What you need to know Before Investing Monero

What you need to know Before Investing Monero

Monero (XMR) is one of the big cryptocurrencies that is being used today. Monero is a currency that has become popular due to its privacy feature that makes transactions between sender and receiver to be untraceable and anonymous. There is a lot of knowledge about cryptocurrencies, and it is good before you invest in any cryptocurrency you know more about it. This article highlights some important details anyone interested in digital currency should know before investing.

Bitcoin which is the first cryptocurrency was developed in to makes sure it provides its users with some anonymity in their transactions. To achieve this, the developers of Bitcoin made some protocols that aimed at shielding the user’s identities by using the pseudonymous address. This idea was good. However, it later proved to be ineffective.  This is because the transactions and addresses of Bitcoin are recorded on the blockchain. Recording of these transactions and addresses on the blockchain makes them be available publicly.  Even though a Bitcoin address uses pseudonyms, over time, it can get attached to many transactions. This, in turn, makes it possible for family members, friends, and even government agencies to trace or know more about the owner of the address purchasing trends. More information about Monero cryptocurrency is talked about in the xmrwallet.com website.

What is Monero?

Monero (XMR) is a cryptocurrency that is open-source and privacy -oriented. The currency was launched April 2014. The team that launched the cryptocurrency was a team of around seven people. The team has relied on donations together with the broader community for the development of the cryptocurrency.  To obscure the identity of the sender and the receiver of the cryptocurrency Monero(XMR) leverages ring signatures together with stealth addresses. The technology behind ring signatures is to mix a user’s account keys with the public keys that are obtained from the blockchain which the Monero cryptocurrency uses. This, in turn, creates a ‘ring’ of possible signers. By use of this ring signatures, other people who are observers cannot link any signature to any specific user.

The greatest advantage that Monero currency has over Bitcoin which is the most popular currency around is its privacy features. The people who developed Monero currency built it in such a way that it hides the sender and recipient’s identity together with the transactions that take place between the sender and the receiver.

Monero cryptocurrency operates as open-source while using the blockchain technology. The open-source term means that the technology and also the software of the cryptocurrency is improved through the collaboration of its users. The number of the developers that have contributed to the making of this currency is over 240.

Fungibility and adoption

Monero is a currency that offers fungibility. This means that each of the Monero units of currency can always be substituted for another. This means that every Monero coin has equal value. Another thing you need to know about Monero cryptocurrency is the fact that no two coins are distinguishable from one another. This means that any two coins are usually equal in the eyes of merchants.

This advantages of Monero cryptocurrency have made it possible for the currency to increase in its adoption since its release in 2014. Most of the people in the dark web have embraced the cryptocurrency. To know more about the Monero cryptocurrency visit the xmrwallet.com website.

Categories: Finance

About Author