Can You Get a Profit From Swapping BTC for XMR?
The worldwide economic crisis affected the crypto market. However, recent trends show an increase in crypto investments, and it’s the perfect time to jump on board.
Experienced crypto traders know it’s all about finding the ideal trading pair. This guide focuses on whether it’s profitable to convert BTC to XMR and what to expect from these coins in the upcoming years.
Bitcoin vs. Monero: What Technology Drives Investment?
Bitcoin isn’t the first crypto token, but it’s the one that revolutionized the market. It positioned crypto coins as a viable transaction option and attracted millions to the market. Bitcoin’s success inspired the launch of many other similar projects. Hundreds of new tokens hit the market, including Monero, in 2014.
But XMR was among the few coins that kept on going. Today, it ranks among the top 30 cryptocurrencies, ensuring steady attention from traders. Monero primarily focuses on anonymity and uses advanced cryptography to shield the identities of senders and receivers.
Here’s the BTC vs. XMR comparison in different areas:
- Privacy. Monero utilizes stealth addresses for one-time use. Even if you send money to the same receiver, the network will use a different address to avoid tracing the transaction back to you. The feature is available on some BTC wallets, but it’s not mandatory. Monero also has RingCT (Ring Confidential Transactions).
- Speed. Monero confirms the transaction in two minutes, which makes it quicker than Bitcoin, with its ten minutes for confirmation.
- Fees. Monero implemented the Bulletproof technology to lower the transaction fees, so it’s more affordable than BTC.
- Scalability. Bitcoin can handle a huge number of transactions daily, which gives it the upper hand in this area.
Price Performance and Forecasts
If you want to predict potential future profits, you need to look at price movements. Here’s what the experts say about Bitcoin and Monero!
BTC
BTC is now valued at around $19K, but we’ll tell you great news first. The experts unanimously agree Bitcoin’s value will rise in the coming months and years.
WalletInvestor notes you should be careful in 2022. Bitcoin could be worth $17,874 when the year ends but also go up to $29,155, which they estimate as an average price. That increases to $41,229 in 2023 and $79,969 in 2027. And even if it stays at the predicted minimum, BTC will be valued at $65,749 in five years.
DigitalCoinprice is brave when it comes to short-term predictions. These experts say BTC will be worth at least $27,207 by 2022. They claim the value in 2027 would be at least $104,625 and maybe even $112,421.
Cryptopolitan isn’t that courageous. They put the BTC value at $26K by 2022 and anywhere from $41,313 to $50,519 in five years. But it’s still a positive forecast regarding the coin’s worth.
XMR
The current XMR worth is $140, and experts believe it will increase by the end of the year and beyond. DigitalCoinPrice believes the token will be worth at least $197.94 by 2022 and rise to $763.58 by 2027. Optimistic predictions even put it at $846.51 in five years.
Cryptopolitan has somewhat different numbers, with the XMR worth in 2022 expected to reach $180.87 on average. In five years, the value could be anywhere from $1,186.16 to $1,482.93. Experts believe the market recovery will affect faster growth from 2023.
Walletinvestor is the most optimistic and puts the average price at $200 by 2022. However, they also warn the value could drop to $116 this year. Next year would be the time for stabilization, with the value ranging from $164.69 to $250.59. In 2027, XMR could be worth from $288 to $517, with the average price put at $400.99.
So, What’s the Verdict?
Let’s say you have a $1K value in each BTC and XMR. That would give you around 0.05BTC at the current price. If the Bitcoin value goes up to $29K by the end of the year, your initial investment will rise by 45%. And in five years, BTC could be anywhere from $41K to $112K. That puts your returns at 100-560%, although the latter is a bit unrealistic.
You could get almost 7 XMR tokens for $1K today. The price could go to $200 this year, which makes your investment increase by 40%. In five years, Monero could be worth from $517 to $1,481. That puts your returns at 360-1,000%.
As you can see, the numbers show it’s smart to swap BTC for XMR. However, pick a reliable cryptocurrency exchange first. That ensures great rates and fast trades at any time of day or night!
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