Is It a Good Idea to Put Your Money on Monero?
Bitcoin (BTC) remains at the top of the list of the most desirable cryptocurrencies, but it’s not exactly accessible for people who are on their first foray into cryptocurrency. The high number of miners who focus on Bitcoin makes it exceedingly difficult to maintain a profitable mining operation. At the same time, the price of each unit of Bitcoin hovers between USD 29,000 and USD 68,000, which puts it beyond the reach of casual traders and investors. It is possible to buy portions of one whole Bitcoin, and doing so still has its merits, but many people are also opting to put their money on altcoins or cryptocurrencies other than BTC.
If you’re thinking of dipping your toes into an altcoin and growing your cryptocurrency portfolio without spending significant amounts on acquiring Bitcoin or putting together a BTC-specific miner, then you have thousands of other options on the market. Monero or XMR is high on the list of altcoins that are being supported by newbie and experienced cryptocurrency enthusiasts alike. They think Monero is worth investing in because of the following reasons:
It’s Easy to Get Started on Monero
Mining Monero doesn’t require you to invest in specialized hardware called ASICs, which can be prohibitively expensive. If you have a computer with a decent CPU or GPU, a Monero wallet, and compatible mining software, then you’re good to go. Trading and investing in the altcoin is even easier, as you only need to have a wallet and access to a cryptocurrency exchange to start trading. Also, Monero is nowhere near as expensive as Bitcoin. In 2021, the coin’s price hovered between USD 126 and USD 420. While this is still a significant amount for many newbie traders, it’s much more accessible compared to the price of Bitcoin or Ethereum, which are two of the most popular and most expensive cryptocurrencies today.
Monero Has a Good Track Record as an Investment
Monero was launched in 2014, just around 5 years after Bitcoin was first released. Initially, every XMR coin was offered at USD 2.47. The coin’s value maintained this rate until 2016, when the price picked up and started rising from there, exceeding beyond USD 500 at several points. While it’s subject to a high level of volatility like most other cryptocurrencies, Monero is also predicted to have a bright future. Based on the coin’s historical data, a number of forecasters are predicting that Monero’s value will continue to rise in the next few years. This is welcome news to people who are just starting to put their money on this privacy coin.
It is Backed by a Large Community of Developer
Next to Bitcoin and Ethereum, Monero has the third-largest community of developers behind it. This means that there are a lot of people who are working on improving the technology behind the cryptocurrency and making every effort to ensure that all transactions that use Monero are anonymous and private–characteristics that set the coin apart from other altcoins.
Currently, there are 3 technologies that are being used to ensure that transactions that use Monero are untraceable. These are ring signatures that group the sender with other signatures so it’s harder to trace where the transaction is coming from, stealth addresses that conceal the receiver of the transaction and ring confidential transactions that hide the total amount involved in the deal.
There Is A Growing Need for Privacy and Anonymity
Many Monero users believe that how they use their assets is no one’s business but their own. To prevent financial establishments and government agencies from collecting and using their data as well as possibly censoring their transactions, these people are putting their money on Monero. In the future, the number of people who want to preserve their anonymity and privacy while they’re transacting with others online can grow, and this can mean a higher demand for privacy coins like Monero. In turn, the high level of demand can positively impact the value of the coin and give those who have investments in Monero a chance to earn significant profits.
There are thousands of cryptocurrencies in the market today, each with its own unique qualities and applications. In the past, putting money on this type of asset was considered to be incredibly risky. These days, however, cryptocurrencies are considered a good addition to a well-balanced portfolio, and there are plenty of experts and active communities that can offer guidance to newbies who want to know what the hype over digital coins is all about. It’s also much easier to access the tools that are needed to immediately start trading, investing, and mining Bitcoins and altcoins.
The only question now for newbies is where they should put their money. Monero is a practical option that promises profit and continued growth for those who are looking for sound investment opportunities.
We hope you enjoyed this collaborative piece as much as we did!