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Monero is a cryptocurrency that uses blockchain technology for facilitating and recording of transactions on the network. Monero is a decentralized currency, meaning it has no central authority. Monero has various features that maintain the privacy of payment originations, recipients and amounts. According to its website, Monero is untraceable, and transactions can’t be linked to a specific user or identity.

Why do Investors Care?

Monero and other cryptocurrencies have gained in popularity in recent years, as they can potentially provide a convenient, secure and cost effective way to send and receive payments anywhere on the globe. Because cryptocurrencies are still in the early stages of wider acceptance, some investors may see them as a solid, long-term opportunity. If these digital currencies become more mainstream, their values could rise due to consumer demand. Not only that, but most cryptos have a limited number of coins, tokens or units that can be mined. Simple supply and demand would suggest that prices could rise-and rise substantially-if demand increases while supplies remain limited.

What Can Price Charts be Used For?

Although many might equate price charts to short-term trading, they can also be very useful for long-term investors as well. Charts can be used to spot price trends in the market, or to identify technical trading patterns that may be used as buy or sell signals. Long-term investors may look for areas of support and resistance, and may seek to initiate or add to long positions if prices decline into support or sell if prices rally into previous resistance. Charts simply provide a clear, graphic picture of market action.

Are Cryptocurrencies Regulated?

Currently, there is very little regulation of the cryptocurrency markets. Due to their nature, cryptos do not have a single authority to oversee them. Some nations, like South Korea, have started to regulate cryptocurrency exchanges, however. As these instruments become more widely used and popular with consumers, there is the possibility of additional regulation.  

Can Cryptocurrency Payments be Sent Anywhere on the Globe?

Yes. Monero and other cryptos can be sent or received anywhere in the world with speed and convenience. Unlike sending funds by more traditional methods, such as a bank wire or ACH, payments made using Monero or other cryptos do not require currency conversions, since they are the same regardless of location.

What Can Affect the Price of Monero?

Cryptocurrency prices can be affected by numerous inputs. Rising demand for cryptos and wider merchant acceptance could potentially drive prices higher, while declining demand or additional regulation could potentially drag prices lower.

Can Monero Be Actively Traded?

Although you could buy and sell Monero or other cryptos on a short-term basis, these markets may not-at least not yet-have sufficient liquidity to support very active trading. As cryptos become more popular, however, more crypto-based financial products could potentially be launched. Currently, there are a few crypto-based derivatives already trading on some major exchanges, and that number could increase if cryptos are here to stay. There has been some discussion of crypto-based ETFs, but thus far none have been approved by regulatory authorities. Such products could potentially fuel even more interest in cryptocurrencies and the technology behind them.