Bitcoin and Monero

Hello everyone! I have been interested in cryptocurrencies for some time now and recently came across two popular coins: Bitcoin and Monero. To be honest, I am not quite sure what the main difference is between them. On the one hand, Bitcoin is the most famous cryptocurrency on which the whole system is based, but Monero seems to be something more “secret”, because it is a cryptocurrency with a focus on anonymity. I heard that Bitcoin is traceable, but Monero protects the identity of its users. Is this true? And what other differences exist between these two coins, especially in terms of security and use? I would be glad to hear the opinion of experienced users.

The question is really interesting, and you touched on several important points. Let me try to explain in more detail what exactly distinguishes Bitcoin from Monero, and why it can be important in different situations. According to https://tradebrains.in/features/whats-the-difference-between-bitcoin-and-monero/, Bitcoin is the first cryptocurrency that appeared in 2009 and is still the most popular. It was created with the main goal of becoming a digital analogue of money that can work in the global economy. But it is worth considering that the Bitcoin blockchain is a public registry of all transactions. This means that all information about transfers is available to all users of the network. Everyone can see which address sent money to which other address and how much money was transferred. Of course, people's identities are not directly visible, but according to the transaction data, it is possible to analyze and draw conclusions about who could be the sender or recipient. This is precisely one of the reasons why Bitcoin is sometimes criticized for its lack of anonymity. Now about Monero. It is an altcoin that was created in 2014 and was originally conceived as a private cryptocurrency. It uses technologies such as Ring Signatures and Stealth Addresses to hide both the fact of the transaction, the amount, and the addresses of the sender and recipient. This means that all transactions in the Monero network are completely anonymous, and no third-party user can restore information about who sent money to whom, unless this data is disclosed by the user themselves. In terms of anonymity, Monero certainly wins. Ring signatures make the transaction in the blockchain look like a set of several signatures from different users, but only one of them is “real”. This hides information about who exactly sent the funds. Moreover, stealth addresses are used so that the recipient of the transaction is also not identifiable, even if their address was listed in some public database.

Guys, thanks for the detailed answers, I was also interested in understanding these questions! I recently started studying cryptocurrencies, and after reading it became much clearer how Bitcoin and Monero differ. First of all, it was important for me to understand why some cryptocurrencies may be preferable for certain purposes, for example, if you need more anonymity. It's great that there are coins like Monero that protect the privacy of users. I think that if I decide to start using crypto for some sensitive transfers, Monero will be the best choice.