Cryptocurrency prices are volatile. These fluctuations mean that you can make money by simply exchanging one cryptocurrency for another at the right time. The two main ways to make money are to take either the short or long position when trading crypto.
As an example, let’s examine Monero and Bitcoin to help you understand how to decide whether it is worth exchanging one cryptocurrency for the other. Using this logic, you can analyze any crypto pair, be it BTC to ETH or FTM to AVAX.
XMR in More Detail
Monero is the most popular privacy-focused cryptocurrency in 2023. It maintains privacy and security through stealth addresses that mask the senders and recipients of the currency. You can also rely on its ring signature cryptography to keep your transaction as anonymous and untraceable as possible.
Having been created in 2014, Monero has one of the most active developer communities that keeps on improving the coin’s features. The presence of an active developer community is a sign that the currency is here to stay. Some of the updates that the developer community implemented this year include:
- An increase in ring size from 11 to 16, which means that the ring signature cryptography will provide better security for untraceable transactions.
- The introduction of the Bulletproof+ algorithm, which reduces transaction sizes by 5-7%. This makes transactions faster and lighter.
- An introduction of view tags, which help reduce wallet sync times by 30-40% for faster transactions.
- The rollout of tail emissions, which ensures that block creation rewards will stand at 0.6 XMR in perpetuity. This update ensures that miners will always get rewarded for their work, instead of the rewards dropping down to zero.
XMR Price Predictions
2022 has seen a largely bearish crypto market. Monero has performed way better than its counterparts despite experiencing some price drops too. The coin is expected to keep increasing in value with time.
At the time of writing this article, Monero stands at $140.
Gov.Capital predicts that Monero’s price will rise to $366.65 by 2023. It further predicts XMR standing at $921.43 in 2025 and $1,509.38 by 2030.
On the other hand, DigitalCoinPrice has the coin averaging at $313.19 in 2023 and rising to $579.44 in 2025 and $1953.19 in 2030.
PricePrediction sees XMR prices hanging around $349.85 in 2023, $629.73 in 2025, and $1,329.43 in 2030.
How Is Bitcoin Doing?
As the most mainstream cryptocurrency, Bitcoin has seen some better days than where it stands today (about $19,000). By mid-2022, the cryptocurrency had dropped by as much as 70% from a high of $69,000 in November 2021. It was among the heaviest-hit currencies in today’s bearish crypto market.
However, the coin is bound to bounce back to its highest points considering its mainstream acceptance. For instance, institutional investors like Amazon and Microsoft have been embracing the currency within the last two years by allowing people to pay for products and services through it.
The currency is also highly liquid, with almost every coin exchange listing it. Lastly, its latest upgrade, Taproot, looks to improve the transaction efficiency, speed, and cost to make it easier to transact.
BTC Price Forecast
Multiple experts predict that Bitcoin will rise in price in the next few years. Here are the price projections for the next few years;
Cryptopolitan predicts that the currency will be worth $31,486.23 in 2023, $41,854.94 in 2025, and $98,427.81 in 2030.
PricePrediction has the currency soaring higher, predicting the currency to be worth $34,867.93 in 2023, $73,610.05 in 2025, and $458,574.17 in 2030.
In turn, DigitalCoin Price has the currency averaging at $42,700.81 in 2023, $77,962.64 in 2025, and $269,442.23 in 2030.
Should You Swap XMR to BTC Now?
It’s clearly evident that Bitcoin will do better in the coming years in comparison to Monero. Even better, Bitcoin is at a record low this year. If you were to swap your XMR to BTC and hold the BTC, you stand to profit once BTC prices increase with time. Make the swap while the price of BTC is still low to increase your profit margins.