Monero (XMR) is a cryptocurrency launched in April 2014 in response to Bitcoin's lack of privacy. Originally called BitMonero, it was eventually renamed Monero, meaning "coin" in Esperanto. This cryptocurrency is particularly appreciated and supported by its community. It has even been praised by members of the Bitcoin Core team, including Wladimir J. van der Laan, the software manager. These compliments are due in particular to the high level of decentralisation applied by Monero, which is faithful to the original spirit of cryptocurrencies, and to its confidentiality policy, which is among the best on the market today.
This endorsement from members of the Bitcoin giant's team augurs a bright future for Monero and its XMR. Nevertheless, the opacity of this cryptocurrency is attracting the wrath of the press and the mistrust of governments. So, is Monero just at the beginning of its heyday, or is this cryptocurrency under threat?
Presentation of Monero and its XMR in a few figures
Chart of the Monero XMR price in euros
Monero XMR price in euros
Source: Coinmarketcap
Current price of the Monero token
The Monero XMR price has been rising since the beginning of the year. The XMR started the year at €130.81. It peaked at €225.91 on 20 February, before falling back to €150.53 on 23 February. Since then, the trend has been upwards. It began March at 181.83 euros. It is now trading back and forth between €180 and €200. The Monero XMR is currently trading at €185.43.
History of Monero and its XMR price
2013, the beginnings of Monero: Before creating Monero, its creator began by launching Cryptonote in 2013. This protocol was designed to solve some of the problems users had with the all-powerful Bitcoin, particularly in terms of the traceability of their transactions. The Cryptonote protocol strengthened the confidentiality sought by users. Cryptonote was also used to launch anonymous cryptocurrencies, such as Monero in 2014. Many aspects of Monero are directly inherited from Cryptonote, such as the famous circle signatures used by the platform.
2014: Monero was launched in April after a hardfork of the Bytecoin cryptocurrency. It was listed on the stock exchange from the beginning of May. At the time, its share price was €2.21. However, Monero immediately begins a long fall that will take it to just 38 euro cents by the end of the year.
2015 : Monero's second year isn't much more promising. The young cryptocurrency reached its lowest price in mid-January, when it was worth just 20 euro cents. It finally reached 92 cents in April, its annual peak, and then fluctuated between 40 and 60 cents until the end of the year.
2016: That's it, Monero is back on the up and starting to rise steadily. At first very timidly, at around €1, but from April onwards the cryptocurrency soared and recorded its first peak on 3 September at €12.59. It gradually fell back to €4.30 in early November, before rising again. Monero finally reached €12 again at the end of December.
2017 : Monero's XMR continues to soar throughout the year. At the end of August, its price exceeded €100. Monero recorded its first peak at €117.85 on 1 September. It then gradually fell back, flirting with the €80 mark for several months. At the end of November, the price took off again. Monero benefited from the uptrend in all cryptocurrencies, and XMR finally reached a second annual peak of €386.16 on 21 December! It lost €100 the very next day, but XMR still ended the year at €280.
2018 : The year gets off to a strong start. Monero hit its all-time high on 9 January, peaking at $542.33, or €454.52 at the time. Journalists began presenting Monero as the future of Bitcoin! But XMR eventually began a long decline, ending the year at €42.16.
2019: Despite a promising start to the year with a steady rise, the Monero XMR reached its annual peak at €102.25 at the end of June. It then relapsed to end the year where it began: at €40.86.
2020 : The year 2020 benefited the cryptocurrency world. Monero was no exception to the general trend, with the price of its XMR rising steadily from March onwards. XMR eventually ended the year at around €130.
Monero XMR stock market listing
Factors influencing the Monero XMR price
Like all cryptocurrencies, Monero XMR is extremely volatile. In particular, its price depends on a number of external factors that can send it soaring or plummeting in just a few hours. Investors wishing to buy XMR should be aware of these factors and take them into account.
Here are the main influencing factors that should be monitored very closely by Monero investors:
The price of Bitcoin (BTC) and other cryptocurrencies.
