Monero vs Ethereum: Which Crypto Offers Better Profits?

Monero and Ethereum stand as pillars in the realm of cryptocurrencies, each embodying its own ethos and purpose. By exploring the nuances of XMR privacy-centric approach and ETH expansive ecosystem, this article aims to provide readers with a deeper insight into these two influential cryptocurrencies and their impact on the landscape of digital finance. In addition, we will look at the profitability of Monero vs Ethereum, explore their differences and learn about why one might want to choose one over the other.

Key Takeaways

• XMR operates with a proof-of-work consensus algorithm called RandomX and emphasizes privacy through features like stealth addresses and ring signatures.

• ETH serves as a decentralized platform for executing smart contracts and interacting with the network, empowering developers to create diverse applications.

• When choosing between Monero and Ethereum, consider factors such as privacy preferences, smart contract capabilities, and broader blockchain applications to align with your specific needs and priorities.

Monero vs. Ethereum: An Overview

Launched in 2014, Monero (XMR) operates as a cryptocurrency prioritizing privacy, characterized by its obscured blockchain, ensuring anonymity in transactions by concealing participant addresses and transaction amounts. On the other hand, the network launched by Buterin, functions as a decentralized global software platform powered by blockchain technology. It is renowned for its native cryptocurrency, ether (ETH), and its capacity to facilitate  secured digital technologies. 

While both assets have made notable impacts in the cryptocurrency sphere, their distinct focuses cater to diverse user preferences; XMR emphasizes privacy features, whereas ETH provides a multifaceted platform for decentralized applications. Ultimately, the selection is contingent upon the individual user's specific requirements and priorities.

What is Monero (XMR), and how does it work?

The token, introduced in 2014, stands out as an asset focused on privacy. It accomplishes its mission through the use of various technologies, which readers can learn more about, as well as what is Monero. In short, renowned for its obscured blockchain, XMR conceals participant addresses and transaction amounts, attracting users seeking untraceability in their financial activities. Utilizing a proof-of-work consensus algorithm called RandomX, XMR distinguishes itself from Bitcoin by resisting ASICs, thus fostering a more decentralized mining environment.

Originally branching off from Bytecoin, the project has risen to prominence as one of the top-ranking cryptocurrencies by market capitalization. Its prevalence in darknet markets surpasses that of Bitcoin due to its commitment to anonymity rather than pseudonymity.

XMR Volume

As of April 18, 2024, XMR recorded a 24-hour trading volume of around $57,453,884.62 USD. This figure reflects the aggregate worth of all Monero transactions conducted within the preceding 24 hours. Elevated trading volumes typically signify significant trader interest, with a multitude of participants engaging in buying and selling activities.

XMR Volatility

It has exhibited a 30-day volatility of approximately 7.50%4, suggesting a moderate degree of price variability. When talking about Monero vs Ethereum price, volatility denotes the extent of price changes in a financial asset throughout a specific period. Increased volatility implies greater risk associated with the asset. A higher volatility signifies that the asset's value may potentially fluctuate across a broader spectrum of values.

Key features of Monero

The project and it's token distinguishes itself with its emphasis on privacy, boasting several unique features:

• Stealth Addresses: these are auto-generated, disposable addresses assigned to each transaction recipient, enhancing receiver privacy by thwarting address linkage.

• Ring Signatures: this cryptographic method amalgamates a set of potential signatories to create an indistinctive signature, concealing the actual signer's identity within the group.

• Fungibility: asset’s default privacy ensures fungibility, as past transaction outputs remain indiscernible, rendering all coins equal and interchangeable.

• ASIC Resistance: the mining algorithm, RandomX, is engineered to resist ASICs, fostering a more equitable mining environment. This is another difference between Ethereum vs. Monero mining.

Latest news on XMR

• Kraken, one of the biggest centralized crypto exchange platforms in the world, is planning on delisting Monero in two European nations in the coming months.

• Despite Bitcoin’s rally, XMR continued its decline, unaffected by the broader market

What is Ethereum (ETH), and how does it work?

The currency works like a decentralized platform where smart contracts can run. Smart contracts are agreements that work automatically without anyone being able to change them or interfere. These contracts are executed on Ethereum's customized blockchain, a robust global infrastructure facilitating asset transfers and property ownership representation.

To understand what is Ethereum more, it’s useful to know that within the ETH ecosystem lies a singular, universally acknowledged computing system known as the Ethereum Virtual Machine (EVM), ensuring consensus on network states. This setup empowers individuals to manage their assets and identity autonomously, freeing them from centralized control.

