What Might Happen If You Invest $100 In Ripple (XRP) Today?

Should You Invest $100 in Ripple (XRP)?

Last Updated January 10th 2022

15 Min Read

Ripple is one of the best blockchain technologies ever created. Its native asset, XRP, is also one of the most traded cryptocurrencies worldwide.

This has gotten millions of people pondering about whether they should consider investing in Ripple (XRP) and other cryptocurrencies.

The digital assets market experienced its best run so far in 2021 after more than a decade of surviving in a space largely dominated by centralized financial systems.

This is the reason why novice traders and investors continue to pour huge sums of money into digital tokens with the hope that their preferred coin may just be the next golden goose.

Ripple (XRP) continues to perform well on exchanges and has led to the trending question, what might happen if you invest $100 in Ripple (XRP) today?

If you invest $100 in Ripple’s XRP today and the value of the digital coin increases due to several long-term investors’ confidence in the cryptocurrency, which increases your investment to $550, you stand a chance of making a profit of $450.

In real financial circles, this is called capital gains from a portfolio since XRP is a digital financial asset.

With the same investment, if investors lose confidence in the crypto trading asset and embark on a selling journey that leads to a plunge of the coin to let’s say $30, you stand a chance of making a loss of $70.

Whatever happens in your journey towards trading and investing in Ripple and cryptocurrencies in general, selling is the sole way you can determine profits or losses.

To learn more about the Ripple project, Trading Education has dedicated hundreds of articles to the cross-border payment solutions network and their cryptocurrency.

More importantly, you will learn how you can invest in Ripple (XRP). So, follow the article in its entirety.

If You Invest $100 In Ripple (XRP) Today, What Happens?

The price of Ripple (XRP) has been soaring since the first day of 2021 when it opened at $0.2198. Because of the return to bullishness, the current crypto market finds itself, there is a huge chance that you will make at least 50% returns in the short term and more than 100% returns in the long term if you were to invest $100 in Ripple today.

At the time of writing, Ripple continues to increase significantly.

XRP has returned 12,653.41% from its inception as a tradable token on 29th January 2015 to date for investors who believed in the potential of the technology behind the cryptocurrency.

Such returns have taken the market capitalization of XRP to more than $35 billion.

XRP continues to record at least $1 billion daily in trading volume, which makes us believe the value of Ripple is going to soar even higher.

XRP continues to enjoy the support of some of the largest cryptocurrency exchanges (Binance, Kraken, Huobi Global, eToro, CoinMama, GateHub, Xcoins, Coinberry, CEX.io, BitPanda, Uphold, Changelly, Mandala Exchange, and BitStamp) despite its unending case with the Securities and Exchanges Commission (SEC).

Aside from this, the valuation of the cryptocurrency continues to benefit from partnerships with mainstream financial technology (FinTech) corporations.

Ripple has more than one hundred partners that use its infrastructure, RippleNet, to process timely transactions in a short period.

The latest partnership was confirmed on Wednesday, 20th October 2021 as Al Ansari Exchange tapped RippleNet Cloud to enable cross-border remittances to Malaysia with MoneyMatch.

Speaking of the partnership, the Chief Executive Officer (CEO) of Al Ansari Exchange, Rashid Al Ansari pointed out that, “Blockchain technology has paved the way for seamless, transparent, and advanced methods to send remittance in real-time worldwide. Adopting this technology on the cloud via our partnership with Ripple and MoneyMatch is in line with our commitment to provide our customers with more flexible, faster, safer, and more innovative money transfer solutions.”

Such partnerships which increase the use of XRP through Ripple’s On-Demand Liquidity (ODL) feature where the cryptocurrency is converted into fiat currency to process same-day transactions is what has made experts rate the digital token as one with huge potential.

