If you are new to the world of Ripple investing, you might be wondering if XRP is a good investment or shall I invest in it?. Well, let’s break all Ripple-related myths circulating online before you consider investing in Ripple.
Ripple is one of the best digital assets in the cryptocurrency sector, so we are here to help you understand the principles of Ripple investing.
But before we get started, let’s explore the basic concepts behind Ripple. What is Ripple?
Ripple: What Is It?
Ripple is a currency exchange, real-time gross settlement system and remittance network. Ripple is built on a distributed open-source protocol that supports tokens representing cryptocurrency, commodities, fiat currencies and other units of value such as mobile minutes or frequent flier miles. Its native cryptocurrency is XRP and its network is called RippleNet (this is a digital payment network that is on top of the XRP Ledger distributed database).
Ripple does not use blockchain unlike Bitcoin (BTC), Ethereum (ETH) 2.0 and the Binance (BNB) Smart Chain (BSC). The developers decided to be a bit different with their approach to the decentralized world and more importantly, the use of financial technology (FINTECH).
It uses a common ledger that multiple users have access to by trading the security of the number of ledgers in existence for faster transaction times unlike its blockchain siblings that are accustomed to using distributed ledger technology.
Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.
What Is XRP?
XRP is a cryptocurrency that was created to improve the efficiency of international money transfers. It's made by Ripple, an American company with headquarters in San Francisco Bay Area, and it has been available since 2012.
Despite the risks presented by the SEC lawsuit, many investors expect XRP to do well. This has a lot to do with the scope of the market that it is targeting, and that's the cross-border payments market.
Ripple has the potential to become a serious competitor in banking and international money transfers. Its strengths include low costs and fast transaction speeds that are reliable thanks to its use of blockchain technology. It’s Ripple’s use of blockchain that makes XRP more secure than traditional systems like SWIFT.
Some investors believe the shift to Ripple services will happen sooner rather than later. That’s because many banks are already using Ripplenet and XRP for cross-border payments. It’s the reason XRP remains one of the hottest cryptocurrencies for 2023 despite all the issues around Ripple.
Who Created Ripple And When Did It Start Trading?
The idea to provide secure payment options to several members of an online community was first conceived in 2004 by Ryan Fugger (software developer, originator of the credit network part of ripple, initial coin offering advisor and early-phase consultant).
Ryan gained the idea from his time in Vancouver, Canada where he worked on a local exchange trading system. Seeing as to how centralized the whole financial system was, Fugger had a vision of creating a monetary system which had decentralization as its main theme. He wanted to create a system that could empower communities and more essentially individuals to create their own money which will ease the process of going about their daily activities.
As part of the internet boom in the early 2000s which saw the creation of Facebook (FB) in 2004 and companies such as PayPal Inc. (PYPL) gaining grounds in the early 2000s after its formation in December 1998, Fugger built RipplePay.com which was the first iteration of his idea of a payment system in 2004. One of the main reasons for its creation was to enable people to extend credit lines to their family and friends.
With the introduction of blockchain technology by Satoshi Nakamoto in 2008 to serve as a public transaction ledger with its novel cryptocurrency Bitcoin (BTC), Jed McCaleb (a programmer and entrepreneur who is the current Chief Technology Officer of Stellar) began to develop a digital currency system whereby transactions were verified by an agreement among all the members of a network rather than BTCs blockchain process of mining.
In August 2012, former Chief Technology Officer of Ripple until 2013, Jed McCaleb, employed the services of Chris Larsen (an angel investor and business executive who has helped co-founded several technology start-ups) and together they approached Ryan Fugger with their idea of how a digital currency should be. After lengthy consultations and discussions with key proponents of the Ripple community and particularly Jed McCaleb, Ryan Fugger gave in to their requests and handed the concept of his digital currency to them.
In September 2012, OpenCoin was co-founded by Jed McCaleb and Chris Larsen. The development of a payment and exchange network and protocol (RTXP) was in the process. After an angel round of funding (getting a company off the ground) with the help of many venture capital firms, OpenCoin made its first acquisition, Simple Honey. The acquisition of Simple Honey was a statement to help with the popularization of virtual currencies and make it relatively easier to be accepted for usage by regular people.