The value of XMR is directly influenced by the value of Bitcoin (BTC) and other cryptocurrencies. This phenomenon can be observed in all cryptocurrencies. Generally speaking, when cryptocurrencies gain in popularity, all their prices rise at the same time. The giant Bitcoin, however, is leading the way.
When a cryptocurrency stands out from the crowd and interests buyers, they will want to diversify their investment by buying several currencies. The values of the various cryptocurrencies therefore rise simultaneously, albeit on different scales. Conversely, in times of crisis, all values tend to fall at the same time. XMR is not immune to this phenomenon. So make sure you know what the market is doing when you want to invest in this area.
The law of supply and demand
Like any other listed security, Monero and its XMR depend on the law of supply and demand. This law is very simple. The price falls when supply exceeds demand, and rises when demand exceeds supply. This law is based primarily on the notion of scarcity. The easier it is to find XMR (supply exceeds demand), the cheaper it is to buy. Conversely, the rarer it becomes (demand exceeds supply), the higher its price.
The reputation of Monero and its XMR
The supply and demand mechanism is influenced by the media coverage that Monero receives and the reception that the public gives to XMR. If the press and the public give XMR very good feedback, other investors will want to buy it. Demand will rise, and so will the price of XMR. On the other hand, if Monero's XMR is heavily criticised, or even scandalised as some cryptocurrencies have been, demand will fall. As a result, Monero's price will fall.
Monero has generally received mixed reviews. This cryptocurrency is intended to be opaque. Monero attempts to ensure maximum anonymity for its users and to keep their transactions confidential. In fact, it is one of the most effective cryptocurrencies in this area. Users who choose it for this aspect are therefore extremely satisfied. "Good news", you might ask?! Well, no. Because while Monero generally satisfies its users, it is regularly criticised for being used on the darkweb and certainly for illegal activities. Bitcoin (BTC) also made its debut on the darkweb, but did not offer the same level of confidentiality. Monero therefore does not have a good reputation and has attracted the suspicion of governments.
The reception of public authorities and possible government action in relation to cryptocurrencies
For the time being, governments see themselves being overtaken by the world of cryptocurrencies, but many are talking about legislating on them in the future. Taking action against cryptocurrencies could cause their prices to plummet.
For the time being, most governments are considering adopting a virtual version of their currencies, but they could well tackle pre-existing cryptocurrencies too. South Korea, for example, announced a few years ago that it wanted to legislate on Bitcoin without giving any further details. A wave of panic swept through investors, who thought it would ban the mining, storage, buying and selling of the most famous cryptocurrency. The price of Bitcoin (BTC) immediately plummeted. After a clarification of the situation, the price of BTC finally resumed its ascent unhindered. We can imagine that a new announcement of this type could cause the price of Monero XMR to plummet just as much.
Monero's evolution in the face of competition
The world of cryptocurrencies is constantly evolving. Monero will therefore have to redouble its efforts to innovate and meet the expectations of its audience. XMR will have to face up to the competition and stand out from the crowd if it wants to continue its progression.
Generally, changes to blockchains and other systems used by cryptocurrencies are announced in advance. A launch date is also set. Compliance with the features and deadlines announced to the public is crucial. As is the proper functioning of the new features put into service. Any failure or delay could cause the Monero price to plummet. Similarly, the great success of one of these changes could, on the contrary, bring in many buyers for Monero. In that case, the XMR price would rise sharply.
Forecasts for Monero and its XMR in 2021
The Monero price is almost impossible to predict, as it is so volatile and there are so many factors influencing it. For the time being, however, analysts are fairly confident.
TradingBeasts predicts a slight rise in the price of XMR, currently at $225.665, over the course of the year. The analyst predicts a fall to $183.688 (or €155.24 at the current price) as early as next month. This value is an average prediction. TradingBeasts then expects the price to rise steadily until the end of 2021, when it is forecast to reach $200.806 (€169.70). The predicted minimum and maximum values are very interesting. The analyst predicts a minimum value of 170,685 dollars (144.25 euros) and a maximum of 251,008 dollars (212.13 euros).
WalletInvestor is also predicting a rise in the Monero XMR price to $290,254 (€245.30) in a year's time.
