How to Buy Monero in 2022
With the price of Bitcoin surging, many investors are looking for alternative cryptocurrencies to invest in. One that stands out, in particular, is Monero (XMR) which is a privacy coin that has been in the market for a long time.
This guide will show you everything you need to know such as how to buy Monero, where to sell, and how to store XMR in a safe wallet. Keep reading to find out more.
Best Brokers to Buy Monero in 2022
There are plenty of platforms to choose from when it comes to buying cryptocurrencies. We have listed the top beginner-friendly platforms to get you started right away:
Best platform: Binance
Top payment method: credit/debit card, bank transfer
Security measures: activate 2-factor authentication, never reuse passwords and store coins in a private wallet
Do not: invest with money you cannot afford to lose
What Is the Difference Between Owning Monero VS a Derivative Product
When it comes to cryptocurrencies, there are different ways to invest. This will be discussed in the section below:
Owning: When you buy Monero from a cryptocurrency exchange, you own the asset outright. You can withdraw it into a private wallet and do with it as you wish.
Derivative products: Some platforms offer derivative products that allow you to speculate on the price of cryptocurrencies without owning the underlying asset. On exchanges, this can be done by trading futures contracts for example.
Where To Buy Monero
How To Buy Monero Online?
In this section, we provide a step-by-step guide on how to make your first XMR purchase.
Go to a cryptocurrency exchange website and create an account
Verify your identity for KYC/AML purposes by providing some ID
Add your desired payment method, this could be credit/debit card or a bank transfer, and deposit some fiat currency (USD, GBP, etc) into your account
In the top left corner, select exchange and use the search bar to find the XMR markets
Enter the number of XMR coins you wish to buy and confirm the transaction
The coins should appear in your wallet shortly after
How To Trade Monero?
You can trade Monero on cryptocurrency exchanges on both spot markets and the futures markets. While the latter gives you ownership of the digital assets themselves, futures trading is done using derivative products. This enables users to speculate on the price of XMR without owning the underlying asset. Notably, futures markets carry more risk due to the use of leverage so the guide below is for spot markets instead.
Create an account on a cryptocurrency exchange that offers Monero markets and verify your details by providing ID
Deposit some funds using your preferred payment method such as a credit/debit card or even a bank transfer
Click on ‘exchange’ and use the search bar to find the Monero markets, e.g XMRUSD
Enter the number of coins you wish to purchase and confirm the transaction
When the price reaches a level that you are happy with, you can return to the same page and sell your holdings
The fiat currency you used should appear back in your account balance along with any profits you may have made.
Crypto Investment Strategy
When it comes to investing, there are typically two types of strategies you can use: long or short-term holding.
Short-term: This involves buying and holding your digital assets for a short period of time with the aim of making some quick profits. Put simply, you buy low and sell higher.
Long-term: This process consists of buying XMR with the intention to hold for a long period of time. The idea here is that the coin will increase more in the long run, potentially earning you more profit.
How To Store Monero?
After purchasing your coins, you have a choice between leaving them on an exchange or withdrawing the coins and storing them in a private wallet that only you have access to. The latter is a good idea if you have bought an amount that is significant to you and can help you avoid losing your funds in case the exchange gets hacked. Wallets come in two types and this will be explained below:
Hot wallets or software wallets are applications that you can download for free on your PC or phone. They enable you to store and manage your assets in a quick and easy way. Popular wallets include Monero GUI and MyMonero
Cold wallets or hardware wallets offer the same functionality but with even higher security. They can come in many forms including a simple piece of paper that contains the private keys to a wallet or a small flash drive-shaped device that requires users to physically approve transactions.
What Are the Different Ways To Pay For Monero?
Fortunately, there are many ways to pay for cryptocurrencies such as Monero these days. Below we have listed the most popular ones:
Credit / Debit card
Credit / Debit Card
Quick and easy deposits after initial set up
Widely accepted by most crypto platforms
You need to share your card details online
Some platforms will charge you fees for deposits and withdrawals
Usually comes with lower fees
Easy to set up
You need to share your card details online
What To Consider When Buying Monero
When buying cryptocurrencies such as Monero, there are a number of different factors that you need to consider. Here are some of the main ones:
Volatility: Cryptocurrencies are highly volatile assets. Their prices can swing significantly in either direction so keep this in mind before making any purchases.
Fees: Naturally, different platforms will charge different amounts for their services. It’s worth doing some research to find the best rates for your needs.
Regulation: Countries have varying stances when it comes to cryptocurrencies. Ensure you check the laws in your jurisdiction so you can stay on the right side of the law.
Availability: As mentioned, not all coins are available on every crypto platform. Before you register for an account, make sure the coin you want is supported.
Long vs Short term holding: It’s important to have a strategy in mind before investing. That way you can be better prepared for whatever the market throws your way.
Is It Safe To Buy Monero Online?
There is a reason why some exchanges are better known than others. This is perhaps due to their ease-of-use and security features among other things.
We recommend using exchanges that commonly rank in the top 3 in terms of volume. Furthermore, as soon as you sign up for an account, make sure that you enable 2-factor authentication to add an extra layer of security to your funds. Avoid reusing the same passwords as this can prevent an online attacker from gaining access to all your accounts using the same passphrase.
How To Sell Monero?
You can sell your Monero coins just as easily as how you bought them. Follow these steps to guide you:
Go to the same exchange that you bought the coins from and log in
In the top right corner, click on ‘wallet’ and find the XMR holdings
Click ‘trade’ and then enter the number of coins you wish to sell
Confirm the transactions and the funds will appear in your account balance along with any profits you may have made
Is It Worth Buying Monero Right Now?
Monero is one of the oldest cryptocurrencies in the market having launched all the way back in 2014. It has managed to stay relevant since then which is far more than can be said for many other projects who simply no longer exist anymore.
This is partially due to the community behind the coin as well as its technology which sets it apart from the rest.
In recent months, Monero has underperformed other newer projects. If it is unable to keep up with the innovation in this space, then it may continue to fall in the market rankings.
The best way to buy Monero is on a cryptocurrency exchange such as Binance as the platform offers industry-leading security and features.
After signing up, remember to activate 2-factor authentication and never reuse passwords. These factors can help to protect your accounts against online attackers who are looking for an easy way to make money.
As always, remember that the cryptocurrency markets are highly volatile so only invest with money you can afford to lose.