CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 74-89% of retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Between 54-87% of retail CFD accounts lose money. Based on 69 brokers who display this data. *Availability subject to regulation.
Cryptocurrency advocates who particularly valued anonymity didn’t believe bitcoin’s system went far enough in protecting the identity or transaction history of users. Because a user always authorises transfers with the same key, analysis of the bitcoin blockchain could uncover details on the transaction patterns connected to a particular key. This would provide a level of information on purchasing trends of that user and could potentially be used to track down identity or mean future transactions involving the same key are blocked.
In answer to this demand for greater anonymity, several new cryptocurrencies were launched, among which was Monero. Monero launched in April 2014, built on a form of blockchain technology designed to obscure the identity of senders and recipients. This is achieved by through the use of ‘ring’ signatures which mix the real sender and receivers signatures with a random selection of others obtained from the Monero blockchain. This means that anyone analysing a transaction is unable to tell which of the signatures present belongs to that of the parties actually involved in a transaction.
A further level of anonymity was subsequently introduced which used the same ring approach to obscure the value of transactions. The system also employs ‘stealth addresses’ to further protect the identity of a recipient. Random one-time addresses are generated for each transaction, which is then redirected to the actual recipient address. Monero users can, if they wish, share transaction information selectively as every account has a view key. Anyone holding this view key can see all of the transactions in and out of the account.
A strength and weakness of Monero, in comparison to Bitcoin is that unlike bitcoin, where the transaction history of individual bitcoins can be seen in the blockchain, no two Monero coins can be distinguished from each other. Bitcoin’s system means that coins associated with theft or fraud can be shunned by the network but no one using Monero has any information as to the history of individual units.
This has been the basis of Monero’s success when it comes to adoption rates, with the cryptocurrency particularly popular as a means of payment on dark web marketplaces. At the time of writing, Monero is the cryptocurrency with the 13th highest overall market capitalisation, at $4,751,486,322. One Monero unit currently has an exchange value of approximately $303.65 (January 25th 2018).
Cryptocurrencies, including Monero, can be traded either in the form of the asset itself, through buying and selling units on cryptocurrency exchanges, or through CFD derivatives. For those who wish to spend a cryptocurrency on goods and services, or hold it as a speculative long term investment, they will need to create an online or offline wallet to store cryptocurrency units. An account on an exchange will also need to be opened, through which the units will be purchased.
However, those more interested in trading shorter term price volatility in Monero, either long or short, can do so through one of the CFDs brokers that offer the cryptocurrency. When trading Monero through CFDs, it is important to do so with a regulated online broker. Using a regulated brokers mean that client funds up to a certain level are protected in the worst case scenario of the broker going under and also held in a separate account, segregated from the broker’s operational accounts. Price quotes and all other operations are also subject to regulatory supervision.
Using a non-regulated broker exposes traders to the risk of them losing their entire account balance if the broker runs into financial trouble. Non-regulated brokers are also regularly accused of poor business practice and sometimes even fraud, manipulating price quotes against the interests of the trader and attaching terms and conditions which make account withdrawals difficult.
Like all cryptocurrencies, the main influences on Monero’s value are related to adoption levels. Monero’s price has been particularly volatile, even by the standards of cryptocurrencies, which provides an interesting opportunity for traders, albeit also heightening risk. Over the past year, Monero’s adoption as the favoured cryptocurrency for many purchases made over the dark web has led to it gaining significant value after remaining relatively flat since its release.
Monero is accepted by many of the larger cryptocurrency exchanges and wallet providers but may see mainstream adoption hindered by its reputation as being used mainly for dark web transactions. However, continuing to establish itself as the dominant cryptocurrency on the dark web could see Monero’s value continue to rise in the future.
Launch date: April, 2014
Launch value: $2.47
Lowest and highest levels to date: Monero’s highest exchange value to date has been $144.5, achieved at the end of August 2017 and its lowest $0.45 in September 2015. As of November 25th 2018, Monero is trading at $303.65.
Daily exchange volume (as of January 25th 2018): $72,299,200
First brokers to offer Monero trading: Avatrade was the first broker to offer Monero CFDs and Monero can also now be traded via Etoro and Plus500, amongst others.