Last Updated on November 14, 2023 by Ben
How would you like to invest in the future of money? How about Investing in XRP? XRP is a digital asset with an open-source, decentralized payment network that does not require banks or governments. It has been fattening steadily over the past few years and now looks poised to take off as it becomes more mainstream.
What is Ripple?
Ripple is a system and network that can make payments for you. It is a trusted agent between two parties in the transaction. The network can quickly confirm that the money went through properly. Ripple can do all sorts of things, like exchanges of different types of currencies or even gold.
Ripple is the latest way to transfer money. Major financial institutions can use it. Pat White says, “Ripple was designed from the very birth to essentially be a replacement for SWIFT [a leading money move network] or otherwise to replace the settlement layer between major financial institutions.”
Every time someone makes a transaction on the network, the network takes some of their money in order to use it.
The standard fee to manage transactions on Ripple is set at 0.00001 XRP, which is small compared to the hefty fees banks charge for cross-border payments. As of late April 2021, the price for one token was $1.38 US dollars, so the transaction fee runs out to be just $0.0000138 US.
What is XRP?
XRP is a type of cryptocurrency that is used on the XRP Ledger. This is a blockchain that was made by Jed McCaleb, Arthur Britto, and David Schwartz. Mr. McCaleb and Mr. Britto would go on to found Ripple, Inc.
XRP’s blockchain is different from other cryptocurrencies. Other cryptocurrencies let anyone solve equations to see transactions in the ledger and their verification. But XRP’s blockchain is secure because more than half of the ledger holders agree with a transaction for it to be added.
Instead, Ripple’s XRP sort of centralizes things. While anyone can download its software, it sets up what it calls unique node lists that people using Ripple can choose to verify their transactions with. These lists are based on which participants you think will not try to defraud you. Ripple’s default list contains 35 trusted validators. Ripple chooses which validators to approve for this list and also makes up six of these validation nodes.
Users can choose not to use the default list. Instead, they could select their list of trusted validators for transactions that do not have anything to do with Ripple. This would allow the network to carry on to approve transactions even if Ripple, the company, does not remain involved or exist.
As people buy houses, the validators update their ledgers. They do this every three to five seconds to make sure they are the same. If there is a mistake, they stop and figure out what went wrong. Ripple is different from other cryptocurrencies, like Bitcoin. You can use Ripple to make transactions, and they are more accessible and more efficient.
The Pros and Cons of Investing in Ripple
It is essential to be aware of the pros and cons of trading. It is even more critical when it comes to trading cryptocurrencies like Ripple.
- Ripple is currently marketing at $1.32 per coin. This means that it’s cheaper than its previous high level in 2018! You can purchase a lot of Ripple for less than a few hundred dollars. For example, even if you buy just $50 worth, you will get more than 200 coins (Ripples).
- Ripple’s value has been going up for a while. Some people predict that it will go higher too, and even pass $1000 in 10 years. Other people are more optimistic about what it will be worth.
- So, given the low price and increasingly mainstream appeal of Ripple, it is a relatively good option with the possibility for a significant return on investment.
It solves problems and creates opportunities
- Ripple solves problems for large financial institutions. It also makes it so that money can travel faster, which is good for the economy.
- But Ripple could work for small businesses, too. If it becomes widely accepted, the Ripple platform will provide millions of sole traders and entrepreneurs with access to the global economy.
Market Cap of Ripple
- Ripple is a cryptocurrency with a market cap of $60 billion. That makes it the world’s fourth-biggest cryptocurrency.
- When investors place a lot of money into an asset, they are more confident in it. This makes the investment less likely to change when the market is volatile or goes down.
Ripple isn’t just another cryptocurrency
- Ripple is not just a cryptocurrency, and it is also a technology. It’s more than that; Ripple is also a company.
- Ripple Labs Inc has over 500 employees. They include public relations and marketing specialists who promote the technology to banks, investors, new users, and the public.
Partnerships and investors
- Ripple is a cryptocurrency. Bitcoin is the most familiar and used cryptocurrency, but Ripple has much support from financial institutions.
- German bank Fidor was their first major banking partner. They used the Ripple Payment Protocol in May 2014, according to Pete Rizzo of CoinDesk.
- Today, some of their biggest partners include American Express, Santander, and MoneyGram. But that’s not all they have.
Moving into CBDCs
- CBDCs are called ‘Central Bank Digital Currencies. Ripple announced that they will be testing the creation of private ledgers based on XRP, which is their public ledger.
- This system can handle tens of thousands of transactions per second. It has the potential to do hundreds of thousands per second.
- Private companies will probably do more things like this in the future. It is also possible that banks and financial institutions could use a private version of the XRP ledger in the future.
XRP is recovering from the SEC case
- After the lawsuit with the US Securities and Exchange Commission, XRP has been getting better.
- The SEC sued Ripple because they sold $1.3 billion worth of XRP tokens. They said that they were not a cryptocurrency but securities.
- The lawsuit resulted in the price of Ripple going down to new lows. This happened at a time when other cryptocurrencies were also being driven down (e.g., Bitcoin reached $60,000).
