What is Monero Trading & How to Trade: Complete Guideline
Day after day, new innovations are born in the field of Cryptocurrencies. Bitcoin’s dominance is continually threatened by the rise of new digital currencies, one of which is Monero trading.
This is the latest novelty in the field of Cryptocurrencies. It is an alternative that soon entered the market thanks to the adoption of rather controversial payments. We mean those concerning the black market and online drug dealing.
This does not mean that it is an illegal or irregular currency, quite the contrary! Monero has been a coin that has been in circulation for a couple of years but has already managed to quadruple its value. Monero is very popular because it allows you to move money anonymously.
Monero Trading: History and Origin
Before trading Monero, it is very advisable to first try to understand its history.
The Monero has only launched a few years ago, in 2014, with the initials “BitMonero. ” It was a fusion of words BIT (Bitcoin) and Monero (in Esperanto means “money”).
The Monero was released with some differences from the other Cryptocurrencies. The most important difference was that the time the blocks were created was decreased from 120 to 60 seconds. The speed of creation was also decreased by approximately 50%. Then the Monero returned to the 120-second level, thus keeping the pace for issuing currency at the usual level. But the programming team decided to keep the block bonus during each block.
However, the biggest upgrade for the Monero was in 2017. It was the time when the algorithm of Cryptocurrency was updated in massive mode thanks to the transaction by Gregory Maxwell. This was a very important update to improve the safety of the Monero significantly.
What Is Monero (XMR) and What are the Characteristics of It?
Monero is a digital currency created in 2014 and released in April of that same year. Its main strength is precisely concerning privacy. Then it also has characteristics common to other virtual currencies, such as Bitcoins.
Monero is, in fact, decentralized and scalable. This means that its value can increase or decrease in scale according to the currency’s need and availability. The name derives from Esperanto, and in that language, it means “coin” or “money.”
Monero’s market capitalization has now reached remarkable levels. There is now talking of figures that exceed billions of dollars. So this means that there is a circulation of Monero money for a value of more than 5.5 billion dollars.
Monero is particular because it has a different system from the other virtual currencies derived from Bitcoins. And itis based on a protocol that is, in fact, called CryptoNote.
The system in question is based on different algorithms. It is no coincidence that it was also praised by one of the developers of Bitcoin Core.
Characteristics of Monero
The main characteristics of the Monero Cryptocurrency are that it is, first of all, a digital currency.It appears to be open-source and works according to the “classic” model of Cryptocurrencies: proof-of-work.
In effect, the Monero is software, which can run on Mac, Windows, and even FreeBSD. There should be about 18.4 million currencies that will be mined in just 8 years as for the emission curve. After this date, the issue will be continuous, with 0.6 XMR in blocks every two minutes.
However, the aspect that made Monero famous was, without a doubt, privacy. The term Monero means one of those cryptocurrencies that takes privacy to heart, providing the best possible security. Here are the most important features:
- The circle of signatures protects the anonymity of the sender of the funds.
- The stealth addresses that protect the confidentiality of the fund’s receiver.
- RingCT which allows hiding the exchanged amounts.
How to Trade Monero: How to Find the Right Broker?
Therefore, the best way to invest in Monero is to rely on brokers who have a regular license. It means being protected by the strict anti-money laundering and privacy regulations of registered users.
However, an efficient online trading platform must also adhere to a series of services in favor of customers. Such as:
Demo account: The Broker must make a demo account available to the trader to practice without putting their real money at risk. However, the demo account must be taken seriously and not as a game; otherwise, you will not learn anything.
To play trading, there are platforms for playful purposes made on purpose. The best platforms for online trading provide free and unlimited demo accounts.
Zero commissions: The best brokers do not increase commissions to their clients.
Low Spread: The spread from which the gain of the platform derives must be very affordable. It is the part that will be subtracted from your earnings.
Customer support: An excellent Broker must provide customers. It can be reached by phone, chat integrated into the site, e-mail address.
Charts: The Broker must provide registered users with charts that clearly show the trend in the value of the securities. Often, however, in this, the trading platforms are a bit sparse. And it is advisable to turn to external platforms for this purpose.
