Monero (XMR) is one of the cryptocurrencies that allows investors to trade anonymously. There are no details about the brains behind this digital coin.
How Monero works
Monero works like Bitcoin; traders can buy and exchange these digital currencies on a blockchain. In an era where crypto traders want to remain anonymous, Monero is the ideal option. Trading Monero doesn’t incur higher transaction fees. However, there is a limit to its scalability.
Monero has a unique ecosystem known as Nitrogen Nebula software. This protocol is what makes XMR transactions untraceable. You need a wallet to store your Monero cryptos – transactions are done via the PoW (proof of work) model.
Since it is anonymous, you might wonder how Monero guarantees its privacy. This cryptocurrency deploys ring signature technology that seals the identity of traders –third parties cannot trace or know a transaction’s identity.
How do Monero and Bitcoin compare?
If you are looking for an XMR to BTC exchange site, you’d want to know how the two compare. First, they deploy the same basic cryptocurrency principles.
The main difference is that Bitcoin transactions are public and visible to traders, whereas XMR is private and anonymous. Monero has a unique algorithm that automates transactions –you cannot buy or sell Monero until the mathematical puzzle is solved in the XMR blockchain. This idea makes it challenging to convert or exchange Monero into Bitcoin -you cannot even track transactions.
It’s almost impossible to know how many cryptos you traded because of the anonymity. Besides, crypto transactions are irreversible, and it gets complicated when exchanging Monero. This challenging bit is why you need a step-by-step guide to carry out XMR to BTC exchanges without any frustrations.
Another difference is the block size limit between Monero and Bitcoin. The Bitcoin network limits when the system gets busy at peak hours, slowing down the transaction process. You can only speed up transactions by paying additional fees. Bitcoin crypto traders find this requirement costly.
On the other hand, Monero doesn’t charge its users to speed up transactions when at peak. XMR has an adaptive block size limit. This means that the blocks expand when there is an increase in the transactions.
How to exchange Bitcoin to Monero
Follow these steps to trade Bitcoin to XMR successfully:
1. Choose an exchange platform
There is no way to trade without choosing an exchange platform. If you are unsure where to start, you should try Letsexchange.io for instant crypto exchanges. The trading site allows you to swap your tokens even without signing up. You also don’t have to submit sensitive details, making the exchange service effortless and secure.
2. Click the ‘exchange’ tab
Next, choose Bitcoin as the crypto you want to exchange and enter the amount – check the offers on the chart for conversion rates. Then, submit the Monero address you want to trade your cryptos. Be sure to submit the correct XMR address for successful transactions.
3. Confirm the transaction
The next prompt requires you to validate the details to confirm the swap. The exchange platform will deduct a small transaction fee to execute the exchange.