Buy Monero (XMR) 2021: Tips, Forecast & Guide
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Monero has performed well in recent months, so it can make perfect sense to keep Monero in your crypto portfolio.
In this article, we will show you step-by-step how to buy Monero - quickly and safely. You'll also learn everything you need to know about Monero and we'll answer the most frequently asked questions about Monero.
The best platforms for buying Monero in comparison
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What is Monero (XMR)?
The majority of existing cryptocurrencies, including Bitcoin and Ethereum, have transparent blockchains. Transactions can therefore be verified and/or tracked by anyone in the world. This means that the sending and receiving addresses of these transactions could potentially be linked to real identities.
Monero, on the other hand, uses various privacy technologies to ensure the absolute anonymity of its users. Monero's blockchain is intentionally configured to be opaque. It thus anonymously encrypts transaction details, such as the identity of senders and recipients and the amount of each transaction, by obscuring the addresses used by participants.
Monero's special features include:
Name / symbol | Monero / XMR |
head office | unknown |
founder | David Latapie, Ricardo Spagni and five other anonymous developers |
software | Open source code, C ++ |
Hard forks (as of April 2021) | Monero Original, Monero V, Monero 0, Monero Classic |
On the market since | 2014, since 2017 mobile e-wallets are available for Monero. |
Total Value / Market Capitalization (April 2021) | $ 7,528,176,423 |
Course (April 2021) | $ 425.21 |
Coins in circulation (April 2021) | 17,897,106 XMR |
Transactions through | Stealth Addresses, Ring Signatures, Ring Confidential Transactions |
ASIC resistance | Yes |
Hashing algorithm | RandomX |
Why buy Monero?
Although it is of course never possible to predict with absolute certainty how the crypto market will develop in the coming months and years, you can hardly go wrong with buying Monero at the moment.
Should you invest in Monero?
That is why they have developed their own cryptocurrency, which, unlike Bitcoin and Ethereum - where there is no anonymity, only pseudonymity - really protects the privacy of the user and makes it practically impossible to determine their identity. No wonder, then, that the cryptocurrency has enjoyed great popularity in recent months and years. After all, it fulfils the blockchain ideals.
At the same time, of course, this focus on anonymity has also attracted critics, especially government agencies and financial market regulators. Not only do they dislike it, they see it as a serious breach of current financial regulations, such as the know-your-customer and anti-money laundering provisions. These strict international regulations stipulate that it must be possible to establish the identity of money transmitting parties in order to prevent money laundering and terrorist financing.
Legal threat to Monero?
Governments are concerned about the absolute anonymity and privacy that Monero offers its users. It is possible that they will try to take legal action against Monero and its operators. Therefore, it can be assumed that in the coming weeks and months, governments may try to take legal action against the operators of the cryptocurrency Monero.
For every crypto investor who is considering buying Monero, it must of course also be noted that Monero, like most other cryptocurrencies, repeatedly shows high price volatility. As an investor, you should be able to wait patiently for these price fluctuations without being tempted to panic (sell). In addition, there is a certain risk that a total loss may occur. This is unlikely, but as an investor you should always keep the risks in mind.
Differences between CFD brokers and exchanges
CFD Broker
Pros
Cons
Exchanges
Pros
Cons
How real coins and CFDs differ
If there are two ways to acquire cryptocurrencies, there are obviously also two different types of cryptocurrency:
If you want to trade "real" coins, you do it on exchanges.
If, on the other hand, you want to trade CFDs, i.e. financial instruments that are linked to the price, then you do it with brokers.
Here are the advantages and disadvantages of both types of investment:
CFD
Pros
Cons
Real Coins
Pros
Cons
Buy Monero as a CFD or real cryptocurrency?
You can invest in Monero in two different ways: By buying coins directly or by trading Monero CFDs. The latter are derivatives whose underlying value is derived from the price of a certain asset, in this case Monero. Thus, you are betting on a rising or falling price of the cryptocurrency instead of actually buying it yourself.
A clear advantage of buying Monero CFDs is that you neither need special technical knowledge nor do you have to create your own wallet. The investments are made through licensed brokers and the capital you invest yourself is clearly less than when buying Monero Coins.
Logically, however, in this case you are instead exposed to the regular loss risks of such an investment and have no 100% guarantee of high returns. Therefore, this method is generally only recommended for those who already have a certain amount of experience in day trading and are already familiar with this form of investment and trading.
