In a crypto bear market, it’s important to weigh your investment portfolio towards resilient tokens. Since the June low, XMR has gone up by 60%, while BTC has only risen by around 30%. Why could this be? The Monero project has been rising against the crypto tide recently due to strong demand for its privacy-focused token for day-to-day use. Here we’ll compare the Bitcoin and Monero projects to see if you should convert your BTC to XMR.
Bitcoin and Monero: Technical Comparison
Bitcoin and Monero run on similar Proof-of-Work technology. However, they differ in their core use case. Bitcoin is an investment-focused token used like digital gold. On the other hand, Monero is a privacy-focused token that acts as the untraceable cash of the digital world. Here’s a technical comparison of both the networks as of July 2022:
| Bitcoin | Monero | |
|---|---|---|
| Market cap | $500 billion | $2,9 billion |
| Rank | #1 | #27 |
| Trading volume | $35 billion | $230 million |
| Transaction per second | 5-7 | ~1,000 |
| Transaction cost | $1-2 | $0.0009 |
| Consensus algorithm | Proof-of-Work | Proof-of-Work |
| All-time high | $68,789 (Nov 2021) | $517.62 (May 2021) |
| All-time low | <$1 (2009-10) | $0.213 (Jan 2015) |
| Privacy | Partial | Full |
Big differences lie the in the market cap and volume, where Bitcoin ranks significantly higher, reflecting its preferred status with investors. However, Monero is fully private, has negligible transaction fees, and can theoretically handle more transactions than Bitcoin. This makes it an exceptional token for day-to-day use. This is the reason why the XMR token has strong demand even in a weak crypto investment market.
BTC/XMR Exchange: 6 Crucial Things to Check in Advance
XMR is an anonymous token, so it is a favorite among scammers and fraudsters. It’s essential you check these factors when choosing a cryptocurrency exchange to make this transaction.
1. Service Reputation
Reputation is everything when it comes to crypto exchanges. There have been some large-scale scandals and hacks where investors lost lots of money. Check the reputation of the exchange on platforms such as Trustpilot. Ensure it has a long-standing history of keeping funds safe with transparent business practices.
2. Security Measures
Much is said about the security credentials of different crypto exchanges. However, the most overlooked feature is whether you need to store your cryptocurrency on the exchange servers or not. A “custodial” exchange will hold tokens for you, and they are always at risk. A non-custodial exchange lets you keep them in your own wallet, where they are safe.
3. Trading Fees
Check the fee schedule of the exchange. This includes transaction fees, maker and taker fees, exchange rates, buyer and seller fees, and withdrawal fees. Transaction fees of around 0.1-0.2% are average. Few exchanges charge deposit fees, while some still charge transaction fees.
4. Limits
Check the deposit, exchange, and withdrawal limits. You don’t want to be in a position where you can’t make the exchanges you want.
5. Customer Support
It’s your money that’s on the line when investing in cryptocurrency. So, 24/7 customer support is a must-have from any cryptocurrency exchange. Don’t settle for any less, and check the customer reviews to see if the support is fast and effective in times of stress.
6. Insurance
If your deposits are kept on exchange servers, at least make sure they are covered by insurance. This will ensure that if something goes wrong with the exchange, you can still recover your funds. It will also greatly reduce the chance that the exchange collapses or has a bank run.
Final Note
A great exchange that ticks all of the above boxes is Godex.io. It’s an anonymous exchange that does not require you to verify your identity, open an account, or keep your funds on their servers. You simply enter the wallet address to receive your tokens and make the transaction from your own wallet. There are over 300 cryptocurrencies to instantly trade on Godex.io, including BTC and XMR. For a fast, safe, and anonymous exchange, you do not need to look any further.