How to Buy Monero - Where to Purchase XMR
Monero (XMR) is a privacy-focused cryptocurrency that is popular among crypto traders who value privacy and anonymity. Unlike Bitcoin and other digital currencies that are simply pseudonymous, Monero has made privacy its main component and is built from the ground up with anonymisation protocols.
Over the past few years, Monero has managed to capture the privacy market. Millions have profitably invested in Monero, but a lot of newbies have a hard time figuring out how to buy it. This guide covers how to securely buy Monero. We provide all the information you need to successfully buy your first XMR tokens.
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Why Trade rather than Buy Monero for Cheap and Fast Returns?
You Don’t Need a Wallet
You trade on the price movement of the coin without having to buy and store it.
You Can Use Standard Payment Methods
All regulated brokers accept popular methods of payment such as credit/debit card and bank transfers.
Trades Are Fast and Withdrawals Are Easy
Trades are executed within seconds and withdrawals will reflect instantly in your account.
What is the Easiest Way and Best Way to Buy? Compare the Top Monero Brokers
Many platforms sell or trade Monero, but broker websites are arguably the best places to buy Monero online. Several factors can affect how easy it is to buy Monero from a broker, including the broker’s location, reputation and years in business. The best website to buy Monero will largely depend on your preferences, but the good news is that there are many brokers to choose from.
5 Things to Consider if you Want to Buy Monero
There are several factors you have to consider before you buy Monero for the first time. This next section includes all the steps you need to take to safely and securely buy Monero.
1. Carefully choose your preferred secure payment method
Platforms typically offer multiple secure payment methods, but it is your location that determines what methods are available to you specifically. Every payment system has a cost and speed involved, so that’s something you need to consider before you hit the “Buy” button. Depending on where you live, the cost of a transaction as well as the time it takes to complete might be higher than you expect.
2. Will you need to set up your own wallet?
While every platform automatically creates a digital wallet for users, it is common sense to have an independent and separate cryptocurrency wallet to store your XMR tokens. You don’t have complete control over wallets that are built into exchange or broker platforms. These wallets also tend to be more vulnerable to hacks and theft. The only exception to the wallet rule is if you’re using a broker to enter a CFD agreement or other derivative that doesn’t require a wallet.
3. Comparing costs
Every cryptocurrency network has fees and costs for transactions. Take the time to compare the transaction fees on the Monero network with other cryptocurrency systems. The good news is that using cryptocurrency as a means of payment is typically more affordable than traditional payment systems. That’s why cryptocurrencies have become a popular option for foreign exchange and remittance.
4. Safety and security
The Monero network is regularly updated to introduce new cryptographic advances and keep it private. It uses several technologies to keep transactions secure and anonymous. Below are some examples:
- Ring signatures: The Ring Signature protocol combines the digital signature of one sender with the signatures of other users. It mixes them up before adding the entries onto the blockchain so it isn’t clear who is the true sender.
- Stealth addresses: Monero uses stealth addresses to create several one-time addresses for every transaction from a single address. The protocol then provides the user’s wallet with a password it can use to scan the blockchain to identify any transactions relevant to them. It’s a way to make sure your transactions cannot be linked back to your published address.
- RingCT: Monero’s developers introduced Ring Confidential Transactions (RingCT) in 2017. It hides the exact amount of XMR users exchange in transactions before the entries are added to the blockchain.
Monero features other cryptographic technologies, but a combination of ring signatures, stealth addresses and RingCT makes transactions nearly impossible to trace.
For a truly safe and secure experience, combine Monero’s built-in privacy features with security protocols available on brokerage and exchange platforms, such as two-factor authentication (2FA).
Can you understand and navigate the platform?
Cryptocurrency brokers and exchanges come in all shapes and sizes. Before you commit to using a particular platform to buy Monero, take some time to explore its features. It’s important to know all of the mechanics involved before you make a purchase.
Monero sounds complicated on paper, but it is adaptable to all kinds of users. The official wallet even features a “simple mode” for less technically inclined users who want to use Monero as quickly as possible. Navigation is intuitive by default.
