The crypto markets are warming up for another bull run. Understandably, investors are looking for the next big thing before we start seeing cryptocurrencies reach all-time highs. This might be the perfect time to start building a portfolio that will outperform BTC in the bull market.
Today, we take a closer look at Monero. This privacy-focused cryptocurrency has provided an incredible store of value for investors. But can it outperform Bitcoin and should you swap BTC to XMR at this point?
Privacy is once again becoming a necessity in the blockchain world. It brings higher security for your assets, and XMR is the leading project in this niche. In this article, we try to assess whether Monero can outclass Bitcoin in upside potential. To achieve this, we take a look at both cryptocurrencies’ fundamentals and compare their pros and cons.
Finally, we will provide you with one of the best processes on how to exchange BTC for XMR and preserve your anonymity.
The Skinny on BTC
Bitcoin is the original crypto, which gives it pioneering status in the industry. The longevity of BTC provides it with high adoption and popularity. With that said, many believe that the Bitcoin network doesn’t innovate as much as the rest of the industry.
This is a flawed perception, as although Bitcoin doesn’t push forward smart contract upgrades, it provides the space with exciting changes. For instance, in 2023, developers launched the Ordinals protocol on the Bitcoin network.
This innovative approach to the BTC blockchain allows users to inscribe satoshis with specific data. In turn, each satoshi can store additional information such as text, images, videos, or music files. As a result, the Bitcoin network allows the creation of NFTs, secured by proof of work on its blockchain.
Moreover, the ordinals protocol promotes tokenization. So, similar to ERC20 tokens on EVM networks, developers can mint new tokens on Bitcoin. This has spurred new interest in Bitcoin and has raised demand for BTC blockspace. As a side effect, we’ve seen transaction fees significantly increase for Bitcoin transactions. For example, inscribing an NFT on BTC costs at least 0.0001 BTC, which is about $3.70 at the current rate.
Finally, it’s worth mentioning that the Bitcoin reward halving is less than six months away. During this event, the rewards from mining Bitcoin blocks are cut in half. This increases scarcity and reduces the supply of new BTCs on the market. Usually, this results in a supply shock and a positive price impact, leading to a full-fledged bull run.
XMR Basics
Monero is arguably the most popular privacy coin on the market. This cryptocurrency has managed to gather a tight-knit community that values its privacy in the blockchain space.
To understand this concept better, we need to first take a look at other blockchains. Bitcoin, for example, doesn’t provide high levels of privacy. All transactions are public, and anyone can consult the sender, receiver, and amount of each BTC transaction. This can lead to users’ holdings getting exposed to the public, decreasing their safety.
Monero, on the other hand, completely obfuscates all transactions by default. Through its use of RingCTs, the sender, receiver, and amount are scrambled. As a result, an external observer will never be able to assess one’s holdings, source, or destination of a transaction.
Why Is XMR Attractive to Investors?
These privacy features make XMR incredibly interesting to frequent blockchain and crypto users. Considering governments are tightening up regulations, XMR allows users to continue using crypto anonymously, without fear of repercussions.
Additionally, due to its adoption by long-term holders, XMR’s price doesn’t fluctuate as drastically as the rest of the market. This stability provides great upside potential with reduced risks compared to other assets.
Exchange Process: BTC to XMR
Exchanging BTC to XMR is an easy process, as a large majority of exchanges list these coins. However, the best way to do this is to go through an anonymous exchange like Godex. This exchange will allow you to swap BTC for XMR directly and without limits.
More importantly, it doesn’t require any type of registration, which allows you to remain anonymous and keep your identity and crypto holdings separate.
The process is extremely streamlined:
- Visit the godex.io website and choose BTC and XMR as your sending and receiving assets, respectively.
- Specify the amount you’d like to send or receive.
- Provide your XMR address.
- Send your BTC to the address generated by the platform and complete the transaction.
That’s it! In a few minutes, you will receive your XMR directly in your wallet and prepare yourself for the next bull run.
