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Things to Know Before You Exchange Monero

ByDave Stopher

Aug 9, 2019

Almost every day, some new cryptocurrency appears on the market. Whether or not it will survive depends on many factors. Their quantity and price depend on many factors, but the most significant is the effectiveness of these digital currencies. If interested parties find that a coin can solve a problem or have a useful function, then demand increases. It further affects the price increase and drives investors to action.

Some of the conditions to fulfill before start crypto trading are mentioned below:

https://hackernoon.com/what-you-need-to-start-crypto-trading-a-four-step-guide-49a2310d5dee

As far as Monero (XMR) is concerned, it has attracted the attention of people who want to trade cryptocurrencies from the very beginning (in 2014). It fulfills one of the main requirements when it comes to crypto trading – the anonymity of doing business on the Internet. This feature made this currency a favorite of many investors. 

But before start trading Monero, there are some things you should know and may help decide whether to purchase this coin or not.

Get to Know Monero Features

Monero operates on an open-source blockchain principle, which means that the future users created, tested, and improved technology and software of this coin. Developers from all over the world worked on Monero project to develop one of the most sought-after cryptocurrency.

When exchanging this digital coin, the details of each transaction, both sender and recipient, and size of the purchase are written in a kind of public record, using blockchain technology. But what most users mentioned as the most significant advantage of this coin is the inability to keep track of transaction information. Creators designed this cryptocurrency with a lack of transparency on purpose.

When using Monero, there is practically no chance of anyone to get in trace of activity between the participants. It opens up a lot of space for illegal activities and digital crime. However, this information should not make you despise it. In fact, this promising currency has already become a means of payment in show business (some well-known singers receive their royalties in cryptocurrencies).

Factors Affecting Monero Price

Monero, like every other coin, doesn’t have a fixed trading quote. It finds benchmarking price in Bitcoin (BTC) as the basis of any cryptocurrency trading. The rise in BTC quotes affects increasing prices of other currencies. Every significant change in coin rate reflects differently. The same goes for the price fluctuations on a daily/monthly/annual basis, as seen on this website.

Another factor is the availability and usability of the currency. Many platforms accepted Monero and other coins as a means of payment, which justifies their use. Some investors will react only after seeing proven functionality of cryptocurrencies. The price is also affected by Monero’s breakthrough in world exchange markets.

Unlike with other coins, Monero owners are not afraid of taxation and regulations. Given the technology that secures the privacy of its transactions, it is almost impossible to trace coin holders. By buying this digital currency, investors are protecting their profits from high fees.

Concerns to Keep in Mind

The Internet is a place where many frauds occur, mainly because every data we leave there is public and available to hackers. That’s why investors appreciate and favor the privacy its trading offers. It may somewhat indicate the expected price increase in the near future.

The forecasts are good so far. Given that Monero, unlike other coins, does not record the history of previous transactions, investors’ task of predicting the prices according to former fluctuations is not that simple. Be cautious, as some transaction can lead you to the dark side of the Internet.

But many people complain that its system is slower than other cryptocurrencies. It requires approximately between 18 and 20 confirmations before people erase the transaction. And it can take a while. 

The technology of data privacy is what people appreciate in Monero trading. It makes the difference, as more and more people are concerned about being safe while trading online. This high level of protection is based on ring signatures and secret addresses. These are playing significant roles in hiding the identity of both sender and recipient.

This digital currency has a pretty bright future among cryptocurrencies released so far. However, without risks and unforeseen situations, prices will not change. It won’t fall much, but it won’t rise much too. So think twice before choosing the type of Monero exchange.