As crypto markets turn to the upside, euphoria in the community can take over pretty quickly. When the numbers go up, it seems that there’s little you can do to make a mistake.
However, making profits in crypto is a much more complicated matter than it would seem at first glance. It requires a lot of market knowledge, fundamental and technical research, price market analysis, and a bit of luck.
That said, you can maximize your chances for profit before using a BTC to XMR converter by learning some crucial basics. This article will help you get started in getting profitable in the volatile crypto markets.
Learn the Basics
When exchanging two cryptocurrencies for one another, you will need to first understand their fundamentals. This will allow you to assess their valuation in the market and sometimes predict macroeconomic events that could affect their price. In our case, BTC and XMR, although similar in their proof of work core technology, have very different use cases.
Bitcoin doesn’t really need an introduction. Even non-crypto users have heard about it, as it is the first crypto to be released to the public. This pioneering status has allowed BTC to become one of the strongest store-of-value assets on the globe. For some, it even goes toe-to-toe with gold in some instances, while being more secure and easily transferable.
That said, Bitcoin doesn’t provide full privacy to its users. This pseudonymous network records all transactions on a digital ledger that is accessible to anyone. This can be an issue for people who don’t want their holdings to be public due to security reasons.
Monero, on the other hand, provides users with full privacy over their assets. The network uses RingCT signatures that obfuscate the sender, the receiver, and the transaction amount. In this regard, external observers will never be able to get sufficient information on the holders’ identity. Consequently, many consider XMR to be the best way to keep your funds separate from your identity.
Study the Trends
Next on your to-do list is to start studying the major price trends of both BTC and XMR. For example, try to assess the macro events that cause price fluctuations.
For Bitcoin, different factors can affect the price. Global adoption, ETFs, and the bitcoin halving are major events that need studying.
Monero, on the other hand, heavily depends on regulations. As regulators become more strict in the blockchain space, XMR will gain more adoption as it provides users with the liberty to use crypto anonymously.
For example, BTC usually front-runs the market in terms of price increases. Since the beginning of 2023, Bitcoin has gained 135% in value.
Monero, on the other hand, has been trending sideways for the most part of 2023. This crab-like price action has only allowed it to increase by a mere 20%.
With that in mind, many are expecting XMR to start outperforming BTC in the near future. The BTC upside has its limits, despite its high adoption. Monero could see new all-time highs and quickly 5x one’s investment.
Choose the Exchange
Once you have analyzed the fundamentals and price movements, it’s time to choose your cryptocurrency exchange. Monero and Bitcoin are extremely popular, and you can find them on most exchanges.
However, when exchanging BTC to XMR, you should probably opt for an anonymous crypto exchange like https://godex.io. Such an exchange will not ask you to go through a KYC process or require you to register an account.
This will allow you to disassociate your identity from your crypto holdings. This adds another layer of security to your self-custodianship and privacy.
Final Considerations
Making a profitable BTC to XMR trade can be tricky if you don’t know how to approach the market. However, by applying some fundamental research prior to your trade, you can increase your chances for success.
Hopefully, our article provided you with some good basics on how to become profitable in your trades.
