Risk Warning: Your Capital is at Risk.
This page covers the basics on why you may or may not trade Monero, along with a list of regulated brokers that offer Monero derivative products.
We also included a short guide on how to buy and exchange Monero, should you decide to own and manage it instead.
If you want to get started trading Monero, here are regulated brokers available in that offer Monero-based CFDs, forex, and other speculative products:
Disclaimer: Availability subject to regulations.
Between 74-89% of retail investor accounts lose money when trading CFDs.
Should You Trade Monero?
The following reasons may determine whether traders opt for a long or short position with Monero.
Reasons You Might Trade Monero
- Leader of the Privacy coin Pack
- Dark Market Acceptance As Payment
- Planned Upgrades and Forks
Important: This is not investment advice. We present a number of common arguments for and against investing in this commodity. Please seek professional advice before making investment decisions.
One Of The Most Popular Privacy Coin
Being one of the earliest coins to deal with the issues surrounding lack of privacy in public blockchains, Monero has made the most of its ‘first mover advantage’ in the privacy niche and achieved a wide network effect.
Monero Is A Major Dark Market Currency
A testament to its privacy use case is its acceptance and recommendation as payment on the dark web and dark markets.
On the dark web, the privacy of transactions is of utmost importance.
Monero Regularly Receives Infrastructure Updates
Every six months on average, the Monero protocol adds upgrades and new technologies through hard-forks that are anticipated network-wide.
This process has proved successful in ironing out known bugs and adding enhancements to the network.
Reasons to You May Avoid Trading Monero
- Computationally Expensive At Scale
- Fierce Competition
Monero Consumes A Lot Of Computing Power
Privacy transactions using various cryptographic proofs to create obfuscation and high levels of privacy are computationally resource heavy when compared to open blockchains.
So if Monero achieves any level of major adoption, it may become increasingly difficult to rely on the blockchain keeping up with demand.
Fierce Competition With Other Privacy Coins
Although Monero leads the pack, the privacy coin space is quickly becoming crowded.
Some have a slew of added features like instant payments and user wallets that operate over the Tor network and that can take advantage of VPNs making them difficult to trace.
Where Can I Trade Monero?
Rather than directly selling Monero, some brokers offer derivatives like options and contracts for difference (CFDs). These are contracts between you and the broker where you take a short or buy position on an instrument.
With CFDs, you do not own the underlying asset. The broker agrees to pay you the difference between your initial purchase and its current value, based on whether you bet short or long. Learn more about CFDs in or CFD Broker & Trading Guide.
Crypto Brokers Available in
Here’s a list of regulated broker available in that offer CFDs and other trading products on cryptocurrencies such as Monero.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. <b>Between 74%-89% of retail investor accounts lose money when trading CFDs.</b> You should consider whether you can afford to take the high risk of losing your money.
Please Note: Availability subject to regulations. Cryptocurrency CFDs are not available to UK retail traders.
How to Buy Monero: Crypto Exchanges
So you’ve decided that you want to own Monero.
Now you just need to figure out where to actually get XMR. Unfortunately buying Monero is not as simple as buying Bitcoin or Ethereum as it’s difficult to buy Monero using dollars.
The best way to acquire XMR is through a cryptocurrency exchange. You use these exchanges to trade fiat currency for Monero.
Unfortunately, using exchanges can be risky. You need to take care to protect your trade. If you have any problems you are pretty much on your own.
There are two main ways to buy Monero. Which one you decide to use will largely depend upon your priorities.
Buy Bitcoin And Convert It To Monero
When deciding how to trade Monero the first step is to buy Bitcoin. Many users start with Coinbase. They are one of the largest cryptocurrency exchanges and are very well established.
The exchange comes with a large number of currency pairs and you even have the option to buy Monero with your credit card. Coinbase has a competitive fee rate.
Purchasing XMR will typically result in a 3.99% fee if using a credit or debit card and a 1.49% fee for most kinds of bank transfer.
How To Get Verified With Coinbase
Coinbase requires you to provide your ID and address when registering.
This sort of ID verification is a standard procedure used by many exchanges. It is designed to prevent the exchange from being used for money laundering and other criminal activities.
This ID vetting should discourage traders who are interested in cryptocurrency precisely because it provides anonymity. Privacy-conscious traders will prefer to take another route.
If you’re buying Monero for its privacy protection then you might be concerned about Coinbase’s ID verification procedures. Many of the more reputable exchanges consider this to be best practice.
It is designed to discourage the exchange from being used for criminal activities like money laundering.
Buying Monero Via A Peer-To-Peer
If you are truly concerned about your privacy then you may be better suited to buying your Bitcoin through a peer to peer exchange such as LocalBitcoins.
