What is Monero trading and is it safe?

One of the reasons for its popularity is the ability to provide more privacy when compared with Bitcoin. The transactions are hidden behind cryptography. 

Additionally, all transactions that involve this innovative cryptocurrency remain anonymous, which improves the privacy of all its users. The technology behind the currency hides the identity of the senders and recipients as well as the amount of every transaction.

Just like every cryptocurrency, you can also trade Monero (XMR).  However, trading the currency is not the same thing as investing in it.  When you invest, you will be holding the currency for a long time. 

On the other hand, trading Monero is the ability to speculate on movement in the cryptocurrency’s price. At the time of writing, Monero is trading at $116.93. Where is it now?

There are two ways to invest in the currency, by:

  • Direct Purchase 
  • Contract For Difference (CFD)

As one of the established cryptocurrencies in the world, it’s safe to invest in.

The rules of transacting Monero is like that of Bitcoin. However, it offers more privacy features that keep the users’ details confidential via the use of stealth addresses and ring signatures.

The Financial Action Task Force (FATF) implement the “Travel Rule”, which requires every exchange platform to collect and transfer customers’ details (such as location, customer’s name, and more). This is to prevent financial terrorism and money laundering. 

Also, Monero trading platform is required to get a license from appropriate authorities.

There are many licensed brokers that can help you to trade your Monero Coin. A broker can help with Monero online trading via CFD derivatives or as an asset. 

And the reason for a broker is to safeguard the identity of the traders and their transaction history. However, when choosing your desired broker, ensure they are licensed and regulated, so you can rest assured that you’re trading in a safe environment. 

On the other hand, if you trade with an unregulated broker, you will risk losing your funds if any issues arise.

Monero Trading – How to trade Monero online

Choose an exchange platform & open an account for crypto trading

The first way to buy the coin is through an exchange platform. To trade the currency via an exchange, choose your desired exchange platform. 

When choosing an exchange platform, ensure that it is one of the best Monero trading platforms. This could be Bitfinex, AnyCoin, Kraken, MoneroForCash, LiveCoin, LiteBit, BuyUCoin, and many more. 

After that, you will be required to create an account at the exchange site. At the exchange site, you will be requested to supply some personal details.

Then fund the account to purchase the coins you want.

Monero Trading in USA – Buy some Monero

Before you can start buying Monero (XMR) online, create a Monero wallet – either a Monero GUI Wallet or Online Wallet. 

Log in to your desired exchange site to purchase the amount of coins you want. Generally, most exchange platforms do not accept fiat currency, so XMR purchases are done with Bitcoin. To do this:

Set up a Bitcoin account via any Bitcoin exchange like Coinbase

Purchase some BTC and open a BTC to Monero trade on Shapeshift

Shapeshift won’t require you to register an account. Just send your BTC in exchange for XMR.


Similar to any other cryptocurrency, trading Monero involves buying and selling in the short term. 

You can trade the coins via an exchange or by using Contract for Difference (CFDs). 

Trading via an exchange is mostly done with Bitcoin. Buy some Bitcoin and exchange it for Monero. 

If you want to sell your Monero, you need to exchange it for BTC and sell it on any bitcoin exchange. 

However, you can sell your XMR coins on any exchange that deals directly in fiat currency. CFDs is a cost-effective way of trading Monero for starters.


Because of its popularity, Monero coin is a very profitable currency to trade. 

Just like other cryptocurrencies, the key factor in making a profit while trading the currency is to buy at a low price and sell when the price is high. 

In Monero trading, you need to open a position and close the position, and the difference between these two positions will determine whether you have made a profit or loss. 

If the position where you close your trade is higher than your opening position, then this will be considered a profit.

Close your position to take profit or cut a loss

One of the things you should learn before trading Monero is how to close your position, otherwise known as “Position Squaring”. 

When you transact in the market, you are opening and closing positions. Positions can be closed for several reasons when trading. 

First, you can close your position to take your profit if the profit target has been reached. 

Additionally, you can close your position when the stops level has been reached in order to cut or minimize your loss. 

Lastly, you can close your position if you want to satisfy margin requirements.

After opening trade in Monero, the next decision you need to make is when to close position. 

So, how do you close a position? 

To close an open position in Monero trading, you will be required to take the reverse position. 

For instance, if you buy 1 coin, you can close the position either fully or partially. First, locate the position you wish to close in the position tab. After that, you hit the “Close” button. 

Traders should note that you’ll need to input the quantity of the position you want to close.

Monero Trading – Tips to trade Monero

Learn what moves Monero’s price

The first thing you should learn before trading Monero is what moves the price. 

One of the significant factors that determines the price of the currency is the supply of the coin and the demand for it. 

Aside from that, the attractiveness of the currency is also another factor that determines its price. Here, we mean how popular or recognized the coin is in the market. However, the attractiveness of the currency can only affect it in the long run. 

Additionally, the legislation and some micro-finance factors can also move the currency’s price.

Pick a Monero trading style and strategy

Choosing a trading style for beginners can be daunting, but it’s crucial for long-time trading success.

There are four main trading styles:

  • Swing
  • Scalping
  • Position
  • Day trading

The most significant difference between the trading styles is how long the trade is held. 

For scalping, you’ll hold the Monero coin for a few seconds or minutes. Day trade requires holding the coin for a few hours. Swing trade will require you to hold the coin for a few days. And position trading style requires holding the coin from a few days to many years.

There are some strategies that you can use while trading Monero, which can increase your winning chances. 

Among them is the Buy-Side strategy. This states that the price needs to be traded between the upper and middle bands for ten consecutive days before establishing a new trend. 

However, ensure the price did not drift below the central bank during this period. If that happens, don’t set the trade up. 

Another one is Buy at the 11th Candlestick Opening Price – buy at the open price or wait for the price to break the rectangle resistance.

Decide whether to go long or short 

Another tip for trading Monero is to determine if you want to go long or short. It’s one of the strategies that you can use to increase your profits as a Monero trader. 

In long trading, you will be buying the coin with the expectation that there will be an increase in price over a reasonable period.

On the other hand, short trading involves selling the coin before buying. Here, you’ll be borrowing the coin and buying it back when the price falls. You need to make this decision before – it’s very important!

Set your stops and limits 

You don’t want to lose money when you are playing the market. That is why you need to know how to set your stops and limits. 

This could be a stop-loss or take-profit limit and it will go a long way to helping you minimize your losses.  The stop-loss limit will help you minimize your losses. The take-profit limit will take your profit once a price target is reached. 

One of the most important things is knowing where to place your stop-loss or take-profit before you enter any trade.


Just like other currencies, trading Monero comes with lots of risks. The risks of trading this currency are mostly related to its volatility. So it is important that you understand the risk before you get started. 

One of the risks involved in trading the coin is unexpected changes in the market, which can lead to a sharp and immediate change in the price. 

Another risk is that they are unregulated both by central banks and the governments. Additionally, the currency is prone to hacking and error. 

A final risk involved is discontinuation or hard fork.

Conclusion on Monero Trading

Monero trading is a great option among cryptocurrencies. It has some advantages over Bitcoin, including its additional privacy.

The basics of trading Monero are common to all kinds of trading: you want to buy low and sell high.

Being vigilant in watching your market is one important aspect. And you can also set stop-loss or take-profit limits.

There are risks involved in any investment. Always be sure to invest from your disposable income. 


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