Experts at Wallet Investor and FX Leaders believe that Ripple (XRP) could trade for average prices of $2.67 by the end of 2022, $4.61 on the last day of 2024, and $5.66 in the last quarter of 2026 based on price drivers such as bullish crypto market sentiment, huge adoption of Ripple by several corporations, and increased demand by long term investors.

This means that investing $100 in Ripple (XRP) today could see you with more than 140% returns in the short term, 300% in the medium term, and 390% in the long term. But you might wonder, can you really invest $100 in Ripple (XRP)? Let’s take a look at it.

Check Out: 23 Reasons Why You Should Invest in Ripple XRP Today

Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.

Can I Invest $100 In Ripple (XRP)?

You can invest as little as $100 in Ripple (XRP).

Since XRP is a crypto trading asset, by default, it succumbs to the rules of Satoshi Nakamoto in terms of divisibility.

XRP like all cryptocurrencies can be divided into eight (8) decimal points. Therefore, you do not have to own a full XRP token.

You can buy a piece if you are not interested in becoming a full XRP coin holder.

At the current price of $0.74, you can buy 135.135135 XRPs worth $100.

If you decide to hold onto your Ripple coins for the long term and new price milestones are crossed, there is a huge chance that you are going to join the ranks of investors who have become crypto millionaires.

But before you decide to invest in Ripple (XRP) with your hard-earned money, it will only be wise that you get to know what the Ripple project entails. This will guide you to decide on the cryptocurrency with a strong conclusive mindset.

What Is Ripple?

Ripple is the most popular cross-border payments solutions network in the blockchain technology space. Its native asset, XRP, is one of the most popular as well as one of the most demanded cryptocurrencies in the world.

With new crypto projects flooding the space daily, Ripple has survived well and continues to use its software solutions to help hundreds of financial corporations worldwide.

Ripple was launched on 26th September 2013 as Ripple Labs Incorporation by Jed McCaleb and Chris Larsen. Ripple comprises three entities that have ensured its efficiency and survival in a market of more than 12,000 technologies competing for the same digital users.

They are the Ripple Network (or RippleNet), XRP, and Ripple Labs.

After appearing on cryptocurrency exchanges in January 2015, XRP opened at $0.01570 with just $17 as the day’s trading volume. In just three (3) years of being a tradable token, XRP tested new milestones, eventually reaching an all-time high of $3.84 on 4th January 2018.

Since Ripple (XRP) has been listed by top cryptocurrency exchanges for trading, you automatically store your holdings in their digital wallet which can be accessed through private keys.

Fortunately, in compliance with regulations, eToro, Binance, and other exchanges allow you to set private keys of your own word, number, and symbol combination (an example of this is Akro2485!).

Despite the security provided by well-regulated centralized exchanges, many people feel they will be more secure if they store their XRP holdings on wallets such as Ledger Nano, Trezor, Electrum, Edge Wallet, and Crypterium Wallet.

Unlike exchanges, the creation of an account on these wallets comes with a random set of names or digits called passcodes that must never be forgotten.

In the case of a loss of a password on cryptocurrency exchanges, you can follow processes where a link is sent to your registered email to reactivate your account. In addition to this, a code can be sent to the contact number associated with your wallet to help you regain access to your account.

On the other hand, wallet providers such as Trust and Exodus Wallet always caution users to hold on dearly to their private keys (this normally comes in at least 12 words arranged in a particular order). Once the passcode is lost, there is little chance of your regaining access to your account.

Editor’s Note: If you choose to store your XRP holdings on such wallets, write your codes in at least 5 different diaries so that if one should get missing, finding the other four (4) will help you access your tokens.

Although Ripple is a blockchain-based digital payment network and protocol, it doesn’t employ blockchain mining to confirm transactions. Instead, it uses a distributed consensus ledger mechanism via a group of bank-owned servers, to confirm transactions.

To maintain and update the protocol to meet the modern standards of cross-border payment solutions as well as trigger smart contracts that will bring forth decentralized finance (DeFi), Ripple primarily relies on upgrades to the Network (RippleNet).