- But there is not enough evidence that the SEC has a good case against Ripple. People believe that Ripple will win the case, so they are buying more XRP. The price of XRP is going up, and it looks like it will keep going up.
There won’t be any more new Ripple
- There are only 21 million Bitcoins. The production of Ethereum will slow down over time. But the supply is unlimited, and the demand could go up in the future, leading to big price increases and big profits for early investors. Ripple is different because all the XRP coins are already created and already in circulation.
Ripple owns a massive share of XRP
- The Ripple Board of Directors owns a lot of XRP, and they are not the only ones. Senior board members also have XRP. That means more people can make changes to the cost of it.
It’s not decentralized
- Some people do not like XRP because they say that it does not have a competitive mining process. They say that this goes against the principles of decentralization and economic autonomy. Some people say that Ripple is different from Bitcoin. This is because it was designed for the banking industry, not for regular people. Ripple was made to solve problems in the banking industry, while Bitcoin’s main purpose was to change how people exchange and store money.
- Ripple is a company that wants to send money, and it has a rival called SWIFT. This company currently has the largest payment network and is preferred by 11,000 banks. Ripple will need to show these people why their payment protocol is better than SWIFT.
SEC case is still ongoing
- Ripple is in a good situation with the SEC. But there is still a risk that Ripple could lose. There are some days when it looks like it will lose, but then other days when it looks like Ripple will win. The SEC is often pressured to take unfair steps by people. They may try to make Ripple an example of this, which would be a bad thing.
- For example, last month, it was revealed in court that the SEC had allegedly sought out incriminating information on Ripple from overseas. This violated Federal Rules in the USA.
Ripple and XRP are not the same things!
- As you’ve probably noticed, people often use Ripple and XRP interchangeably. But there is a very important difference that you need to know about. Ripple, the company, offers a lot of different services that are related to blockchain. But most of the time, they don’t use XRP tokens.
- This means that most people might have an incorrect image of all of Ripple’s partners using XRP. But really, only a small amount of them use it. Most people who work for Ripple are looking for ways to solve the problem with blockchain, not to start using XRP.
- Therefore, the value of XRP should not reflect Ripple’s success because more Ripple partnerships do not equal more XRP usage.
5 Reasons to Invest in Ripple
Ripple is looking to change the way people transact—from how you deposit to the bank, to how you transfer money overseas. Here, you will learn about Ripple’s revolutionary technology and why it could be a good investment for you.
A lot of people think that our current financial system is not good. Sending money to other people outside of your bank is not easy, and you probably will not be able to do it. But Ripple can help. Ripple can send money overseas and make it easier for you to get a headache.
Ripple can be used in the Ripple Transaction Protocol. This is a protocol that someone can use to ferry digital currency and money, and information. The idea to use this technology is actually thousands of years old, going way back to medieval Arabia. Many years ago, people would walk up to their agents and give them money and tell them what to do with it.
They might say they want the agent to send it to someone else’s agent. The first person’s agent will then send the money to the second person’s agent, who is your friend.
Even though money didn’t change hands, a record of it being moved was put in place. The person who is receiving the money would need to move it along to the intended recipient. Most people like Ripple because it simplifies that process, issuing monetary payments through a digital channel. Similar to medieval methods, money never actually changes hands.
Ripple is a secure way to exchange money. Both people have access to a fixed channel. This makes Ripple a great way to make exchanges and keep the money safe. And Ripple’s developers want to do more than just exchanging money with it too. They want you to be able to use it for other things, like trading goods.
This function makes it a powerful currency in the digital world. It helps people who need money because they can do this to get more money. Companies make money when they use this to help people with their problems.
Partnership With Banks
It is foolish to think that our banking systems will disappear soon. This belief is well-liked in the Bitcoin crowd, with many devoted Bitcoin believers who think that the world’s earliest digital currency has the power to reconstruct our financial system within a few years.
There’s no uncertainty that digital currency is here to hold on. But we’re more likely to see it included in our everyday financial lives through big banks. This is good news for Ripple and a good reason to invest in it.
Ripple is the first digital currency to be adopted by mainstream financial institutions. And it has only been getting more popular. The banks want Ripple because of the financial tools that Ripple Labs, the company behind RTXP, provides. Major financial institutions don’t adopt technology for customer’s convenience. They do it to make money. This is how things work.
Right now, if a bank uses Ripple, it saves $3.76 on each payment. That’s a whole lot of money that adds up to $564,000 a year. The greed of banks pays off for customers who can exchange money across borders and with people who use different banks. This company has a lot of tools that you can use. Banks are going to use these tools more and more, so you might see the value of the company go up.
This will make our financial system easier. You can forward it to anyone, no matter which bank they have, through the same channels.
Speed of Transactions
Ripple’s XRP is faster than the other competitors. Stellar, Tron, and all the other currencies are good, but when you compare it to money that you can transfer in real life, Ripple’s XRP is way faster and pretty much free. Now there are gradually banks that want to use the Ripple technology. If you send money using this technology, and soon, XRP tokens, if you do not receive it, then this is because it has not been sent. It will not be because of obstructing logistically.