So the predictions for Monero XMR are pretty good at the moment, although no spectacular rise is expected in the near future. However, these predictions are made by algorithms based on past data. These figures are therefore simply estimates made without taking future events into account. The share price can rise sharply or fall sharply. These predictions should therefore be taken with a grain of salt, but they nevertheless give grounds for optimism about Monero.
Everything you need to know about Monero and its XMR
Why and how did Monero come into being?
Monero came into being after a hardfork of the Bytecoin cryptocurrency. This cryptocurrency split in two: the old Bytecoin chain was kept and the new chain became Monero.
This split was due to a disagreement over the philosophy of their cryptocurrency. The team that founded Monero wanted to focus fully on the confidential and anonymous aspect of their cryptocurrency, developing opacity and untraceability. The primary objective of Monero and its developers is to preserve the discretion and anonymity of users. Bitcoin, the first on the market, aims to be transparent. All users have access to the transactions that have been carried out on the blockchain. With Monero, the watchword is "anonymity". Monero deploys several mechanisms to preserve the anonymity of the senders and receivers of each transaction. Transaction amounts are also confidential. Monero is therefore working on anonymity, confidentiality and untraceability. This blockchain is designed to be as opaque as possible to ensure that its users' privacy is fully respected.
How does Monero work?
Mining blocks on the Monero blockchain
Monero is open-source and uses proof-of-work as the consensus for mining its blocks. This consensus is also used by Bitcoin. Proof-of-work involves solving mathematical calculations. As soon as a calculation is solved, a block is mined and its miner receives a reward.
But Monero has chosen a very different approach to Bitcoin! The cryptocurrency behemoth uses the SHA-256 algorithm, which is so difficult to crack that its miners generally use ASICs (application-specific integrated circuits) to mine profitably. Thanks to its algorithm, Bitcoin can adjust the difficulty so that blocks are mined at 10-minute intervals according to a probability calculation.
Monero, on the other hand, has chosen to use the Random X algorithm, since December 2019, to carry out the proof of work. Thanks to this algorithm, Monero is resistant to ASICs. These machines are expensive to buy and consume a lot of energy, so not everyone can afford them, and they tend to centralise the network. Monero, by resisting ASICs, allows anyone to participate in the mining of its blocks.
Its token miners will only need a CPU (central processing unit) or a GPU (graphics card) to solve the Random X calculations. Monero thus ensures greater decentralisation. Maintaining a high level of decentralisation enables it to guarantee the anonymity of its users. Monero blocks have no size limit, but miners can be penalised if they create blocks that are too large, according to an algorithm. Their reward is then less. This threat naturally regulates block sizes. The mining of these blocks is also planned on a degressive basis. The longer it takes to mine the blocks, the greater the security of the network.
Guaranteed anonymity and untraceability on the Monero blockchain
To guarantee anonymity for its users during their transactions, Monero has put several systems in place.
Circle signatures to guarantee the sender's anonymity: Circle signatures allow the sender to validate the transaction completely anonymously. The principle behind circle signatures is very simple: when the transaction is carried out, the issuer is associated with a group of users. Faced with a group of several people, it is impossible to know who actually signed the transaction. This method makes it very easy to cover your tracks. The users chosen to join the circle are selected by the issuer of the transaction, without being informed. In addition to this feature, circle signatures make it possible to check that tokens are only spent once. In this way, Monero prevents fraud. This anonymisation feature was already present at Cryptonote, and Monero has retained it.
Stealth addresses to guarantee the recipient's confidentiality: To send cryptocurrency to a user, you need to provide their address. This practice is common to all cryptocurrencies. However, in order to fully guarantee the anonymity of recipients, Monero has introduced temporary addresses. Once the transaction has been completed, the recipient automatically changes address. This process makes it impossible to trace all the transactions received by a user.
Ring CT technology for transaction opacity: This technology ensures transaction security through two mechanisms. Firstly, the Pedersen commitment, which encrypts the value of the transaction. Only the sender and the recipient have access to the amount of the transaction. Secondly, range proof is used to verify the amount of the transfer. The principle is simple: range proof verifies that the outgoing sum is equal to the incoming sum, without revealing the amount of the transaction. These two steps are carried out in total confidentiality.
