Despite the recent trouble, Bitcoin is still the dominant token in the digital market. Its value went all the way to $68.9K in November 2021 but returned to around $20K this year.
Experts agree it could make a big comeback in the following months or years. Does that mean now is the right time to convert XMR to BTC to get some bitcoin? This guide offers critical tips when trading Monero for the leading cryptocurrency. Here’s what to know before going with the conversion!
XMR vs BTC: Tokenomics
Bitcoin isn’t the first crypto token ever, but it’s the one that revolutionized the entire market. It has been the most valuable coin for years, and it doesn’t seem changes are coming anytime soon.
Monero has been around since 2014 when it originated from a Bytecoin fork. It’s hard to compare any other coin to BTC, so if we observe XMR independently, it’s doing well at this point. Here’s a quick comparison between the two tokens!
|$2.7 billion||Market Capitalization||$390 billion|
|18,1 million / –||Circulating Supply / Max Supply||19,1 million / 21 million|
6 Tips to Follow
Here is what to consider before converting your Monero to Bitcoin!
Choose an Exchange Platform Wisely
The market is full of crypto exchange platforms, and the majority include XMR and BTC. They are among the most reputable currencies on the entire market, so you shouldn’t have problems finding the pair.
But your task is to pick the best crypto exchange. The following can help when choosing a platform:
- Security and reputation. Crypto exchanges are often victims of cyberattacks. Check if the platform had previous problems with data breaches and what security measures it applies to keep your funds safe.
- Payment options. If you plan on using fiat to buy crypto, the exchange should support debit and credit cards, wire transfers, or other methods.
- Customer service. Reliable customer service is imperative if you encounter any problems.
Compare the Fee Structure of Various Platforms
Another critical consideration is the fees imposed by crypto exchanges. The majority have transaction fees for performing a trade. Deposit and withdrawal charges are common on these platforms. All these fees could go from 0% to 5%, with some platforms lowering their costs for large trades. It’s vital to compare the fee structure and find the best option.
Don’t Go All-In
Experienced investors don’t usually put all their eggs in one basket. Diversification is critical since it helps mitigate the risks. While exchanging XMR for BTC might be a wise move, try to identify other smart pairs, too. Keep your funds in different assets, including crypto and alternatives. Even if a single asset fails, you still have other options in your portfolio.
Don’t Buy an Asset Simply Because Its Price Is Low
Buying low and selling high is the dream of any investor. But if an asset’s price is low, always wonder why that’s the case. Is there a chance it will recover in the future? Or is there a better chance it will move toward bankruptcy? While the current price is an important factor, don’t neglect technical information.
Read Expert Price Predictions First
You’ll find many expert sites offering their price predictions online. These can provide important insights when deciding on a trade. Some reliable crypto prediction platforms include WalletInvestor, Capital.com, Cryptopolitan, etc. Always check multiple sources, as the forecasts vary. Ultimately, trust your opinion and what your intuition tells you.
Decide on a Short-Term or a Long-Term Investment Approach
Short-term trading is more exciting and can secure profit in hours, days, or weeks. However, it’s time-consuming and stressful. On the other hand, long-term trading requires patience, but you don’t have to worry about short-term market volatility. Some believe long-term trading is less risky and a great option to diversify a portfolio.
Unless you are a fan of short-term trading and love the excitement, there’s no need to rush with a decision. Most experts believe better times are ahead for the crypto market overall. So, converting your USDT to BTC now could be a good move.
If these forecasts turn out to be true, we can expect a vast Bitcoin price jump in the following months or years. As for Monero, the expectations are similar. Once the entire market recovers, XMR will start growing significantly. But despite that, Bitcoin is far more valuable, so converting your Monero to this coin might be a wise decision.