Training: The platform for online trading must provide permanent training, even for the most experienced users, for example, by downloading eBooks, webinars (online seminars), e-learning training courses, etc.
News: The broker must always keep users informed on the facts that directly or indirectly concern the Stock Exchanges.
Financial leverage: Brokers also provide the so-called financial leverage, a tool that allows you to multiply your profit. Be careful, though. As leverage multiplies your profit, it risks multiplying your loss as well.
How to Invest in Monero? Where to Trade Monero?
Talking about Monero means talking about a particularly rare beast in the world of trading.
We are talking about a Blockchain and its reference Cryptocoin, which is XMR and not Monero itself.
We are, in fact facing a new way of approaching the world of cryptocurrencies for a truly new generation system that has its strong point in the use of the CryptoNote protocol.
Compared to Bitcoin, which finds the approval of many exchanges, Monero is less widespread. And we always tend to advise against the use of exchanges unless they are renowned and very popular.
In fact, the risk is to find yourself in the middle of a scam. Your money could disappear or end up being looted by a Hacker. Or, again, the exchange could also be honest. But it may charge you fees without your knowledge.
So, here are some of the best brokers where you can trade Monero:
Invest in Monero with eToro
The first broker we recommend for trading on Monero is eToro. It is one of the brokers we recommend most frequently precisely because it is able to offer the best conditions:
- Always licensed: A broker that has always been regular that represents an authentic beacon in the world of online trading.
- With Copy Trading: or with the possibility of going to copy the best traders present on the platform. A possibility that you can test here with a free demo;
- Lots of assets: not only among cryptocurrencies but also among stocks, Forex, and many other types of markets.
We believe this is one of the best brokers in the world to trade big on this new Cryptocurrency.
You can check out by opening a demo with eToro. It is always free and always able to offer an experience equal to that of real accounts.
Invest In Monerowith IQ Option
What about IQOption? It is one of the complete brokers on the market in terms of functionality and access to the markets.
Why do we recommend it?
- Invest with 10 euros: That’s enough to open an account with real capital to trade on Monero and many other assets;
- 10,000 euros of virtual capital directly on the IQ Option demo account;
- Linear because it offers one of the simplest web platforms to learn.
Open a free demo account with IQ Option. Evaluate in absolute, total, and complete autonomy how to move on this broker also to invest in Monero.
Invest In Monerowith Plus500
We close our review of the best brokers to invest in Monero with Plus500. It is another historical broker in the sector. This is a special one that offers simply exquisite conditions to trade on all the assets it offers.
We are faced with a broker of the highest quality, which allows everyone to invest with these characteristics:
- Proprietary platform: Of the highest level, one of the best we have had the opportunity to test in our very long career;
- So many titles: Here too there is simply spoiled for choice. You can find them all on the free demo account that we invite you to open immediately;
- License: Always with a European license, the one that best protects those who invest in Monero as well as in other assets.
If you think this is the broker that can do for you, test it in preview. Opening a demo account costs nothing and provides you with a real playground. There you can test both the broker and what it offers in terms of investment on Monero.
How to Buy Monero?
If trading doesn’t convince you, perhaps because you don’t see yourself well, you can always buy Monero.
However, it should be noted that to carry out transactions, a certain fee is required. It is generally lower when the purchase is made directly on Monero’s trading platforms, such as Kraken.
To buy huge quantities of Monero, it is recommended to use an exchange instead, being a more complicated operation. Also, due to the verification of the user’s identity, it could also take days. For example, we will have to buy Bitcoins and then instantly convert the purchase into Monero. Here are the 3 steps to follow:
1. Buy Monero
It is possible to buy Monero (XMR) on many exchanges. The most popular platforms for buying Monero are:
Note that some platforms like Coinbase refuse to support XMR for fear of regulation.
To simply buy XMR, two methods are available to you:
- Buy Monero directly for euros on Kraken.
- Buy Bitcoin and then transfer it to somewhere you can exchange your BTC for XMR.
