Buying Monero can be a bit more complex than buying Bitcoin or Ethereum due to the lack of options. In this step-by-step process for buying Monero, I will walk you through one of the two ways to buy Monero:
- using other cryptocurrencies (Bitcoin, Ethereum, Litecoin);
- Using fiat currency (USD, EUR, GBP, JPY).
If you already own other cryptocurrencies and want to exchange them for Monero, the process is simple. Unfortunately, there are not many options if you want to buy Monero directly with fiat currency.
To buy Monero or any other cryptocurrency, the most important thing is to find the most suitable exchange for your needs. Cryptocurrency exchanges are basically web platforms that allow you to buy and sell cryptocurrencies.
Important things to consider when choosing an exchange are:
- Do they accept fiat currency or do they only allow cryptocurrency exchanges?
- How much of a transaction fee do they charge?
- How secure are they?
- What cryptocurrencies do they support?
- Do they accept credit / debit cards or do they only accept bank transfers?
Let's first look at where to buy Monero with another cryptocurrency.
How to buy Monero with Bitcoin or Ethereum.
There are many exchanges where you can buy Monero with other major cryptocurrencies like Bitcoin or Ether. The advantage of this method is that the fees of such exchanges are generally lower than those that accept fiat currency.
If you don't own cryptocurrency but still want to use this method, you should first go to an exchange like Coinbase, as shown in the snapshot below. Coinbase is the most user-friendly exchange for beginners to buy bitcoin and ether with fiat, so I recommend you start there.
The Coinbase registration process is very simple and user-friendly. You can even check the fees charged by Coinbase for your country.
Once you receive the bitcoin in your account, you can start buying Monero. To do this, you will first need to transfer the bitcoin to an exchange that supports Monero.
We will focus on Binance in this guide-it is one of the most widely used platforms with a current daily turnover of around $1.89 billion. Binance charges a transaction fee of about 0.1%.
Step-by-step Guide on Buying Monero
Once you enter this information, you will receive an email confirmation link. You should check it and sign up to continue.
Step 2: When you sign up for the first time, you will be given the option to enable 2FA (2-factor authentication) for your account. It is highly recommended that you do this to ensure the security of your funds.
You will also be asked to submit your identification documents such as passport or driver's license. Once you submit them, your account will be activated anywhere within 12-24 hours.
Step 3: When you sign up, go to the "Funds" tab and then click on the deposit. There will be a dropdown menu to select the cryptocurrency you need to deposit. If you select Bitcoin, you will be shown a Bitcoin deposit address that you should write down or copy (if you select Ethereum, of course, you will be shown an Ethereum address instead).
Step 4: You need to send your bitcoin from Coinbase to this address. It will take about 10 to 20 minutes for Bitcoin to be deposited.
Step 5: You can now buy XMR by going to the Exchange tab on the homepage and finding the XMR/BTC pair as shown in the image below.
After the purchase is complete, you will be able to see your XMR coins in the Binance account. Figuring out where to safely store Monero is also something you need to take care of.
How do you store Monero?
My first preference for storing a cryptocurrency is a hardware wallet, as it is the most secure option available, but unfortunately there is no Monero hardware wallet yet.
However, this will soon change. Ledger, one of the leading hardware wallets, is currently working on Monero integration. Hopefully, it won't take too long!
Until that happens, you might consider one or two other options:
- MyMonero-Es is a web wallet, so you can just go to their website and create an account to start.
- Monerujo-Es is a mobile wallet for Android phones only. If you have an Android phone, you can download and use it.
This way you can buy and store Monero. Before I end this guide, I want to tell you that you can also own Monero without buying it. Confused?
What I am talking about is Monero mining.
By mining Monero, you technically don't have to buy XMR coins to get them. However, you will obviously need to spend money on electricity costs and a good graphics card and/or processor.
Setting up Monero mining is not a very difficult task (far easier than Bitcoin mining).
The most important thing for you is to check whether mining Monero is a profitable activity for you or not. Everything depends on the cost of electricity and location. You need to be sure of the numbers, otherwise you might lose money.
With a good understanding of Monero's security and future potential, you should also be able to decide whether to buy it or not. If you're still not sure, don't worry. Investing is not something that should be rushed. Be patient, do plenty of research, and always talk to a financial advisor before investing.
If you want to invest in Monero, you are ready to go - you now know how to buy Monero, where to buy it, where to save fees, and how to do it with cash.
Not only that, but you know you can start mining Monero instead if you don't want to buy.