All cryptocurrencies have very high volatility. Therefore, when investing in digital money, you must be ready at any time to exchange tokens, for example, XMR to ETH and vice versa. This does not apply to long-term investments. In this case, on the contrary, the maximum exposure is useful. But when exchanging coins, be sure to double-check yourself. The sites of online exchangers ensure XMR to ETH calculator (and for others, including fiat currencies). Next, we will talk about the principles of safe investing in 2020.
Almost everyone has heard about the Ethereum in one way or another. The ETH token can be used as a means of payment, as well as for the development of applications based on smart contracts. The Monero (XMR) currency raises more questions. It is open source, and its protocol implements transaction anonymization engineering:
- Stealth addresses,
- Ring confidential proceedings.
Thanks to these innovations, Monero is considered as anonymous cryptocurrency in existence. Because of this, some competitors even accused the creators of using their project to pay for illegal goods on the black market. But these attacks do not diminish the advantages of the currency.
Risks and benefits of investing
For some, investing in cryptocurrency is something of a fantasy, for others it is a profitable source of income. The more you know in advance about the chosen cryptocurrency, the higher the chances of luck. The increased volatility of crypto makes it eventual to profitably speculate on exchanges. But for this you will have to track all courses on a daily basis, understand the strategies and analyze the situation. If you are planning a one-time purchase of a large amount, then you need to find a reliable exchanger, and calculate exactly how much you need to pay, for example, for convert XMR to ETH. By the way, most often exchanges charge high commissions for withdrawing funds to the client’s personal wallet. For a one-time deal, it is more profitable to use an exchanger.
How to invest safely?
If you are a beginner, give preference to stable popular options. Ethereum is second only to Bitcoin. Litecoin and Bitcoin Cash also performed well. The main thing is to determine that this is a profitable crypto and it will eventually be possible to sell it at a higher price. In addition to choosing a currency, you need to know the basics of Blockchain technology, be able to create crypto wallets and correctly execute transactions. When investing in a little-known coin, be prepared to wait a long time for the result. Multiple return on investment in this case is more like winning the lottery than accurate calculation.