Kovri: This mechanism is the latest addition to the Monero team. It has been put in place to reinforce Monero's untraceability. Before it was installed, Monero guaranteed untraceability on its blockchain. However, thanks to the IP addresses of users, it was possible to determine which address had connected at a given time and thus identify the issuers and trace their transactions. To combat this phenomenon, Monero has developed Kovri, an anonymous transfer network overlay. This layer enables transfers to be encrypted several times. As a result, it is now impossible to trace users' IP addresses.
Thanks to these mechanisms, Monero guarantees total anonymity for senders and receivers, while ensuring the utmost confidentiality regarding the amounts of money transferred.
Monero's opacity has quickly turned into a challenge for web aces. Many are trying to find loopholes in its system and penetrate its confidentiality. Nevertheless, this threat has the advantage of pushing the Monero team to continually strengthen its systems and protection mechanisms. This is how Kovri came into being. As soon as a flaw is identified, the Monero team quickly plugs it. This dynamic approach has made Monero one of the best cryptocurrencies in terms of confidentiality.
Why use and invest in Monero and its XMR?
Monero, one of the best solutions for confidential transactions
Monero is one of the few cryptocurrencies that offer anonymous, opaque and untraceable transactions. This high level of confidentiality makes it a very attractive currency for large commercial, financial and even government institutions that want to keep their activities confidential. But it also provides a degree of security for ordinary users, giving them a weapon against information asymmetry and the sharing of their private data.
Large companies and institutions generally collect information from consumers. This information enables them, firstly, to influence consumers by adopting a marketing strategy and appropriate measures. This is information asymmetry. What's more, this data is a lever of power and a highly competitive tool that enables them to compete unfairly with other companies that do not possess this information. The importance of this data also makes it a sought-after commodity, and some unscrupulous companies take the liberty of selling it to the highest bidder. Your personal information may therefore be collected by third parties.
Some people see the confidentiality of transactions as a safeguard against these unethical practices. But Monero is one of the most confidential solutions on the market, and that's what it's all about.
An active and dynamic cryptocurrency
Monero and its XMR are a viable, high-performance cryptocurrency that is regularly used in exchanges. Its mining process gives it a high degree of scalability. Monero is also a company at the head of a number of projects, most of which are aimed at constantly improving the anonymity guarantees of its network. So it's a cryptocurrency that's constantly on the move and always looking to improve.
What's more, although these projects are designed for Monero and its blockchain, they will be usable by other platforms, as is the case with its Kovri system, for example. This adaptability strengthens Monero's potential in the cryptocurrency market.
Monero is a fungible cryptocurrency
This total confidentiality policy makes its XMR a fungible cryptocurrency, like fiat currencies such as the euro and the dollar. In other words, one XMR equals one XMR no matter what. This principle seems logical, but it is not the case for all cryptocurrencies. Bitcoin (BTC), for example, cannot ensure the fungibility of its tokens simply because of its transparency. Bitcoin allows all users of its blockchain to have access to all transactions. This makes BTC a traceable cryptocurrency. It is possible to know the origin of each token. If a token comes from the darkweb, for example, it may attract the mistrust of users, so its value decreases. By ensuring complete confidentiality, Monero makes all its tokens equal. It is impossible to know where one token comes from and to distinguish it from another. XMR is therefore fungible.
A truly decentralised cryptocurrency
Monero is also a solution that is completely faithful to the spirit of decentralisation so dear to cryptocurrencies. Its mining process makes it one of the most decentralised cryptocurrencies, much more so than Bitcoin, for example.
The disadvantages of Monero
Yes, like any cryptocurrency, Monero also has its drawbacks.
Monero's opacity is its greatest strength, but also its main weakness. The anonymity and untraceability offered by Monero are indeed its main qualities in the eyes of users, but they call for distrust. By guaranteeing anonymity, Monero can be used as a bargaining chip in certain illegal activities. The public and the press are therefore fairly critical of it. Similarly, this lack of transparency is likely to be its biggest handicap when dealing with public authorities when they decide to legislate on cryptocurrencies. It seems unlikely that governments will accept this lack of transparency towards them. We can therefore expect them to order Monero to change its privacy policy in the future. This decision would undoubtedly lead to the loss of many users of this cryptocurrency, which was chosen for its anonymity.
