What is Monero?
Monero is a cryptocurrency that prioritizes anonymity and privacy as one of its top features. You can use it to conduct similar financial transactions as you would with Bitcoin and other cryptocurrencies. The only difference from the standard procedure is that neither the parties’ addresses nor the amount involved is made public. It is different from other cryptocurrencies as it is dynamically scalable, which is why it has achieved high popularity and acceptance. Because Monero is safe and untraceable, many cryptocurrency enthusiasts use it for transactions.
Who created Monero?
Nicolas van Saber Hagen is the name behind the creation of Monero, as the idea emanated from CryptoNote. The CryptoNote cryptocurrency protocol is covered in a white paper written by Nicolas van Saber Hagen in October 2013. Besides Nicolas van Saber Hagen, Monero has anonymous developers and an open-source code base that may sound similar to Bitcoin’s.
How does Monero work?
Monero functions differently from other cryptocurrencies, although both rely on the blockchain. The fact that the blockchain for Monero does not show target addresses like other cryptocurrency blockchains suggests obscurity.
When using Monero, both transactional data (including sender and recipient identities) and transactional sums are anonymous. And the Monero blockchain is set up so that by doing so, miners get XMR coins as a reward.
Monero is one of the simplest tokens to mine because it is compatible with both CPUs and GPUs. Mining on the Monero network supports network security and transaction verification. But what, then, is the profitability of Monero mining?
Monero mining profitability
Miners profit between $0.45 and $1 per day per mining system, though these numbers are highly variable and uncertain. And depending on your CPU or GPU, you can mine a new block every two minutes.
How to Mine Monero
For Monero mining to work, hardware and software must be compatible. As a result, you require a computer and a few specialty applications. Interestingly, when it comes to operating systems, Monero is not discriminatory. You use one of the following: Windows, Android, macOS, Linux, FreeBSD.
Best way to Mine Monero
To mine this privacy coin, there are various methods. They include:
- Solo Mining: The rewards from solo mining are smaller than those from mining pools, but you can keep the entire payout for yourself.
- Monero mining pools: With a service fee of 0–2 percent, rewards from Monero mining pools are shared among all users. You might also be charged a small fee for the mining software you use.
- Monero Cloud Mining: Cloud mining uses remote servers run by experts who conduct the mining process on your behalf, just like cloud storage and other cloud services. When mining XMR and sending the currency to your wallet, you can set up and manage a server computer using a cloud mining service. This is a terrific alternative to purchasing and installing mining hardware and software.
Before you begin, you must choose between CPU mining and GPU mining. While GPU mining is anticipated to be more profitable, you can mine the currency on your computer using either the CPU or the GPU.
Additionally, determine the processing power your hardware will provide and contrast it with the overall process’s power consumption. For a system to operate effectively, it should have more than one GPU and, ideally, 3 GB of RAM.
Step 1: The following tools are necessary before you can start mining Monero.
- Any Linux-based system, Mac OS, or Windows OS.
- A Monero Wallet
- Address for a mining pool
Step 2: Select Your Preferred Monero Wallet
Choosing an appropriate wallet to receive the XMR tokens comes next. There aren’t many wallet options for Monero. You can decide between using a hardware wallet or a software wallet. Trezor Model T and Ledger Nano X are the two options for hardware wallets. The official website of Monero also offers additional wallets, including the ones listed below.
Step 3: Install, set up, and signup with mining software
Some experts favor CSminer or XMRig for mining Monero. The software is available for download and unzipping on the website. If your CPU isn’t powerful enough to mine on its own, choose a pool as well.
Step 4: Begin mining and monitor the miner
To start the miner, click enable at the end. It will first perform a device benchmark and optimization.
How to Buy Monero
Step 1: Open an account with an exchange that accepts Monero crypto
Gate.io is one of the best platforms available. Visit Gate.io‘s official website and click the “Signup” button in the top right corner to register for an account.
Step 2: Complete account verification on Gate.io
You might need to log into your account, access your email, and view the message that gate.io has sent to you. Clicking the link will take you to the website for the exchange platform.
