In recent years, cryptocurrencies have gained popularity and become mainstream so there is no question about the potential of cryptocurrency. With the high demand for Bitcoin, crypto investors are looking for alternative investment options and many investors showed interest to invest in Ripple. However, will it be a good decision to invest in Ripple, and what are the advantages and disadvantages of investing in Ripple?
Ripple XRP is one of the most intriguing cryptocurrencies in the current crypto world. Unlike Bitcoin, Ethereum, etc., Ripple doesn’t market itself with its decentralization. Ripple is closely associated with several banks, investment companies, and organizations worldwide. Moreover, the biggest selling point of Ripple is its freedom of influence from outside companies. So, investing in Ripple might be a good decision if this cryptocurrency keeps the positive trend.
What Is Ripple?
Ripple is a technology that acts as a cryptocurrency (XRP) as well as a digital payment network for financial transactions. Ripple was co-founded by computer programmers Chris Larsen and Jed McCaleb and was first released in 2012. Ripple exists as three separately interrelated things –
1. The Ripple Network: It is a digital payment network for financial transactions
2. XRP: It’s a digital currency that works on the Ripple Network
3. Ripple Labs: It develops the Ripple Network, XRP, and other blockchain payment solutions for financial institutions
The main mission of Ripple is to simplify the financial payment methods. The traditional payment methods are often overly complicated and fragmented as well as costly. So, Ripple offers an alternative payment platform that supports cross-border payments which are 100% secure, instant, and practically free. Moreover, Ripple also supports every type of money, including cryptocurrencies. In 2020, Ripple’s co-creator Chris Larsen said:
“It’s going to take some time; it’s going to seem frustrating because government and regulators work in a different cycle…….. XRP can be a replacement for that inefficient (SWIFT) system”.
Overview Of Ripple XRP
|Circulating Supply||46,216,687,135 XRP|
|Total Supply||99,990,343,580 XRP|
|Max Supply||100,000,000,000 XRP|
XRP Current Market Status
As of writing this article, XRP is trading at $0.62753 and its lowest price for the last 24-hour was $0.6157 and its highest price was $0.6307. Ripple XRP has a 24-hour trading volume of $1,148,894,184. Moreover, the price of XRP has increased by 1.26% in the last 24 hours. It has a current circulating supply of 45,404,028,640 XRP and top cryptocurrency exchanges for XRP are Binance, Huobi Global, ZBG, Upbit, and OKEx.
Reasons Why You Should Invest In Ripple
There are many reasons available that can influence a crypto investor to invest in Ripple. Let’s check them out.
1. Fast Transaction Speed
For cryptocurrency, transaction speed is very important and it should be better than what is on offer in the market. This is the main reason why Bitcoin is the most demanded cryptocurrency right now. Ripple also functions quite efficiently as a currency so its demand is increasing rapidly. This is a key reason why you should invest in Ripple. Ripple can handle thousands of transactions per second and it completes all the transactions almost instantaneously.
2. Strong Network Effect
Currently, Ripple is world’s one of the most recognized cryptocurrencies besides Ethereum and Bitcoin. Ripple has a strong market presence because of the fact that it is one of the oldest cryptos as well as the 3rd largest in crypto for years. In the crypto market recognition matter because the crypto market is expanding rapidly and new investors want to focus on most of the top cryptocurrencies.
3. Low Price
Another key reason you should invest in Ripple cryptocurrency is the low price. There are many small crypto investors available who want to buy high-potential crypto in sizeable volumes with a low nominal value. This is why Ripple is one of the best on this front. XRP is quite cheap and affordable as well as it has value through adoption. So, you will be able to buy Ripple in large volumes and can gain huge profit.
4. XRP Is Listed On Multiple Exchanges
In which exchange crypto is listed matters a lot because if the cryptocurrency is not available and easily accessible then the currency will be limited to those who can access it. XRP does not have this problem. XRP is very old and it is available in most of the renowned crypto exchanges. Therefore, it makes Ripple liquid but also one primed for exponential gains.
5. Ripple Will Benefit From An Improving Regulatory Environment
The crypto market has gone mainstream therefore the regulatory environment has not been pro-crypto for a long time. However, jurisdictions such as the U.S, Turkey, etc. are still largely anti-crypto. But in Asia, lots of countries are openly pro-crypto. Moreover, North America and Canada are allowing several crypto ETFs. So, this favorable regulatory environment has given a positive signal for the entire market, including XRP.