Monero is also experiencing security problems with its XMR currency. It is regularly the target of attacks. Generally speaking, these attacks are aimed at penetrating the confidentiality of transactions carried out on its network. The opacity of its network appears to be a challenge, and new solutions are always being found to undermine it.
How do you manage your Monero XMRs?
How can I obtain Monero tokens in 2021?
Today, you can buy Monero tokens (XMR) on any platform dedicated to buying and selling cryptocurrencies. These platforms (Coinbase, eToro, Binance, to name but a few) allow you to carry out transactions in complete security once your account has been created. However, they do not apply the same policies when it comes to transaction fees and payment methods. Different platforms offer different payment methods: bank transfer, credit card, SEPA transfer or direct debit. We therefore advise you to compare the different platforms and their transaction methods in order to make your choice.
Kraken, for example, only accepts bank transfers. However, its platform only charges a commission of 0.16% for transactions of less than $50,000. This rate is extremely advantageous, especially if you are making large transactions. Its competitor Coinbase, on the other hand, charges a commission of 1.49% for purchases made by bank transfer and 3.49% for purchases made by bank card. So the difference is considerable, but card purchases can be much quicker. For small transactions, Coinbase can be an interesting alternative. There are lots of platforms out there, so it's up to you to choose the one that suits you best. Don't worry about your bank, though: no fees will be charged for making your purchases.
When you create your account, don't forget to choose a secure password! The platforms will check your identity. Remember to keep your login and password in a safe place. Then go to the purchase section to buy your first Monero XMR!
How do you store and secure your Monero tokens?
Although many people simply leave their cryptocurrencies on buying platforms (which is perfectly possible), this solution is not very secure. If the platform encounters any problems or closes shop, you will lose all your cryptocurrencies. Beware, this has happened before! We therefore advise buyers to have a cryptocurrency wallet.
Your precious Monero tokens can be stored in three types of wallet: online, in software or in a physical wallet.
Hot wallets or online wallets
Hot wallets are extremely popular with trading enthusiasts. They allow you to buy, sell and trade cryptocurrencies extremely quickly. They are the easiest, quickest and most pleasant solution to use.
The only drawback is that your precious XMRs will remain online. So they could be the target of attacks. Fortunately, there are a number of platforms that are regarded as benchmarks in the field, and which provide a high level of security thanks to regular updates and checks. The market leaders are eToro, Coinbase and Binance. You can trust them to keep your Monero tokens safe and sound.
Desktop wallets: wallets in software form
This software needs to be installed on your server, your desktop or even your smartphone. However, make sure you choose a secure device. You need an Internet connection to connect to it.
Desktop wallets keep the keys private, unlike hot wallets. You will be in charge of controlling and protecting your cryptocurrencies, which in a way increases security. Another advantage is that these wallets do not require you to create an account. Your identity will therefore not be verified, so you remain completely anonymous. This feature may be appreciated by users who have chosen Monero for its confidentiality policy. This software can therefore be a very interesting alternative for those of you who wish to preserve your anonymity and enjoy greater autonomy.
However, downloads can take a long time, and remember that you will only be able to access your XMRs on the device where your software has been installed.
Cold wallets, the offline alternative
Cold wallets or offline wallets ensure anonymity and security. These wallets are the most secure on the market. They are never connected to the Internet. So you can't lose your data or have it stolen. Take care of your wallet if this is the solution you choose. If your cold wallet disappears or is damaged, you will lose all your capital. You can compare the wallets on offer according to their features and costs. This is still the most expensive option, since you have to buy a physical wallet. Not all wallets are compatible with your Monero tokens! Be sure to check this when you make your purchase.
How do I sell my Monero tokens?
Would you like to sell your Monero tokens? It's very simple! Go to the buying platforms listed above. These platforms allow you to resell or exchange your XMR. Log in to your account or create a new one if you decide to change platforms. Yes, you can buy your Monero XMRs on one platform and resell them on another.