To buy Bitcoin, you can proceed or by purchasing CFD securities (an acronym for Contract for difference, contracts for difference). With this, you do not really buy the virtual currency but invest in its rises or falls. Or by creating a wallet or coin holder. Credit and debit cards can also be used to buy Bitcoin. But in this case, the fees are quite high, and the risk of fraud is also higher.
2. Create the Best Wallet for Monero
We will then need a wallet generator. The ideal solution could be the mymonero.com portal. As it is managed by the same founder of the virtual currency examined.
There are 2 types of wallet:
- Cold wallet;
- Hot wallet (Monero desktop wallet, mobile wallet, online wallet)
Registering on the site is quite simple. You will not need to enter a username or password, but only a “private key.” The key, once entered, will give you free access to your funds. However, the key must be marked and jealously guarded; otherwise, someone could appropriate it and spend your money.
Once we have created the Monero Wallet, which will be our account. We will be able to obtain the wallet address to carry out transactions.
Once the wallet has been created, we will need to convert the purchased Bitcoins into Monero. To do this, go to any platform that supports the exchange. Then select the departure and arrival currency.
You will have to specify the amount of Bitcoin we want to convert (or the amount of Monero we want to get). And you have to specify the address of our Monero Wallet too.
After that, you will receive a Bitcoin address to make the deposit. After a few minutes, the funds will be credited to our Monero account. You can start selling and buying what you want.
Monero Markets Monetary Policy: How to Start Mining Monero?
Much like Bitcoin, Monero’s consensus is by proof of work. Miners use their computing power to validate blocks, and the longest chain is selected.
Today it is possible to mine Monero through a pool system. For example, you can do it with Forever Pool. It allows you to mine with the help of other users and then sharing the mining results.
It is software to download. Otherwise, there are Firefox add-ons that allow you to do this. Finally, you can always opt for homemade mining with your hardware. But unfortunately, it is an expensive system both for the purchase of the equipment and for the costs of electricity.
Like other cryptocurrencies, Monero (XMR) has a predefined monetary policy, which makes it rare. Thus, it is expected from the beginning that a basic quantity of 18,446,744 Monero is created. And there is also a “tail emission “(tailTransmitter) to keep a creation of 0.3 XMR per minute in the future.
This tail issue will begin when 18,132,171 XMR has been mined in May 2022. And it will correspond to a money creation rate of 0.86% per year. This has been put in place to guarantee minimum security for the network.
Is Monero a Scam?
Thinking that Monero is a scam is wrong. On the contrary, it is a legal virtual currency already used in many economies around the world.
Of course, it is good to always stay on top of all the new virtual currencies. With over 1,450 cryptocurrencies in circulation, it is necessary to pay attention to the so-called “Technical Analysis.” But also, it is important to study the intrinsic qualities of the cryptocurrencies themselves.
As on the stock exchange, it is necessary to analyze the “Fundamentals” to avoid buying decocted ruins.Similarly, it is necessary to carefully evaluate Monero’s fundamentals, i.e., its basic characteristics. These are elements such as:
- The goodness of the project;
- Capital invested;
- Number of users and/or portfolios;
- Daily transactions;
- Distributed/centralized emission
Pros and Cons of Monero
Among the advantages of Monero are:
- Default confidentiality of transactions, which makes Monero one of the most anonymous cryptocurrencies in the ecosystem
- A truly decentralized network of miners, thanks to a proof-of-work algorithm unsuitable for ASICs
- A strong community around the project, which allows Monero to evolve over time
The disadvantages are:
- Reduced scalability: Privacy by default that all transactions are heavier than Bitcoin transactions, for example.
- Little extensibility: Despite some specific possibilities (multi-signature, time locks), there is no smart contract language.
- The mining by malware: Since the XMR can be undermined by CPU, there are malicious programs that can undermine your knowledge.
- A bad public image that could push regulators to ban it: Monero is seen as the Cryptocurrency of the dark web by many.
Finally, it must be said that the system on which Monero trading is based is updated every 6 months. It is done to incorporate new security features. These scheduled updates force Monero to evolve against malicious hacker attacks. These evolve their techniques to enter systems, and therefore, they too must update.