What is Monero (XMR) in NZ?

Monero is a cryptocurrency that prides itself on offering robust security, strong privacy protections, and complete transaction anonymity. It leverages advanced cryptographic techniques to ensure that every transaction conducted with Monero remains untraceable.

Created by a group of anonymous developers, Monero aimed to address the limitations of Bitcoin, particularly in terms of transaction privacy. It offers enhanced privacy features, including ring signatures, stealth addresses, and confidential transactions, which make it difficult to trace and link transactions to specific individuals such as darknet users.

Like Bitcoin and other POW tokens, Monero also utilizes a proof-of-work (POW)

consensus algorithm, which involves miners verifying and adding transactions to the blockchain.

In the crypto revolution, from a regulatory point of view, if Bitcoin is the axe, Monero is the blade. Monero – behind Bitcoin and Ethereum, has the third-largest community of developers in the crypto space, and is one of the most underestimated coins in the world.

Originally launched in 2014, Monero was known as “BitMonero”, a name that combined “bit”, as a reference to Bitcoin, with “Monero”, which is the Esperanto word for coin.

Interesting fact: 5 days later, the ‘bit’ was dropped in favor of its current name.

One of the key moments in Monero’s history was how it experienced significant growth in 2016 primarily driven by its adoption on darknet markets, where users utilized the anonymous cryptocurrency for buying and selling illicit goods like drugs and firearms.

However, this led to concerns over its use on darknet markets, and XMR was subsequently delisted from several crypto exchanges in 2020 due to regulatory compliance issues.

Today, it is difficult to acquire Monero on exchanges such as Easy Crypto NZ

without having to prove your source of funds, due to regulatory pressure from the NZ government.

Despite these challenges, Monero has continued to evolve and improve. In 2017, it implemented a hard fork to increase the maximum ring size From 5 to 7, making it more secure. Unlike Bitcoin, a public blockchain, it is impossible to view transaction records.

Another significant moment in Monero’s history was the RandomX mining algorithm update in 2019, which discouraged the use of ASIC miners to mine Monero, making the Monero network more decentralized, egalitarian and accessible to the average miner.

The United States Internal Revenue Service also once offered a bounty of up to $625,000 USD to anyone who could crack Monero’s code, after failing to do so themselves.

Monero's Blockchain

The Monero blockchain is powered by an open-source, proof-of-work (PoW) consensus algorithm, similar to Bitcoin – but instead with the addition of privacy focused features.

However, the downside to this lack of transparency is that it is impossible to know exactly how much Monero is out there in circulation, whereas with Bitcoin we know it’s 21m BTC.

Mining Monero

Monero operates exclusively on the Proof of Work (PoW) consensus mechanism.

Monero utilizes the RandomX algorithm

which can be effectively mined on billions of devices, including modern x86 CPUs. It’s worth noting that Monero has also introduced a feature called “smart mining,” allowing users to mine Monero on their computers’ CPUs.

This approach aims to decentralize mining and move away from the centralized mining farms, aligning with Satoshi Nakamoto’s original vision of a genuine peer-to-peer currency.

Monero's Stealth Addresses

The use of stealth addresses in XMR ensures the privacy of both the sender and receiver by making it hard for any third party to determine the destination address of a transaction.

This anonymity of the receiver is guaranteed by the sender, which is automatically created.

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A stealth address is a unique address generated for each transaction on behalf of the recipient, which ensures the privacy and anonymity of both the sender and receiver.

Even though the recipient can share their wallet address publicly, all incoming transactions will be automatically forwarded to a distinct stealth address on the Monero blockchain.

Monero's Ring Signature

Unlike many other blockchains such as Bitcoin

and Ethereum

that use EDSA signatures, Monero utilizes a more intricate digital signature scheme called ‘ring signatures’.

These signatures are composed of the public keys of several individuals, including one authentic signature and several other signatures from Monero users, known as ‘mixins’.

By utilizing ring signatures, an XMR transaction or statement signed with them can prove that at least one member of the group provided a private key for the digital signature, while keeping the specific individual who provided the digital signature indistinguishable.

To learn more about Monero Ring Signitures, see the official Monero guide here

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Monero's Keys

Monero employs a distinct key system that sets it apart from other cryptocurrencies.

Monero’s Keys: public view key, private view key, public spend key, and private spend key.

