How to buy Monero (XMR) – Forbes Advisor UK

Monero (XMR) is a crypto project that aims to offer transactions that are more anonymous than other blockchains like Bitcoin or Ethereum.

The creators of Monero say that because Bitcoin and Ethereum transactions are recorded on transparent blockchains, they can be used to identify those who make them. Monero claims that its technology makes transactions confidential and untraceable.

Launched in 2014, XMR is the native currency of the Monero blockchain and has a market capitalization of £2.3 billion. XMR was trading at £130 at the time of writing, down from its May 2021 peak of £340.

Remember: investing, including cryptocurrency trading, is speculative and your capital is at risk. You could lose some or all of your money.

Choose an exchange

You can buy XMR on a cryptocurrency exchange, which is a website or mobile app that traders use to buy and sell cryptocurrencies.

There are plenty of exchanges to choose from, and we have ranked what we think are the top 10 crypto exchanges, but you will need one that at least trades XMR. For example, while major exchanges like Kraken and Binance offer XMR, Coinbase does not.

Another consideration is whether an exchange offers an integrated wallet in which to store your public and private keys, two essential components for buying and selling cryptocurrencies.

Also, check what kind of fees apply to things like withdrawals, debit card payments, etc.

Choose a payment method

If you can pay by direct bank transfer, it’s usually free or the most cost-effective option. Many exchanges accept debit cards for deposits, but charge typical fees of 2.99%.

It is generally considered a bad idea to buy cryptocurrencies with credit. Cryptocurrencies are volatile and you could easily end up with debts greater than the value of your crypto assets.

make a purchase

Once you’ve decided how you’re going to pay, navigate to the XMR page within your chosen exchange’s website or app and enter the amount you’d like to spend. Confirm the purchase and you should receive an email confirming the transaction. You should soon see the XRM you have purchased in your account within the exchange.

Choose a storage method

Several crypto exchanges have come under high-profile attacks by hackers, with users losing significant sums of crypto. While exchanges go to great lengths to keep customers’ public and private keys secure, they are a lucrative target for criminals.

If you prefer not to have your keys in your exchange’s integrated wallet, you can pay for a non-custodial wallet with a third-party provider or purchase a storage device such as a flash drive to store your keys.

Wallet providers are also a target for hackers, but they are good for accessibility because if you somehow lost your wallet credentials, the provider can help you get your keys by verifying your identity.

Offline ‘cold wallets’ are safer from hackers because they are not connected to the internet. However, every time you plug one into a web-connected computer, you’re closing the “air gap” that prevents bad guys from accessing your keys. Also, if you lost your seed phrase that secures your cold wallet, you could be locked out of your keys and, indeed, your assets.

Choosing a storage method comes down to how you want to balance security with accessibility.

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