How to compare Monero with other blockchains
Monero hides sender, receiver, and amount by default, so compare chains by privacy, access, and reporting. Check exchange support and IRS rules first.
Vahe HakobyanEditor-in-chief
Updated Oct 6, 20263 min readFact-checked
On this page
- Monero hides sender, receiver, and amount by default.
- Transparent ledgers publish those details.
- Exchange access for Monero changes over time.
- US tax rules apply to crypto trades.
- Monero lacks native smart contracts.
Monero launched in 2014 with privacy built in. To compare it with Bitcoin, Ethereum, or another chain, look at how each network treats public data, who can use it, and what you must report. The checks below work for any chain, but Monero needs its own look because its design hides details other ledgers publish.
What to know before comparing
Monero hides the sender, the receiver, and the amount of every transaction by default. Bitcoin and most other chains use transparent ledgers, where those details are public. Some chains offer optional privacy, so transparency is a choice. Compare chains on their privacy model, how traceable activity is, and whether transparency is optional.
Compare Monero step by step
- 1Check exchange supportLook at whether the exchanges you use list Monero. Exchanges delist Monero from time to time, and access has shifted since it launched in 2014.
- 2Review tax reportingThe IRS treats cryptocurrency as property, so trades and payments are taxable. Monero's privacy does not remove your duty to report.
- 3Compare issuance and securityCheck if a chain has a fixed supply cap or a tail emission. Bitcoin has a fixed cap. Monero has a tail emission. Monero uses RandomX proof of work, introduced in November 2019.
- 4Identify smart-contract supportMonero does not support smart contracts or tokens natively. Ethereum and similar chains do, so that difference matters.
How to keep records after comparing
US tax rules treat crypto as property, so keep records for every trade, sale, or payment. Buying crypto with US dollars is not taxable, but trading one crypto for another, including a stablecoin, is taxable. Paying with Monero is taxable too.
Frequently asked questions
No, owning and using Monero is legal in the US. Some exchanges restrict it, but that is a business decision.
Exchanges delist Monero because its privacy features make compliance and tracing harder. Regulatory pressure and monitoring costs also play a role.
Monero is very hard to trace, but not completely untraceable. A 2022 study concluded it is untraceable for now, but that will probably change with enough time and effort. Chain analysis and off-chain data can still link activity.
No, Monero's blockchain does not support smart contracts or tokens natively. That makes it different from programmable chains like Ethereum.