After launching the Interledger Protocol in 2015 which was followed by the On-Demand Liquidity (ODL) feature in 2019, Ripple’s development team launched an engineering preview for a massive upgrade to the XRP Ledger (XRPL) on 2nd October.

This upgrade will enable federated sidechains.

According to representatives of Ripple, these sidechains could trigger smart contracts and unleash decentralized finance (DeFi) across the broader XRP ecosystem without decreasing the efficiency of the Ledger.

To illustrate how Ripple’s XRP works as a financial instrument, let us consider the returns of XRP in 2021 to date. As of October 2021, XRP has returned more than 400% gains year-to-date (YTD).

This means that depending on the total sum of investments made in XRP at the beginning of the year, your returns could be in the thousands or millions if you decided to hold onto your XRP holdings for the long term.

For instance, if you invested $100 when XRP traded at $0.2198 on 1st January 2021, you purchased 454.95905368 XRP tokens (more than 400 whole coins).

If you held onto XRP and sold it on Thursday, 6th May 2021 when it reached a year high of $1.76, the value of your $100 investment (454 XRPs) would have been worth $800 at the time (700% increase on your $100 investment capital).

What Makes Ripple (XRP) So Valuable?

Ripple (XRP), like all digital currencies, does not hold any intrinsic value. One of the ways it gains value is the possibilities of RippleNet in helping facilitate millions of transactions daily.

Many investors connect a token’s success to the impact of its issuing authority on the market.

To put it simply, XRP is not backed by any physical assets such as gold, silver, or diamond.

Since XRPs are normally determined by speculation, the market value of the cryptocurrency increases when reserve risk analysis favours the token. In this case, when the price of XRP is low but investor confidence in the asset is high (evident from billions of dollars in daily trading volume), XRP becomes an attractive investment.

On the other hand, when demand for XRP goes down due to selling pressure like what happened in December 2020 with Ripple’s case against the Securities and Exchanges Commission (SEC), its market value decreases.

Despite Ripple’s partnerships with major financial corporations, its native asset XRP is a cryptocurrency without any physical representations. As a result, no government or central bank as of October 2021 supports the usage of XRP as a mainstream transactional currency. Therefore, XRP does not qualify as legal tender.

Yet, XRP is among the noteworthy cryptocurrencies on the market today. Ranked as a top 10 digital asset, Ripple (XRP) is more valuable than some mainstream companies such as Spotify, Barclays, Prudential Financial, Vodafone, Pinterest, Hyundai, and Bridgestone whose market capitalization falls below $50 billion.

This is the primary reason why several experts continue to view Ripple as the future of financial technology.

Several analysts believe that Ripple offers an alternative platform that can facilitate cross-border payments that are 100% secure, instant, and practically free.

Although Ripple continues to face competition from Stellar in the cross-border payment solutions space and all blockchain technologies in general, it continues to form lucrative partnerships that give it a competitive advantage.

So far, executives of Ripple continue to resolve its never-ending case with the SEC, but XRP has gradually found some resistance towards the negative controversies.

This is why the digital token continues to trade above $1 which has seen a rise in the value of the cryptocurrency. XRP is an asset with lots of hidden potentials and can provide consistent passive income for a long time.

Don't Miss: Ripple Price Predictions

How To Invest $100 In Ripple (XRP)

There are numerous ways and places you can invest $100 in XRP. Based on experience, as an e-learning organization, we recommend using exchanges that are compliant with regulations.

eToro, Binance, and Kraken are exchanges you should consider investing $100 in XRP with.

Although this article is primarily centered on what might happen if you invest $100 in Ripple (XRP) today, there are no limits to the amount of money you can invest in Ripple (XRP).

Depending on the amount of money you have set out to risk, choose an exchange that meets your minimum trading and investing preference.

Fortunately, eToro has a great platform in place; therefore, it is possible to start investing with $100.

