Cryptocurrencies have skyrocketed in popularity and value over the last couple of years. Most people have heard of Bitcoin. As one of the very first virtual currencies of its kind, it established the peer-to-peer technology model to allow users to pay with their coins.
However, another popular and trusted currency is Monero XMR. This cryptocurrency works similarly to Bitcoin but offers greater privacy-based features and a totally opaque blockchain.
Want to know more? In this article, we’ll cover all the details you need to know about Monero, including what it is, how it differs from Bitcoin, and the best wallets to use for this currency.
History of Monero
Monero was established in 2014, building on the groundwork laid by a different cryptocurrency called Bytecoin. Bytecoin was the first cryptocurrency created using CryptoNote and was built to be an anonymous digital currency.
However, there were several problems with this currency, leading the developers to fork the Bytecoin blockchain and create Monero. Since 2014, it has been a popular choice for those looking for total anonymity when trading in cryptocurrency. Even celebrities like Lana Del Rey use it.
Monero vs. Bitcoin Differences
As we’ve already noted, Bitcoin is currently the most popular cryptocurrency. While Monero works similarly to Bitcoin, there are some notable differences between the two.
The first major difference is access to anonymity. Bitcoin uses pseudo name addresses of randomly generated characters to shield a user’s identity. But, transactions and addresses are registered on the Bitcoin blockchain means this only offers limited privacy.
Many favor Monero because it doesn’t have a transparent blockchain. It uses a range of features to enhance privacy and ensure total anonymity.
Monero also offers fungibility where Bitcoin doesn’t. In the transparent Bitcoin blockchain, any individual coin can be traced back to its creation, and any use of the coin can be discovered. This means that if a particular coin has been used for an illegal purpose, some businesses will not accept it.
One unit of Monero currency can be substituted with another with no marked difference between them. This makes it a much safer network where users don’t have to risk their coins being refused by others due to their history.
Pros and Cons of Monero vs. Bitcoin
Pros of Monero
- No transparent blockchain for increased privacy
- Interchangeable currency through fungibility
- Fast confirmation time of 20 minutes
Pros of Bitcoin
- More established cryptocurrency platform
- Highly accessible and available everywhere
Cons of Monero
- Limited accessibility
Cons of Bitcoin
- Transparent blockchain
- Not fungible
What Hardware Wallet to Use for Monero
You should use a hardware wallet for your cryptocurrency for maximum safety and security. A hardware wallet is simply a special piece of hardware (rather than a software or online wallet) that keeps your private keys secure in a separate device.
For Monero, we recommend:
- Ledger Nano X: A state-of-the-art device that keeps your crypto protected in a certified secure chip. You can connect it to the mobile app via Bluetooth to control your crypto from your phone.
- Trezor: Trezor will keep your coins safe and secure with a range of security features. You can use it to manage a range of coins and cryptocurrencies and make payments with them without exposing any sensitive information.
Monero is a popular cryptocurrency that offers several advantages over its competitors when it comes to privacy. While it shares many characteristics with Bitcoin, you should remember that the Bitcoin blockchain is transparent while Monero offers anonymity.
As the overall popularity of cryptocurrency continues to grow, there’s no doubt that Monero’s value will also. If you’re using this crypto, be sure to keep it in a secure hardware wallet like LedgerNano and Trezor.