Monero is not just another cryptocurrency. While Bitcoin lets anyone see who sent what to whom, Monero hides all of it-by default. No opt-in. No settings to toggle. Every single transaction on the Monero network is completely private. That’s not a feature. It’s the entire point.
How Monero Keeps Your Transactions Secret
Monero doesn’t rely on tricks or optional privacy modes. It uses three core technologies built into every transaction:
- Ring signatures: When you send Monero, your transaction is mixed with nine others, making it impossible to tell which one is yours. The network verifies the signature is valid, but never knows which input came from you. Since the 2022 upgrade, ring sizes are fixed at 11-meaning your transaction is always hidden among ten others.
- Stealth addresses: Every time someone sends you Monero, they generate a one-time address only you can access. Your real wallet address never appears on the blockchain. Even if someone watches every transaction you receive, they can’t link them back to you.
- Ring Confidential Transactions (RingCT): Before RingCT, people could guess how much Monero was sent by looking at transaction patterns. RingCT hides the amount entirely. Only the sender and receiver know the value. The network still confirms no one created money out of thin air.
Together, these make Monero the only major cryptocurrency where anonymity isn’t an option-it’s the rule. Even if you’re the only one using it, your transaction still looks like part of a crowd.
Why Monero Is Different From Zcash, Dash, or Bitcoin
Many coins claim to be private. But most are half-measures.
Zcash lets you choose between transparent and shielded transactions. In 2023, less than 2.5% of Zcash transactions used privacy features. That means most users are still exposing their financial history.
Dash’s PrivateSend mixes coins, but researchers at University College London proved in 2020 that they could trace 99% of transactions with enough data. Verge’s privacy tools were hacked in 2018 and never fully fixed.
Bitcoin? Every transaction is public. Anyone can track your balance, your spending habits, even your shopping habits if you use Bitcoin at a known merchant.
Monero doesn’t give you a choice. It doesn’t need to. Every transaction is private. No exceptions. That’s why privacy-focused users-journalists, activists, small business owners, and everyday people-choose it over everything else.
Who Uses Monero-and Why
Monero isn’t just for criminals. In fact, most users aren’t breaking any laws. They just want to keep their finances private.
Journalists in Belarus used Monero in 2022 to receive donations without government tracking. A small business owner in Germany uses it to pay freelancers without revealing income to tax authorities until they’re ready. A parent in the U.S. uses it to send money to their child studying abroad without banks flagging the transfer.
Even governments aren’t blind to its value. The city of Zug in Switzerland has accepted Monero for municipal payments since 2017. That’s not a loophole-it’s policy.
But yes, criminals use it too. Europol estimated in 2023 that Monero made up 87% of crypto used on darknet markets. But that number is hotly debated. The Monero Community Fund points out that Bitcoin still handles far more illicit volume by total value. The difference? Monero’s privacy makes tracking harder. That’s why regulators hate it.
Regulatory Pressure and Exchange Delistings
Monero’s privacy is its strength-and its biggest liability.
In 2020, the IRS offered $625,000 to blockchain firms like Chainalysis to develop tools to trace Monero. In 2022, Binance delisted Monero in Canada. Japan banned it outright under its Payment Services Act. South Korea restricted trading on local exchanges.
These moves aren’t about crime. They’re about control. If money can’t be tracked, governments and banks lose visibility. That’s why the Financial Action Task Force (FATF) and Europol have called for global monitoring of privacy coins.
But Monero doesn’t stop. It adapts. The network’s developers keep improving privacy, even as regulators try to shut it down.
How Monero Mining Works (And Why It’s Fair)
Monero uses a proof-of-work algorithm called RandomX, designed in 2019 to be ASIC-resistant. That means you can mine it on a regular laptop or desktop computer-not just expensive, specialized hardware.
Why does that matter? Because it keeps mining decentralized. If only big companies with ASICs could mine Monero, control would shift to a few players. But with RandomX, anyone with a decent CPU can participate. In 2023, over 70% of Monero mining happened on consumer-grade hardware.
Monero’s block time is 2 minutes. That’s faster than Bitcoin’s 10 minutes. But because every transaction is encrypted, the network processes only 15-20 transactions per minute. That’s slow compared to Solana or Ethereum, but it’s a trade-off for privacy.
There’s no hard cap on total supply. After 18.132 million XMR are mined (expected around May 2028), a small tail emission of 0.6 XMR per minute continues forever. This keeps miners incentivized and prevents the network from becoming vulnerable to zero-fee attacks.
Using Monero: Wallets, Fees, and Learning Curve
Getting started with Monero used to be hard. You needed to run a full node, type commands, and understand keys you didn’t know existed.
Now? The official Monero GUI wallet (version 0.18.1.2) is simple. You download it, create a wallet, and you’re done. Most users can send their first transaction in under two hours.
