40+ Monero and P2P trading terms in plain English. From ring signatures to tail emission. Bookmark this page — you'll need it.
A trustless exchange of one cryptocurrency for another without any intermediary. For Monero, BTC↔XMR atomic swaps use cryptographic hash-time-locked contracts. Tools: Farcaster, UnstoppableSwap, BasicSwapDEX.
The group of possible signers in a transaction. Currently 16 (ring size 16). After FCMP++, the anonymity set becomes the entire blockchain — millions of outputs.
The amount of new XMR created with each block. After June 2022, Monero's block reward is permanently 0.6 XMR per block (~every 2 minutes). This is the tail emission.
A zero-knowledge proof system that verifies transaction amounts are positive without revealing them. Bulletproofs+ (upgraded from Bulletproofs in 2022) reduced transaction sizes by ~80%, directly lowering fees.
A P2P trading method where physical cash is sent via postal mail in exchange for Monero. The most private fiat↔XMR method for EU-wide trading. Uses registered/tracked mail with escrow protection.
Sending Monero to yourself at a new subaddress to increase cryptographic distance from a previous transaction. Useful after receiving XMR from a swap service or exchange. Each churn adds another ring signature layer.
The first transaction in each block, creating new XMR as the block reward. Coinbase outputs have zero transaction history — they are "virgin" coins. Mining via P2Pool generates coinbase transactions.
A block added to the blockchain after your transaction. Monero requires 10 confirmations (~20 minutes) before received funds are spendable. Most P2P trades consider 1–2 confirmations (~2–4 min) sufficient.
A network-layer privacy protocol. Transactions are first routed through a random chain of peers (the "stem" phase) before being broadcast widely (the "fluff" phase). This prevents observers from linking your transaction to your IP address.
A Haveno-based decentralized exchange. 5% security deposits (lower than RetosSwap's 15%), ~2% total fees, 24/7 arbitration. Good for smaller trades and lower capital lockup.
A transaction output included in a ring signature that is not the actual input being spent. Decoys provide plausible deniability. Monero uses 15 decoys per input (ring size 16).
Monero's blocks automatically expand when transaction volume increases. Unlike Bitcoin's fixed 1 MB blocks (which cause fee spikes), Monero's block size adjusts to demand, keeping fees consistently low.
Monero's biggest privacy upgrade, expected in 2026. Replaces ring signatures (16 decoys) with proofs where every output ever created on the blockchain is a potential decoy. Makes statistical analysis effectively impossible.
The property that every unit of a currency is interchangeable with every other unit. Because Monero transactions are private, all XMR is equally "clean" — unlike Bitcoin, where coins can be blacklisted based on transaction history. Fungibility is essential for money to function as money.
A decentralized exchange (DEX) for trading Monero for fiat currencies (EUR, USD, etc.) or other crypto. Uses 2-of-3 multisig escrow. Main instances: RetosSwap and DawnSwap. Successor to Bisq for XMR trading.
A unique cryptographic value derived from each transaction output when it is spent. Key images prevent double-spending without revealing which output was actually spent. Each output can only generate one key image.
Identity verification required by regulated exchanges. KYC links your identity to your crypto holdings. P2P trading and decentralized exchanges (Haveno) avoid KYC entirely.
The Monero daemon — the software that runs a full Monero node. It syncs the blockchain, validates transactions, and relays blocks. Required for P2Pool mining and maximum privacy (avoids leaking wallet queries to third-party nodes).
A wallet that requires multiple keys to authorize a transaction. Haveno uses 2-of-3 multisig: buyer, seller, and arbitrator each hold one key. Any two can release funds. This is how P2P escrow works without trusting a single party.
A computer running monerod that stores the complete Monero blockchain (~130 GB) and independently validates all transactions. Running your own node provides maximum privacy and strengthens the network.
A unit of Monero created by a transaction. When you receive 1 XMR, it creates an output in the blockchain. When you spend it, that output is consumed (referenced by a key image) and new outputs are created for the recipient and your change.
