What is Monero (XMR)

Monero is a privacy-focused Layer-1 cryptocurrency using Proof-of-Work, where privacy is enabled by default (the sender, recipient and amount are hidden).

Launch 18.04.2014 Monero (L1, PoW RandomX)

Who created it

The Monero Project community; technological basis: the CryptoNote protocol (author pseudonym: Nicolas van Saberhagen).

Why it was created

To create “digital cash” with privacy by default, making transactions harder to trace and keeping coins fungible (interchangeable).

How it’s used

  • P2P payments with enhanced privacy
  • Paying for goods/services without publicly linking amounts and addresses
  • Transfers between your own wallets without revealing balances on-chain
  • Donations where recipient/donor confidentiality matters
  • Payments and storing value in situations where a publicly “transparent” portfolio is undesirable

Risks

  • Regulatory restrictions and exchange delistings of “privacy coins” (reduced liquidity/availability)
  • Risk that XMR is available only via derivatives (futures/perpetuals) on some venues, not spot
  • Wallet operational risks: wrong address/network, lost seed phrase, malicious clients (loss of funds)
  • Risk of higher fees/delays during network congestion (as with any L1)
  • Risk of mining/pool concentration and protocol parameter changes (even though the algorithm targets decentralisation)

FAQ

Question: How is Monero different from “typical” public blockchains?
Answer: On Monero, privacy is enabled by default: mechanisms like ring signatures hide the source of funds, stealth addresses help hide the recipient, and RingCT hides the transfer amount.
Question: Does XMR have a maximum supply?
Answer: There is no hard cap: after the main emission, tail emission applies — a fixed minimum reward of about 0.6 XMR per ~2-minute block, resulting in low inflation that decreases over time in relative terms.
Question: How are transactions confirmed and how fast is it?
Answer: The network runs on Proof-of-Work with an average block time of about 2 minutes; practical finality is achieved as confirmations accumulate.
Question: Why is XMR sometimes removed from exchanges?
Answer: Due to regulatory pressure on privacy coins and related compliance requirements, some venues restrict trading or delist XMR.
Question: Why is Monero considered more “fungible”?
Answer: Because transaction details are hidden, it becomes harder to label coins as “clean/tainted” based on history, reducing the risk that particular outputs are discriminated against.