Buy Monero CFDs: Step-by-Step Guide
Libertex is a well-known, state-regulated and licensed trading platform. This makes this reputable provider perfect for trading a Monero CFD.
Step 1: Set up an account with Libertex
Via one of the buttons you will get to the platform of Libertex, which you may have to change. After that you have to click on "Register" and then enter your email address and choose a strong password.
Step 2: Deposit money
You will then be taken to the Libertex overview page. From here, navigate to the "Deposit" option in the menu. Select the desired payment method, e.g. credit card or Giropay. Depending on your selection, you will then either be redirected to the payment provider or the payment details will be displayed.
Note: Before trading, your identity and residential address must first be verified. To do this, the relevant documents must be uploaded in the account area.
Payment method | Possible |
|---|---|
Buy Monero with bank transfer | ok |
Buy Monero with a credit card | ok |
Buy Monero with Neteller | ok |
Buy Monero with SOFORT | ok |
Buy Monero with Skrill | ok |
Buy Monero with PayPal | ok |
Buy Monero with other payment methods | ok |
Step 3: Trade Monero CFD
Once your payment has been received, you can use it to buy a Monero CFD at Libertex. To do this, simply search for the currency using the search bar at the top of the screen. In the subsequent window you will see all the data on Monero once again. Now click on "Open trading position".
You will be shown a screen that once again shows you the price trend. You can also set the amount you want to buy Monero for. You can also limit your risk by entering profit and loss limits. Now just click on "Buy" and the purchase is complete.
Store Monero safely in the Monero Wallet
If, on the other hand, you have bought real Monero on an exchange, the situation is different. Many exchanges offer to automatically store your Monero in a Monero wallet. However, this comes with a big disadvantage. With such an exchange, the private key and public key of your wallet are not managed by you, but by the exchange!
This bears the risk of losing your keys and thus also your Monero in the event of a hack of the exchange. Of course, reputable providers will implement all necessary measures and technologies to prevent such a hack. Nevertheless, a residual risk can never be excluded.
Where can you buy Monero?
You have two different options to buy Monero online:
Crypto exchange
Either buy Monero on a cryptocurrency exchange. On a cryptocurrency exchange, many different investors come together to trade digital currencies. The price is based on the supply-demand principle and any fees incurred are usually split equally between buyers and sellers.
Crypto broker
The second option is that you don't buy real coins and instead invest in Monero CFDs through an online broker. With CFDs, you do not own the underlying asset. The broker agrees to pay you the difference between your initial purchase and the current value when you sell, depending on whether you bet short or long.
Crypto exchange | Crypto broker | |
|---|---|---|
Popular providers | Bitcoin | eToro |
Monero price development
Here is a list of the milestones in Monero's price development so far:
- In the first few years after Monero's market launch, the price was steadily below USD 2.
- In 2017, the year of the crypto boom, Monero also records its first significant price increases: In August, the price briefly reached up to USD 137.
- The Monero price reaches its unbeaten all-time high in January 2018: at a proud 482.55 USD, this is an impressive and promising rise at record speed.
- While Monero saw radical price drops in the following years due to the collapse of bitcoin, the price is now visibly and steeply heading upwards again. In April 2021, the cryptocurrency almost reached its old record value again, with a current price of 429.28 USD (28.04.2021).
The current Monero exchange rate
A look at the Monero price makes it clear that a total loss is unlikely, but not completely impossible: Since the beginning of the year, the Monero price has also shown an impressive performance. On 1 January, it stood at USD 46.23 and gradually rose to just under USD 56 by the end of March.
Since then, there has been a veritable price explosion, and a price rally between 10 and 18 May brought the Monero price towards the 90 USD mark, which it also exceeded on 27 May. Although it went down again somewhat in the last few days, the price is currently at 87.43 USD. In a year-on-year comparison, this represents a gain of 89% so far. Naturally, this arouses the curiosity of crypto investors who hope for further price increases in the coming weeks and months.
How and where to buy Monero?
Many users ask themselves whether it is possible to buy Monero with Paypal; whether Monero can be bought anonymously and what the situation is in Austria and Switzerland. We have clarified these questions here:
Buy Monero PayPal
Sometimes you can even buy Monero via PayPal. However, this is mainly relevant if you are interested in investing in Monero CFDs via licensed online brokers. These usually have a lot of different deposit options and PayPal is also on the list for some.
It is not yet possible to buy XMR directly with PayPal.