As the backbone of diverse communities, applications, organizations, and digital assets, ETH promotes inclusivity for those who want to participate in the community. Its token ETH facilitates various network activities and can be exchanged for other coins. Notably, ether serves a unique purpose by compensating computational efforts required for app and organization development and execution on Ethereum. 

ETH Volume

As of April 18, 2024, ETH has recorded a 24-hour trading volume of roughly $17,483,855,448.24 USD. This figure represents the cumulative value of all ETH transactions conducted within the preceding 24 hours. Elevated trading volumes typically signify widespread interest among traders, indicating significant buying and selling activities within the cryptocurrency market.

ETH Volatility

ETH value has been on a downward trajectory. Its 30-day volatility stands at approximately 2.98%, signaling less price fluctuation compared to Monero. Various factors influence this volatility, including market demand, investor sentiment, regulatory updates, and technological advancements. It's important to acknowledge the inherent volatility of cryptocurrency prices, which can fluctuate rapidly.

Key features of Ethereum

When talking about Ethereum vs Monero, the former offers several notable features:

• Smart contracts: Contracts encoded in code, automatically executing terms once conditions are met.

• Ethereum virtual machine: a decentralized platform for executing smart contracts and interacting with the network.

• Decentralized applications (DApps): applications functioning on a peer-to-peer network of computers instead of a central server.

• Decentralized Finance (DeFi): financial services accessible without relying on traditional intermediaries.

• Non-Fungible Tokens (NFTs): distinct digital assets representing ownership of specific items or content.

Latest news on ETH

• Cryptocurrency analyst Benjamin Cowen expressed bearish sentiment on ETH relative to BTC over the short to medium term.

• ETH burn rate is outpacing its emissions as more than 113,000 ETH were taken out of circulation in Q1, according to CoinGecko

XMR vs ETH: Price history and market cap

In the past five years, both currencies XMR and ETH have undergone significant fluctuations, therefore it’s difficult to predict the price of Monero vs Ethereum. Monero has exhibited a gradual price increase, with 1 XMR currently valued at 0.03993 ETH and a market cap of $2.52 billion. Conversely, ETH, celebrated for its smart contract capabilities and decentralized application support, has also witnessed a substantial price surge, with the current ETH price standing at $3,519.2443 and a market cap of $422.56 billion.

Analyzing their price histories, Monero has encountered volatility, characterized by noticeable peaks and troughs. Over the past month, XMR's price fluctuated between a high of $123.90 and a low of $114.52. In contrast, ETH’s price movements have been more dramatic, reflecting its broader adoption and developmental milestones. Recent prices for the asset ranged from $3,006.55 to $3,642.41.

Looking ahead, predicting the trajectory of these cryptocurrencies is challenging due to the highly volatile and unpredictable nature of the market. Nonetheless, some forecasts suggest that in a bullish scenario, increased Monero vs Ethereum profit. XMR may surpass its current price record soon, potentially occurring either this year or after the next Bitcoin bull run. More moderate predictions for XMR foresee its price nearing its all-time high (ATH) but not surpassing it. However, beyond 2025, it is anticipated to trade above $100 and continue growing over time. For Ethereum, upcoming upgrades and the expansion of decentralized finance (DeFi) could fuel further price increases.

Key Differences between XMR vs. ETH

There exist a few key differences between the two coins.

Privacy and Traceability Comparison

XMR is renowned for its robust privacy features, leveraging technologies such as ring signatures, stealth addresses, and RingCT to obscure transaction specifics and uphold anonymity. This renders such transactions highly resistant to tracing, making it exceedingly difficult to associate transactions with particular individuals.

In contrast, ETH emphasizes transparency over privacy. Its blockchain operates as a public ledger accessible to anyone, enabling transaction and smart contract visibility. Although it has been exploring various solutions to enhance privacy, these features currently lag behind those of XMR.

Scalability and Adoption Comparison

XMR has addressed scalability concerns by implementing a dynamic block size, enabling enhanced scalability. This adaptive approach ensures that as network usage grows, Monero can accommodate a higher volume of transactions per second while maintaining security.

Meanwhile, ETH has faced scalability challenges, leading to network congestion, elevated fees, and delayed transaction confirmations as user and transaction numbers rise. To tackle this issue, ETH is actively pursuing infrastructure upgrades such as Ethereum 2.0, aiming to enhance scalability and throughput.

Mining and Consensus Comparison

When talking about mining Monero vs Ethereum, the former coin uses a Proof-of-Work (PoW) consensus mechanism, while Ethereum has recently transitioned to a Proof-of-Stake (PoS).

