Monero is an alternative cryptocurrency and one of the newer digital currencies on the market. It was first released in 2014 but the cryptocurrency didn’t gain momentum until 2016, and even then it was mostly on the Darknet. The reason why we call Monero an alternative cryptocurrency is because it is not based on Bitcoin or any other digital currency blockchain. Instead, it is based on CryptoNote – a protocol used for several totally anonymous cryptocurrencies.
The biggest advantage with Monero is that it is completely anonymous.
Monero was actually created in order to offer an anonymous alternative to Bitcoin. The idea behind it was to give users the option to perform online transactions with no possibility to track them. Monero is also fungible which means that it is interchangeable with other cryptocurrencies. In fact, many Bitcoin users prefer to use Monero for transactions by first exchanging their Bitcoins to Monero and then back to Bitcoin. By doing this, they can cover their tracks and stay anonymous online.
Beyond just offering anonymity, the aim with Monero is to offer a decentralized, safe, and scalable payment system online. In other words, the idea behind Monero is not only to create a digital currency but a bigger digital payment infrastructure.
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Monero’s History, Development, and Connection to Alphabay
In April 2014, Monero was launched as an open source code compatible with Windows, MacOS, Linux, Android, and FreeBSD. The currency wasn’t completely original as it was created from a fork of Bytecoin (not to be confused with Bitcoin). Since then, the currency has been praised by several leading developers within the cryptocurrency community. Bitcoin’s Peter Todd and Gregory Maxwell have been two of Monero’s strongest supporters.
In the last couple of years, it has become popular to create new cryptocurrencies based on Monero. We have seen several Monero-based currencies pop up in just the last six months.
Similar to other digital currencies, Monero is created through digital mining using specially developed hardware. This means that you can start mining Monero on your own. However, the process of mining Monero is still way more expensive than the process of mining Bitcoin. Because of this, it is hard to make a profit from mining Monero.
During 2016, Alphabay, a Darknet marketplace, started using Monero as its official method of payment. The collaboration helped Monero’s market value skyrocket, but in July 2017 Alphabay was shut down by law enforcement. This, of course, also affected Monero who has not grown as rapidly since.
What is CryptoNote?
CryptoNote is the programming protocol that Monero is based on. It is a so-called application layer protocol that was developed as an upgraded version of Bitcoin. The idea was to make CryptoNote safer and more user-friendly.
Thanks to the programming used to create CryptoNote, transactions completed through the protocol cannot be tracked by police or authorities. Becuase of this, Monero has become very popular on the Darknet. It is also used to conduct illegal trading and run businesses online. It is the firsthand choice for anyone looking to do anonymous transactions online.
At the moment, Monero is the biggest and most well-known CryptoNote-currency on the market, but there are a few others that you should know about:
Bytecoin (BCN) – was the first cryptocurrency to be based on CryptoNote and it is still the foundation for all of them, including Monero.
DarkNote (XDN) – is a cryptocurrency that was developed to be used solely on the Darknet.
CryptoNoteCoins (CNC) – was developed for educational purposes. CNC is mostly used to show how cryptocurrencies work and can easily be used as the foundation for new currencies.
Monero Exchange Rate
Just like all cryptocurrencies, the Monero exchange rate is based on demand. The bigger the interest is in the currency and the more people that use it, the higher the value becomes. Unlike most other digital currencies, Monero’s exchange rate is fungible meaning it can be exchanged and interchanged with other digital currencies without a traditional transaction process.
Here on BullMarkez.com, we offer a cryptocurrency converter that you can use to keep track of the Monero exchange rate. Our exchange tool offers real-time price developments for Monero and other cryptocurrencies.
Invest in Monero
Monero is a highly volatile currency that offers many amazing investment opportunities but also quite a few risks. If you want to start trading Monero you have two choices.
You can look for a broker that offers Monero as a part of their selection. Unfortunately, most brokers don’t offer Monero due to its relatively small size. We also believe that brokers are hesitant to offer Monero because it used to be associated with Alphabay that has since been shut down due to illegal activities. However, the situation is getting better and the future is looking bright for Monero.
Over the last few months, we have started seeing brokers adding Monero to their selection of digital currencies. Personally, we hope we’ll get to see more brokers do the same in the future. If you want to trade Monero with a broker, your best bet is to find it as a binary option or CFD, i.e. speculate on its price instead of actually buying the coins.
You can also buy Monero on your own. If you want to avoid the middleman and handle your own Monero coins, you can buy them and store the coins in an e-wallet. This is the best option if you’re planning on a longer investment or if you want to use Monero as an actual currency. Monero is especially popular on the Darknet but can be used on the regular internet too.