What Is Monero?
Monero is an open-source cryptocurrency much like Bitcoin. Its standout features are that it is secure, fungible, and private. Perhaps its most important characteristic is that it is completely untraceable.
The Monero price can be calculated in a number of ways but Monero to USD and Monero to BTC are probably the most popular. In USD terms, the Monero price is currently valued at around $87.50 and as a standalone price, it doesn’t quite capture the volatility in this cryptocurrency or its performance. On January 1, 2016, 1 Monero could be acquired for as little as $0.47, and in August 2017, it hit a high of $154.58. A 32,789.36% return is the type of performance that dreams are made of.
How to Buy Monero
In order to purchase Monero, a wallet is required. Since Monero is open source, a wallet can be created on multiple platforms ranging from “Windows,” “Mac,” and “Linux.” I am only naming a few platforms and there are many more options available.
Once a wallet has been established, Monero can be acquired by purchasing it from an applicable exchange that deals in cryptocurrencies. Monero can also be acquired from other people, or for those inclined, this cryptocurrency can also be mined.
What Is Monero Mining?
Before I delve into mining, we must first understand what a blockchain is. A blockchain is a decentralized digital ledger that is used to record transactions, which are simultaneously recorded on a network of computers. These transactions can be viewed but they cannot be altered, which means that they cannot be counterfeited.
Cryptocurrency mining is the process of using computing power to create and sustain this network, which is used to both verify the transactions and record them. In return for providing computing power to the network, you are rewarded with fractional amounts of Monero coins.
Monero Price Prediction
Predicting the value of a currency is a difficult task, but considering that I am a technical analyst who uses price charts to forecast where price is heading, this is surely in my wheelhouse. So perhaps I can provide some insight on where I believe this cryptocurrency is heading.
After all, I was the one who predicted in January of this year that Bitcoin was going to easily surpass the $4,000 mark when it was trading at $1,000. This prediction can be found in the report titled “The Bitcoin Price Bubble Is Far from Over” that was published on January 5, 2017.
The following Monero price chart illustrates the price action for this fiscal year.
Chart courtesy of TradingView.com
This Monero price chart is an incredible example of a bullish trend in development. It contains the quintessential characteristic that defines all bullish trends, which is a series of higher highs and higher lows. This “two steps forward, one step back” price action created a stair-step structure that moved the price of this cryptocurrency from $0.47 to an all-time high of $154.58.
I have highlighted the 200-day moving average on the Monero price chart. This moving average is created by averaging this cryptocurrency’s closing price over the past 200 days and plotting that value on the price chart. The 200-day moving average is a popular tool used by traders and investment professionals because it acts as a dividing line that separates bullish investments from bearish ones.
Deciphering between these two polar opposites is as simple as pinpointing which side of the 200-day moving average the cryptocurrency is trading on. Trading above it is a bullish indication suggesting that higher prices are in development, while trading below it is a bearish indication suggesting that lower prices are in development.
Earlier this year, Monero broke away from the 200-day moving average and it has been trading above it on a consistent basis. Aside from just suggesting that Monero price predictions are bullish and that higher prices are in development, this moving average has also acted as a level of price support. Each and every time Monero has approached and tested the moving average by touching it, buyers have been more than willing to jump in to support this metric.
I can safely say that as long as Monero is trading north of the 200-day moving average, higher prices will prevail. If I were to put a guesstimate on a potential price objective, I would point out that on the next run towards higher prices, if one does occur, this cryptocurrency will easily surpass $220.00.
Given the opportunity, I would wait for Monero to approach the influential 200-day moving average before assuming a position in this cryptocurrency because it would minimize my risk when setting up an applicable trading strategy.
Monero vs Litecoin
As the title suggests, which cryptocurrency currently presents a better opportunity?
I personally prefer Monero over Litecoin for a number of reasons.
Monero is completely untraceable, which in itself is a standout characteristic. Monero has outperformed Litecoin on both a relative and absolute basis. Since January 1, 2016, Litecoin is up 1,348.73%, while Monero is up 15,749.7%.
The 200-day moving average has done a better job at defining the bullish trend in Monero versus Litecoin, and therefore Monero is a better candidate for a bullish trading strategy.
Comparing the market cap and circulating supply of these two cryptocurrencies ends up favoring Monero once again. Litecoin has a market cap of $2.82 billion with a circuiting supply of 53.34 million coins, while Monero has a market cap of $1.33 billion and a circulating supply of 15.21 million coins. The lower market cap leaves more room for appreciation, while the lower circulating supply suggests that larger gains are possible if a buying frenzy does ensue.
Analyst Take – Should You Invest?
I am not a huge proponent of cryptocurrencies and I have expressed my concerns with these instruments, but that does not mean that there isn’t money to be made in this high-flying sector. If I had to choose among a number of cryptocurrencies to play, Monero would be on the top of that list because I have the inclination to believe that higher prices will prevail with the caveat that it continues to trade above its 200-day moving average. When the day comes that it falls below this metric, I will have all the reason to believe that the hype surrounding this cryptocurrency has finally concluded.