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Buy Monero and Trade in 2019
Monero is a cryptocurrency similar to Bitcoin; the developer describe it as a secure, private and untraceable currency system. And this is one of the key features of why this currency is so desirable compared to other cryptos.
What is Monero?
Monero is actually the offshoot of another popular coin, Bytecoin. This currency was based on Cryptonote, a system that fuels decentralised currencies. Sadly, Bytecoin was the center of much distrust and scandal - and this led to the creation of Monero. You could say Monero is like Bitcoin in that it is a cryptocurrency, but that’s also akin to saying cheddar and stilton are one and the same because they are cheese.
The most important feature of Monero is that coins cannot be traced, unlike Bitcoin which has an open ledger that leaves a bread crumb trail back to the source transaction. The coin is also highly fungible thanks to this privacy and this alleviates one of the many criticisms around Bitcoin.
How to Trade Monero
Like the majority of cryptocurrencies, Monero (XMR) can either be mined or bought from an exchange - both of which have significant drawbacks. Mining for example takes a huge amount of computational power and investment to see any returns. While buying from an exchange only gives you realistically one option; a nail biting wait to see if the coins value increases in the future. And judging by how volatile the market is, this could go either way.
Trading Monero on the other hand has several key advantages over the former two options.
Speculate on the value against other currencies: Like we said, when you buy Monero there’s only one way you want that chart to go and that is up, up and up. But what if you could also profit from negative activity? That’s the beauty of trading the currency - which allows you to make money regardless if it’s rising or sinking.
Don’t have a coin? No problem: Trading on leverage means you don’t need to own the underlying asset to invest. Instead, you pay a certain margin and get access to the whole asset. And that means you can profit despite the lack of ownership! Just keep in mind that while leverage can be powerful, it can also be dangerous and create significant losses.
Monero Trading Strategies
By now you are probably ready to click on one of our top Monero brokers to start trading cryptos - but hold those horses! Why not consider a couple of trading strategies instead? If you’re worried about focussing on a specific strategy, then you can test it out in a free demo account environment.
Day Trading: One of the most popular trading strategies and a good all rounder; day trading allows you to respond to short term market events and then close positions at the end of the day. This is a good option for traders that need flexibility. For even more flexibility however, consider:
Scalping: Place frequent trades on micro market events for a stream of continuous profits. This affords even more versatility to your trading but requires a more active trading style.
Automated Monero Trading: Why get your hands dirty when robots can get the job done? Most platforms allow the employment of electronic advisors and automatic trading strategies that will trade for you based on certain market conditions. If you have the technical know how, you can even create your own bots.