OpenCoin officially became Ripple Labs, Inc. on 26th September, 2013.
Ripple was first traded on cryptocurrency exchanges on 4th August 2013 at a price of $0.01.
Why Was Ripple Created?
Ripple was created to be used for a number of purposes through its native cryptocurrency XRP and its network, RippleNet. The primary use of its crypto XRP is to help with the transfer of other currencies or commodities such as oil and gold over RippleNet.
A great example can be attributed to when a traditional financial institution such as a bank uses RippleNet (network) to conduct transfers and settlement, the cost is deducted in a relatively small amount of XRP.
The whole idea is to provide a system that settles the transfer of assets (money) in almost real-time which is more transparent, cheaper and offers a secure alternative when compared to most of the transfer systems which have been employed by financial institutions. This is done by a process called SWIFT.
Evidently, the average transaction time on RippleNet is four seconds. Traditional banking systems normally take three (3) business days to process transactions and Bitcoin (BTC) takes ten (10) minutes.
Where Was It Created?
The idea was first conceived in Vancouver, Canada but was executed in the United States of America. Ripple currently has its headquarters in San Francisco, California and it’s an innovation that was born in North America.
How many Ripple Coins Are in Supply?
The total supply of XRP stands at 99,989,867,338, with a maximum supply of 100,000,000,000. Token burning, which is used by other “altcoin” companies such as Binance and Stellar, has helped reduce the number of coins in circulation. Ripple burns coins through the fees (XRPs) which are used to make transactions happen faster than the average time. Ripple has a current circulating supply of 47.5 billion.
Ripple: Will XRP Be A Good Investment In 2023?
Ripple is a good investment in 2023. The major event that XRP investors are following is the case with the SEC. The SEC battle with Ripple has intensified over the past months. The XRP holders are expecting a positive outcome.
Ripple has lined up several partnerships, working on central bank digital currencies, remittances and clean energy. Despite the case between Ripple and the SEC, most Asian partnerships have remained intact and actually grown. The exploding on-chain activity coupled with broader market growth, presents an opportunity for value appreciation.
According to Crypto Bull, XRP is ready to move towards $2 and we will see $10 and beyond this bullrun.
According to Oracle Times, “XRP cryptocurrency is the only real option for financial institutions and banks to make cross-border payments instantly.” This, Oracle Times believes can lead Ripple and the whole cryptocurrency space to a whole new level in the future. Additionally, it sees a 2000 percentage change in the price of XRP in the future.
Is Ripple A Good Investment
So, is it worth investing in Ripple? Well, now when you know the basic principles behind Ripple, let’s see if Ripple is a good investment and if XRP is a coin worth watching.
One of the main advantages of Ripple as an investment option is the fact that Ripple is used by various large financial institutions, which can make XRP go up in the future.
Just imagine the following scenario! If one day banks worldwide accept Ripple, and you’ve already invested in Ripple, then you might be sitting on a gold mine.
Unlike the traditional bank to bank system SWIFT, Ripple is more convenient, faster, and cheaper. It’s not a secret that banking platforms take up to days to execute transactions, while Ripple takes up to a few seconds to move money across the globe.
Moreover, as transactions are done with XRP, expensive currency exchanges and fees are reduced to a minimum. Now you can easily send Bulgarian lev to your friend living in Morocco!
The transaction cost on Ripple is only 0.00001 XRP! Isn’t that a good reason to consider investing in Ripple?
And guess what! XRP can be exchanged not only to fiat currencies but other valued assets like gold.
Most investments down to the factor of “risk versus reward”. Do the potential rewards outweigh the possible consequences of the risks?
Ripple is currently dealing with the SEC but popularity fans and trust, among traditional financial institutions, coupled with the unique product of On-Demand Liquidity which is a priority in 2023 makes Ripple a good investment and you should consider adding it to your portfolio.
