Should you add Monero to your crypto portfolio? Here’s what you need to know

Cryptocurrencies are slowly emerging to dominate the financial world. The numerous cryptocurrencies mushrooming up are a clear witness to this reality. Although the success of fresh cryptocurrencies is uncertain, they never compromise the inherent features of blockchain technology like transparency, anonymity, and privacy. However, the intensity of these features the various coins exhibit varies.

The first thought that flashes across our minds when we hear “cryptocurrency” is “Bitcoin.” Bitcoin holds the pride of inaugurating the cryptocurrency space. Nevertheless, yet another cryptocurrency has attained astonishing fame, acceptance, and reputation, exclusively owing to its privacy features. And that’s the Monero or XMR cryptocurrency! This article briefly discusses the Monero and the benefits you are entitled to upon owning it. You will also get a handful of considerations to adhere to before becoming known as a proud Monero user.

Monero Overview

Monero’s route to fame owes to its intensified privacy features. Well, that is what causes cryptocurrency lovers to be drawn to it. Monero employs the idea of ring signatures and stealth addresses to achieve its coveted intensive trait of privacy. Ring signatures are unknown digital signatures from one member of the group. The irony is that the revelation of the member signing the transaction remains concealed. Monero combines the sender’s account keys and merges them with public keys on the blockchain. Doing so makes it private and unique.

Stealth addresses are arbitrarily generated addresses on behalf of the sender, meant for single use. Therefore, they improve privacy. Stealth addresses aid in hiding the transaction’s actual destination address and the recipient’s identity.

Monero’s privacy stands unique when compared with Bitcoin’s. Monero’s transaction privacy holds a remarkable height, while Bitcoin’s is vulnerable to blockchain analysis. That’s because it permits entities to track funds and possibly compromise users’ privacy.

Those pursuing illicit activities and Dark Web users find Monero’s privacy features a boon to take cover. Monero thus finds itself to be a compelling use case across various industries.

Benefits of Adding Monero to Your Portfolio

Below are a few of the benefits you are prone to enjoy by adding Monero to your portfolio:

  • Enhanced Privacy and Security: Monero ensures privacy and security by using ring signatures and stealth addresses, as discussed in the previous section. In addition, the Ring Confidential Transactions (RingCT) conceals the amount of XMR transferred. The RingCT also permits the network to confirm the validity of transactions, thereby preserving the Monero blockchain’s integrity. Therefore, gambling with Monero becomes secure. It is crucial to ensure privacy during online e-commerce, banking, and gambling transactions with Monero because e-commerce cybercrime attacks incur significant losses in market shares, financial status, and hard-earned reputation.
  • Diversification: Keeping an eye on Monero’s price movements and choosing reputed exchange platforms helps diversify your crypto portfolio. Staying updated on market trends and fluctuations helps make informed decisions and reduce associated risks.
  • Potential for Growth: Monero’s recent price is $171.66, ranked 25 based on market capitalization. There is huge potential for the coin’s future growth. It is predicted to hit $217.83 by the close of 2023 prospectively.
  • Growing Adoption: People from all walks of life adopt Monero. The crypto coin covers users hailing from darknet markets, gambling, casino enthusiasts, cross-border trading, speculative trading, and investors desiring to keep discreet holdings.

Considerations Before Investing in Monero

There are a few considerations to be aware of before investing in Monero. This section delves into the same.

  • Regulatory Uncertainty: Monero, being used in unlawful practices, has already raised questions from regulatory authorities on its potential use. As the AML and KYC laws become more stringent, XMR’s privacy criteria might be perceived as a stumbling block in adoptions in the future.
  • Market Volatility: Monero is susceptible to significant price fluctuations like every other cryptocurrency. However, XMR has indeed held on to a comparatively stable trajectory. Accessing predictions from experts helps much in analyzing the crypto coin’s volatility.
  • Limited Liquidity: With a current price of $170.27 and 18,147,820 Monero coins in circulation, the crypto coin’s liquidity score is 57.94. Compared to larger cryptocurrencies, Monero may be less liquid on some exchanges.

Key Takeaways

Monero champions security and decentralization with its unique Ring Signatures, Stealth Addresses, and RingCT. The outstanding blending of accessibility, privacy, and security makes XMR a versatile player in the crypto platform. However, using it has a few challenges whose impacts matter. Therefore, it is essential to carry out your own research or take heed from financial advisors and experts before plunging into Monero crypto. Every business undertaking is crowned with its own risks and challenges. Just assess the nature of your business and make the right investment decision. When you find Monero to aid your investments, never hesitate to plunge in! You are always welcome! May Monero make you feel majestic!

Leave a Reply