Whenever we think cryptocurrency can no longer be famous, it comes back to hit us with some new headlines. And then, they’re back on the newsfeeds of everyone!
In early 2018, blockchain surpassed an $800 billion market capitalization. This meant that it was as successful for that short time as Alphabet, Google’s parent company. Following that, cryptocurrency has seen so many bad times.
I’ve written a lot about Bitcoin and Ethereum in my previous articles. I want to talk about Ripple today because people have begun to wonder whether Ripple will become the next Bitcoin.
You need to know a few things about Ripple here, before investing a dollar in it.
What is Ripple?
Bitcoin has become very common since the concept of a decentralized global digital currency has popularized, meaning the currency is not governed by any big bank, government or private individual. It is owned and regulated by Bitcoin users.
And, for many people, Bitcoin was their way to get rid of banking system interference.
Ripple’s a little different. Instead of trying to avoid them, Ripple works directly with big banks. And, for some people, Ripple goes against everything about cryptocurrencies and so they’re not a Ripple fan.
This is perfect for others because big banks and the government have a lot of power. If more banks hypothetically began using Ripple, it might mean that ripple coins will be worth later.
This digital currency was launched in 2012 with a strong banking emphasis. The code of Ripples was written from the foundations. Ripple’s main function is to speed up transactions between banking operations. You can also save Ripple on transactions.
Ripple technology is already used with Ripple protocols by leading banks such as the Bank of America, HSBC, and Western Union “experiments.”
Ripple, the first big cryptocurrency owned by a profit company, saw a huge jump at the end of 2017.
Ripple grew by nearly 36,000 percent in 2017. Look crazy, okay!?
This massive increase can be due to the announcement that the Ripple XRP platform will be used by a consortium of Japanese and South Korean banks to modernize cross-border payments.
During the last year or two, Ripple has created several new features as it expands its list of high-profile partners.
Last year, Ripple named several new banking partners, including Santander and UBS, at the same time. Ripple acquired American Express last month, a big name that drew Ripple’s interest and pushed XRP.
Recently, Bloomberg added XRP, litecoin, and data last month to its terminals. SBI Holdings, an Asian financial company, and SBI Ripple Asia confirmed they would use RippleNet this week.
This indicates Ripple is here to stay and his nearly $2 value can sometime in the future look extremely cheap.
How does Ripple or XRP work?
XRP is the Ripple token or coin. Let’s say you want to send your money to your bank to your London cousin. To do that, you’ll have to pay a bunch of bank transfer fees, and it takes days for your money to get into your cousin’s bank account.
Ripple’s objective is to transfer currency as we do knowledge. You can do it immediately if you want to send an e-mail to someone in London. But it takes your money to arrive there forever. That’s what Ripple is trying to change.
Ripple currently allows you to send money in around 3-4 seconds to the other end of the world; that will cost you less than a penny. It has a particular purpose.
But isn’t this what Bitcoin will let you do–transfer currency without frontiers?
Okay, kind of. The problem is that it is not as convenient to use Bitcoin as Ripple. According to the managing director of Ripple, it would cost you about $40 if we did the same transaction that I just talked about with Bitcoin. This is why this form of transaction is not as functional as Ripple.
In other terms, not all cryptocurrencies are similar.
How do you buy the Ripple coin or XRP?
Before I talk about buying a coin from Ripple, let me mention that when you invest in anything, you are never guaranteed to make money. You could even lose money. This is why you should first talk to a lawyer and a financial advisor in your area to grasp all relevant investment laws and regulations.
Ripple is a bit tricky to buy. You should use a cryptocurrency exchange if you want to purchase some cryptocurrency. However, not every crypto exchange lists Ripple.
You have to go through a few hoops if you want to purchase Ripple. Let me break down 3 simple steps to do that.
- Go to Binance ( Click on this link, you will receive back 20% trading fee )
- Sign up for an account.
- Use your credit card or you can buy Ripple with a bank transfer.
Why you should buy on Binance?
You have to be aware of cryptocurrency scams and secure yourself before you decide to trade in an exchange.
You can also protect yourself by adding a safety layer to allow you to store your cryptocurrency with an external wallet outside the exchange. In other words, you can buy Bitcoin or Ripple as usual, but instead of letting you trade your cryptocurrency, you would take your cryptography and pass the coin to an external wallet. So if someone hacked in, the coins would be out of reach of the hacker.
There are a bunch of different wallets. Some are physical, some are electronic. So make your study and choose the one you like best.
6 Reason Why Should use Ledger Nano X Hardware Wallet To Secure Your Crypto: Click Here
Understand the price of Ripple
Ripple units are around 100 billion and the majority of these coins belong to the Ripple company itself. The value of every Ripple coin is down to how useful the coin is and what someone else is prepared to pay for the Ripple coin. Offering and demand functions in this way. If you own Ripple and many people want to buy it, the price would naturally increase.
In the past couple of years, many people were excited about Ripple because some big banks have spent hundreds of millions of dollars to check Ripple. So it could become much more interesting if Ripple were to catch on.
Ripple is somewhat difficult for the average person to manage. Some people speculate that if Ripple became more available by joining an exchange like Coinbase, a huge influx of buyers would occur which leads to an increase in prices.
But it’s just speculation again. No one can foresee the future.
Should you invest in Ripple?
Ripple was announced by analysts earlier this week to surpass bitcoin’s £ 168 billion ($230 billion) market capitalization if it manages to reach £ 5.16 ($7) price tags.
- But Mike Orcutt of the Massachusetts Institute of Technology Review has now suggested it might be a misplaced expectation to invest in Ripple as the next bitcoin.
- Mr. Orcutt said: “But XRP never was supposed to be a bitcoin. Ripple’s big bet is that XRP is becoming a’ bridge currency’ used by many financial institutions to settle cross-border payments more easily and inexpensively than now through world payment networks that can be sluggish and involve multiple intermediaries.
- “Bitcoin could also be used to do so, but Ripple will settle 1,000 transactions a second compared to the seven transactions of Bitcoin, with a much lower transaction cost.
- Joe DiPasquale, Chief Executive Officer of BitBull Capital, accepted that Ripple is on the right track to raise power from strength to strength in his view.
- He said: “MoneyGram is the latest example of Ripple’s masterful rhythm of deal notices with large corporations.
- “We see an increase in value every time Ripple announces a partnership.”
Investing in finance, not emotions
Can you make a lot of investment money? Certainly, a lot of people did with real estate in the early 2000s, but it could get you to bite if you stay too long or if you take more than you can afford.
In 2017, Ripple traded 0.006 cents per coin to over 2 dollars per coin in only one year. This indicates that it grew by more than 30,000 percent. That’s nuts!
However, note that it doesn’t necessarily mean that it will continue up, just because something has risen in the past. Behind the cryptocurrency, there is a lot of hype and anticipation, but hype and enthusiasm can not hold an asset forever.
Crypto-currency is very volatile, so it can grow very rapidly and come down just as quickly.