Overall, Ripple is performing well and unlike the other altcoins which do not possess the network (RippleNet) and usage by several money transfer services globally, millions of customers are being serviced through Ripple’s technology in over 55 countries worldwide.
Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.
Should I Invest in Ripple?
One of the reasons XRP is one of the best cryptocurrencies to invest in is its technical metrics. XRP is known for its low fees and fast transaction speeds. This means it has the potential for adoption both by the banking industry and by individual investors looking for quick, low-cost transactions. XRP's practical use case is why it has maintained its position as a top 10 cryptocurrency despite all the issues facing Ripple and its founders.
That said, XRP has some risks that just can't be ignored when looking for a cryptocurrency to buy for the long term.
One of them is that Ripplenet can still work without XRP. The majority of the financial institutions are partnering with Ripple to use their network for transaction processing. However, this does not mean that XRP must be used as well- most banks do not require or want access (or exposure) to the cryptocurrency's volatility to complete transactions. Essentially, Ripple can grow in value without the same reflection in XRP.
The lawsuit against Ripple by the SEC is also a key point of concern for any XRP investor. In December 2020, the SEC filed a lawsuit against Ripple on allegations of selling $1.3 billion worth of unregistered securities through its XRP cryptocurrency. However, Ripple maintains that it has never had an investment contract with anyone who invests in XRP and that XRP can exist without Ripple.
While there is a chance that things could go Ripple's way, that is purely a matter of speculation.
Frankly, although investing in Ripple might be worthy, but remember. There’s no such thing as 100% safe and profitable investing, so it’s up to you to decide if you should invest in Ripple or not.
Let’s not forget that cryptocurrency investing is highly volatile and risky.
On top of that, Ripple is often criticised for its centralized nature, with Ripple Labs owning 61% of all XRP - something that goes against the concept of cryptocurrency in its role of a digital alternative to traditional banking.
We should note that another concern among investors is the increase in cryptocurrencies launched by central banks, which can make Ripple disappear in the future.
Last but not least, diversification matters in the world of trading, which is enough of a reason to invest in Ripple. After all, Ripple XRP is not only a cryptocurrency but an innovative platform for payment network and digital transfer.
While Ripple is mainly used by large financial institutions - with XRP being the main messenger that moves money across the globe (not the almighty dollar) - more and more private investors are turning to Ripple.
What Are The Drivers Of Ripple?
The industry has a huge growth potential but like all businesses in other industries, only a handful of firms which have a strong user base (fans) will have a major share of the financial technology market.
Ripple’s technology pushes its price. As you may know, the altcoin does not only rely on its native token XRP but also on a network (RippleNet) where it performs international transactions. There are several banks which have adopted Ripple’s technology and there are others that are testing the technology and how it could ease their business activities.
Another factor that drives Ripple’s price is the media. When news broke out of the SEC charging the executive members of the company for selling XRPs as securities when it was registered as commodities, the price of XRP dropped from $0.5650 on December 21, 2020 to $0.27 on December 23.
Crypto Busy, a channel on YouTube, believes “Ripple-SEC lawsuit will probably be settled out of court, a net positive for XRP Price”. Crypto Busy further added that “upcoming projects such as building more partnerships with credible traditional financial institutions coupled with its On-Demand Liquidity (ODL) feature will take it across $3 and hit new highs in the process”.
Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.
So, What Comes Next For Ripple?
Ripple has a special feature that they have been marketing aggressively since last year which is On-Demand Liquidity (ODL) and this is how it works.
Customers who use the network (Ripple Net) can use XRP (cryptocurrency) to bridge two currencies in a space of three seconds. This ensures that payments are quickly sent and received in their respective local currencies on either side of a transaction.
Chief Executive Officer of Azimo, a global money transfer company, has confirmed the importance of ODL and in a statement said that “Ripple’s On-Demand Liquidity solution has significantly reduced the cost and delivery time for cross-border transfers, and customers are seeing the benefits”.
goLance, an outsourcing website for hiring freelancers, has used Ripple technology to create a platform where clients bear no cost posting jobs and freelancers are charged low service fees as well as receive payments early due to fast processing times.
