Monero (XMR) is a cryptocurrency launched in April 2014 to address Bitcoin’s lack of privacy. Originally called BitMonero, it was eventually renamed Monero, which is “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, the reference software for Bitcoin mining, including Wladimir J. van der Laan, the software manager. These compliments are due in particular to the high decentralization applied by Monero, true to the original spirit of cryptocurrencies, and its privacy policy, which is among the best on the market today.
This endorsement from the giant Bitcoin’s team members suggests a bright future for Monero and its XMR. Nevertheless, the opacity of this cryptocurrency is drawing the wrath of the press and the distrust of governments. So, is Monero just at the beginning of its heyday or is this crypto currency under threat?
Presentation of Monero and its XMR in some figures
Graph of the Monero XMR price in dollars
Source : Coinmarketcap
The current price of the Monero token
The price of Monero XMR has been on the rise since the beginning of the year. XMR started the year at $167.87. It had its first peak at $283.48 on February 20, only to fall back to $184.99 on the 23rd. Since then, its trend has been upwards. It started the month of March at 219.86 dollars. Its price is now going back and forth between 200 and 230 dollars. Currently, the price of Monero XMR is at 217.67 dollars.
History of Monero and its XMR price
- 2013, the beginnings of Monero: Before creating Monero, its creator started by launching Cryptonote, in 2013. This protocol solved some of the problems that users had with the all-powerful Bitcoin, especially in terms of the traceability of their transactions. The Cryptonote protocol reinforced the confidentiality sought by users. Cryptonote was also used to launch anonymous cryptocurrencies, as was the case with Monero in 2014. Many aspects of Monero are in fact directly inherited from Cryptonote, such as the famous circle signatures used by the platform.
- 2014: Monero is launched in April after a hardfork of the cryptocurrency Bytecoin. Its listing on the stock exchange begins in early May. Its price then displays the price of 2.33 euros. Monero begins, however, immediately a long fall that will bring it to only 38 cents by the end of the year.
- 2015: Monero’s second year is hardly more promising. The young cryptocurrency actually knows its lowest price in mid-January where it is worth only 22 cents. It will finally reach $1 in April, its annual peak, to then rotate between 36 and 74 cents until the end of the year.
- 2016: That’s it, Monero is picking up steam and starting a steady rise. At first in a very timid way, around 1 dollar, but from April the cryptocurrency soars and records a first peak on September 3 at 13.96 dollars. It gradually fell back to 4.71 dollars in early November, then started to rise again. Monero finally reached $13.78 at the end of December.
- 2017: Monero XMR continues its crazy rise throughout the year. At the end of August, its price exceeds $138. Monero records a first peak at $145.4 on September 1. It then went down gradually and flirted with the 80 dollar mark for several months. At the end of November, the price skyrockets again. Monero benefits from the upward trend of all crypto-currencies and XMR finally reaches a second annual peak at $469.2 on December 21! It loses 120 dollars the very next day, but XMR will still end the year at 349.03 dollars.
- 2018: The year is off to a very strong start. Monero records its all-time high on January 9 with a peak at $542.33. Journalists then start to present Monero as the future Bitcoin! But the XMR finally starts a long decline and ends the year at 46.23 dollars.
- 2019: Despite a promising start to the year with a steady rise, Monero’s XMR reached its annual peak at $117.42 at the end of June. It then relapses to end the year where it started: at 44.57 dollars.
- 2020: The year 2020 has rather benefited the cryptocurrency world. Monero did not escape the general trend and its XMR price rose steadily from March onwards. XMR finally ended the year at around 156 dollars.
Monero XMR stock market listing
Factors influencing the price of Monero XMR
Monero XMR, like all crypto currencies, is extremely volatile. Its price is particularly dependent on several external factors that can cause it to skyrocket or fall in just a few hours. These are things that should be known and taken into account by investors who want to get into buying XMR.
Here are the main influencing factors that should be watched very closely by Monero investors:
The price of Bitcoin (BTC) and other crypto-currencies
The value of XMR is directly influenced by the value of Bitcoin (BTC) and other crypto-currencies. This phenomenon can be observed in all crypto-currencies. Generally, when crypto-currencies gain in popularity, all of their prices rise at the same time. However, the giant Bitcoin is leading the way.
