What Crypto Is Better for Long and Short-Term Investing: BTC or XMR?

Experts and specialists in the banking sector are still unable to assess the reasonableness of investing in cryptocurrency. However, those enthusiasts who believe in the growth of the bitcoin rate in the future are already profiting now. The use of the currency is gaining momentum due to the large number of ways it can be used. The number of people who have linked their business with bitcoin is growing. This article will explain why it is worth investing, allow you to choose the right cryptocurrency and tell you how to purchase and exchange BTC to XMR.

Features of investing in cryptocurrencies

The reputation of digital currency is reaching new heights, and the trust of users is growing. This is facilitated by:

• Expansion of the scale of cryptocurrency application, including at the state level.
• The investment market is enriched by new players from China and India. Countries and private companies are starting to look for funds that are not related to the political situation.
• Major online stores now accept bitcoin, allowing the currency to develop further at a rapid pace. The availability of the digital currency is increasing due to the installation of street-level financial vending machines to make payments. The development of cryptocurrency is also associated with the use of new tools for storing money, the development of mining.
• As experts predict the cost of cryptocurrencies will grow. However, there may be periods of "stagnation", when positions will not change, or the time of non-critical fall. It is also worth considering the fact that long-term investments from a year bring great benefit to the investor and almost never go bust, while with a temporary decline in quotations, short-term investments will be completely unprofitable.

So, in the long term, if you have a fairly large amount of money investing in cryptocurrency is likely a profitable venture, but even a modest amount of free money can be competently invested and earn additional funds. It is important to assess the risks and choose the right cryptocurrency.

Bitcoin what is it and how does it work in simple words?

Bitcoin is the world’s first and most popular cryptocurrency. Bitcoins cannot be touched. They are neither bills nor coins. Bitcoins have little in common with electronic money on a bank card either.

Bitcoins are digital money with its own rules for transactions that cannot be broken. Bitcoin runs on the blockchain – this system is compared to a big book containing all the records of what happens with cryptocurrency. And every bitcoin owner has an independent, but identical to others, copy of this book on their hands.

If the limit of traditional currencies is unlimited, bitcoins can not be more than 21 million. Most of the bitcoins have already been generated, they are in circulation. Some of the coins are lost forever, or rather about 30% of the total volume of bitcoins (owners of some bitcoin wallets have forgotten their password).

Bitcoins "come into existence" thanks to miners ("miners"). Mining is the process of generating cryptocurrency with the help of computing equipment. Miners receive remuneration for mining bitcoins.

How to buy bitcoin?

If you put convenience in the first place, then it is better to choose a centralized exchange with a clear interface, as well as the ability to onboard with fiat currency (ruble, dollar, hryvnia, etc.). Most likely, you will not be able to find an exchange that does not require KYC (identity verification procedure).

Advantages and disadvantages of investing

I would like to start with the advantages of investing in cryptocurrency, because it can be really profitable:

• For a long time now, Bitcoin shows a stable growth in relation to other currencies.
• It is bitcoin that users place special trust in. Other cryptocurrencies are not in such demand. In addition, it has a high capitalization, which further strengthens the position of the currency.
• Bitcoin has already been scaled and the subsequent branching out into a new currency will attract even more users.
• Bitcoin’s liquidity is higher than other cryptocurrency. The possibilities of using it for buying and selling are also vast.
• It is necessary to invest in cryptocurrency now, as bitcoin and other digital money are currently free from government pressure. There are no additional fees for storing coins, as is the case with deposits or bank accounts. The pros of most cryptocurrencies: anonymity, decentralization.

In addition to the positive factors of investing, it is worth mentioning the disadvantages:

• A significant decrease in the transaction speed has been worrying users for more than a year. According to experts, the situation can only change for the worse, but scaling the network will probably solve the problem.
• Some states have prohibitive policies. Excessive control will also lead to aggravation of the situation, loss of trust among users.
• The growth of the exchange rate may be replaced by a sharp "collapse", which further increases the risks of investing.

Monero (XMR) what is it in simple terms?

Created in 2014 as a fork of Bytecoin, Monero (XMR) is the most secure coin in existence. Although the token with a capitalization of $3.5 billion can be called "niche" compared to BTC, its potential is huge.

First and foremost it is impossible to track Monero payments due to a number of factors. These are several encryption algorithms, as well as the ring signature system implemented in XMR at the system level. In simple words, there is a wide range of users with the right to sign a transaction, and it is impossible to prove who is specifically responsible for one of the transactions.

It is virtually impossible to trace the sender and addressee of an XMR transfer, when the amount was transferred, and exactly what amount was transferred – unlike the unjustifiably popular BTC. Wallets use stealth addresses and two keys each – one for viewing and one for the transactions themselves. In other words, it’s impossible to see how much money came into each wallet, from whom and when. With bitcoin it is possible, using deduction, comparing events and amounts, it is possible to make fairly unambiguous conclusions about the amount of payment and the service that was rendered for it.

The second difference between XMR and BTC is the constant formation of tokens. Unlike Bitcoin, whose issue is limited, even after the main issue is exhausted, miners will receive 0.6 XMR per new block. This gives a high guarantee that the system will continue to operate further.

The Monero base is decentralized and cannot be analyzed by the usual tools, both public, such as blockchain.com, and specialized ones.

It is harder to "close" XMR than anything else, which is why Monero token is loved by those who need to conduct financial transactions with maximum distance from supervisory structures. Taking into account the world situation, Monero can become an alternative means for mutual settlements in an area where the penetration of sanctions is practically excluded. Unlike other cryptocurrencies and exchanges that deal with them.