Founder and Chief Executive Officer, Michael A Brooks, in a statement said “The XRP ledger never sleeps, it’s for the future of work where money doesn’t sleep and doesn’t close the door when banks do. It has made it easy to hire freelancers and more importantly pay them their due as a result of low service fees in a timely manner”.
XRP Price Prediction In 2023 And Beyond
Founder of TechCrunch and Michael Arrington XRP, Michael Arrington, a legendary technology investor has opened a hedge fund worth $100 million which is denominated in XRP. This means that seasoned investors can sense the potential growth of Ripple and the high trading price levels it could reach someday.
“Ripple is basically a platform which allows people to transfer money from person to person, bank account to bank account, really simply, really securely and really quickly” were comments made by Actor Ashton Kutcher and his business partner Guy Oseary when they appeared on Ellen DeGeneres show to talk about the future potential value of Ripple.
According to Prime XBT, if the company is able to resolve its case with the Security and Exchanges Commission, Ripple could experience a bearish situation in 2023 where it will trade at $1 and spike an interest as a result of a drop in price to trade at $10 in 2025.
Trading Beasts has predicted XRP price to be $1.25 in December 2023. While Wallet Investor doesn’t see Ripple’s price rising above $1.55 in 2024 and $2.20 in 2025. Ripple Coin News opines that "it (XRP) is expected to go as high as $10 by the end of 2030.".
Coinpedia believes that with a bullish market, by the end of 2023 Ripple price could be hitting a new milestone around its current all-time high at $3.4.
Check Out: Ripple Price Prediction
Is Ripple A Buy And How Much Will Ripple Be Worth?
Although you have to perform fundamental analysis as an investor and follow an asset’s technical analysis before you can take investment decisions, Ripple is definitely a buy for the following reasons:
➣ Ripple does not rely on blockchain so does not have proof-work problems which have slow processing times.
➣ Ripple is decentralized but centralized which means there is a physical institution of a group of people who do everything they can to ensure the asset's stability as well as its value.
➣ Ripple has been adopted by hundreds of established financial institutions and has helped design software products which have led to those companies satisfying their customers through safe, secure and timely payments.
➣ Deloitte reported that several business organizations have considered adopting blockchain but because of scalability issues have concerns. Ripple is helping several companies such as Transfer Go, Nium and Santander process transactions within seconds while the old banking system took three business days and BTC takes approximately ten minutes.
Ripple has been touted as recession proof and has its own Public Relations Department which continuously markets its products to individuals and business organizations.
According to CoinPedia, Ripple will in the not-too-distant future have a trading price which ranges from $4 and $8 as a result of its affordable prices in the next five years.
According to financial experts, Investing in Ripple now is a wise step to take. In 2023, Ripple predictions state that the price could reach $2 mark.
According to experts, investing in Ripple in 2023 cannot do your profit any wrong, since this coin has a bright future ahead.
How Do I Invest In Ripple?
Now that you know the market potential of Ripple as well as the various innovative products it has helped create for established institutions as well as start-ups, you may have been asking yourself numerous questions as to which brokerage is credible enough to hold my XRPs?
At Trading Education, traders and investors are not just informed about what, why, when, who, how and where. It is our utmost responsibility to provide you with the best brokerage which will offer you security and returns on your investment.
Among hundreds of brokerages, the one which ticks our boxes in terms of security, scalability and professionalism is eToro.
eToro has been in operations for a long time and has offices in the United Kingdom, United States, and other countries which mean the company has the needed certifications and license to operate.
There are two simple ways for you to buy your first coins (XRPs) on eToro.
The first way involves 4 simple steps.
1. The first step to creating an account on any platform online is to SIGN UP.
2. The next step involves KNOWING YOUR CUSTOMER (KYC).
Under KYC, you will be asked to provide government-issued identification cards (passport, driving license and your country’s national identification card).
3. Once verification has been done, you have to DEPOSIT MONEY (fiat currency in the form of USD, EUR or GBP). Having money on your LIVE ACCOUNT will make it possible for the purchase of your first XRPs.