When a cryptocurrency stands out and interests buyers, they will want to diversify their investment by buying multiple currencies. As a result, the values of different cryptocurrencies 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. Therefore, make sure you know the state of the market when you want to invest in this area.
The law of supply and demand
Like any publicly traded asset, Monero and its XMR depend on the law of supply and demand. This law is very simple. The price decreases when supply exceeds demand and, on the contrary, it increases when demand exceeds supply. This law is mainly based on the notion of scarcity. The easier it is to find the 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 media coverage that Monero receives and the public’s reception of XMR influence the supply and demand mechanism. If the press and the public give XMR great feedback, other investors will want to buy it. Demand will increase and the price of the XMR will rise. On the contrary, if Monero’s XMR is highly criticized, or even causes a scandal like some crypto currencies have, the demand will decrease. The price of Monero will therefore fall.
However, Monero generally receives mixed reviews. This cryptocurrency is intended to be opaque. Monero tries to provide maximum anonymity to its users and keep their transactions confidential. In fact, it is one of the most effective cryptocurrencies in this area. Therefore, users who choose it for this aspect are extremely satisfied. “Good news”, you might ask?! Well, no. Because if Monero generally satisfies its users, it is regularly pointed out for its use on the darkweb and certainly in illegal activities. Bitcoin (BTC) had also made its debut on the darkweb, nevertheless it did not bring such confidentiality. Monero has therefore not gained a good reputation and has attracted the distrust of governments.
The reception of public authorities and possible governmental actions towards cryptocurrencies
For the time being, various states see themselves overtaken by the world of cryptocurrencies, but many are talking about legislating them in the future. Taking action against crypto-currencies could cause their prices to fall.
For now, most countries are thinking about adopting a virtual version of their currencies, but they may also tackle pre-existing cryptocurrencies. South Korea, for example, announced a few years ago that it was going to legislate on Bitcoin without giving further details. A wave of panic swept through investors who thought it would ban the mining, storing, buying and selling of the most famous cryptocurrency. The price of Bitcoin (BTC) immediately dropped sharply. After a clarification of the situation, the price of BTC had finally resumed its ascent unhindered. One can imagine that a new announcement of this type could equally cause the price of Monero XMR to collapse.
The evolution of Monero facing competitors
The world of cryptocurrencies is constantly evolving. Monero will therefore have to work harder to innovate and meet the expectations of its audience. XMR will have to face competition and stand out from the crowd if it wants to continue its progression.
Typically, changes within blockchains and other systems used by the cryptocurrency are announced beforehand. A go-live date is also provided. Compliance with the features and deadlines announced to the public is crucial. So is the proper functioning of the new features released. Any failure or delay could lead to a drop in the price of Monero. Likewise, the great success of one of these changes could, on the contrary, bring many buyers to Monero. In this case, the price of XMR would rise sharply.
Predictions for Monero and its XMR in 2021
The price of Monero is almost impossible to predict, as it is so volatile and the factors influencing it are numerous. However, for the moment, analysts are quite confident.
TradingBeasts expects the price of XMR, currently at $225.665, to rise slightly during the year. The analyst predicts a drop to $183.688 as early as next month. This value is an average prediction value. TradingBeasts then expects a steady rise until the end of 2021, forecast at $200.806. The predicted minimum and maximum values are very interesting. The analyst foresees a minimum value of 170.685 dollars and a maximum of 251.008 dollars.
WalletInvestor too predicts a rise in the Monero XMR price with a value of $290.254 in a year.
So the predictions for Monero XMR are pretty good at the moment, although no dramatic rise is expected soon. However, these predictions are issued by algorithms that are based on past data. These figures are therefore simple estimates issued without taking into account future events. The share price can go up as well as down. These predictions are therefore to be taken with a pinch of salt, but they nevertheless allow us to be optimistic for the Monero.
All about Monero and its XMR
Why and how was Monero created?
Monero was born after a hardfork of the Bytecoin cryptocurrency. This crypto currency split into 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 behind Monero wanted to fully focus on the privacy and anonymity aspect of their cryptocurrency, developing opacity and untraceability. The primary goal 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 made on the blockchain. At Monero, the watchword is “anonymity”. Monero deploys several mechanisms to preserve the anonymity of the senders and receivers of each transaction. The amount of the transactions is also confidential. Monero works on anonymity, confidentiality and untraceability. This blockchain wants to be as opaque as possible to ensure its users the perfect respect of their private lives.
