Diversifying your crypto portfolio has never been easier, as the options for currencies are plentiful with Ethereum, Bitcoin, and Monero exchange and trade hitting all-time highs.
One important way you can set yourself up for success and protect yourself and your finances are to be sure that you’re diversifying your crypto portfolio. It may sound cliche, but you really shouldn’t ever put all of your eggs in one basket. If you invest all your money into one single asset, that asset’s price happens to dramatically drop, then you might find yourself in hot water.
However, if you spread your wealth around to multiple assets, then if one of them goes down, all your savings won’t go down with it. Making sure your crypto portfolio is properly diversified, is like giving yourself a life vest that could save your financial life.
But the unfortunate truth is that many people (sometimes even long-time investors) don’t know how to properly diversify their portfolio. This isn’t because they aren’t smart, but quite possibly because they aren’t aware that there is a right way to go about doing it.
Monero exchange – What is crypto diversification?
First of all, diversifying is all about minimizing risk by locating your funds in different places. By spreading your investment out across different stocks, you essentially are spreading the risk around, making sure that if one stock’s price goes down, you won’t consequentially lose the entirety of your investment and money. There a few different ways in which a person can go about doing this.
It’s a good idea to diversify across multiple different industries. If your only investment is in tech companies for example, and suddenly there is a change in tech privacy laws, chances are good that your portfolio may be negatively affected. But if your money is instead spread across multiple industries, you’re effectively setting yourself up for success.
Time and location diversification
Instead of making hasty investments all at once, and all in one place, it might be wise to buy in small increments, and slowly build up a portfolio. After thoroughly researching which investments would best diversify your portfolio, you can set price alerts to help assure that you are up to date on changing prices and trends. This will ultimately help you plan ahead and predict which direction the market is going towards.
Another method is to be diversifying in different asset classes. For example, in traditional investing, you have stocks on one hand and bonds on the other, and they often react differently on matters involving market outlooks. So, if you are investing a little bit in both, one might go up while the other goes down, and in the end, they both even each other out in terms of gains and losses.
But protection is not the only benefit that diversifying your crypto portfolio can provide for you. While studying up the best methods of diversifications, you can also learn about other digital currencies that you may not have been aware of before.
While most people versed in digital currency today are aware of Bitcoin (BTC) and Ether (ETH), they might not realize that there are other tokens that have a unique curb appeal, like Monero. Hence the importance of considering Monero exchange as part of your investing strategy. And investing in multiple different currencies will not only protect you as mentioned earlier but will also increase your performance.
What is Monero and why is it a great investment for your portfolio?
Monero (XMR) is a cryptocurrency that was launched in 2014 by Nicolas van Saberhagen and is renowned for its privacy-oriented technologies. The XMR blockchain creates an underlying technology behind existing digital currencies and showcases all the transactions on the network, effectively acting as the participant’s public ledger.
As briefly mentioned above, XMR is the number one choice of digital currency for users who value their privacy. While currencies like Bitcoin claim that transactions are anonymous, people have come to find out that this is not actually the truth. Bitcoin is not completely anonymous. But Monero on the other hand is completely anonymous. Monero exchange transaction between users is extremely difficult to trace because they function on stealth addresses and something called ring signatures.
Monero ring signatures
Ring signatures have really raised the bar when it comes to user security. The GetMonero website explains how ring technology functions, as followed: “a ring signature is a type of digital signature that can be performed by any member of a group of users that each have keys. Therefore, a message signed with a ring signature is endorsed by someone in a particular group of people. One of the security properties of a ring signature is that it should be computationally infeasible to determine which of the group members’ keys was used to produce the signature.”
Together these two functions help to mask the identities and money values of the sending and receiving parties.
And these are important aspects to point out about Monero exchanges, as privacy is something that people expect more and more in the last few years. With Monero being one of the cryptocurrencies that offer such a high level of privacy, it becomes that much more valuable.
As of December 24, 2020, Monero was trading at $157.30, making it the fourteenth-largest cryptocurrency by overall market value, coming in at roughly $2.8 billion.
Monero mining is unique
Privacy and security aside, one aspect of Monero exchange that makes it stand out from other cryptocurrencies is that it can be mined using basic hardware. Miners can work from ordinary computers and from run-of-the-mill android devices. Bitcoin mining, on the other hand, required a massive and complex hardware setup and consumes considerably more energy.
Monero is one of the only blockchains out there that allow people to easily start mining Monero coins. And this ease of use is something that can drive Monero up in popularity and eventually help it become even more of a mainstream staple in the cryptocurrency realm. And the market seems to be picking up on this.
Current price prediction for XMR
The future of Monero exchange seems to be looking brighter day by day. So far, XMR has maintained an upward trend in price value all year (2021). In mid-January, the price grew to be more than $160 and by the end of February, it climbed to $277. But it doesn’t stop there. As of now, nearing the end of April 2021, Monero’s price has hit $300.
If we take into consideration the sudden extreme interest people have shown in cryptocurrencies in the last year, we can expect to see XMR’s price rise to $500 as soon as the next few weeks.
How can you invest in Monero today?
Evonax.com is a highly rated and secure cryptocurrency exchange site and is self-proclaimed to be the fastest Monero exchange on the market. With Evonax.com, you can buy Monero with some of the most popular cryptocurrencies in the world, including Litecoin and Dogecoin.
They’ve made the process easy. You simply enter the amount of Monero you’re wanting to purchase, how you want to make that purchase and the Monero wallet address that you want to receive your Monero coins on. The next step is that you’ll be directed to a simple payment page with the wallet address of the coin you have chosen as payment.
After you have transferred the amount they calculated, and the transaction is confirmed by the network, the Monero will then be sent to your wallet. Like they say “simple, easy, and very fast.”