Trading Monero is a promising direction because the developers said that they would not allow mining on ASIC. This means that the market will always be a deficit and high demand from users.
The currency appeared in the market in April 2014 and in just one year entered the 10 largest crypto-coins by capitalization. The success is explained very simply – Monero is the most anonymous coin in the world.
Although in the theory of cryptocurrency a priori assume the confidentiality of payments, the transactions can be associated with specific users, what can lead to recipients of funds.
Monero completely solves this problem and makes tracking impossible, so transfers are surely safe. This approach engages users and promotes the growth of capitalization.
The coin is used as an official means of payment for the AppStore and iTunes Store services, which ensured the status of the most useful cryptocurrency of 2016 for Monero.
Due to the high level of anonymity, it’s rumored that even large corporations use the coin to legalize income. There is no confirmation of this information, but at the same time, there is no smoke without fire.
For traders, this means that the turnover of Monero is stable and the coin is well suited for any type of trading. Market volatility is high, but the peaks don’t deviate too much from the averages. So the risk of large losses is excluded.
The Creator of the coin Ricardo Spani has repeatedly made statements that he is not a supporter of "bubbles", artificial hype and centralization of Monero.
Due to this, the coin is considered one of the most authoritative and stable. This is facilitated not only by words but also by the actions of developers. XMR uses a unique cryptographic algorithm and a lot of technological innovations.
Some of them were borrowed by Microsoft. Officially, the information has not been confirmed, but the fact that such information was spread to the network indicates the quality of the product.
In practice, this means that Monero has become the most decentralized coin and was able to realize the goals for which Bitcoin was created. By the way, the first cryptocurrency is not even close to the postulates enshrined in White Paper.
The capitalization of Monero as of 2019 was $ 1.5 billion, at the rate of $ 82.5 per 1 XMR. It is not difficult to calculate that the figure is underestimated since the market justified price is $ 93.5.
On the other hand, during the same period, other cryptocurrencies showed a bearish trend, while Monero shoved bullish. This fact directly indicates that the coin does not have a binding to the Bitcoin price, but is dependent on the general demand.
This aspect is very important for traders because the trading of the coin is carried out according to the same rules as the classic assets. The coin is ideal for those who already have experience in trading, but want to try something new.
Another interesting aspect is the legal regulation. The greater the pressure on cryptocurrencies from government agencies is, the higher is the price of XMR. The regularity is because it is physically impossible to ban digital money.
The government can only monitor and punish violators, but in the case of Monero, it won’t work. Users of the coin are fully protected and can be assured of safety. Therefore, XMR trading will always be relevant.
The factors that negatively affect the exchange rate include competition. Monero was the first anonymous currency, but not the only one. Accordingly, there is an outflow of users, which reduces the overall capitalization and volatility.
Massively, this trend was not manifested, but perhaps in the future, there will be a real alternative to Monero, so the coin is risky to use for hedging and long-term investments.
For trading on medium and short timeframes, the coin is ideal. So, experienced crypto traders will include Monero in their portfolio surely.