When it comes to investing in Ripple, it’s important to know what makes this cryptocurrency so different from others. While Bitcoin and Ethereum and other major coins are moving towards decentralization, XRP is wholly owned by Ripple.
What makes Ripple a unique cryptocurrency?
Ripple is trying to create a cryptocurrency to fill a unique niche in the financial world. Bitocin and other coins seek to replace banks, while Ripple wants its token to be used by financial institutions to quickly and easily transfer value across borders.
This is a good void in the market, as banks have many opportunities to partner with Ripple and their XRP solutions. However, this means that the XRP market is more susceptible to fluctuations in cryptocurrency adoption by banks and regulations.
XRP was created by Ripple back in 2012 with an initial mining of 100 billion tokens. At launch, XRP was worth nearly $0.005 – and prices remained largely stable until 2017, when the entire cryptocurrency industry experienced an unprecedented boom. Most people know about Bitcoin’s peak in December 2017, but in April and May 2017. XRP rose to $0.40 per token, and prices stabilized around $0.20 for the next six months.
After the Bitcoin boom, the altcoin season began, with XRP prices rising 84 percent in a single day from $0.27 to $0.51 in mid-December 2017. Over the next two weeks, XRP crossed the $1 mark and ended the year at an incredible $2.30. An increase of 38,000 percent from where it stood at the beginning of 2017.
Who should invest in Ripple?
XRP is suitable for traders and investors with different styles. It is a good coin for general cryptocurrency enthusiasts because it is an altcoin, but still has a good reputation as a top five cryptocurrency coin with an established market.
At the same time, XRP is also a good investment for thematic investors in the financial sector because XRP is a coin that targets major financial institutions. This means that those looking to invest in the future of transactions and payments will have a good opportunity to learn about XRP. Moreover, mainstream adoption is a big driver of the market because the Ripple platform serves the needs of many financial organizations and other companies in the industry, so every time it is adopted by another well-recognized brand, it can help increase value.
Technological developments are aiding the XRP market because Ripple is still considered a startup and as such can introduce many innovations. Since Ripple holds about 61% of all XRP tokens, major changes in the company could have a strong impact on the currency.
Advantages of investing in Ripple
Your first investment can simply start by purchasing a Ripple Packet and holding the cryptocurrency in your account. This is one of the more common and popular methods used when investing in cryptocurrencies and has especially paid off in the case of Bitcoin. Buy and hold is a simple and usually effective method of making money with cryptocurrency.
As with any asset worth trading, and even more so like any cryptocurrency, there is a list of pros and cons associated with XRP and trading it. When it comes to trading, you need to look at the pros and cons of the cryptocurrency space, but going beyond that, it’s important to understand what the good and bad points are in trading Ripple.
The great advantage of Ripple is its low cost – which allows you to get a lot of units of this currency for little money. Ripple is also considered a future-proof technology. The company created XRP with the express purpose of solving a real-world blockchain problem. It focuses on the problems of large financial institutions and accelerates the flow of capital, which is great for the economy. But Ripple can also work for small business owners. If widely adopted, the Ripple platform will give millions of small businesses access to the global economy. Having a real-world use case and evidence of success – as Ripple is currently doing – means there is a lot of potential and room for the coin to grow in its role, which will also pull the price up.
How to invest in Ripple?
Like most cryptocurrencies, the barrier to entry is low, so anyone can invest in this coin. The fact that each XRP coin costs less than a dollar means that new investors can spend as little as $10 – on some platforms – and own a number of XRP tokens, or purchase a Ripple Package and receive quite a few units of this currency for free.
If an investor simply wants to test out cryptocurrency trading, XRP is probably one of the best ways to do so, due to its low face value and popularity across a wide variety of platforms. Being the top cryptocurrency in terms of market capitalization means that there are plenty of training materials and trading venues, which definitely makes it easier for beginners to get started.