Is Monero a Good Investment to Your Crypto Investment Portfolio?

Published on: 16/11/2021 | Updated on: October 25, 2024

Is Monero a good investment to the crypto investment portfolio? If you’re thinking of investing in cryptocurrencies in the near future, you’re not alone. It’s been a little more than a decade since the first cryptocurrency was launched, and these days, each Bitcoin (BTC) unit can be bought or sold for more than USD 66,000. By now, many of the people who put their money on BTC early on and held on to their cryptocurrency wallets are sitting on a substantial nest egg. Theirs is a success story that many young professionals and tech-savvy individuals want to experience for themselves. Let’s get the answer to the question – Is Monero a good investment to your Crypto investment portfolio?

While acquiring Bitcoin these days can be quite difficult for people who don’t have a lot of extra funds, the good news is that there are plenty of more accessible currencies that you can include in your asset portfolio. One of these is Monero or XMR, a privacy coin that offers users anonymity and true fungibility.

Released in 2013, the coin was developed to improve on the privacy features that early XMR proponents deemed to be the critical flaw in BTC. As of 2021, XMR has the third-largest community of developers behind it, right after BTC and Ethereum. At the same time, the coin has also made a frequent showing in the lists of most important cryptocurrencies today, which are often put together by respected business and technology publications.

Before you purchase Monero units and store them in a trusted XMR wallet, though, it’s a good idea to see if the coin is a perfect match for you. Here are some of the reasons why you’ll likely want to acquire XMR on your first foray into cryptocurrency.

You Want to Purchase Digital Coins at a More Affordable Price

Let’s face it: USD 66,000 per BTC unit is a huge hurdle for most casual and newbie cryptocurrency investors. While it’s possible to purchase smaller portions of BTC, there are those that prefer owning whole coins and holding onto them for quite a while. If that’s the case, then XMR presents a more affordable option.

Currently, the coin’s price hovers between USD 100 and USD 500, so it’s a realistic option if you seriously want to invest in crypto using your extra money. Keep your eye on the price of XMR while you prepare your funds, then buy the dip and get yourself a few coins. Alternatively, you can also accumulate a sufficient number of coins over a given time period, whichever strategy best fits your buying style. You can then use these coins to trade and actively grow your money, or you can hold on to them for a while until you’re ready to cash in.

You Want to Own a Currency with a High Potential for Growth

XMR is considerably more affordable than other cryptocurrencies, but this doesn’t diminish the fact that the coin has experienced a high level of growth in the previous years. For example, in a 12-month period starting from January 2017, XMR’s price per unit grew by over 2,530%, rising from USD 13 to USD 329 by the start of the next year.

While digital currencies are well known for their volatility, XMR’s value has risen fairly well. Its lowest price only dipped to around USD 109 in the last 52 weeks, while its highest value reached USD 517 within the same period. If you’re aiming to obtain XMR coins to trade actively, then you can take advantage of these price changes and strategically grow your money by keeping a close eye on the market.

You Think Privacy Will Become a Privilege in the Future

It’s no secret that customer information is being treated as a commodity by commercial, financial, and government organizations, but for many people, exchanging their privacy for a bit of convenience is a fair trade. If you feel differently and you believe that privacy will become scarcer and more valuable in the future, then investing in XMR is a good move.

Monero is a privacy coin, and the currency makes use of several technologies to obfuscate the sender, receiver, and the total amount of each transaction. This means that the people who use the currency to purchase products or services do so without sacrificing their privacy and personal data. Some of the investors who get into XMR do so with the expectation that the coin’s value will rise alongside the increasing demand for privacy and anonymity online. When this happens, they’ll have a stash of privacy-oriented coins that they can use or sell for a pretty penny.

And definitely, Is Monero a good investment. Choosing the right crypto coin to invest in can be quite a challenge when there are literally thousands of cryptocurrencies that are being traded or released in the market these days. Monero is a sensible choice for newbie cryptocurrency investors who want the opportunity to grow their funds and exercise their freedom to use their money however they want, all without necessarily spending much to acquire this new asset.