Frequently asked questions

Monero is a cryptocurrency which emphasises privacy and security. It uses a form of proof-of-work known as RandomX as a consensus mechanism. Unlike Bitcoin and Ethereum, it does not use a public blockchain which can potentially be used to deanonymize users. The way that Monero works is different — a blockchain is still used, but the specifics of every transaction are hidden.

XMR is the ticker name of Monero. Many crypto exchanges use this abbreviation in their trading interfaces.

Monero is like every other cryptocurrency, in the sense that its value is a market price, determined by supply and demand on exchanges. Monero's price is also closely tied to the broader crypto market. If the market swells up, then Monero will be buoyed by it, if the market recedes, then the opposite will happen.

Monero is traded on crypto exchanges. You can use Cryptoradar to compare many of the best exchanges out there. After you've chosen your favorite, all you need to do is open an account, verify your identity and make a deposit to start investing.

A crypto exchange (or cryptocurrency exchange) is a marketplace where buyers and sellers trade cryptocurrencies. Just like regular stock exchanges, a cryptocurrency exchange serves as a middleman who sets the market price at which an equal number of buyers and sellers can be found.

Is now a good time to buy Monero? Frankly, we don’t know.

But there are several strategies when it comes to investing. One approach is to buy in when price slips. In the crypto community this strategy is known as "buying the dip" (BTD).

Another strategy is dollar-cost averaging: investing a certain amount of money on a set schedule, say $100 every Monday morning. Dollar-cost averaging seeks to average out the lows and highs over time.

No matter which strategy you choose, Cryptoradar’s price alerts help you to not miss a dip, and adhere to your investment schedule.

There are risks associated with any investment. Crypto markets are particularly volatile, with large upswings and downswings. Only invest as much as you can afford to lose.

When it comes to choosing a crypto exchange, there are also a couple of thinks to be wary of.

Before you can start trading, a crypto exchange will ask you to verify your identity. This is necessary because of anti-money-laundering laws. The verification process and time can differ significantly and take anywhere from minutes to weeks.

All crypto exchanges charge a fee or a spread to finance their operations. Fees can differ significantly among exchanges, so make sure to get a good deal.

Additionally, make sure that your preferred crypto exchange supports the payment methods of your choice, but be aware of any additional payment fees that may apply.

Last but not least, if you’re new to crypto, make sure that your chosen platform is easy to use and has good customer support. This helps you avoid making costly mistakes.

The way you invest in Monero will depend on the exchange you’re using. Some exchanges will only offer bank transfer, others will allow you to use credit card or PayPal, usually in return for an additional payment fee. You can compare the various features of the available exchanges using Cryptoradar.

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