The pace of transactions (fractions of seconds) and extremely low fees make XRP the obvious option for these institutions. This is creating a reputation for cryptocurrency, and adoption was the only way ahead in 2018. Crucially, the more banks that receive XRP, the more they will use it.
Management Team and Investors
Now, it is time to discuss what that large network of talents means for digital currency in the long term. It is not a secret that success in the corporate world depends on one thing: clout. For any new technology to get more advanced, it needs to find out if the investors and the corporations will believe in it. Many digital currencies fail because they do not have enough leadership or knowledge about how to do it.
Ripple became established because it had two well-connected founders. They attracted venture capital and major investors quickly with their networks. In 2015, Ripple raised $55 million in a single funding round. And this money is coming in even more, with more big investors backing the company every week.
There is one particular investment that you should know about. It’s a tech company called Google, and they have not been interested in the majority of digital currencies.
Google and Apple use blockchain for their payment. Google was one of Ripple’s early backers, and Apple prefers this to exist credit cards. Google saw an opportunity to make it easier for people to send money.
Some of the same venture capitalists that have backed successful companies in the past are now backing Ripple. These include Andreessen Horowitz, FF Angel IV, and Lightspeed Venture. They have backed Airbnb, Asana, BuzzFeed, Coinbase, Facebook, and Twitter before.
Ripple was on a bit of a rollercoaster. It’s made headlines, went to all the big conferences, and has rich people in cryptocurrency as part of its team. And it is 3rd in the rank of cryptocurrencies by market cap. The price of Bitcoin changes a lot. It has gone from $0.006 to over $3 and backs down to around $0.50 now. Even though the price changes, it is still worth money and can be used like any other currency for buying things.
Ways to Invest in Ripple
You can have Ripple’s cryptocurrency, XRP, by investing in the following way:
Holding the currency
Of all the strategies for investing in Ripple, buying and holding are the longest-term investment. It means you buy a lot of Ripple tokens and then hold them over a long time. You hope that they will go up in price.
People who invest in Ripple and hold on to it think that it is a good long-term investment. It may be better for people who are really into digital assets, but even people who are not will appreciate this approach as part of their portfolios.
Investing in your IRA
When people hear about cryptocurrency, they usually think about Bitcoin. But there are other digital currencies that have their own tokens and features.
An IRA is an account to save money for when you retire. It might be something from your work, like a 401k. Or it might be a new kind of IRA called the Ripple IRA. This account lets you put your money in something other than stocks and bonds that are usually in an IRA, like digital currency, for example.
Short term trading
Shorting is a way to bet on what you think will happen. It can be difficult to figure out what will happen in the short term, so you need to do more research. Shorting also means that you are betting against something and predicting it will lose value. Short selling is when you sell something that you do not have.
You sell it because you believe it will go down in price or because some factor might decrease its price. Many investors, including big companies, do short selling, and they often make a lot of money when the market goes up or down.
Should You Invest in Ripple?
Ripple has been making headlines. It is well marketed, and some of the richest people in cryptocurrency are on its founding team. Ripple is the third most well-liked cryptocurrency by market cap. It is now at $0.50, but it used to be $3. That does not change what the oil is for and how good it is.
Many companies and institutions are using it. If the company is good, then their product will be used by a lot of people. It’s also helpful that this product does work. But many cryptocurrencies do not work, so their company does not have a lot of customers. This product does work, and that is why it has a lot of customers.
Many people invest in cryptocurrencies but most of them are not being used in society. But this cryptocurrency is different because it already has products that can be used. The platform has a tool for transferring money across the globe, which means 1 billion worth of money moves weekly thanks to its products. XRP is a product that people will always want. As an investment, it is very good to save or to hold onto.
How To Invest In Ripple
The first thing you require to do is sign up for a Coinbase account. You can get a bonus of $5 if you deposit $100!
Coinbase is a popular choice for people who use it because they have the most popular currencies available on their app or website. One of these is Ripple. You can buy it on the app or in person. You can also get US money through the app and then send it to your bank account.
Make a Deposit
The next step you need to go through is finding a cryptocurrency exchange that sells Ripple (XRP). There are many high-profile crypto exchanges where you can buy XRP coins. First, you will need to use a credit or debit card or bank account to deposit funds. Then, you can purchase and invest in XRP tokens.
Once you have your bitcoins in your Coinbase account, you can buy Ripple. In your Coinbase account, click on the word “Ripple.” Once you do that and place a trade, it will show up in your Coinbase account. Having all of your cryptocurrencies in one place makes tracking them easier for you.
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Ripple has the potential to be a great investment because of its low price point, but it does come with high risk. If you don’t want any hassle in trying out Ripple or would rather use traditional investments like ETFs instead, there are no options for that yet.
Investing in cryptocurrency is often difficult because a lot of coins are very similar, and their markets often follow Bitcoin. But, Ripple’s currency might be the one to break out against this trend as it has been increasing steadily for months without following bitcoin’s lead or crashing as many other altcoins have done over time.