Monero completed the year of 2016 with a market capitalization of $133 545 372. Now, its market cap stands at $5,016,170,979. As it continues to increase in popularity, we bring out several ways of how to invest in Monero.
AtoZForex – Monero is a cryptocurrency distinguished first of all for its high degree of anonymity. As more and more clients demand privacy, it is becoming increasingly popular and may be an attractive long-term investment. From today’s perspective, the trend for Monero looks viable and has all the chances to go upwards in the nearest future. This time, we answer the question of how to invest in Monero.
How to invest in Monero
There are three essential techniques to invest in Monero. The first and the easiest one – you can purchase it directly with fiat currencies such as EUR, GBP, USD, CAD, and CNY. The second technique is a two-step process which requires:
1) trading real-world currency for Bitcoin at one exchange and
2) trading Bitcoin for Monero on a second exchange.
The last option is to mine Monero, on your own or on a pool.
Where can I buy Monero?
Purchasing Monero directly on trading exchanges such as Kraken, Bitfinex, and MoneroDirect will come with lower costs. It is highly recommended to use when you are interested in buying large amounts.
But in case you would like to quickly take an advantage of prices, then your choice may fall on Bitcoin exchanges such as Shapeshift, Poloniex, Bittrex, Bitfinex, and Bitsquare. These allow you to quickly obtain Bitcoin and then instantly convert them into Monero. Shapeshift has an advantage in this aspect – it does not require you to register.
We strongly recommend you not to keep the biggest portion of your funds on the exchange. As an investor, your primary interest is to secure your funds and retain the most control over them. Holding your money on the exchange is risky since you will be a party affected the most may some adverse event take place (take an example of Mt. Gox bankruptcy).
There are not many difficulties to purchase Monero directly with fiat currencies. All you have to do is to follow the instructions of setting up an account and deposing funds.
The situation is different with Bitcoin exchanges. While the process is relatively easy with Shapeshift, some other exchanges as Poloniex, Bittrex, or Bitsquare require you to fulfill other traders’ sell orders to obtain cryptocurrency.
This results in price variations, not the smallest ones very often. But in case you are interested in the more stable outcome and don’t feel like trading, then Shapeshift trading platform may be the one you are looking for. Below, we discuss the process step by step – first with Shapeshift and then with Poloniex.
How to invest in Monero with Shapeshift in 5 steps
You can purchase Monero with Shapeshift service in a few steps:
#1. The first condition is: you already must possess Bitcoin. If you still do not, you will have to acquire it. For European investors, one way to receive Bitcoin is through the euro exchange Kraken. For the ones in Japan, Coincheck is the most appropriate variant, since it provides the way to exchange yen. People in the US will be most interested in a popular website Coinbase.
#2. Next stage is to create a Monero address where you will be receiving your funds. 95-character address is needed so that Shapeshift can send cryptocurrency on your account. For this purpose, MyMonero.com can do a perfect service.
#3. Once a Monero address is in your hands, you should choose Bitcoin as your “deposit” currency and Monero as a “receive” currency. Then the conversion process will begin.
#4. Next, identify your both Bitcoin and Monero addresses, so that in case of a transaction failure the funds will be transferred back to your account.
#5. The final step is to forward Bitcoin to the deposit address provided by Shapeshift. After the transaction is processed, you are officially becoming the owner of Monero!
How to invest in Monero with Poloniex in 5 steps
This trading platform may seem a little more complicated than the one previously described. We will go through the process step by step.
#1. Transfer money to the Bitcoin exchange. GDAX.com is a good example of it– this electronic service is connected to Coinbase. All you need to do is to pass on USD to your GDAX account using “Deposit”.
#2. Purchase Bitcoin on the GDAX exchange. When you have money on your GDAX account, you have a possibility to purchase Bitcoin which will be converted to Monero later on. For the beginning, you need to get to GDAX BTC-USD trading area.
Make sure not to confuse it with other options, because the service also offers Ethereum and Litecoin. Upon completion of this step, you will be placing your first buy order. The operation will be completed soon. The exchange will match your buy order with a sell order within the section of open orders.
After all, your balance will change from zero to the amount you bought. Note: the fee of 0.25% is charged, which is much cheaper than other services as Shapeshift. One more benefit is that the rate is lower for larger purchases.
#3. Transfer Bitcoin to Poloniex exchange. After finally receiving a requested amount of Bitcoin, you should switch from GDAX to Polonoiex – the biggest exchange for Monero. All you need to do at this stage is to create an account.
After completing this step, you will proceed to Poloniex’s Balances page. Here you will see a list of all the coins traded on the platform. Among them, you need to find a Bitcoin and click “Deposit” button.
After that, you will need to copy the link popping up and go back to the exchange you used (GDAX in this example). This link is the address where you need to send the entire amount of Bitcoin you received. It should take around 15 min for a transfer to complete.
#4. Trade Bitcoin for Monero. After Poloniex account is finally set up, it’s time to start trading. You need to go to BTC-XMR exchange in order to perform all necessary operations. Although the appearing graphs may seem confusing, the process is actually much simpler. To trade Bitcoin for Monero you need to:
- Click the highlighted number next to “You have”
- Click the number close to “Lowest ask”
- Press “Buy”
The operation is completed. But you will probably need to go through it several times since Monero is not always available at a very low price.
#5. Relocate Monero from Poloniex to your wallet
After completing all the stages, the final step is to move Monero into your digital wallet. It should be noted that significant purchases have to be stored on official wallets.
Further, you will have to withdraw Monero from your Poloniex account. This is an easy-to-complete option, where the most important is to find a link for “Withdrawal”. Again, the process won’t be instant and is supposed to take from 15 to 20 minutes.
Summarizing all the fees, it resulted in 2.5% in fees, which is much more beneficial compared to 7% in Shapeshift. As a result, Poloniex gives an advantage in terms of reduced fees but takes longer time for a transaction to complete.
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