Ultimate Beginner’s Guide to Trading Monero
What is a Monero Broker?
In the simplest terms, a broker is an intermediary who executes trades on behalf of an investor. The popularity of cryptocurrency trading has caused an explosion of online broker platforms that offer cryptocurrency derivatives, such as options, futures and CFDs (Contract for Differences).
Since Monero is one of the most popular privacy-oriented coins, it is available for trade on many broker platforms. Monero was one of the first cryptocurrencies to address the lack of privacy in public blockchains. It managed to capture the privacy niche and now many brokers carry XMR.
What is a Monero CFD?
CFD stands for Contract for Differences. It is a trading mechanism that allows traders to speculate on the price of an asset without actually having to buy the underlying asset. Traders make a profit or loss depending on whether they correctly predict the price of an asset will rise or fall in value.
Monero CFDs track the price of Monero and let traders speculate on whether the price will go up or down. You make a profit or loss depending on if your prediction is correct. CFDs are typically settled in fiat currencies like USD, so traders get paid in dollars rather than the associated cryptocurrency.
What is the Benefit of Monero Regulation?
Cryptocurrency trading has grown to become a global industry worth billions of dollars. With so much money exchanging hands, it was only a matter of time before global financial authorities passed laws to regulate the industry and protect investors. Regulation has helped to legitimise crypto trading as well as make broker platforms safer and more secure for traders.
What is the Best Payment Method for Buying Monero?
Traders can buy Monero quickly and securely using several different payment methods. However, what options are available to you may depend on your location, so check out your options before investing or buying.
Buying Monero with PayPal PayPal has become a common payment option for all kinds of goods and services offered around the globe, including cryptocurrencies like Monero. Its fees are on the pricier side compared to other alternatives, so try to shop around before committing.
Another problem with PayPal is that while it has become a ubiquitous payment option, it may not be available on all broker platforms. That said, PayPal is a convenient and secure payment option that may suit some investors.
Buying Monero with Credit or Debit Cards Credit or debit card payments are almost universally accepted on all broker platforms, so that’s a big plus. However, this method tends to have higher fees than other alternatives, particularly when using a credit card.
Buying Monero via Bank Transfer Bank transfer is another popular option that is available on almost every platform. It is probably the most affordable option in terms of fees, but it is also very time-consuming. Bank transactions often take several days to complete. Transfers can sometimes even take more than a week because of bank holidays.
Buying Monero with Cash Going the old-fashioned route and using cash is a very attractive option because it has zero fees, but it’s impossible to use this method with online crypto brokers. The only way you could use cash if you found someone willing to meet you in person to transfer their XMR to your wallet in exchange for cash.
The Verification Process for Trading Monero
Reputable broker platforms usually have some sort of verification system in place to identify traders. It typically involves providing proof of address and a government-issued ID. It may seem invasive, but it’s a necessary measure to comply with financial regulators and prevent fraud and other criminal activity.
Monero: Long vs Short Term Investment
Investing in Monero in the short term involves buying XMR with the expectation that the price is either going to dip or rise over the next few hours or days. On the other hand, investing in the long term involves buying and holding XMR with the expectation that the value of Monero is going to appreciate over the next few months or even years.
Short-term investments are how day traders make a profit from market price fluctuations. It’s a riskier strategy, but it has the potential to deliver quick profits. Long-term investments are safer, but they require a good understanding of the market and its trends.
Why Buy Monero rather than Trade?
New investors often wonder if it’s better to buy Monero or trade derivatives. When you buy Monero instantly, you have access to the actual commodity at all times. Even though brokers and exchanges have become reputable in recent years, it’s not unheard of for these platforms to suddenly shut down and disappear with investor funds. Buying and holding Monero eliminates this concern—you are always in control.
Buying Monero also means you have access to XMR as a token of exchange; you can use your tokens to perform secure and anonymous transactions anywhere in the world. It also gives you the option to ‘hodl’ your purchased tokens over a period of time as a long-term investment. The cryptocurrency market has not yet fully matured and can be quite volatile. Holding your tokens shields your investment from short-term market fluctuations.