4. After successfully completing the depositing phase, you can HEAD STRAIGHT TO THE RIPPLE (XRP) PAGE and as per the number of XRPs purchased, will be added to your account.
The second way is to navigate the XRP page and follow the sign up process above to complete your first page of the coins.
Will I Make Money Investing in Ripple?
Investing in Ripple and HODLing over the long-term has proved to be profitable for some traders. If you buy Ripple and HODL it, its price may increase in the long run, which is expected by a variety of experts.
The crypto market can change overnight. A single event can make a big difference. For instance, when the coronavirus pandemic emerged in March 2020, many cryptocurrencies dropped in price.
Cryptocurrency can surprise anyone and for a decade now it has been growing in popularity.
Does Ripple Have A Future?
Ripple is one of the few cryptocurrencies that likely has a future ahead. XRP has been around for quite some time now, and has built itself a good reputation.
One of the key differences that makes Ripple unique in comparison to other cryptocurrencies is that there is no mining on the network. This makes XRP more attractive to some traders and may mean it can outlive cryptos that need to be mined.
Moreover, XRP can be traded in billions of units. But these are only some of the features that make investing in Ripple exciting for crypto traders and Ripple’s future a bright one.
Should I Invest in Ripple, Bitcoin or Other Top Altcoins?
To decide if investing in Ripple is for you, you should clarify your financial goals first and create positive story.
In fact, many cryptocurrency investors wonder if they should invest in Ripple, Bitcoin or other coins, such as Ethereum.
If you are interested in a prestigious coin to purchase items, then maybe investing in Bitcoin is for you. If you are interested in the future of smart contracts and decentralised apps, then maybe Ethereum is a better option.
On the other hand, if you are interested in moving money across the globe without wasting a fortune on fees, then consider Ripple.
Let’s not forget that with Ripple. transactions take only a few seconds to complete. Believe it or not, XRP is able to handle around 1,500 transactions per second. In comparison, Bitcoin transactions take up around 10 minutes. On top of that, unlike Bitcoin, Ripple is mining-free and hence, not that energy-consuming.
Ripple may be alluring to crypto enthusiasts as well. Users can create their own tokens on the Ripple ledger, so if you are interested in this feature - Ripple is definitely worth investing in.
With different advantages over other coins, it’s no surprise Ripple ranks on the list of top ten digital coins and may turn out to be a successful investment in the years to come.
Who Should Include Ripple In Their Portfolios?
Talking about short and long-term price predictions and investing in Ripple, we should note that Ripple can be a good investment for different groups of people. Those who should include Ripple in their portfolios include:
- Financial experts and investors interested in digitalised international payments
- Traders who want to diversify their portfolios to hedge when trading cryptocurrency
- Crypto day traders who may try to take advantage of Ripple’s price swings
- Cryptocurrency enthusiasts interested in new payment ecosystems and ways to create their own currencies
Is Investing in Ripple Risky?
Though different types of investors believe in Ripple and its positive growth in the long-term, it’s almost impossible to predict if investing in Ripple can be profitable.
Given the uncertainty around Ripple and its prices in the future, investing in Ripple - just like in any other asset - can be risky.
Without an in-depth understanding of cryptocurrency investing and the factors that affect Ripple, it is not a risk-free investment.
Thus, always make sure you have access to comprehensive educational materials and courses that can help you create an effective risk management strategy and healthy trading routine.
Should You Invest In XRP Then?
If you believe things could go Ripple's way in its lawsuit with the SEC, then XRP is a high-potential cryptocurrency to buy now. However, even when buying XRP, it is important to understand that it carries a higher level of risk than other popular cryptocurrencies like Ethereum and Bitcoin.
To mitigate the risk, investing in XRP should be done with a long-term view. When you look at XRP with the next 5 to 10 years in mind, it makes sense to buy now. Not only is Ripple a quicker and more reliable way to transfer money across borders, but it also comes with an experienced team behind the project. With major financial institutions already on board, there isn't anything standing in XRP's way long-term.