Step 3: Choose advanced security for your account
You can set up the popular 2FA on your account on gate.io.
In the crypto world, enabling 2FA is essential because it protects your account from online hackers.
Step 4: Deposit funds into your account on gate.io
Visit “Wallets” or “Deposit” by clicking on the small dashboard box on the right side of the page. Locate the desired currency and choose “Deposit” to make a deposit.
Step 5: Buy Monero (XMR) on your account on gate.io
After funding your account, you can now start trading.
In terms of functionality and anonymity features, other cryptocurrencies can be compared to Monero. Let’s look at a few of them.
Monero vs. Zcash
Monero and ZCash are privacy coins, but Monero has made privacy mandatory, guaranteeing that all transactions are private, while ZCash has made privacy optional. After Monero, ZCash(ZEC) is the second-most popular privacy coin and a privacy-focused PoW blockchain.
Monero vs. Bitcoin
While both Monero and Bitcoin are digital currencies, discreet miners who value anonymity prefer Monero crypto since Bitcoin is open-source and decentralized. However, they cater to very different user bases and needs and offer investors excellent returns. Monero outperforms Bitcoin in mining. It only takes about two minutes, but Bitcoin takes about a 10-minute block time.
Monero vs. Pirate Chain
In contrast to Monero, which has a ten-year track record, Pirate Chain is a more recent initiative. Pirate Chain is a delayed proof-of-work chain that double-stamps Bitcoin transactions on its blockchain for security reasons.
Pirate Chain uses the Zk-SNARK model to process transactions without disclosing token balances. On the other hand, analysis of Monero’s blockchain is challenging because it employs the “Bulletproof” Ring signature protocol.
Monero vs. Dash
A well-known PoW payment service with privacy features, Dash (DASH), uses a “master node” network. Due to the hierarchy of nodes in its consensus, Dash may not be the best privacy coin, but Monero is more of a privacy coin than Dash. Dash is a fantastic substitute due to the features that let users collect the most coins.
Monero vs. Litecoin
Litecoin‘s network is significantly less secure and has lower fees than Bitcoin’s. However, compared to Litecoin, Monero offers greater privacy and more appealing features.
Monero uses the CryptoNote Proof-of-Work algorithm, whereas Litecoin uses the scrypt Proof-of-Work mining technique. Additionally, any coin can be exchanged for Monero due to its fungibility. Again, unlike Monero, Litecoin offers a pseudonymous, visible ledger history that allows for the tracking and blacklisting of illegal transactions in the blockchain. You can mine Monero using browser extensions in addition to wallets, which you can’t do with Litecoin.
Comparison table of 5 cryptocurrencies
|Cryptocurrency||Market Capitalization||Current Supply||Mining Protocols||Block Time||Block Rewards|
|Bitcoin||$379.07 billion||19.15 million||Proof of Work (Bitcoin Core)||10 minutes||6.25 BTC|
|Monero||$2.71 billion||18.16 million||Proof of Work (RandomX)||2 minutes||0.6 XMR per new block|
|Dash||$508.309 million||11.08 million||Proof of Work (PoW)||2.6 minutes||3.35 Dash per new block|
|Pirate Chain||$67.168 million||195.11 million||Proof of Work (RandomX)||1 minute||8 ARRR per new block|
|Zcash||$864.311 million||21 million||Proof of Work (Equihash Algorithm)||1.25 minutes||3.125 ZEC per new block|
Is Monero a Good Investment?
Monero is a good investment, as evidenced by its cryptographic tendencies to rise rather than fall in the future. Just to reiterate, Monero is a superb cryptocurrency with a clear, well-defined use case and superb technical specifications. More people’s demands for financial privacy make the Monero coin a long-term investment, so it is worth considering.
It is programmed to insist more than other currencies on keeping user transaction information private. And this is one reason experts think XMR could reach its all-time high of $1,477.23.8 before 2030.
Is Monero safe?
Yes, Monero is safe at the moment, as hackers have not been able to breach any transactions involving the Monero coin. As a result, it becomes a valuable coin that crypto enthusiasts use for private transactions.