Transaction speed and Cost Comparison

XMR has a block time of 26 seconds. The transaction fee is not specified. ETH, in turn, has a block time of 15 seconds. The transaction fee will usually depend on a specific situation and the amount one is trying to exchange.

Token standards Comparison

While Ethereum pioneered token standards such as ERC-20 and ERC-721, which are extensively used for token creation, XMR takes a different approach. Unlike Ethereum, XMR does not adhere to token standards because its main emphasis is on privacy rather than supporting smart contracts like Ethereum does.

Use Cases

XMR is predominantly utilized for confidential and untraceable transactions, catering to users who place a high value on privacy and anonymity. Conversely, ETH serves a broader spectrum of purposes beyond financial operations, and has a wide range of applications within the developers and enthusiasts community, thus accommodating diverse use cases. Consequently, the decision between Monero vs Ethereum invest strategies warrants careful consideration.

XMR v.s. ETH Comparison table

Which has been the better investment?

In recent years, both coins have demonstrated substantial value appreciation and it’s hard to tell which Ethereum vs Monero value is the best. Notably, ETH boasts a significantly larger market capitalization compared to XMR. However, determining the superior investment option and making predictions about Monero vs Ethereum future is subjective and hinges on individual investment objectives, risk appetite, and confidence in the project's trajectory. It's crucial to acknowledge the inherent risks associated with cryptocurrency investments and conduct comprehensive research while considering various factors before making any investment choices.

Monero vs. Ethereum: Which one is right for you?

When deciding between XMR vs ETH, it's crucial to evaluate your unique needs and preferences.

• Confidentiality: XMR's dedicated emphasis on privacy and anonymity renders it an optimal selection for individuals who prioritize the confidentiality of their transactions.

• Decentralized applications (DApps) and smart contracts: Ethereum's robust infrastructure allows for the implementation of smart contracts and the creation of decentralized applications (DApps), attracting developers and users interested in exploring the broader potential of blockchain technology.

• Investment: ETH widespread adoption, high liquidity, and larger market capitalization relative to Monero make it a preferred option for many investors and traders.

• Everyday transactions: While ETH is accepted by some merchants globally, XMR privacy-enhancing features may be preferred by users prioritizing transaction anonymity.

Ultimately, the decision depends on the specific requirements and preferences of each user.

Where to Buy, Sell, or Exchange Monero and Ethereum Tokens?

There are various platforms available for purchasing, selling, or swapping XMR and ETH tokens. These platforms encompass cryptocurrency exchanges, peer-to-peer trading venues, and even traditional brokerage services. SimpleSwap is among the convenient options, providing a user-friendly interface and supporting a broad spectrum of cryptocurrencies. Additionally, popular exchanges such as Binance and Kraken offer similar services. Each platform differs in terms of features, fees, and security protocols, so selecting one that aligns with your requirements is essential. It's crucial to prioritize security by utilizing reputable exchanges, implementing robust password protection, enabling two-factor authentication, and ensuring your software remains updated.

The Bottom Line

Both Monero and Ethereum boast distinct characteristics and serve different purposes. The former excels in anonymity features, catering to users that need transactions and data to remain untraceable. Conversely, ETH is renowned for its smart contract opportunities and extensive support for DApps. This enables developers to craft a variety of applications spanning from gaming to financial services.

Ultimately, your decision between Monero vs Ethereum hinges on your specific requirements and preferences. Opt for XMR if privacy is paramount, while Ethereum might be more appealing if you seek to explore the broader scope of blockchain technology and decentralized application development.

SimpleSwap reminds you that this article is provided for informational purposes only and does not provide investment advice. All purchases and cryptocurrency investments are your own responsibility.

FAQs about Monero and Ethereum

Here are a few popular questions from those interested in learning more about these coins.

Is Monero the same as Ethereum?

No, Monero and Ethereum are not the same. They are two different cryptocurrencies with distinct features and use cases. 

Is Monero mining more profitable than Ethereum?

The profitability of mining Monero vs Ethereum can depend on various factors, including the cost of electricity, the hardware used for mining, and the current market prices of the cryptocurrencies. Monero can be mined with CPUs and GPUs, which might be more accessible for some users. However, Ethereum has moved to a Proof-of-Stake model, and mining has been turned off. Therefore, the profitability of mining Monero can vary based on individual circumstances.

Should I buy Monero or Ethereum?

The decision to buy Monero or Ethereum depends on your specific needs and investment goals. If privacy and anonymity are your top priorities, Monero’s strong privacy features may be appealing. On the other hand, if you are interested in the broader potential of blockchain technology, smart contracts, and decentralized applications, Ethereum offers a versatile platform with various use cases. As always, it’s important to do your own research before making any investment decisions.