Monero came into the cryptocurrency world in 2014, April of that year to be precise. Cryptocurrency has become one of the leaders in the crypto world and it is still waxing stronger. Monero is an open-source cryptocurrency. It equally offers complete privacy to the end-user.
The cryptocurrency, however, has an opaque blockchain. The blockchain gives complete details of Monero transactions and it does so by covering up the addresses the participants use. You can use your one computer to mine Monero and there is no need to buy any special hardware for that purpose.
Monero Day Trading platforms Canada
While the privacy offered by Monero makes it outstanding, some unscrupulous elements can take advantage of this and use cryptocurrency for illicit activities.
The following are the information hidden when you use this cryptocurrency:
- Amount of transaction
- Recipient identity
- Sender identity
- Transaction details
So, you will be able to maintain complete privacy when you venture into Monero day trading in Canada. The value of Monero in the first month of 2020 was just $65.68, while its value in January 2021 rose to $155.94. This indicates an increase of over 137%. Its market capitalization, on the other hand, was $2.778 billion.
Why you should trade Monero
Monero day trading is not so much different from that of any other cryptocurrency. However, trading Monero offers some benefits that are rarely traceable to many other cryptocurrencies. Check below for these outstanding benefits:
- Monero trading offers complete privacy to all and sundry
- You can use it as a means of exchange in many Dark Markets
- Its value is rising faster than what obtains in many other cryptocurrencies. As we stated earlier, it rose by over 137% from 2020 to 2021
Brokers where you can trade Monero
Canada residents can trade Monero just like people from any other country. You can trade Monero via Contract for Difference (CFD)) on these brokers. This means that you will make a profit or loss from price differences. CFD enables traders to make money when they buy or sell cryptocurrency.
You can find so many brokers accepting Monero day traders in Canada. However, make sure you carry out adequate research about each of them before you register there. The research will help you to make the right choice among them.
How risky is Monero day trading?
Monero day trading is as risky as any other cryptocurrency out there today. So, you must always trade with caution. While there is a huge possibility of making a lot of money, you also stand the risk of losing all your investments to Monero day trading in Canada.
This should sink into the mind of every newbie coming into Monero day trading. Studies show that between 58% and 89% of Monero retail investors lose their money to Monero day trading.
How to reduce losses
If you want to reduce losses in Monero day trading, then you should only register with a reliable broker. Only consider brokers that are regulated by IIROC. Additionally, you should take time to develop a good risk management strategy.
Furthermore, back-test the Monero trading strategy before using it for live trading. It can take some time to develop a good trading strategy, but every second you put into it is worth it.
Are you one of those who think you can make 6 figures in a few weeks by day trading Monero in Canada? It is in your best interest to perish that thought.
While it is possible to make money from Monero day trading, the money will not come overnight. No matter how much effort you put into developing a Monero trading strategy, it cannot be 100% accurate. So, you cannot do without some losses in Monero trading.