Are you new to cryptocurrency? Are you interested in crypto-investments but are unsure where to begin?
Are you wondering if Ripple is a great place to start investing in crypto?
If so, you have come to the right page on Google as you would find some convincing reasons to consider investing in Ripple. Let us see what Ripple exactly is and the most compelling reasons to invest in the cryptocurrency.
Understanding Ripple
Ripple is a payment processing platform launched in 2012 by a US company called Ripple Labs. It is an independent digital asset that facilitates global transactions with the help of its coin XRP. After expanding its business over the years, Ripple is one of the largest cryptocurrencies in the market today.
Like other cryptocurrencies, Ripple utilizes a blockchain ledger. However, XRP is cheaper than other cryptocurrencies. Ripple Labs owns XRP and controls it to keep its value more stable in the market.
Ripple investing is different from other cryptocurrencies because of the unique way the XRP coin operates compared to other crypto coins.
- XRP is decentralized and is entirely owned by Ripple.
- Secondly, XRP cannot be mined because it is centralized; Ripple Labs solely controls its availability in the market.
- Third of all, Ripple operates differently in the crypto market than other cryptocurrencies because Ripple and its XRP solutions aim to target banks and financial institutions to incorporate its token as a bank coin. It would help banks conduct the cross-border transfer of value and funds swiftly. Therefore, Ripple’s business policy is a stark contrast to what Bitcoins and other cryptocurrencies are trying to do in the market.
However, there is also a catch in XRP trying to work with banks— regulation can affect XRP’s value.
Anyway, Ripple’s primary benefit lies in the fact that it is the only partially centralized crypto. Hence, many traders find it more reliable to invest in Ripple than other crypto trading options. Ripple investment also offers several other advantages, which we have pointed out in this article below.
8 Reasons That Make Ripple an Effective Investment
Here are seven points that prove Ripple to be a better investment option than other crypto trading options.
- Advanced Transaction Protocol
Unlike Bitcoin’s time-consuming transactions, Ripple does not depend on proof-of-work: It relies on consensus ledgers to quickly perform transactions. The transaction protocol helps to conduct larger transactions, including fiat currency and cryptocurrencies, considerably incurring lower transaction charges.
- Good ROI Offered by Ripple
When Ripple first launched in 2012, 100 billion XRP were released in the market. Out of these 100 billion, 20 million were retained by creators; the rest was given to Ripple Labs.
Ripple Labs primarily controls how XRP is held in the market and plays a crucial role in keeping XRP’s value stable.
The fact that XRP has grown stably in the market makes the trading platforms offer higher interest rates.
- Low Fees
Ripple transactions are quicker compared to Bitcoin and Litecoin. It is primarily aided by Ripple’s sophisticated transaction protocols, making it possible to keep transaction charges reasonably low.
- Public Relations
Ripple is an entirely commercial organization with a fully functional PR department to promote and popularize Ripple and its trading products.
- Better Accessibility
Customers and traders could indulge in Ripple trading through global crypto exchanges like Gemini, Coinbase, and Binance.
- No Scalability Challenges
Ripple already has a considerably sizeable existing market cap. It makes trading experts believe that XRP’s value would only have the possibility to grow in the future.
Ripple’s revenue grew by 28000 percent last year and is likely to keep growing steadily, even if a bit slow compared to other crypto products.
- XRP is Affordable
When compared to Bitcoin and Ethereum, XRP is relatively cheap and affordable. Bitcoin’s value stands at $35,133 and Ethereum’s at $1,198, whereas XRP is valued at $0.25. Investing in XRP is easier for small traders who can begin even with a smaller fund.
Even though XRP’s value grows slowly, it still offers the advantages of cryptocurrency and ensures higher returns than fiat market trading. It means that investment in XRP products could always potentially enhance your trading portfolio.
- Independence from Market Fluctuations
Blockchain’s technology makes cryptocurrencies decentralized and difficult to manipulate. These attributes of blockchain technology make cryptocurrencies recession-proof.
Ripple’s products are independent of market fluctuations and market crashes, making it quite dependable for traders.
Final Words
Many companies and financial institutions have adopted XRP over the last few years. Fintech experts have considered Ripple to be strong enough to give Bitcoin a tough competition, but it is only now that Ripple has caught the momentum of growth.XRP is easy to start investing in and involves the basic principles of buying, waiting for an appreciation of value by holding for the right amount of time. Customers can take the help of traders and brokers to begin trading in XRP. Hopefully, the above points have provided more clarity regarding investment in Ripple. And, also by going through xrp price prediction you will get a clear idea about when to invest your hard-earned money in it.
