How to Buy Monero?

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Monero is a privacy-centric digital asset that was created as the result of a 2014 fork of the Bytecoin blockchain. Initial funding for Monero was provided by the Forum Funding System. Unlike many privacy coins, Monero is not an opt-in system. Every transaction that is processed on the network in anonymized and the data associated with the transaction is encrypted. This means that your identity on the Monero protocol can not be willfully or mistakenly revealed.  Similar to Bitcoin, governance on the Monero protocol is maintained through the process of Nakamoto consensus, which determines that the legitimate chain is the one with the longest connected string of proof of work. The method used by Monero to enable fully private transactions is called bulletproofs. More specifically, zero-knowledge proofs. Bulletproofs significantly reduce the size of a transaction which makes the process of transacting highly efficient. 

Beaxy will soon offer the ability to buy and sell XMR with fiat currencies by using your bank account, wire transfer, or a credit card. Until that functionality is ready, you can buy or sell XMR on Beaxy by using other digital currencies like Bitcoin (BTC). Follow the steps below to add XMR to your Beaxy account wallet. 

1. Open an account on Beaxy

To complete the first step, go to the Beaxy Exchange website and register an account. All you will need for this step is an email address and your name. When your account is registered you will now be able to complete the verification process. To do this, submit a copy of your driver’s license if you are a United States citizen or send a copy of your passport if you are a citizen of a different country. When you have submitted your verification documents your account can be approved in as little as five minutes. 

2. Purchase Bitcoin

Now that you have registered and verified your account you are able to add funds and begin to buy, sell, or withdraw digital currencies from your account. Before buying or selling XMR, you will need to add some Bitcoin to your account so that you have something to trade with. To do this, go to the My Account section of the Beaxy trading platform and click on the Buy Crypto tab. Now you will enter the amount of Bitcoin that you wish to buy. Next, you will go through the Simplex portal where you will be prompted to add some information about your credit card and then your transaction will be processed and the Bitcoin you purchased will be displayed in your Beaxy account wallet. 

3. Exchange BTC to XMR

At this point, you can navigate to the XMR-BTC trading pair and enter the amount of Monero that you want to buy. If you are submitting a limit order, you will be asked to enter the exact or lower price at which you are willing to buy XMR. Please note that the transaction cost will be displayed in BTC and the bottom of the order form that you are submitting. 

XMR value and price

On 10th June 2020, the cost of Beaxy was 0.00696916 BTC, and its market cap was 1,156,280,862 dollars. It is ranked 16 amongst all cryptos with a daily volume of 53,794,969 dollars.

XMR advantages and disadvantages

Advantages

1. Security 

Research the security features that are offered by different marketplaces. To further secure the XMR that you purchase, use an exchange or wallet that requires 2-Factor Authentication to gain access. Avoid using SMS as a second level of security as sim cards are much easier to infiltrate than authentication apps like Authy. 

2. Privacy

XMR transactions completely shield and encrypt all information about the transfer such as the wallets involved, how much XMR is transferred, the time the transaction takes place, etc. Monero encrypts transactions by using bulletproofing mechanisms like zero-knowledge proofs. 

Disadvantages

1. Mining centralization

The majority of the Monero mining is performed by four large groups that control almost all of the Moanero network. Having a consolidated group of minors can be risky if they decide to attack the network. Due to the consolidation, there would be less computing power available to combat any attacks by a centralized group. 

2. Transaction size

The Monero network assigns larger storage sized to transactions. This can make processing the transactions more cumbersome and less efficient. That being said, the Monero protocol has been tested to process transactions at a rate of up to 1,700 transactions per second. 

Best XMR wallet – how to choose

Using a digital wallet in tandem with XMR digital currency includes some security enchantments that stem from Monero’s privacy and security-based ethos. When deciding how to store your XMR currency, you will need to decide between security and ease of use. You can hold your digital currency in a cold storage wallet that has advanced security measures but is more difficult to use. Your other option is to use a hot wallet which is less secure relative to a cold storage wallet but is generally much easier to access and use. 

Storage

Most recommend that you give up the convenience of a hot wallet to gain the enhanced security featured with a cold storage wallet. That being said, if you do not plan on holding XMR in your hot wallet for a long time and you also plan to make transactions frequently then a hot wallet may be the right choice for you. Please keep in mind that if you are using a hot wallet and have control over your private key you should never expose the key to the internet or have it saved where another person or computer can see it. 

Trust and Safety

There are cases when using a hot wallet that you will not be in control of your private key. Take Coinbase for example, if you have funds in a wallet on Coinbase you do not actually have control over your funds. In this case, Coinbase will be in control of your private key which means that they can ultimately do whatever they want with your digital currency. This can create a lot of risks because you can not be certain of the level of security they have with your funds. If a third-party operator who has access to your private key gets hacked, it can result in the loss of your funds. Ensure that you are the only person with access to your private keys as often as possible. 

Conclusion

You can register and verify an account with Beaxy in just minutes. Once you complete that process you will have seamless access to some of crypto’s best exchange features. When you want to buy or sell XMR, simply navigate to the XMR-BTC trading pair and enter the amount of XMR you want to buy and sell.