You should be aware that these exchanges don’t offer the same level of security as Coinbase. There have been cases where unscrupulous users have attempted to scam new traders. Make sure you always read the reviews before you trade with someone.
Once you have acquired your Bitcoin, the next step is to decide how to buy Monero.
Choose A Monero-Friendly Exchange
There are a few places you can exchange BTC to XMR.
You will have to go through a verification process before you can start trading.
More privacy-concerned users may want to consider Bitsquare, although once again you should be aware that this option is less secure than going through an exchange like Kraken.
You will need to trust the users you are trading with and rely on Bitsquare’s Arbitration system.
How To Exchange BTC To XMR
Whichever exchange you decide to use, the next step is to swap your BTC for some XMR.
You simply need to set up a trade on your chosen exchange and wait for somebody else to take you up on your offer. Once they do, you’ll receive some Monero.
There are also services like Coinswitch that allow you to change crypto-to-crypto with ease, although they charge a higher fee.
How To Manage Your Monero
When deciding how to get Monero you should keep in mind that using an exchange is always risky, especially for storage. You need to take extra care to keep your computer secure.
You should always enable two-factor authorization and avoid keeping all of your coins in a single wallet. If your account or wallet is compromised you could risk losing all of your Monero trades.
Are Exchange Wallets Safe To Store Monero?
Try avoid leaving your coins in an exchange wallet unless you are planning to trade them. One way to secure your cryptocurrency is in a hardware wallet or by putting them in cold storage.
Cold storage involves keeping your cryptocurrency in an offline wallet that only you have access to. This can be on a piece of hardware like Trezor or Ledger, an encrypted USB stick, or a paper wallet.
Is Monero Easy To Manage?
Managing your own Monero is not easy. To begin with, you have more obvious dangers. For example, you might get scammed by an unscrupulous user on a peer to peer exchange. Unfortunately, if a dishonest user manages to scam you out of your Monero it can be almost impossible to get it back.
On top of this, there are risks completely outside of your control. If you decide to use an exchange you are entirely in their hands.
If the owners prove to be dishonest or incompetent you could end up losing your entire Monero trade through no fault of your own. The most well-known example of this is the MtGox incident.
What is the Price Outlook for Monero, and What Do Experts Say on Prices?
Monero has consistently increased in value and the outlook for its price in the medium-long term is good.
This is especially true as people become more concerned about their privacy and states begin to look at ways to curtail the growth of cryptocurrencies.
You will probably see short-term volatility with gains in the long term.
While Monero might well become a thorn in the side of the taxman, experts generally take a positive view of its privacy-enhancing potential.
What Does The Jaxx Founder Say?
When questioned on the matter Anthony Di Lorio, CEO and Founder of Decentral and Jaxx said:
“I’m predicting new well-led projects emerging that provide improvements and enhancements on Bitcoin and Ethereum infrastructures. Two projects I have my eye on in 2017 are Rootstock out of Argentina and Qtum out of China. I’m also quite optimistic about Zcash, Monero, and Dash.”
Manfred Karrer’s Opinion Of Monero
Manfred Karrer, developer and founder of Bitsquare said:
“I expect three things. One, regulations on cryptocurrency exchanges will come. Two, the war on cash, gold, and cryptocurrencies will accelerate. And three, privacy-protecting technologies like Monero and Zcash will elevate in importance.”Manfred Karrer
This is a view taken by a number of experts, such as encryption and cryptocurrency specialist Peter Todd.
He argues that Bitcoin can inadvertently expose unwanted financial information to people who might abuse it.
What Problems May Bitcoin’s Lack Of Privacy Cause For Consumers?
For example, If you pay your rent in Bitcoin, your landlord might be able to figure out how much money you earn and decide to raise your rent based on this.
Monero helps to mitigate these problems and this means that its growth is likely to continue.
Some experts have argued that links to the darkweb are causing irreparable damage to the reputation of cryptocurrencies in general.
Specifically that these seedy links play into the hands of establishment critics seeking to curtail Monero, Bitcoin, and others.
How Does Monero’s Legislative Future Look?
Big banks like Nordea are already using such links to try to encourage lawmakers to legislate against cryptocurrency.
Despite Monero’s potential utility for money laundering, its developers have designed the currency for the privacy of ordinary users. Many experts within the cryptocurrency community are supportive of Monero’s aims.
For example, when the U.S Government seized the popular dark web exchange AlphaBay, they were unable to even estimate Monero transaction volume, let alone identities.
If you’d like to learn more about how Monero began and how the ring signature technology works, see our Guide to Monero as a commodity.