One of the key rules of investment strategy is to diversify your investments. This can be done by investing in stocks whose focuses lie in different business sectors.
One of the most popular investment strategies right now is to invest in crypto currency. Through buying, selling, and crypto mining, you can collect and profit from cryptocurrency.
But how do you decide on which cryptocurrency to buy?
Bitcoin and Ethereum are the two most well-known cryptos, but because of their popularity and in Bitcoin’s case, finite amount, they are expensive. Monero is another crypto that you may want to consider. Keep reading to learn about it and how it works.
What Is Monero?
Like Bitcoin and Ethereum, Monero is a system that uses XMR as its currency, which has a fluctuating value. People can mine it with their computer, through a process of solving complex mathematical equations. Once the equation is complete, you receive Monero for your work.
It is also one of the ten biggest cryptos currently available.
One of the unique aspects of this crypto is that it is unlinkable and untraceable. With other cryptos, users can see and verify when a transaction is made using those currencies. Monero is all about privacy and for those who wish to keep their transactions private, this is the biggest advantage with this crypto.
You cannot trace transactions with Monero, the origin of funds, or the destination.
Keeping Business Private
Keeping the identities, funds, senders, and recipients of money sounds like something a criminal would utilize. While the clandestine nature of this crypto does appeal to criminals, there are advantages for the law-abiding as well.
Because Bitcoin and Ethereum’s blockchains are public, users can examine data to learn information. Those who do this can learn patterns, behaviors, and personal information about other users.
People also have the ability to track accounts that belong to exchanges and determine if large amounts of crypto are moving. This would allow them to short that currency and turn a profit. Monero’s privacy helps keep the playing field even and prevents this from happening.
Fungibility is the ability to exchange one good with a similar kind of good. For example, if you have an American fifty-dollar bill, you can exchange it with someone else’s because they are identical.
The fungibility of crypto currencies becomes a little murky. The blockchain of cryptos like Bitcoin and Ethereum are public, so you can track the history of a coin. If someone can connect a coin to illegal activity, it can end up on a blacklist and become unusable.
Many are against “coin profiling” and view some of the methods for determining “dirty” coins as unreliable.
Monero avoids these pitfalls due to its clandestine nature. In many ways, you can consider it more reliable than Bitcoin or Ethereum for this reason. The public blockchain cryptos may be fungible or non-fungible, depending on who you ask.
However, non-fungible tokens, or NFTs, are becoming a hot commodity. If you already have an interest in cryptos, you should learn more about NFTs.
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