How does Monero work?
The mining of 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 consists of 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 than Bitcoin! The cryptocurrency giant uses the SHA-256 algorithm, which is so difficult to crack that its miners usually use ASICs (application-specific integrated circuits) to mine profitably. With its algorithm, Bitcoin can adjust the difficulty so that blocks are mined at 10-minute intervals based on a probability calculation.
Monero, on the other hand, has chosen to use the Random X algorithm, since December 2019, to perform the proof of work. Thanks to this algorithm, Monero is resistant to ASICs. These machines are both expensive to buy and in energy consumption, so they are not within the reach of everyone and tend to centralize the network. Monero, by resisting ASICs, allows everyone to participate in the mining of its blocks.
Its token miners will only need a CPU (central processing unit) or GPU (graphics card) to solve Random X calculations. Monero thus ensures greater decentralization. Maintaining a high degree of decentralization allows it to guarantee the anonymity of its users. Monero blocks have no size limit, but its miners can be penalized if they create blocks of too large a size, according to an algorithm. Their reward is then less. This threat allows a natural regulation of the size of the blocks. The mining of its blocks is also planned in a decreasing way. The more we progress in time, the longer his blocks are to be mined, which ensures a greater security to his network.
The guarantee of anonymity and untraceability on the Monero blockchain
In order to guarantee anonymity to its users during their transactions, Monero has put in place several systems.
- Circle signatures to guarantee the anonymity of the issuer: Circle signatures allow the issuer to validate his transaction in a completely anonymous way. The concept of circle signatures is quite simple: at the time of the transaction, the issuer is associated with a group of users. Facing a group of several people, it is impossible to know who really signed the transaction. This method makes it very easy to cover your tracks. The users chosen to be part of the circle are selected by the issuer of the transaction, without being made aware of it. In addition to this feature, circle signatures also verify that tokens are only spent once. Monero thus avoids fraud. This anonymization feature was already present in Cryptonote, Monero has kept it.
- Stealth addresses to ensure the privacy of the receiver: In order to send cryptocurrency to a user, you need to provide their address. This practice is common to all cryptocurrencies. But, in order to fully guarantee the anonymity of the receivers, Monero has set up temporary addresses. Once the transaction is completed, the receiver automatically changes his address. This process prevents the tracking of all transactions received by a user.
- Ring CT technology for transaction opacity: This technology ensures the security of transactions through two mechanisms. First, the Pedersen commitment, which encrypts the value of the transaction. Only the sender and the receiver have access to the amount of the transaction. Secondly, the range proof allows to verify the amount of the transfer. The principle is simple: the range proof allows to verify that the outgoing amount is equal to the incoming amount, 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 implemented to reinforce the untraceability of Monero. Indeed, before its installation, Monero guaranteed untraceability on its blockchain. But thanks to the IP addresses of users, it was possible to determine which address was connected at a given time and thus identify the issuers and trace their transactions. To fight against this phenomenon, Monero has developed Kovri, an anonymous transfer network overlay. This layer allows transfers to be encrypted several times. Thus, it is now impossible to trace the IP addresses of its users.
Through these mechanisms, Monero guarantees total anonymity to senders and receivers, while ensuring the utmost confidentiality regarding the amounts of money transferred.
The opacity of Monero has quickly become a challenge for the web experts. Many are trying to find the loopholes in its system and break through its confidentiality. Nevertheless, this threat has the advantage of pushing the Monero team to always reinforce its systems and protection mechanisms. This is how Kovri was born. As soon as a flaw is pointed out, the Monero team quickly fills it. This dynamism makes it one of the best cryptocurrencies in terms of privacy.
What is the point of using and investing 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 interesting currency for large commercial, financial and even governmental institutions, who wish to keep their activities confidential. But, it also provides some security for ordinary users by giving them a weapon against information asymmetry and the sharing of their private data.
Indeed, large companies and institutions usually collect information from consumers. This information allows them, first of all, to influence consumers by adopting a marketing strategy and appropriate measures. This is information asymmetry. Moreover, this data is a lever of power and a highly competitive tool that allows them to compete unfairly with other companies that do not have this information. The importance of this data also makes it a sought-after asset and some unscrupulous companies sell it to the highest bidder. Your personal information can thus be collected by third parties.