A decentralized mining pool for Monero. Zero fees, no registration, no KYC. Payouts go directly to your wallet from the block reward. Two chains: main (>100 KH/s) and mini (<100 KH/s, recommended for home miners). ~15–20% of Monero's total hashrate.
Obsolete since 2019. An identifier formerly attached to transactions for merchant identification. Replaced by subaddresses and integrated addresses. If a service asks for a payment ID, contact them for an updated address format.
A node setting that reduces blockchain storage from ~130 GB to ~45 GB by discarding old transaction data while keeping block headers. Pruned nodes can still validate new transactions. Useful for limited disk space.
A cryptographic proof that you sent a specific Monero transaction to a specific address. Uses the transaction private key. Essential for resolving P2P trade disputes — proves payment was made without revealing other transaction details.
Monero's proof-of-work mining algorithm. Designed for general-purpose CPUs using random code execution and memory-hard operations. Resistant to ASICs and GPUs, keeping mining decentralized — anyone with a regular computer can mine.
A Monero node operated by a third party that your wallet connects to instead of running your own. Faster setup (no 130 GB download) but reduces privacy — the remote node operator can see your wallet's queries. Use Tor to mitigate.
A cryptographic technique that hides transaction amounts. The network can mathematically verify that inputs equal outputs (no inflation) without ever seeing the actual numbers. Mandatory since 2017.
A cryptographic signature that proves a transaction was made by one member of a group, without revealing which member. Your real input is mixed with 15 decoys from the blockchain. Will be replaced by FCMP++.
The largest Haveno instance by volume (~$2M/month). 15% security deposits, 0.6% total fees, arbitration by RoundTheRoses (24–48h response). The established choice for large Monero trades.
A 25-word backup phrase that can restore your entire Monero wallet. Anyone with your seed phrase controls your funds. Store it offline (paper, metal plate). Never type it into a website. Never photograph it.
A one-time address generated automatically for each transaction. Even if someone knows your public address, they cannot link incoming payments to it on the blockchain. Each sender generates a unique stealth address derived from the recipient's public key.
A unique receiving address generated from your wallet (starts with 8). Each subaddress is cryptographically unlinkable to your main address or other subaddresses. Best practice: generate a fresh subaddress for every transaction and counterparty.
A permanent block reward of 0.6 XMR per block (~every 2 minutes) that continues forever. Started June 2022. Creates ~0.8% annual inflation (decreasing over time). Ensures miners always have an incentive to secure the network.
An anonymity network that routes your internet traffic through multiple encrypted relays. Using Tor with Monero prevents your ISP and node operators from linking your IP address to your wallet activity. Supported natively by monerod.
A private key generated for each outgoing transaction. Used to create payment proofs for trade disputes. Your wallet stores TX keys automatically. Never share them publicly — they reveal the exact amount and destination of a specific payment.
A key that allows viewing all incoming transactions to a wallet without being able to spend funds. Two types: private view key (reveals incoming TX) and public view key (part of your address). Useful for auditing and accounting without compromising spending control.
Software that manages your Monero keys and lets you send/receive XMR. Recommended: Feather Wallet (desktop), Cake Wallet (mobile), Monero GUI (official). Hardware wallet support via Ledger/Trezor.
The ticker symbol for Monero. Derived from the Esperanto word "monero" (coin/currency). 1 XMR = 1,000,000,000,000 piconero (the smallest unit). As of 2026, XMR trades between $200–350 USD.
The most popular open-source Monero mining software. Supports CPU mining with RandomX. Point it at your P2Pool instance to mine with zero fees.
A messaging protocol used by monerod to publish block data. Required for P2Pool mining. Enabled with --zmq-pub tcp://127.0.0.1:18083.
Now you know the terms. Ready to trade? I offer Cash by Mail (EU-wide) and Face-to-Face trading (SW Germany). 683 trades, 454 partners, 100% feedback. Escrow available.
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