Buy Monero anonymously
Known as a privacy coin, transaction anonymity is one of Monero's highest priorities. Neither the transaction amount, nor the sender or recipient can be traced when paying with Monero. So it is only logical that many interested parties also want to buy Monero anonymously. However, this is already a little different.
Because most of the established and licensed online brokers and crypto exchanges now insist that traders and buyers must register on the respective platform and verify their identity. This is also mandatory according to regulation and is intended to prevent money laundering and criminal activity. If a platform offers you to buy Monero without registration, you should be vigilant. Because it is a relatively clear sign that this is not a reputable provider.
Your only option to buy Monero without verification would therefore be to do so in offline arrangements via a third person who already has an account with an exchange or online broker. In this case, you could buy some tokens from this person and use them to purchase XMR anonymously.
This is how Monero mining works
Monero mining is the process of verifying transactions on the cryptocurrency's blockchain in order to earn rewards in the form of XMR coins. XMR uses the same Proof of Work (PoW) consensus mechanism as Bitcoin, with the difference that its version allows even hobby miners with an ordinary CPU to take advantage of Monero mining, thus enabling a fair distribution of coins to all interested miners.
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Option 2: Solo mining
Before you start mining, you need to decide whether you want to mine Monero on your own or join a so-called mining pool. In a mining pool, a group of miners come together and combine the power of their hardware. This gives them a better chance of verifying transactions. The rewards they get from mining are also shared among all the users in the mining pool.
Most mining pools charge you a fee, which is usually in the range of 0 to 2%. For example, if you contribute 5% to the total hardware output of the mining pool, this means that you also receive 5% of the total rewards earned by the mining pool.
Monero forecast: Does the currency have future potential?
Here it is first important to understand that the crypto market is generally very susceptible to fluctuations and a certain risk can never be ruled out. With Monero, too, it is easy to see on historical charts that this cryptocurrency has been subject to strong fluctuations since its launch. The biggest peak so far was reached at the beginning of 2018, which was followed by an extreme lull. Currently, however, in April 2021, the Monero price is rising steeply again and has almost reached its old record value.
In general, the fact that the coin has been among the 20 strongest cryptocurrencies in terms of its market cap for years speaks for the continued stability of Monero. The promise of anonymity ensures a stable and very active user base.
Moreover, as mainstream cryptos like bitcoin become more transparent, this could also speak for an increasing relevance of Monero. The developers insist on being able to offer the most anonymous cryptocurrency in the world and are therefore constantly working on further improving data security and making the software even more scalable. For example, they are also optimising the payment channel.
However, negative influences on the XMR price could be that there is still a risk that some countries and authorities will ban the use of anonymous digital payment methods or at least work on it. As a logical consequence of such measures, the market capital of the coin would fall sharply, which would result in a drop in the price. And, as already mentioned, the history of Monero shows some extreme fluctuations, which so far cannot be ruled out for the future.
What should you look for when buying Monero?
Some platforms only allow you to exchange XMR for other coins, while some providers also allow you to buy Monero with a credit card or a simple bank transfer. Licensed online brokers also allow you to invest in Monero via CFDs.
The most important things to consider when choosing an exchange or broker to buy Monero are the following:
Are real money currencies accepted or cryptocurrencies only?What other payment methods are available?
Is CFD trading also offered?
How high are the fees?
How secure is the respective trading platform? (Licences)
How safe is trading the cryptocurrency Monero?
Less risk-averse investors are looking for interesting alternatives to increase their wealth accumulation. It must be pointed out here that cryptocurrencies are not suitable for wealth accumulation.
This is simply because their price development is too volatile - there are frequent price fluctuations that can even exceed 10% per day. In addition, the future of cryptocurrencies in the next 5-10 years is currently difficult to predict. Investors for whom security and continuous asset accumulation are important should therefore switch to other asset classes.
On the other hand, those who believe in the future of the cryptocurrency Monero and the crypto market itself and have no problem speculating a little should get more information about the cryptocurrency. If you decide to buy Monero, it is essential that you choose a reputable provider that you can trust - and which ideally also has sufficient user-friendliness.
Selling XMR
Of course, there may come a time when you want to sell your Monero again - perhaps to secure profits or simply to be able to invest in other cryptocurrencies. The process for selling Monero is actually the reverse of the buying process. At Libertex, you can sell and liquidate your Monero CFD at any time via E-Trader.
Monero advantages and disadvantages
After we have dealt with the many facts and factors surrounding the cryptocurrency Monero XMR, we would now like to summarise the advantages and disadvantages of Monero once again:
Pros
Cons
General tips for buying cryptocurrencies
Tip 1: Find out about technologies and projects in the background before buying.