The confidentiality of transactions therefore appears to some as a security against these unethical practices. But Monero is one of the most confidential solutions on the market, and this is what it is all about.
An active and dynamic cryptocurrency
Monero and its XMR are a very viable and efficient cryptocurrency, regularly used in exchanges. Its mining process allows it to enjoy great scalability. Monero is also a company at the head of several projects, the majority of which are aimed at constantly improving the anonymity guarantees of its network. It is therefore a cryptocurrency in constant motion and always looking for improvement.
Moreover, although these projects are designed for Monero and its blockchain, they will be usable by other platforms as it is the case of its Kovri system, for example. This adaptability strengthens Monero’s potential in the cryptocurrency market.
Monero is a fungible cryptocurrency
This total privacy policy makes its XMR a fungible cryptocurrency, just like fiat currencies like the dollar and the euro. This means that one XMR is equal to one XMR no matter what. This principle seems logical, but it is not the same 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 distrust of users, so its value decreases. Monero, by ensuring complete privacy, makes all its tokens equal. It is impossible to know where a token comes from and to distinguish it from another. XMR is therefore fungible.
A truly decentralized cryptocurrency
Monero is also a solution that is completely true to the spirit of decentralization dear to cryptocurrencies. Its mining process makes it one of the most decentralized cryptocurrencies, much more so than Bitcoin, for example.
The disadvantages of Monero
Because 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 that Monero offers are indeed its main quality in the eyes of users, but they call for distrust. By providing anonymity, Monero can be favored as a currency for certain illegal activities. The public and the press are therefore quite critical of it. Similarly, this lack of transparency will probably be its biggest handicap when governments decide to legislate on cryptocurrencies. It seems unlikely that the governments will accept this lack of transparency towards them. Therefore, we should expect them to direct Monero to change its privacy policy in the future. This decision would certainly make this crypto-currency chosen for anonymity lose many users.
Monero also has security problems with its XMR currency. It is regularly the target of attacks. Generally, these attacks aim at breaking the confidentiality of the transactions that are made on its network. The opacity of its network appears to be a challenge and new solutions are always found to undermine it.
How to manage your Monero XMR?
How to get Monero tokens in 2021?
Today you have the possibility to buy your Monero (XMR) tokens on all platforms dedicated to buying and selling crypto-currencies. These platforms (Coinbase, eToro, Binance… just to name a few) allow you to make transactions in complete security once your account has been created. However, they do not have the same policies regarding transaction fees and payment methods. Several payment methods are possible depending on the platform: bank transfer, credit card, wire transfer or SEPA 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 0.16% commission for transactions under $50,000. This rate is extremely advantageous, especially if you make transactions with high amounts. 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 credit card. So the difference is considerable, but card purchases can be much faster. For small transactions, Coinbase can be an interesting alternative. There are many platforms available, so it’s up to you to choose the one that suits you best. No need to worry about your bank, no fees will be charged for your purchases.
When creating your account, don’t forget to choose a secure password! The platforms will verify your identity. Don’t forget to keep your username and password in a safe place. Then go to the purchase section to buy your first Monero XMR!
How to store and secure your Monero tokens?
Although many people simply leave their crypto-currencies on the buying platforms (which is perfectly possible), this solution is not very secure. If the platform has any kind of problem or closes store, you will lose all your cryptocurrencies. Beware, this has happened in the past! We therefore advise buyers to have a cryptocurrency wallet.
Your valuable Monero tokens can be stored in three types of wallets: 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. It’s the easiest, fastest and most enjoyable solution to use.
The only drawback is that your valuable XMRs will remain online. Therefore, they can be the target of attacks. Fortunately, some platforms, considered as references in the field, ensure you a very high security thanks to regular updates and controls. The market leaders are: eToro, Coinbase or Binance. You can trust them, your Monero tokens will be kept safe.
Desktop wallets: wallets in the form of software
These softwares must be installed on your server, your desktop or even your smartphone. However, be sure to choose a secure device. An internet connection is required to connect to it.