That said, buying and holding Monero is quite an involved process. Even the fastest Monero purchase will require research and investigation into how to properly set up wallets, how to securely store cryptocurrencies, and how to check for compatibility with Monero systems and software.
What Fees are Involved in Buying Monero?
There are fees associated with using Monero, particularly on broker or exchange platforms. While these fees are generally negligible, you should consider them before making your purchase.
Transaction Fees The Monero network charges a fee for transactions, but it is small enough to be considered negligible. At the time of writing, the fee for each block was less than $0.05. Some exchanges may charge a fee for holding XMR in an exchange wallet, so read the terms carefully before committing to a platform.
Deposit Fees Deposit fees are set by the platform and not the Monero network. The fees typically don’t vary from one currency to another, so make sure to learn what deposit fees your chosen platform charges.
Withdrawal Fees Like deposit fees, withdrawal fees are also set by the cryptocurrency exchange. Most exchanges don’t charge anything for withdrawals, but a few do. It is in your best interest to seek an exchange that doesn’t charge withdrawal fees.
Safely Storing Your Monero
Securely storing your Monero tokens requires the right wallet. Wallets come in software or hardware forms with different specialised security features to keep your tokens safe from theft.
Web Wallet: Web wallets are baked into exchanges and brokerages to ensure these platforms have the functionality required for transactions and storage. They are incredibly convenient, but they have many risks. Since the exchange or broker has complete control over the wallet and your assets, you could lose your investment if the platform is hacked or liquidated. Carefully consider the risks before committing to a web wallet.
Mobile Wallet: Mobile wallets are specifically made for mobile devices. They are convenient because you always have access as long as you have your phone with you. Phones offer good security via screen lock codes, built-in security protocols, and more. However, all of these security features are useless if someone manages to gain full access to your device. Examples of popular mobile wallets include MyMonero, Mycelium, Abra, Edge and Airbitz.
Desktop Wallet: Desktop wallets are for your computer. They are less convenient than mobile wallets, but they offer improved security and are tougher to crack. Desktop wallets tend to have advanced encryption and security protocols like 2FA built-in. Good desktop wallet options include Electrium, Exodus and the Monero GUI wallet.
Hardware Wallet: Hardware wallets are the most secure of all wallet options because they are completely offline. They offer cold storage, which is immune from computer viruses and other common vulnerabilities that can affect web, desktop, and mobile wallets. Examples of hardware wallets include Ledger Nano S, Trezor T and Kastelo.
Wallet Combinations: Some wallet brands have both desktop and mobile wallet options, and they are compatible with hardware wallets. This interconnectivity enables users to adopt a combination of different wallet types for convenience and better security. For example, the Ledger Nano S is compatible with the Monero GUI wallet. You can use the GUI wallet to check your balance, send, and receive from your Ledger wallet.
What Other Coins Can I Trade or Use to Buy Monero?
Fiat currency isn’t the only option for buying Monero; cryptocurrency exchanges also accept trades or purchases made with altcoins. You could, for example, buy Monero with Bitcoin or Ethereum. However, please note that exchanges may charge additional fees for trading one cryptocurrency for another. Check your chosen platforms fee structure for crypto-to-crypto trades before completing the transaction.
What’s the Smallest and Largest Amount of Monero I Can Buy?
Monero newbies often ask: What’s the minimum allowed purchase for Monero? Like Bitcoin, Ethereum, and other cryptocurrencies, you don’t have to buy a whole Monero token. It is possible to buy small amounts of Monero on most exchanges.
The minimum Monero buy limit is typically 0.02 XMR, so the currency is accessible to enthusiasts with a tight investment budget. On the other hand, nothing is stopping you from going all in. Thanks to its popularity as a privacy coin, you can buy Monero without limit on most exchanges.
Can I Buy Monero Anonymously with no ID? Is it Safe and Legal to Buy Monero?
