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Cryptocurrency

Protects against the following threat(s):

Making payments online is one of the biggest challenges to privacy. These cryptocurrencies provide transaction privacy by default (something which is not guaranteed by the majority of cryptocurrencies), provided you have a strong understanding of how to make private payments effectively. We strongly encourage you first read our payments overview article before making any purchases:

Making Private Payments

Danger

Many if not most cryptocurrency projects are scams. Make transactions carefully with only projects you trust.

Monero

Monero logo

Monero uses a blockchain with privacy-enhancing technologies that obfuscate transactions to achieve Anonymity. Every Monero transaction hides the transaction amount, sending and receiving addresses, and source of funds without any hoops to jump through, making it an ideal choice for cryptocurrency novices.

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With Monero, outside observers cannot decipher addresses trading Monero, transaction amounts, address balances, or transaction histories.

Monero's resilience to mass surveillance

In August 2021, CipherTrace announced enhanced Monero tracing capabilities for government agencies. Public postings show that the US Department of the Treasury's Financial Crimes Enforcement Network licensed CipherTrace's "Monero Module" in late 2022.

Monero transaction graph privacy is limited by its relatively small ring signatures, especially against targeted attacks. Monero's privacy features have also been called into question by some security researchers, and a number of severe vulnerabilities have been found and patched in the past, so the claims made by organizations like CipherTrace are not out of the question. While it's unlikely that Monero mass surveillance tools exist like they do for Bitcoin and others, it's certain that tracing tools assist with targeted investigations.

Ultimately, Monero is the strongest contender for a privacy-friendly cryptocurrency, but its privacy claims have not been definitively proven one way or the other. More time and research is needed to assess whether Monero is resilient enough to attacks to always provide adequate privacy.

Monero wallets

For optimal privacy, make sure to use a self-custody wallet where the view key stays on the device. This means that only you will have the ability to spend your funds and see incoming and outgoing transactions. If you use a custodial wallet, the provider can see everything you do; if you use a “lightweight” wallet where the provider retains your view key, the provider can see almost everything you do (but not spend your funds). Some self-custody wallets where the view key does not leave your device include:

Monero nodes

For maximum privacy (even with a self-custody wallet), you should run your own Monero node called the Monero daemon. Using another person’s node will expose some information to them, such as the IP address that you connect to it from, the timestamps that you sync your wallet, and the transactions that you send from your wallet (though no other details about those transactions). Alternatively, you can connect to someone else’s Monero node over Tor, I2P, or a VPN.

Buying Monero

General tips for acquiring Monero

There are numerous centralized exchanges (CEX) as well as P2P marketplaces where you can buy and sell Monero. Some of them require identifying yourself (KYC) to comply with anti-money laundering regulations. However, due to Monero's privacy features, the only thing known to the seller is that you bought Monero, but not how much you own or where you spend it (after it leaves the exchange). Some reputable places to buy Monero include:

  • Kraken: A well-known CEX. Registration and KYC are mandatory. Card payments and bank transfers accepted. Make sure not to leave your newly purchased Monero on Kraken's platform after the purchase; withdraw them to a self-custody wallet. Monero is not available in all jurisdictions that Kraken operates in.1
  • Cake Wallet: A self-custody cross-platform wallet for Monero and other cryptocurrencies. You can buy Monero directly in the app using card payments or bank transfers (through third-party providers such as Guardarian or DFX).2 KYC is usually not required, but it depends on your country and the amount you are purchasing. In countries where directly purchasing Monero is not possible, you can also use a provider within Cake Wallet to first buy another cryptocurrency such as Bitcoin, Bitcoin Cash, or Litecoin and then exchange it to Monero in-app.
    • Monero.com is an associated website where you can buy Monero and other cryptocurrencies without having to download an app. The funds will simply be sent to the wallet address of your choice.
  • RetoSwap (formerly known as Haveno-Reto) is a self-custody, decentralized P2P exchange platform based on the Haveno project which is available for Linux, Windows, and macOS. Monero can be bought and sold with maximum privacy, since most trading counterparties do not require KYC, trades are made directly between users (P2P), and all connections run through the Tor network. It is possible to buy Monero via bank transfer, Paypal, or even by paying in cash (meeting in person or sending by mail). Arbitrators can step in to resolve disputes between buyer and seller, but be careful when sharing your bank account or other sensitive information with your trading counterparty. Trading with some accounts may be against those accounts' terms of service. Please note that you can only buy Monero on RetoSwap if you already own a small amount of Monero (currently a minimum of 0.11 XMR) in order to fund security deposits, although there are ongoing efforts to drop this requirement in the future.

Criteria

Please note we are not affiliated with any of the projects we recommend. In addition to our standard criteria, we have developed a clear set of requirements to allow us to provide objective recommendations. We suggest you familiarize yourself with this list before choosing to use a project, and conduct your own research to ensure it's the right choice for you.

  • Cryptocurrency must provide private/untraceable transactions by default.

Important notices

The content here is not legal or financial advice. We do not endorse or encourage illicit activities, and we do not endorse or encourage anything which violates a company's terms of service. Check with a professional to confirm that these recommendations are legal and available in your jurisdiction. See all notices.

  1. You may refer to the following pages for up-to-date information on countries in which Kraken does not allow the purchase of Monero: Where is Kraken licensed or regulated? and Support for Monero (XMR) in Europe. ↩

  2. You may refer to the following pages for up-to-date information on countries in which Cake Wallet and Monero.com only allow the direct purchase of Monero (through third-party providers): Which countries are served by DFX? and What are the supported countries/regions? (Guardarian). ↩

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