Monero is the fastest growing cryptocurrency globally that provides advanced security and confidentiality of users’ data and transactions. Read this article to know more about Monero in detail.
What is Monero?
Monero is a private and decentralized cryptocurrency that provides a high level of anonymity to the users and the transactions. It uses the three important technologies like the Stealth Addresses, Ring Signatures, and Ring CT to hide the sender, receiver, and transaction amount.
Why Should I Invest in Monero?
Here are some of the reasons that prove that investing in Monero is beneficial.
- Security: Monero transactions are private and secured.
- Anonymous: It provides anonymity to the user data and transactions.
- Easy: Monero coins are simple to mine
- Quick Processing: It performs fast transactions as compared to Bitcoin.
- Community: It has active community support.
How can I buy Monero?
Monero can be purchased in many different ways as per preference. Below are the ways through which one can buy Monero.
- Exchange Account: For buying or selling Monero through an exchange account, one needs to create an account by registering on the online broker or crypto exchange platforms. These exchange accounts will help to buy, sell or store the digital assets from a secured location.
- Cash: This type of transaction is usually done in person, where the buyer and seller have complete control of the transaction’s privacy. But it is not feasible when the person is located in a different geographical region.
- Crypto: One can buy Monero by exchanging the cryptocurrencies they have already invested in. Bitcoin to Monero is one of the easy and standard trading pairs, followed by Ethereum to Monero pair.
- Credit/Debit Card: One can buy Monero by exchanging fiat currencies through a credit card. It is one of the quick and easiest ways to buy Monero directly.
- Bank Transfer: It is mainly used for doing Over The Counter transactions. It is convenient when one plans to buy Monero in a large amount.
How to Invest in Monero and Make Money?
Monero can be used in various ways to make money. Here’s how one can invest in Monero and earn a good amount of profit easily.
- Trading: This can be done best with the help of a broker who has specialized in cryptocurrencies. The broker, with its expert judgment and analysis, can help to gain huge profits. It is always advised to trade on a trustworthy and genuine trading platform.
- Mining: Monero mining is the process of verifying the transactions on the cryptocurrency’s blockchains and earning rewards in the form of XMR coins. To do this mining, one needs a computer, sufficient Central Processing Unit (CPU), Graphics Processing Unit (GPU), and software downloaded from the internet.
- Buy low and sell high: This is one of the easiest ways to buy monero coins. One can buy Monero at a low price and sell it at a high price (when the market value increases). This method requires patience and some time as the value of the coin increases slowly with time, but the rewards are worth the waiting time.
- Accept payments in Monero: This is another easy way to earn Monero coins. If one is the business owner, then Monero can be accepted in the form of payments. But, to do so, one must initially set a Monero wallet.
Can I lose all My Money in Monero?
Like any other business, people can lose funds invested in Monero as well. Here are some of the ways through which one can lose all the hard-earned money.
- Cybercrime: The scammers usually make use of phishing emails that offer a profitable monero investing opportunity. After clicking on the link in the email, the user is redirected to the website, where detailed information about the scheme is present. As a result, the user is attracted to the fake scheme and made to invest in it.
- Ponzi schemes: It is a fraudulent investment scam. The funds are paid to the existing investors by collecting them from the new investors. The organizers of this scheme promise the investors to invest the money in a profitable scheme and give them high returns. But, they don’t invest the money in any scheme. Instead, they provide some amount to the existing investors and keep some for themselves.
- Giveaway scams: The scammers pose as a famous cryptocurrency influencer who promises to multiply the cryptocurrencies sent to them. These scammers create fake social media accounts that seem to be valid and later create a sense of urgency that leads the users to invest the funds to make huge profits.
- Romance Scams: In these, the scammers use the dating app to make the victim fall into this trap and make them believe that they are in a long-distance relationship. And, once the trust is built, conversations are turned to cryptocurrency opportunities in which th victim to made to invest the funds on fake crypto platforms or asked for the wallet credentials.
- Exit Scams: In this scam, the attackers pretend to have made a new type of cryptocurrency coin that will generate huge returns in the future. And, once the investors start investing in it and huge funds are collected, these scammers vanish with the funds.
Risks of Investing
Even though Monero is considered a safe cryptocurrency, it has certain risks associated with it, as mentioned below:
- Cannot verify the transactions: The sender cannot verify whether the Monero transaction has happened or not to the authoritative person. Whereas, in Bitcoin, the transactions can be traced and confirmed that it has occurred.
- No fixed supply: Infinite Monero coins can be mined by the users, unlike the Bitcoin that has fixed coins to be minted. And due to having an unlimited supply of tokens, Monero can be inflationary.
- Payments are irreversible: The crypto coins transactions cannot be reversed in case of any dispute, as this money is not centralized. Hence before making any transactions verify the identity of the receiver.
Tips to Consider Before Investing in Monero
Before buying the crypto asset, various factors need to be considered, as mentioned below.
- Research: It is better to research Monero to check whether it was associated with any scams before investing in it. Also, check whether the exchanges are using blockchain technology to secure the transactions or not.
- Adoption of currency: Before investing, check how the market has adopted this currency and become popular among investors.
- Price: Check the price of Monero for different currencies, as buying it with other currencies increases the chances of getting profits in the future.
Monero is the emerging cryptocurrency that has made its presence all over with its unique features. However, it is always advised to do thorough research on the cryptocurrency before investing in yielding high returns and preventing falling into the scammer’s trap.