But there are still gotchas:
- Transaction fees: Around $0.04 per transaction-cheaper than Bitcoin’s $1.20, but higher than Zcash’s $0.005. That’s the cost of privacy.
- Confirmation time: You need 10 confirmations for security. That’s about 20 minutes. Not instant, but safe.
- View and spend keys: Unlike Bitcoin, where one key does everything, Monero separates keys. Your view key lets someone see your balance without letting them spend. Your spend key lets you send. Keep the spend key secret.
Over 1.2 million unique wallet addresses hold Monero as of late 2023. The community has over 570 active developers contributing to the codebase. That’s more than most privacy coins combined.
Where You Can Use Monero
Monero isn’t accepted everywhere. But it’s growing.
There are 23 active merchant processors listed on the official GetMonero.org directory. You can use it to buy:
- VPN services (like Mullvad)
- Web hosting (through providers like Namecheap via third-party gateways)
- Gift cards (via Bitrefill)
- Software licenses and digital products
WooCommerce stores can integrate Monero with a free plugin used by over 1,200 merchants. Shopify users can accept it through CoinPayments or similar gateways.
But don’t expect to use Monero at your local grocery store. It’s not there yet. It’s for people who need privacy-not convenience.
Is Monero Right for You?
Choose Monero if:
- You believe financial privacy is a basic right
- You don’t want your spending habits tracked
- You’re in a country with strict financial surveillance
- You’re sending money to someone you don’t fully trust
Don’t choose Monero if:
- You want instant, cheap transactions
- You’re buying everyday items and don’t care about privacy
- You’re uncomfortable with a steeper learning curve
- You need to comply with strict KYC rules
Monero isn’t for everyone. But for those who need it, there’s nothing else.
What’s Next for Monero?
The next major upgrade, called ‘Wolfram Wolff,’ is scheduled for October 2024. It will introduce Triptych-a new ring signature system that increases ring sizes to 64 while cutting computational load by 80%. That means faster, smaller, and even more private transactions.
Developers are also working on Kovri, a hidden network layer that routes Monero traffic through the I2P anonymizing network. That would make it harder to even know who’s using Monero.
Despite regulatory pressure, Monero’s user base keeps growing. Search interest in Iran and Turkey jumped 200% after those countries restricted other crypto exchanges. People aren’t just buying Monero. They’re depending on it.
Privacy isn’t going away. It’s becoming more important. And Monero is the only cryptocurrency built for that future.
Is Monero truly anonymous?
Yes, by design. Every Monero transaction hides the sender, receiver, and amount using ring signatures, stealth addresses, and RingCT. No other major cryptocurrency does this by default. While researchers have tried to trace Monero, no public method has successfully broken its privacy under normal conditions. The network’s privacy is based on mathematical guarantees, not obscurity.
Can I buy Monero on Coinbase or Binance?
As of 2025, Coinbase does not list Monero. Binance still lists it in most regions but removed it from Canadian markets in 2022 due to regulatory pressure. You’ll need to buy it on smaller exchanges like Kraken, KuCoin, or LocalMonero, or trade Bitcoin or Ethereum for Monero on peer-to-peer platforms.
How do I store Monero safely?
Use the official Monero GUI wallet or CLI wallet. Never share your spend key. Back up your 25-word seed phrase offline. For long-term storage, consider a hardware wallet like Ledger, though it only supports viewing balances-not sending-unless you use a third-party app. Avoid web wallets or exchange wallets if privacy matters to you.
Is Monero legal?
Monero is legal in most countries, but some restrict its use on exchanges. Japan and South Korea have banned Monero trading on regulated exchanges. The U.S. and EU haven’t banned it, but regulators actively pressure exchanges to delist it. Owning or using Monero isn’t illegal-but using it for crime is, just like with any currency.
Why is Monero’s price so volatile?
Monero’s price is affected by regulatory news, exchange delistings, and overall crypto market trends. Because it’s a niche asset with lower liquidity than Bitcoin or Ethereum, even small buying or selling waves can cause big price swings. Its value comes from its unique privacy features-not speculation. That’s why long-term holders tend to ignore short-term volatility.
Can I mine Monero on my phone?
Technically yes, but it’s not practical. Monero mining requires a powerful CPU and runs best on desktops or laptops. Mobile devices lack the processing power and cooling needed to mine efficiently. Mining on a phone will drain the battery, heat the device, and earn almost nothing. Stick to desktop mining or join a mining pool if you want to participate.
What happens if I lose my Monero wallet password?
If you lose your password but still have your 25-word seed phrase, you can restore your wallet on any device. If you lose the seed phrase, there’s no recovery. Monero’s design means no one-not even the developers-can recover your funds. That’s the trade-off for true ownership and privacy. Always back up your seed phrase in multiple secure, offline locations.
roxanne nott
December 18, 2025 AT 16:17