Tip 2: Choose a suitable trading platform (stock exchange or broker)
Tip 3: Never invest more than you are prepared to lose.
Tip 4: Remember: you can lose everything or win a lot
Tip 5: Do not pay attention to the media, but do your own research
Tip 6: Distribute: Never put everything on a single coin or token
Tip 7: Compare: Trading fees often make profits melt away
Tip 8: Define a trading strategy and follow it consistently
Tip 9: Stay calm: Short-term price drops are normal
Tip 10: Do not share private keys and passwords with anyone
Tip 10: Do not share private keys and passwords with anyone
Conclusion: Buy Monero or not?
In conclusion, Monero XMR is definitely one of the more interesting cryptocurrencies with high hopes at the moment. The concept of anonymity and active community participation via more accessible mining and the development of some optimised hard forks are currently particularly relevant factors that make Monero relevant and so popular among its users. With a currently (April 2021) rapidly rising price, this could be the perfect time to buy Monero.
Although risk cannot be ruled out, the risk of loss with Monero seems to be quite low at the moment. If you want to play it safe, a short-term investment in Monero CFDs could be perfect for you. If you have some experience in day trading, this gives you the opportunity to profit from the success and peak of the cryptocurrency soon and invest in XMR in a relatively safe and legal way.
If you decide to buy Litecoin, eToro is definitely a good and reputable place to go. There you will be able to make safe investments and trades in LTC or in corresponding CFDs, at competitive prices.
Social Trading Function
Fair and transparent fee structure
State regulated and licensed
Wide range of cryptos, incl. Litecoin
Free demo account
FAQ
Interested crypto enthusiasts and investors always have questions when it comes to wanting to buy and trade Monero. We have answered the most common and important questions below.
Monero is backed by a 7-member core team of developers, 5 of whom are still unknown - in keeping with the cryptocurrency's focus on privacy and anonymity. The only known members of the team are Riccardo Spagni and Francisco Cabañas, the other 5 only appear under a pseudonym. Furthermore, the research around the Monero protocol and even better encryption is driven by Brandon Goodell, Sarang Noether, Stoffu Noether andMitchell Krawiec-Thayer.
You can buy Monero (XMR) in two different ways: Through a cryptocurrency exchange or by investing in CFDs with an online broker. However, the latter means that you will not own the coins themselves, but only bet on a rising or falling price and finally get paid the differential return. Popular and reliable Monero exchanges in Germany, Austria and Switzerland include bitcoin.de, coinbase.com and binance.com (full list above). As online brokers, we recommend Libertex and eToro, among others (extended list also in the article above).
Since its launch in 2014, the Monero price has been subject to some extreme fluctuations. While it almost did not move at all in the first few years, the price rose to a brief record high of USD 482.55 in 2018 - a price that Monero has not yet been able to reach again. However, since mid-2020, the price has been steadily rising and is already back in the USD 400 range, which gives hope for continued stable and possibly even higher price values in the next five years.
Whether you buy tokens directly or invest in derivatives instead is ultimately a matter of taste and your investment goals. For more experienced day traders, a short-term investment in Monero CFDs could currently be worthwhile, as the XMR price seems to continue to rise. For technically savvy and interested investors, it is nevertheless also worth buying Monero, as the process of mining or exchanging on an exchange is cheap and uncomplicated, and the price is currently comparatively low.
Monero is a cryptocurrency that was launched in 2014 and is characterised by its strong focus on privacy and anonymity, decentralisation and optimised scalability. Monero's protocol offers truly absolute anonymity, unlike Bitcoin, where there is only pseudonymity (wallet addresses are traceable and could possibly be assigned to a person). Another special feature of the protocol is that the complexity of the mining can be adapted dynamically and the block size can also be adapted continuously. The special CyproNight algorithm is memory-intensive, which is why normal users can also mine Monero with their CPUs/GPUs. In March 2019, a Monero upgrade was carried out that is supposed to make the blockchain even better. However, what makes Monero truly unique is its use of ring signatures and stealth addresses. Stealth addresses ensure that the wallet addresses behind transactions are not publicly visible, which means that no conclusion could be drawn about the owners of these wallets. This also makes it effectively impossible to blacklist certain people. For many crypto enthusiasts, Monero (XMR) is so attractive because it realises the ideals of anonymity and decentralisation more than practically all other cryptocurrencies.