By utilizing public view keys, users can generate a unique stealth public address for each transaction. Private view keys are used to scan the Monero blockchain and confirm the receipt of funds. On the other hand, public spend keys are employed to verify transaction signatures, while private spend keys are used to create outgoing transactions.

This comprehensive key system ensures the security and privacy of transactions.

Monero, as a privacy-focused cryptocurrency, faces a unique set of challenges in it’s pursuit of providing secure and anonymous transactions to its users such as.

• Public Perception: Despite legitimate use cases for privacy, Monero’s privacy features have also been associated with illicit activities on the web. This negative perception can create barriers to adoption and acceptance among mainstream users and businesses.
• Law Enforcement: Monero’s privacy features and strong anonymity pose challenges for law enforcement agencies. They are concerned that the privacy provided by Monero could potentially enable money laundering, tax evasion, and other illegal activities.

Despite challenges, the Monero community continues to work on improving the privacy, scalability, and usability of the network. Through ongoing development and education, Monero aims to overcome obstacles and provide a secure and private cryptocurrency.

At Cryptocurrency NZ

, we believe Monero is a righteous element of the crypto space, considering the conditions that many hundreds of millions of global citizens live under totalitarian regimes. With Monero, they can now transact safely, privately, and ensure financial freedom and security for themselves- where they would otherwise be restricted.

Understanding private and public keys is fundamental to securing your Monero. Each Monero wallet generates a unique pair:

• Private Spend Key: This key allows you to spend your Monero. It must be kept absolutely secret and secure. Never share your private spend key with anyone, and ensure it is stored offline in a safe place. Losing it means permanent loss of your XMR.
• Private View Key: This key allows you to view incoming transactions to your wallet without being able to spend the funds. This can be useful for auditing purposes or for sharing with an accountant while maintaining spending control.
• Public Address: This is your Monero wallet address, which you can share freely. Others use it to send XMR to your wallet. It does not grant access to your funds. It is crucial to back up your wallet's 25-word mnemonic seed phrase physically and store it in multiple secure, offline locations. This seed phrase is the master key to recover your wallet and all your Monero funds.

Choosing the right wallet for your XMR is crucial for both security and functionality, especially given Monero's unique privacy features. Here are some top recommendations suitable for New Zealand users:

Official Monero GUI Wallet (Desktop)

The Monero GUI Wallet is the official desktop wallet, offering the highest level of security and privacy. It's a full-node wallet, meaning it downloads the entire Monero blockchain, which provides maximum decentralization and ensures you are directly connected to the Monero network. This is the recommended choice for serious Monero users who prioritize security and control.

Hardware Wallets: Enhanced Security (Ledger & Trezor)

For the ultimate security of significant XMR holdings, hardware wallets like Ledger Nano X/S Plus and Trezor Model T are highly recommended. These devices store your private keys offline, protecting them from online threats. Both Ledger and Trezor support Monero, and integrating them with the Monero GUI Wallet provides an unparalleled level of security.

Important Note on Exodus Wallet: While Exodus previously supported Monero, it is important to note that Exodus Wallet is delisting Monero (XMR) support as of August 10, 2025. If you are an Exodus user with XMR, you will need to transfer your funds to a compatible wallet like Cake Wallet or the official Monero GUI Wallet before this date to avoid any disruption.

Regardless of the wallet you choose, robust security practices are paramount for protecting your Monero holdings:

• Secure Your Mnemonic Seed Phrase: Your 25-word mnemonic seed phrase is the master key to your funds. Write it down physically, store it in multiple secure, offline locations, and never share it or store it digitally.
• Verify Software Downloads: Always download Monero wallets and software from official sources (e.g., getmonero.org) to avoid malicious versions.
• Beware of Phishing Scams: Always double-check URLs and sender identities. Scammers frequently create fake websites or emails to trick you into revealing sensitive information.
• Keep Software Updated: Regularly update your wallet software, operating system, and antivirus programs to protect against vulnerabilities.
• Use Strong, Unique Passwords: Employ complex, unique passwords for all your crypto-related accounts and consider using a password manager.
• Avoid Public Wi-Fi: Refrain from accessing your crypto wallets or exchanges on unsecured public Wi-Fi networks
• Physical Security: Be mindful of physical threats. Avoid publicly disclosing your crypto holdings, as this can make you a target.