To follow up our list of privacy coins, we will now look at Monero (XMR). Since it is a coin with a high-level privacy system you will by using monero be able to make entirely private transactions.
When you send someone money, they can’t tell it came from you. When you tell someone your Monero wallet “address” you allow them to send money to you, no one else can know how many or if any payments at all have been sent to you. If someone sends money to you twice, no one can even tell that two payments were sent by the same person.
And if you watch the network, you will not be able to see what transactions are made, you will not be able to see how much has been sent.
So your transactions are kept private, so even if someone knows how much you have in your wallet, they will not be able to see when you spend it because to the rest of the network it will look like your funds are used in other peoples transactions. If you think it sounds confusing, then it is by design so if you read on then we have tried to simplify it.
The way to think about it
You can think of monero as being to a masquerade. Once you enter the dance floor to this masquerade, you will be dancing with different other participants, they will randomly be including you in the dance making you a possible source of the dance moves others make. o when you enter into monero, you will also be participating in this system where your funds will be looked at as possible sources for other people’s funds.
For this to work you will have to look at it in a bigger the crowd, If we keep to the visualisation of a masquerade, you will quickly guess who is who if the masquerade only contains 10 people. But if it includes 10.000 people, others will have a hard time finding out who is who this is because it is much easier to hide in a crowd.
Can you improve it
Now when you make when a transaction in monero you know they are private, and no one can trace your transactions in monero. But if you want to remain completely secure, there are different measures to take such as running through the Onion network. And if you’re not that technical adept, you might just want to run through a VPN which will give you an added layer of security. If you’re going to get the extra layer of protection to your transactions, reading our article on protecting your identity on the internet will help you, and you can read it right here. If you’re going to use your smartphone to deal with cryptocurrencies, we had meat and article about securing your phone and your wallet would you can read right here