero stacks up against Bitcoin.
Bitcoin is proud of its open transparency capabilities. Its blockchain is basically an open ledger in which anyone, anywhere can access the blockchain and read up on all your past transactions. Bitcoins are quite simple to access and use.
Monero, however, is built for complete and absolute privacy. All transactions are entirely secret. Beginners may find Monero a little complicated to understand.
The Pros and Cons of Monero
- Of all cryptocurrencies, Monero has one of the best privacy features.
- The transactions cannot be linked.
- The transactions are not traceable.
- There is no block limit on the blockchain and it is dynamically scalable.
- Even when Monero supply runs out, there will be a continuous 0.3 XMR/min supply to incentivize miners.
- Financially achieved staggering growth.
- Monero is selectively transparent. Transactions can be made visible to anyone of your choice e.g. an auditor when you give them their private view key. This makes Monero auditable.
- Has a very strong and capable developmental team leading the project.
- Although Monero was made to be ASIC resistant so as to prevent centralization, 3 mining pools own~43% of hashrate of Monero.
- Due to the amount of encryption involved, Monero transactions are significantly larger than other cryptos like Bitcoin, Ethereum, etc.
- Wallets compatible with Monero are not much. As a matter of fact, no hardware wallets compatible with Monero exists currently.
- Monero is not beginner friendly which is one major reason why it has not been as widely adopted.
- Since it is not a Bitcoin based coin, Monero has faced difficult issues in the sense that it is hard for things to be added to it.
There is no doubt that with a more open and decentralized future, many people will take Monero because of the privacy it offers. Although there are still questions about Monero with regards to acceptability in the long term and if it’ll face regulatory hurdles, nevertheless, it is one of few non-Bitcoin-based coins with the potential of actually making it big in the future.
Mainstream brands are beginning to accept the coin and its developers have been dedicated wholly to the project with frequent updates and efforts made to keep the network thriving and secured.
Looking to increase your knowledge on everything cryptocurrency and blockchain? Check out some of our resources such as the best cryptocurrency trading courses for beginners, or our guide on how to invest in blockchain stocks.