Best Monero Trading Brokers 2020
The brokers below represent the best brokers for Monero trading.
Note: Not all Forex brokers accept US clients. For your convenience we specified those that accept US Forex traders as clients.
Plus500 is a leading CFD trading platform with support for stocks, indices, cryptocurrencies, and Forex. This commission-free brokerage charges very low spread-rates and offers fast trades on a great platform. Plus500 supports complex trades, includes negative balance protection, and makes trading an educational and hopefully profitable venture.
You can start with a free demo account to test the platform and any trading strategy. Real money accounts offer leverage of up to 300:1. This broker is based in Israel and regulated by the Financial Conduct Authority (FCA) in the UK. Check out our full Plus500 review here.
- Monero trading – How to trade Monero (XMR)?
- Creating a Monero Wallet
- Online Wallets
- Where to buy Monero online?
- How to buy Monero online?
- Buying Monero with Credit Card and Paypal
- How to Sell Monero Online?
- Trading XMR with CFD’s
Cryptocurrencies, over the past few years, have seen tremendous growth both in usage as well as its adoption as a new investment vehicle. Cryptocurrencies were originally created as a means of providing secured transactions carried out on the internet. The first large scale cryptocurrency Bitcoin was invented in 2008 by an individual or a group of individuals with the name Satoshi Nakamoto. Using blockchain technology, Bitcoin was touted as being able to offer users a high level of anonymity. However, in later years, it has been shown that the so called anonymity offered by Bitcoin is not absolute. This has led to many developers to come up with alternative types of cryptocurrencies to provide greater anonymity. The Monero cryptocurrency is one such initiative.
Launched in April 2014, the Monero cryptocurrency is based on a different protocol from the protocol used for the Bitcoin cryptocurrency. Based on the open sourced CryptoNote protocol, it uses ring signatures to obscure the value of a transaction and Stealth addresses to hide the identities of the parties in a Monero transaction.
First conceptualized in 2001 by the academicians from the Weizmann Institute and the Massachusetts Institute of Technology, Ring signatures technology mixes the user private keys with public keys from the blockchain. This “mixture” makes it difficult for anyone to link the transaction back to a particular account or user. While this “mixing” security feature is available for most cryptocurrencies today, it is an optional service which is only utilized when the users wanted to have an added layer of security. With Monero, this security feature is a default feature. This means all transactions with Monero are “mixed” to provide that extra layer of security as well as to avoid the suspicion that a particular transaction is specifically “mixed” to conceal the transaction information.
With Monero, stealth addresses which randomly generated are also used to further enhance privacy. By using one time addresses, Monero transactions cannot be linked to the addresses which are published in the public ledger. Because Monero transactions are untraceable, the Monero coins are indistinguishable from one another. With all Monero coins being equal in the eyes of the merchants, users of Monero coins need not worry about a Monero coin being rejected due to its association with any criminal activates.
Due to the advantages that Monero offer over Bitcoin or any other form of cryptocurrencies, Monero has seen a steady increase in its adoption over the past two years. Its popularity was further boosted when the Dark web marketplaces such as Alphabay and Oasis adopted Monero as an accepted form of payment. With the extra coverage provided by media on the adoption of Monero as a form of payment by the Dark Web marketplace, this has helped to thrust Monero into the limelight.
Monero trading – How to trade Monero (XMR)?
Cryptocurrencies or digital currencies since the introduction of Bitcoin in 2008 have become one of the hottest investment products today. Because these cryptocurrencies are decentralized and non-manipulatable, many advocates of digital cash feel that cryptocurrencies may be the currencies of the future. This belief has led to many investors investing heavily into cryptocurrencies such as Bitcoin (BTC) and Ethereum (ETH). As a result, the value of cryptocurrencies has shot up exponentially, with Bitcoin since 2011 growing by more than 25,000% and Ethereum by more than 2700% since mid-2016. On the whole, the cryptocurrency market cap since 2013 has shot up by 10,000%. This shows the tremendous potential of cryptocurrencies as an investment which is likely to further increase in value.
While investments in cryptocurrencies show immense potential, the high prices of the more established cryptocurrencies such as Bitcoin and Ethereum have put them out of the reach of the average investor. Today, 1BTC is trading as much as $4400 while ETH at around $350. Nevertheless, there is still tremendous potential in less expensive cryptocurrency such as Monero (XMR) which is currently trading at around $106. As a retail investor, there are 2 main ways of investing in XMR, either through a direct purchase on an exchange or through leveraged trading with the use of a contract for difference (CFD). For a beginner trader in crypto currencies such as Moreno, it would be more cost effective to trade with CFDS.
CFDs are a type of financial instrument that tracks the movements of an underlying asset (In our case here, the crypto currency Monero). It is a legal contract between 2 parties, a buyer and a seller to agree to pay the difference in the current price of the underlying asset and its contract value. If the difference is positive, the seller will be liable for the difference. On the other hand, if the difference is negative, the buyer will be liable for the difference. Because CFDs are essentially derivatives, the price of CFDs is a fraction of the actual value of the underlying asset. This makes trading cryptocurrencies such as Monero more affordable to the average trader.