At the same time, log in to the wallet where your XMRs are stored. Go back to the platform, choose the XMRs in the sale section and generate a new address. This step is extremely important. Remember to request a new address for each transaction, for greater confidentiality and security. Return to your wallet and enter the address generated by the platform in the "send" section. Choose the amount of XMR you wish to sell and validate your transaction. You can then close your wallet and return to your sales platform. Your XMR should have been credited.
In the menu, now choose XMR/EUR (or another currency, as you wish). The transaction page will open. Choose "sell" and enter the amount of XMR you wish to exchange. You have two options. First, you can sell immediately at the market price ("Market"). Alternatively, you can specify a limit price, and your sale will take place automatically as soon as the Monero price reaches this limit. Make your choice and confirm your transaction.
If you sold your XMR immediately, at the market price, you will see that your account has been credited with euros. If you want to withdraw your capital straight away, go to the "Withdraw" section. We advise you to choose the SEPA transfer if you are in France. Select your bank account if you have already registered it, or fill in the details. After confirmation, you will receive your euros in your bank account. The transaction time may vary depending on the amount and the platform chosen. Transaction fees will be applied by the platform, but the amount will be indicated to you before you validate the transaction, so there are no nasty surprises!
Lost access to your Monero tokens?
Bad news… It will be virtually impossible to recover your cryptocurrencies if you have lost your access codes. There are two possible scenarios. Firstly, you have lost the password to your account on the transaction platform and your cryptocurrencies, including your precious Monero tokens, are there. In this case, you can try to contact a specialist service to crack your code. Unfortunately, this is your only option. Second scenario: you've lost your private key. In this case, there's no turning back. You can kiss your XMRs and other currencies goodbye.
In the event of piracy, you have no recourse either. That's why it's so important to ensure the security of your tokens and to choose your storage location carefully. Choose highly secure passwords too. Never keep your passwords and private key on your computer. If your computer is hacked, it is possible that the hacker will find them and gain access to your accounts. A carefully kept hard copy of your access codes is certainly the best way to avoid this kind of threat.
And yes, crypto-currencies do offer a number of advantages: a high degree of autonomy, a degree of anonymity, a high degree of decentralisation… But, as the only person responsible for your funds, you are also on your own in the face of any incident. There are no guarantees or insurance. If your funds are lost or stolen, no service will come to your assistance. So be careful!
Our opinion on Monero and its XMRs: a good investment choice?
In our opinion, Monero and its XMRs are a good investment for cryptocurrency enthusiasts. The Monero cryptocurrency is extremely interesting for those looking for anonymity and discretion. If your privacy is at the forefront of your mind, this is definitely the cryptocurrency for you. You can carry out your transactions in complete discretion. Your identity, those of your contacts and the amount of your transactions will remain confidential. This total confidentiality makes Monero an attractive system for large companies, financial institutions and governments.
If Monero and its philosophy were adopted on a large scale, it would make it possible to combat the collection and sale of consumers' personal data, and therefore the asymmetry of information in commerce and financial exchanges. This may seem utopian, and Monero may not be the solution of choice, but the prospect is nonetheless convincing to users who defend this philosophy.
By choosing Monero, you are also investing in a dynamic system that evolves with the times and does not rest on its laurels. In fact, you can follow the projects planned by this cryptocurrency on its roadmap.
XMR, a good stock market investment
If you're looking for a simple financial investment, Monero is also perfectly suited. Its XMR price remains quite affordable compared to cryptocurrency giants like Bitcoin (currently at 44,694.42) and Ethereum (1,363.68). Predictions for the XMR price are actually quite good. Various analysts are betting on a slight rise in the price for the time being.
Bear in mind, however, that XMR, like all cryptocurrencies, remains extremely volatile. Its price can rise as well as fall overnight. We can't stress this enough: when it comes to cryptocurrencies, only invest money you can afford to lose. Especially as its privacy policy is earning it the wrath of its detractors. XMR gets a bad press because of its use in illicit activities, particularly on the darkweb. These regular criticisms could in future force governments to impose greater transparency on XMR. As confidentiality is its core business, such injunctions could have extremely harmful consequences for its share price. So be careful if you invest in Monero XMR.