6. Ripple Has A Growing Presence In Asia
Asia is the largest market for financial technologies as well as for cryptocurrencies. This is why a cryptocurrency that finds favor in the market of Asia is bound to succeed. XRP is one of the cryptocurrencies that has gained popularity in the Asian market. For example, in Japan financial institutions have been settling transactions in XRP for a while now. This is a strong positive signal to invest in Ripple.
7. Ripple Is A Secure Cryptocurrency
Security is a major feature of any cryptocurrency. Cryptocurrencies that have high-security feature has high demand in the market. Without proper security, crypto will easily be compromised, and lose a huge portion of its value. For example, you might have heard about Verge, a privacy-focused cryptocurrency. In 2017, it was doing exceptionally well but it suddenly lost its market appeal after it was compromised twice. So, for security, there is nothing to worry about Ripple. It is one of the most secure cryptocurrencies and has never been compromised. This is a good reason to invest in the XRP network.
8. Ripple Is Environmentally Friendly
As the crypto market is growing many people are worried about the issue of the environment. This is because Proof-of-Work mining is a huge contributor to carbon in the atmosphere, and the environment experts are now calling for a change. In this regard Ripple has a positive impact on the environment. Recently, Ripple’s co-founder Chris stated that there is a need to adopt Proof-of-Stake and other consensus algorithms such as the one used by XRP. It means Ripple is environment-friendly and this is also an important reason you should invest in Ripple.
9. XRP Technical Analysis Points To Strength
The technical indicators play a role in attracting bulls or bears. For Ripple the technical indicators are bullish. If you check the weekly and monthly charts of XRP, key indicators like the RSI moving averages and volume oscillators are all bullish. So, all these positive signals draw in buyers into the cryptocurrency. Moreover, the buying pressure XRP is experiencing is another good reason to invest in Ripple right now.
10. Ripple Is Very Practical For The Banking System
Ripple has a different approach for the banking system and this technology is trying to make the system more efficient. XRP provides faster, and quicker transaction facilities for the banks, and banks are also adopting this new technology. The banking sector is a long-term price dynamic in the crypto market. So, if you are looking for a long-term investment then it is the best time to invest in Ripple.
Pros And Cons Of Investing In Ripple
|Pros of Investing in Ripple||Cons of Investing in Ripple|
|Ripple is cheap compared to other cryptocurrencies in the world||The XRP coins are pre-mined and already in circulation so there won’t be any newer Ripple|
|It has a low price and increasingly mainstream appeal||Ripple Chairman Chris Larsen owns a massive share of XRP as do other senior board members so there’s a chance the price may be overinflated|
|Ripple solves problems for large financial institutions||XRP is not decentralized so according to many financial experts XRP is not a real cryptocurrency|
|Ripple also work for small business owners so it is widely adopted now||Ripple was specially designed for the banking and finance industry rather than the way ordinary people exchange or store value|
|Ripple has a market cap of approximately $35 billion and it is the world’s eighth-biggest cryptocurrency||Ripple has a strong rivalry with SWIFT which is currently the largest international payment network, so ripple have to convince the banking sector that its payment protocols offer a quicker, safer, and more convenient solution than SWIFT|
|Ripple is more than a cryptocurrency; it is a fully-fledged company||Ripple’s SEC case is still ongoing and there are chances Ripple might lose the case!|
|The major banking partner of Ripple is German bank Fidor, American Express, Santander, and MoneyGram||Ripple and XRP are not the same things therefore, Ripple’s success should not reflect XRP’s value|
|Ripple is moving into CBDCs based on the public XRP ledger||XRP stands opposite to the idea of decentralization which is core to the cryptocurrency philosophy|
Finally, investment decision depends on the risk vs reward factor. Ripple certainly has some risk factors but it is also becoming more mainstream and has the backing of some major financial institutions. Moreover, the current price of Ripple is very low which is also a positive sign for investors to invest in Ripple. So, Ripple is a low-risk investment with lots of potential rewards and you can invest in this cryptocurrency.
Magalie D. is a Diploma holder in Public Administration & Management from McGill University of Canada. She shares management tips here in MGTBlog when she has nothing to do and gets some free time after working in a multinational company at Toronto.