In 2014, a worthy analogue of Bitcoin was born – cryptocurrency Monero. Monero is based on the CryptoNote protocol, focused on increased transaction anonymity. Monero cryptocurrency is one of the most promising, it allows transactions to be carried out completely anonymously, working on its own blockchain. For the entire time of its existence, it has already managed to survive both ups and downs, but still remains a profitable investment. It is open source software. The cryptocurrency uses the Proof-of-Work principle. At the end of 2015, Monero had a market capitalization of less than 4 million dollars. Monero entered the TOP 10 most promising currencies, and at the end of 2017 its capitalization has already exceeded 6 billion dollars. At the moment there are more than 15 million coins in circulation. Traders can buy Monero on such exchanges as: Binance, Bitstamp, EXMO, WEX and others, as well as trade CFDs.
How Monero System Works
As already said, anonymity about transactions is the main feature of this currency. Monero project has a good chance of success as cryptocurrencies continue to gain popularity. Investors are increasingly buying them, thanks to which their value is steadily increasing. For the creators of Monero, anonymity is extremely important and, as they write on their website:
Most existing cryptocurrencies, including Bitcoin and Ethereum, have transparent blockchains, meaning that transactions are openly verifiable and traceable by anyone in the world. Monero uses cryptography to shield sending and receiving addresses, as well as transacted amounts. Every Monero transaction, by default, obfuscates sending and receiving addresses as well as transacted amounts. This always-on privacy means that every Monero user’s activity enhances the privacy of all other users, unlike selectively transparent cryptocurrencies (e.g. Zcash).
The developers responsible for Monero have taken all the necessary steps to ensure a very high level of transaction privacy. In Monero, transaction addresses are hidden, and in addition, a system of confidential transactions has been introduced, thanks to which their amounts are also hidden. Thanks to Monero’s signature, known as «ring signatures», it is difficult to track cash flows by distributing them to different blocks. Block size is calculated based on the size of the last 100 blocks, and transaction fees are also dynamically adjusted. It is worth adding that, unlike many popular cryptocurrencies, Monero does not have a maximum limit for this cryptocurrency. Monero has a set of key functions and features that distinguish the system:
- Anonymity and freedom from taxes;
- High demand on crypto-exchanges;
- Unlimited scalability;
- Specially designed protocol;
- Unique cryptocurrency code;
- Anonymity of all transactions.
Main Benefits of Monero CFDs
Monero is one of the electronic currencies with the highest capitalization, which guarantees stable profits while being able to find the right moment to buy and sell on the exchange. The coin gained its main popularity due to the growing demand for cryptocurrency. Monero has established itself in the TOP 10 cryptocurrencies, its price and capitalization are growing – this indicates the further development of the coin. Traders are better off looking at this coin in the long run. Anyone can join CFD trading with this promising digital currency. You can trade with one of the best CFDs brokers and also trade other cryptocurrencies like Ethereum, Bitcoin, Ripple…
It is advisable to start trading on the hourly chart, in accordance with the trend movement of the market, while it is advisable to use support and resistance lines and various technical indicators that help establish the direction of the trend. You can trade breakout strategies, they are quite effective. For all beginners, it is recommended to start trading cryptocurrency on a demo account, since this asset is quite specific and has many different features.