Desktop wallets keep the keys private, unlike hot wallets. You will be in charge of the control and protection of your cryptocurrencies, which in a sense increases security. Another advantage is that these wallets do not require the creation of an account. Therefore, your identity will not be verified, you preserve your anonymity completely. This feature can be appreciated by users who have chosen Monero for its privacy policy. This software can therefore be a very interesting alternative for those of you who wish to preserve their anonymity and enjoy greater autonomy.
Nevertheless, the downloads can be quite long and remember that you will only access your XMRs on the device where your software has been installed.
Cold wallets or physical wallets, the offline alternative
Cold wallets or offline wallets ensure anonymity and security. These wallets are the most secure on the market. They will never be 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 wallets according to their features and costs. This option is the most expensive, since you have to buy a physical wallet. Not all wallets are compatible with your Monero tokens! Be sure to check this when you buy.
How to sell your Monero tokens?
You want to sell your Monero tokens? It is very easy! Go to the buying platforms mentioned above. These platforms allow you to sell or exchange your XMR too. Log in to your account or create a new one if you decide to change platforms. Because yes, you can buy your XMR Monero on one platform and sell it on another.
At the same time, connect 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 privacy and security. Go back to your wallet and enter the address that was generated by the platform in the “send” section. Choose the amount of XMR you want to sell and validate your transaction. You can then close your wallet and return to your selling platform. Your XMR should have been credited.
In the menu, choose XMR/USD (or another currency, as you wish). The transaction page will open. Choose “sell” and enter the amount of XMR you want to trade. You have two options. First, you can sell immediately at the market price (“Market”). Or, you can specify a limit price, and your sale will automatically take place as soon as the price of Monero reaches this price. Make your choice and confirm your transaction.
If you sold your XMRs immediately, at the market price, you will see that your account will have been credited with Dollars. If you want to withdraw your capital immediately, 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 previously registered it or fill it in. After confirmation, you will receive your dollars 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 their amount will be indicated to you before validating the operation, so no bad surprises!
Lost access to your Monero tokens?
Bad news… It will be almost impossible for you 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 trading platform and your cryptocurrencies, including your precious Monero capital, are there. In this case, you can try to contact a specialized service to crack your code. Beware, this solution is very rarely successful, unfortunately this is your only opportunity. Second case: you have lost your private key. Here, there is no way back. You can say goodbye to your XMR and other currencies.
In case of hacking, you have no recourse either. That’s why it’s very important to keep your tokens safe and choose your storage location carefully. Also choose highly secure passwords. Never keep your passwords and private key on your computer. If you are hacked, it is possible that the hacker finds them and accesses your accounts. A paper copy of your access codes, carefully kept, is certainly the best solution to avoid this kind of threat.
And yes, cryptocurrencies bring many advantages: a large autonomy, a certain anonymity, a high decentralization… But, being the only one responsible for your funds, you are also alone in front of any incident. There is no guarantee or insurance. If you lose or have your funds stolen, no service will help you. So be careful!
Our opinion on Monero and its XMRs: a good investment choice?
Monero and its XMRs are in our opinion a good investment for cryptocurrency enthusiasts. The Monero cryptocurrency is extremely interesting for those who seek anonymity and discretion. If your privacy is a primary concern, this is definitely the crypto currency for you. You will be able to make your transactions in complete discretion. Your identity, those of your associates and the amount of your transactions will remain confidential. This total confidentiality makes Monero an interesting system for large companies, financial institutions and governments.
If Monero and its philosophy were adopted on a large scale, it would help fight against the collection and sale of consumers’ personal data, and thus against the information asymmetry in commerce and financial exchanges. This may sound utopian and Monero may not be the chosen solution, but this perspective still manages to convince users defending this philosophy.
By choosing Monero, you are also investing in a dynamic system that evolves with its time and doesn’t stand still. 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 is still 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.
Keep in mind, however, that XMR, like all crypto-currencies, remains extremely volatile. Its price can rise and fall dramatically overnight. We can’t say it enough: when it comes to cryptocurrencies, only invest money you can afford to lose. Especially since its privacy policy is drawing the wrath of its detractors. XMR gets bad press because of its use in illicit activities, especially on the darkweb. These regular criticisms could in the future push governments to impose greater transparency on it. Confidentiality being its core business, such injunctions could have extremely harmful consequences on its share price. Therefore, remain cautious if you invest in Monero’s XMR.