Follow the steps below and you’d be on your way towards investing $100 in XRP.

Register for an eToro account.
Verify your account.
Deposit funds.
Lastly, navigate to the Ripple (XRP) page (on this page, you can buy $100 worth of XRPs, and the order will be calculated, processed, and completed).

Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.

Will Investing $100 In Ripple (XRP) Make You A Millionaire?

Investing $100 in Ripple’s XRP could make you a millionaire if you hold onto your XRP holdings for the long term and its value crosses $10,000.

Fortunately, the cryptocurrency market is still enjoying the bulls so XRP could attain new price milestones in the not-too-distant future.

For understanding, let us employ simple mathematics in our analysis of a $100 XRP investment turning into a millionaire maker.

At $100, you can purchase 135.135135 XRPs.

You could become a millionaire if XRP trades for $11,500 in the future.

As of October 2021, there aren’t any analysts or experts across the top cryptocurrency news and forecasting portals that have made such a prediction.

On the other hand, no one thought Bitcoin (BTC) and Ethereum (ETH) could be worth $60,000 and $4,000 respectively in 2021. Therefore, XRP could attain such valuation someday.

At $11,500 and 135.135135 coins in holdings, you could become a millionaire since (11,500×135.135135) equals $1,554,054 ($1 million).

Although Ripple continues to form partnerships and serve millions of people daily, many people still consider XRP to be a high-risk investment due to uncertainty around Ripple’s case with the SEC. With that said, XRP has become extremely popular, it’s highly patronized by investors, and continues to gain exposure through the exchange listings. This makes XRP a digital asset that is poised to deliver huge returns to long-term investors.

Check Out: Should You Buy Ripple At The Current Price

What To Consider When Investing $100 In Ripple (XRP)?

When investing $100 in Ripple (XRP), it would be in your interest to consider the following.

Virtual Currencies and Blockchain Technology Is A New Concept

You should know that billions of people are still wrapping their heads around the use of blockchain technology and cryptocurrencies. Less than 10% of the world’s population holds a cryptocurrency wallet. Therefore you should not invest $100 or your entire savings in Ripple (XRP) or other digital coins based on recommendations from friends or so-called experts across social media feeds. Conduct independent research first before risking your hard-earned money. No one knows the future of cryptocurrencies, so do well to invest with caution.

Know The Actual Costs Involved

Every exchange has its fees (deposits, trading, and withdrawal). You may choose an exchange that has a fee structure that will prevent you from buying $100 worth of XRP tokens. If deposit fees take 3% and transaction fees take another 3%, you should know that you have lost 6% of your investment ($6). Only $94 will be left for trading. As a result, instead of getting 135.135135 XRPs, you’d get 127.02702 XRPs. Know the actual costs involved before selecting an exchange for investing $100 in Ripple (XRP).

Know Your Risk Tolerance

Can you afford to lose $100? In the event the legal case against Ripple affects the market value of its novel token, XRP, will you be affected by the loss of your capital? XRP continues to trade below $1 and experiences massive fluctuations due to huge trading activity. If the level of rewards exceeds the risks involved in investing $100 in XRP, then you can add the token to your portfolio, if it isn’t, take precautions and diversify your portfolio.

Should You Invest In Ripple (XRP)?

Ripple (XRP) is an asset worth investing in. Although it would have been great to have invested in XRP in the early days of 2021, the cryptocurrency continues to trade on the downside. This means that you are not late in buying Ripple (XRP).

Whatever happens, always ask the question, do the potential rewards of investing $100 in Ripple (XRP) exceed the possible consequences of the risks? XRP has turned investments of $100 into $800, $1,000 into $8,000, $10,000 into $80,000, and $100,000 to $800,000.

Although $100 is not much, it could potentially become a millionaire-maker if XRP reaches new milestones someday on the back of the great services RippleNet continues to provide globally.