Creating a Monero Wallet
Before you can start buying XMR online, you will need to first create a Moreno wallet to receive and send Moreno coins as well as a receiving address. For this, you have 2 options:
- Monero GUI Wallet
- Online Wallet
Monero GUI Wallet
Download the appropriate version of Monero GUI Wallet for your computer.
Setup the downloaded program by following the onscreen instructions.
Write down the “seed” which contains 24 words. Then create your password. Take note to keep your “seed” on paper and keep it safe.
After creating your password, wait until the synchronization process is completed. This may take a while depending on your internet speed. Ensure that you have enough storage capacity for the whole block chain which is over 10GB.
Once the blockchain download is completed, you can start a transaction in Monero.
Step 6: (Sending and Receiving XMR coins)
To send Monero coins between 2 wallets, simply add in the receiving address and click send. Take note that the Payment ID step can be skipped when sending between 2 wallets. For sending XMR to an exchange, you will require the address and a payment ID. To receive XMR, simply share your address to the party that wishes to send you the XMR coins.
Apart from downloading and installing a Monero wallet, you can also use an online Monero wallet to store your Moreno coins. With an online Monero wallet, you will be able to access your wallet from anywhere with any internet connected devices. There is also no need for you to download the whole blockchain. All that is required is for you to open an account with the online wallet service provider. One such service provider is mymonero.com owned by a Monero Core Team member, Riccardo Spagni, one.
Go to MyMonero.com and create an account by click on the “Create an Account” button.
You will be given 13 words “Private Login Key”. Write this key down and keep it safe. This key will give you access to your MyMonero account so don’t share this key with anyone.
Key in the “Private Login Key” into the box and click “login”. On the proceeding page, you will be able to view your Monero wallet address. Simply share this address to those who wish to send you Monero coins. Once you have a balance in your wallet, you can send the coins to whomever you wish.
Where to buy Monero online?
As mentioned earlier, there are two ways to go about in buying Monero online. The first method is by buying the cryptocurrency through an exchange such as:
How to buy Monero online?
For those are interested in purchasing XMR with USD, they may do so on Bitfinex. In order to be able to purchase XMR through one of the exchanges listed above, you will need to set up an account at these exchanges first and deposit the funds. As there are very few exchanges that accept fiat currency directly, most of the XMR purchases are conducted with Bitcoin. In other words, you will need to buy Bitcoin first.
Step 1: Purchasing Bitcoin
Purchasing Bitcoin is a straight forward matter and can be done through any Bitcon exchange such as Coinbase. Once you have opened an account with the BTC exchange and acquire some BTC, the next step will be to set up the BTC to Monero trade.
Step 2: Setting up the BTC to Monero trade on Shapeshift
Shapeshift is a company that deals in digital assets and exchanges one cryptocurrency for another for its customers without customer funds in its accounts, a trait that is unique for a cryptocurrency exchange. No registration is required as well. Simply send your BTC to Shapeshift and the exchange will send you back XMR in return for a fee.
Provide Shapeshift your 95 characters Monero wallet address in order for Shapeshift to be able to send you the converted XMR. You will also need to provide Shapeshift your Bitcoin address from Coinbase in order for Shapeshift to be able to refund you the BTC should ever your trade encounter a problem.
Step 3: Executing the BTC to XMR Exchange
On the Shapeshift website, set up the exchange by clicking on the logos of the 2 currencies and then click “Continue”.
Once you have clicked “Continue”, you will be prompted for your Bitcoin and Monero addresses. Paste the addresses in the appropriate boxes and click “I agree to the Terms”. Next, click on “Start Transaction” to initiate the exchange.
Buying Monero with Credit Card and Paypal
The majority of cryptocurrency exchanges do not support credit cards or Paypal for purchases cryptocurrencies. This is largely due to the problem of fraudulent charge-back initiated by scammers by fraudulently complaining to Paypal or the credit card companies that they never received the coins purchased.
Nevertheless, there is still a way to go around this hurdle that is by purchasing Second Life Linden (SLL) Dollars on the VirWoX exchange. SLL is a popular Massively Multiplayer Online Role Playing Game. As the sale and purchases of SLL dollars come to PayPal’s terms and conditions, the VirWoX exchange accepts SSL dollars in exchange for BTC. With the BTC exchanged from SLL dollars, you can exchange them for XMR through the Shapeshift exchange.
How to Sell Monero Online?
The process of selling Monero is basically the same as the purchase stage except in reverse. Simply convert your XMR coins to BTC on Shapeshift. With the converted BTC, simply sell them on any of the major BTC exchange. Alternatively, you can sell your XMR coins on any of the exchanges that conduct directly dealing with fiat currencies.
Trading XMR with CFD’s
While it can be interesting to deal directly with XMR coins, the tedious process of setting a wallet, converting fiat currency to BTC and from BTC to XMR can be rather confusing and be intimidating for newcomers to the cryptocurrencies world. A more trader friendly approach would be to transact in CFD for XMR through a CFD broker. For those with limited investment capital but wish to profit from the price movements of XMR, can do so by leveraging their XMR trades through CFD. Currently, there are a few leading CFD brokers such as IQ Option, EToro, Plus500, AvaTrade and Markets.com that support CFD trading for XMR. This option might be a better way to trade in the price movements of XMR if you are unwilling to having to deal with the hassle of opening a Monero wallet and conversion of Bitcoin to Monero coins.