Monero’s entire premise is untraceable transactions, and that has made it popular with hackers and cybercriminals. For this reason, many people wonder: Is buying Monero illegal? The answer is no. It is perfectly legal to buy Monero and many well-established exchanges offer secure XMR purchase. However, reputable platforms will require you to verify your identity to comply with Know Your Customer (KYC) and anti-money laundering (AML) practices.
It is also possible to buy Monero without ID on P2P exchange platforms using cash, gift cards, credit/debit cards, PayPal, or other cryptocurrencies. The caveat is that there is no guarantee the sellers you interact with on these platforms are genuine. You may have little legal recourse if you become the victim of fraud or theft. The less risky option is to use reputable exchanges or brokers that vet users if you want to buy Monero safely.
Will Buying Monero Make Me Money?
Queries about the profitability of buying Monero are always the top questions on search engines. Does buying Monero make you money and does it have the potential to help you get rich? Unfortunately, no one can accurately answer those questions.
Variables like historic price movements and who is buying Monero and supporting the project are good indication of its potential longevity and profitability. Savvy investors use these indicators to make an informed guess on the direction the market might trend.
If you would like to know how much does it cost to buy Monero or the best price to buy XMR, check out our Monero Price Page. It contains all the information you need before you make a purchase.
How to Spend your Monero
Monero offers near-total anonymity by hiding the sender and receiver, as well as the value of the transaction. It’s the perfect form of payment for anyone who wants to pay for goods and services without leaving a trail. Users can also use it to avoid surveillance and safely make money transfers.
While Monero likely won’t ever boast daily transaction numbers that rival the likes of Bitcoin and Ethereum, it has managed to carve out a niche for itself with its unique privacy features. It is growing more popular as people around the world become more privacy-conscious.
How to Sell your Monero
The easiest and safest way to sell Monero is through exchange or broker platforms. Any exchange worth its salt will walk you through the entire process from start to finish. You can either sell your XMR tokens at the current market price or, depending on the platform, set your own price. You can also trade your XMR tokens for more popular crypto like BTC or ETH and then convert that to fiat currency.
CFDs are another alternative; it is generally easier to sell a cryptocurrency that is tied to a CFD. Several leading CFD brokers support XMR trading.
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Frequently Asked Questions
Monero is still a mineable cryptocurrency as of 2021. The network supports CPU/GPU mining. A new block is mined every two minutes, and the reward per transaction block is approximately 4.99 XMR. There are several mining pools available for anyone interested in Monero mining.
It is worth mining Monero if you join a mining pool. Solo mining XMR is not likely to be profitable unless you have really cheap or free electricity and a powerful CPU mining rig that has low energy consumption.
The Monero development team has released official GUI and CLI wallets. They also have a list of recommended third-party mobile and light wallets, including Cake Wallet, Monerujo, MyMonero, and Edge.
Monero offers users near-perfect anonymity through privacy features like stealth addresses, ring signatures, and RingCT. A combination of all three technologies can hide sender and receiver details, as well as the transaction amount. No one can theoretically monitor your transactions.
Monero is popular among hackers and cybercriminals because of its strong privacy features, which make it almost impossible to trace. Its use on darknet marketplaces has given it an unsavoury reputation, but it is as legal as any other cryptocurrency.
In theory, nobody should be able to view your XMR transaction details as long as your view keys aren’t compromised. However, government agencies and analytics firms have been working on ways to trace Monero transactions, including funding tools that track transaction flows. It is unclear if those efforts have been successful.
It’s tough to compare Monero to Bitcoin because they have completely different use cases. Monero was specifically designed with a focus on user privacy. It is superior to Bitcoin on privacy, fungibility, transaction fees, and mining efficiency. Bitcoin beats Monero on network effect, trading volume, merchant adoption, exchange support, and availability of derivatives.
Monero is faster because it has an average block time of two minutes, while Bitcoin has an average block time of 10 minutes. At the time of writing, Monero fully completed a transaction in about 20 minutes. Bitcoin can take over an hour.