There is no doubt that Bitcoin (BTC) has become the most popular cryptocurrency in the world since its inception in 2009 as the first blockchain-based cryptocurrency. It is also the top cryptocurrency in market capitalization and has been praised for its impressive encryption, low transaction fees, and top exchange speed.
Investors can profit by trading Bitcoin because of its regular variation in price and exceptional value, whether in the short or long term. Although Bitcoin is quite popular, some altcoins are its competitors, and Monero is one of them. Let’s take a look at what it can boast of.
Main Features of Monero Trading
Monero (XMR) is one of the first altcoins to go in-depth with privacy problems and is also quite impressive in terms of market capitalization, although it hasn’t made it to the top ten yet. Here are the advantages and disadvantages to consider before trading.
- It offers top privacy with its first-mover advantage. XMR built a wide network effect in the privacy sphere.
- It is popularly accepted as a mode of payment in the dark market. There, private transactions and coins are recognized as a sign of respect.
- Monero upgrades its technologies every six months. While Bitcoin can’t upgrade and fix its bugs for two years, XMR protocol improves technologies that are expected by network users.
- Monero finds it difficult to keep up with demand because of its blockchain. Privacy transactions are resource-intensive due to the different cryptographic verifications used to generate top-notch privacy.
- Many other altcoins focus on privacy, leading to intense competition. Despite the fact that Monero is a leader, other coins are quickly overwhelming the privacy coin space. Verge, Zcash, and Pivx are developing rapidly, taking away glory from Monero.
How Is Profit Made with a BTC/XMR Exchange?
By trading BTC and XMR, you are expecting to make a profit. But where exactly does this profit come from?
When you have a lesser-valued currency, and you trade it for one with an increasingly higher value, there’s no doubt that you will make a profit. Here is how this works:
Although the second-highest crypto in terms of market cap has only been around for about five years, one can still monitor these cryptocurrencies’ long-term trends. The overall movement of all currencies has been upwards, although there have been cases of crashes.
Crypto investors don’t necessarily trade all the time, but they bet a large part of their money on a particular currency, experiencing long-term profit.
Volatility in the Currency Value
Cryptocurrencies are well-known for their volatile nature in the short term. An investor can either make a lot of money or lose it all at once, depending on the cryptocurrency price movement.
By monitoring the volatility of a cryptocurrency, an investor knows when to buy it because then the value will increase and when to pull out because the value will drop.
How to Trade on Decentralized Platforms
If you want to convert BTC to XMR to trade in this currency and expand your portfolio, you need a trusted decentralized exchange platform to take care of this for you.
Such a platform should offer anonymity with fixed rates and no registration or hidden fees. It should have one of the quickest exchange speeds on the market with no limit on your exchange volume. Also, you should use an automatic calculator so you can check what 1 XMR to BTC is before trading.
Here you will see how to trade BTC to XMR on one such platform:
- Open https://godex.io/
- Select the currency you’re sending (BTC) and the one you’re getting (XMR).
- Enter your XMR wallet address.
- Deposit the BTC and wait for it to reflect.
- The exchanging process will take place.
- The process is complete.
Start Trading Today!
After all the above information, it becomes clear that Monero is still a good idea for an investment and one of the competitors to Bitcoin. Whether you are looking for long or short-term trading or storage, you can quickly start with your investment by using Godex.io.
You don’t only have to trade BTC to XMR, as hundreds of cryptocurrencies are available for trading here!