Monero (XMR) is a cryptocurrency that places a special focus on anonymity. Due to its technical nature, it is impossible to trace Monero transactions in any way.
This makes Monero perfect for people looking to avoid money trails, simultaneously causing controversy and presenting opportunities.
Here, we will look at how you can earn money by predicting Monero’s price in 2021.
What Drives XMR’s Price
Monero is quite similar to other cryptocurrencies when it comes to factors that determine its price. Some of them are.
- The price of Bitcoin (Bitcoin’s price affects almost the entire market).
- Media attention on Monero.
- An increase in its uses (e.g., approval by banks as a payment option).
- Regulation and restrictions in certain countries.
Just remember that the supply of Monero is not limited like Bitcoin. As such, there is no artificial increase in demand due to halving.
How to Earn Money by Trading XMR
You can make use of either short-term or long-term strategies to trade Monero. Long-term strategies require patience but can yield larger rewards.
If you are looking to trade Monero, using an XMR to BTC exchange is one of the easiest ways to purchase and sell XMR.
The length of a position trade is usually between a few days and a few weeks. At maximum, it may last for a few months.
Position traders base their analysis on trends. Through deep technical analysis, they try to perfectly time the markets for profits.
As the name suggests, this strategy involves buying a cryptocurrency and holding it. This investment usually requires an understanding of market fundamentals. Investors try to judge which currencies will do well long-term and invest in them.
Short- and Mid-Term Trading
Scalping involves a lot of short-term trades. Each trade has a small profit margin, but traders make up for this through high volume.
Scalpers often use strategies such as short positions and high leverage. This leads to a high-risk, high-reward situation.
Here, traders attempt to close positions by the end of the day. They try to study and understand how they can profit off currency movements within a few hours.
Since crypto markets are open 24 hours a day, skilled intraday traders have a huge profit potential.
Trend trading is somewhat similar to position trading. Traders use advanced technical analysis tools to gauge when and where the current trend might end/reverse.
XMR Forecasts for 2021
Basis from 2020
For the most part, Monero fell as it followed the fiat global financial markets in the wake of the coronavirus pandemic.
However, a bull run is expected from May 2021 due to Bitcoin halving, and we expect most cryptocurrencies to follow the trend.
Currency Forecast for 2021
While a high amount of short-term volatility is expected, the prospects for XMR are positive thereafter. This is mainly due to the world’s focus shifting heavily towards privacy and protection.
Some analysts have predicted Monero hitting $300 in 2021. Others have been even bolder and predicted a price up to $5000.
The only thing to watch out for is the introduction of legislation aimed at privacy disclosures.
Monero Is a Shrewd Investment
All factors point towards a rapid rise for Monero in 2021. This is definitely a currency you should buy.
Those looking for a secure P2P exchange to buy cryptocurrency should use Godex’s services. With its special focus on security, Monero users will feel right at home with Godex.