To keep the risks even lower, only invest in XRP money you can afford to lose. This guarantees that even if your XRP investment does not go your way, you can still live to fight another day.
It would help if you also considered investing in a basket of cryptocurrencies rather than putting all your hopes in XRP. For instance, you can decide to buy XRP alongside a host of other top cryptocurrencies with prospects for growth. Bitcoin, Ethereum, and Terra are among the cryptocurrencies you can use to hedge your bet on XRP.
Besides the risks that XRP itself poses, one should consider the risk of capital loss by investing with the wrong broker. To lower your chances of loss, only buy XRP from top cryptocurrency exchanges with a strong reputation for security and customer service.
While each investment is risky, investing in Ripple is also alluring.
One of the main reasons is its unique purpose to improve cross-border payment transfers - something has been already tested in the real world.
In the end, the final decision comes down to you. Should you invest in Ripple? What kind of investor do you want to be? What do you expect from Ripple investing? Only when you find an answer for yourself, only then you’ll know if Ripple is a good investment or not.
Before you get started, though, do your own research and choose a reputable broker that offers different trading tools. For example, eToro allows you to buy Ripple and trade CFDs of over 90 cryptocurrency pairs.
XRP's Win In The SEC Vs Ripple Case
Ripple had a significant rally in 2021. Thanks to its dedicated management team, Ripple was able to defend the SEC vs Ripple lawsuit allegations. Winning the case has been a contributing factor to its considerable growth.
The recent judgment was favourable to XRP with the complete support of the Magistrate Judge, Sarah Netburn. She strongly defended XRP from the allegation and permitted Ripple access to the SEC communication.
The Scarcity Of The XRP Token
Like most cryptocurrencies, Ripple has a limited supply of 100,000,000,000 XRP coins. But the XRP coin could not be mined. It currently has a circulating supply of 47.5 billion XRP coins in the market. With Ripple's increasing adoption, there will be a greater scarcity of the coin, which will eventually increase its value in the future. This situation indicates that it is prudent to buy Ripple at its current rate before an inevitable price escalation.
Conclusion - Is Ripple a Good Investment
Invest in Ripple or any kind of investing can be very risky if you don’t know what you’re doing, especially during uncertain times. You may be asking yourself, “should I buy Ripple XRP right now?” So here’s a tidbit, investing your money doesn’t have to be complicated.
Whether you’re new to Riiple investing or just curious about how to make the most of your investment, understanding what to know before investing in Ripple is critical.
If you decide to invest in Ripple, then do not forget that you should never invest more than you can lose, so always focus on effective risk management and the power of trading psychology.
The bottom line is that you should always do your own research. Make sure you carefully consider all the factors that affect the price of Ripple before deciding whether or not to invest in Ripple (XRP).
If done properly, investing in Ripple can potentially become a profitable investment over time.
eToro – The Best Platform To Buy XRP
Open an account with eToro, deposit some funds with USD, and finally – buy Ripple from just $10.
eToro have proven themselves trustworthy within the industry over many years – we recommend you try them out.
Is it worth buying XRP?
Being one of the top cryptocurrencies after Bitcoin, Ethereum, and Tether, buying XRP can be worthy and reasonable in the long-term.
What is the best way to invest in Ripple?
One can decide to buy and sell Ripple or trade CFDs. With eToro, you can choose an investment plan that suits your financial goals and start investing in Ripple today.
Will Ripple reach the price of Bitcoin?
Though nobody can make accurate predictions about Ripple and its future, Bitcoin will always be higher than ripple. Because of the limited supply of Bitcoin, it’s unlikely for Ripple to reach Bitcoin. Note that Bitcoin has a limited supply of 21 million, which compared to Ripple is much smaller, hence more desired.
Is Ripple the next Bitcoin?
No, Ripple is not like Bitcoin. Bitcoin is the first crypto ever, with different purposes and underlying technology. Ripple, on the other hand, is mainly used to make cross-border payments.
Is Ripple capped?
XRP has a supply of 100 billion that has been already pre-mined. It’s worth noting that most of the XRP tokens now are owned by Ripple Labs.