There are many cryptocurrencies out there that you can buy, trade, or hodl. Bitcoin is definitely the most popular of them all, as the majority of crypto wealth is stored in “digital gold.” The thing is that many investors are aware that they need to diversify their portfolio if they want to maximize their investing and trading game, and that’s why they often seek alternative cryptocurrencies to invest in.
In this article, we’ll focus on Monero, which uses the ticker symbol XMR. We’ll talk about what Monero is, where it ranked in the past, and what makes it different from other cryptocurrencies.
What Is Monero?
Monero has been around since 2014. It’s described as a privacy-focused cryptocurrency, and that has been its main selling point. Based on RandomX, a modified version of the Proof-of-Work consensus protocol, Monero is considered a private and resilient coin.
The cryptocurrency’s privacy features make it stand out from the pack. Monero uses an arsenal of security measures, including ring signatures, stealth addresses, bulletproofs, and Dandelion++. All of them are features that make Monero what it is — a privacy-oriented cryptocurrency trusted by many investors.
Now that you have an understanding of what Monero is, let’s focus on the financial side of things. Here’s a quick overview of XMR price and how it changed throughout history.
Monero: Price History Overview
Monero was traded right after its release, and right from the start, there was a slight uptick in price as it reached around $3 per unit. After that, there was a long period of low trading activity, when XMR traded at approximately $0.5. Things started changing with the overall acceptance of cryptocurrencies, as XMR’s price began going up sometime in August 2016.
The price continued increasing until January 7, 2018, when it reached an all-time high of $495.84. In other words, that’s the most expensive XMR has ever been. After that, the price started going down again, but it never returned to its 2015 low. Instead, it fluctuated a lot but barely went over $100.
Then the Covid-19 pandemic happened. First of all, investors sold a lot of XMR, making it hit the lowest since the all-time high, which was about $26. This happened in March 2020, and from that point on, the price started going up again a lot, with a single unit of Monero reaching more than $280 in February 2021. Still, the cryptocurrency failed to break its all-time high from January 2018 — but never say never.
At the moment of writing, a single unit of XMR is traded at about $220. It means that there are still plenty of investors interested in trading the popular cryptocurrency.
Monero is traded against other cryptocurrencies, with BTC being the main one. Once you learn how to convert BTC to XMR, you’ll be able to incorporate Monero in your trading strategy, given that you already have Bitcoin.
Additional Details About XMR
The current circulating supply of XMR is approximately $17 million, and the market cap is about $3.9 billion. The 52-week low is $26.7, whereas the 52-week high was $288.24.
If you take a look at the 90-day low, you’ll notice that the price also increased in the past three months, as the lowest it was during that period was $122.95. The 90-day high is the same as the 52-week high.
Why Invest in Monero?
So, where does Monero go from here? Before we discuss it, you need to take one thing into account — cryptocurrencies are highly volatile, and it’s very difficult to make any definitive conclusions.
First of all, let’s answer this question: why invest in XMR? Like many other cryptocurrencies, including Bitcoin, Monero has shown an overall growth trend over a longer period, meaning there’s a chance that XMR could prove to be a great long-term investment.
However, if you want to trade on a daily basis, you should be careful, as sudden price changes are bound to happen all the time. You probably already noticed that a single tweet from a famous person can make some cryptos skyrocket, while others are plunging more than ever.
So, if your goal is to “hodl,” Monero could be a profitable investment opportunity. Yet, to day-trade it, make sure to follow the latest news, price changes, and everything else that could make Monero’s price go up or down in a short period.
Still, you should be prepared to take the risk that cryptocurrency trading brings, especially for day-traders.
Final Thoughts
There’s only one rule to follow — buy when low, sell when high, and the same applies to Monero. Therefore, don’t make any rash decisions, and think twice before making any move when trading cryptocurrencies, including XMR.
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