Is Ripple a Good Investment and Should I Invest in Ripple?

Last Updated January 10th 2022
9 Min Read

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 at Trading Education 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 was created in 2012 by Ripple Labs to modernise payments worldwide and to make international transactions faster, cheaper, and safer.

Ripple acts as both a day to day payment platform and a digital currency (XRP).

To ensure that transactions go smoothly, Ripple employs its own protocol, the so-called Ripple protocol consensus algorithm (RPCA).

Interestingly enough, it’s Ripple’s network - RippleNet - that connects major financial providers and banks in order to facilitate cross-border transactions. RippleNet connects more than 200 financial institutions in over 40 countries, including giants like Santander and Union Credit.

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.

Currently, according to CoinMarkerCap, Ripple has a total market cap of $35 billion and ranks eighth after coins like Bitcoin, Ethereum, and Tether. 

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.

Would you consider investing in XRP?

Cryptoasset investing is highly volatitle and unregulated in some EU countries. No consumer protection.
Tax on profits may apply.

Should I Invest in Ripple?

Why Should I consider investing in Ripple? 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.

Cryptoasset investing is highly volatitle and unregulated in some EU countries. No consumer protection.
Tax on profits may apply.

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.

Cryptoasset investing is highly volatitle and unregulated in some EU countries. No consumer protection.
Tax on profits may apply.

How Much Could Ripple Be Worth?

If you think that Ripple is a good investment and decide to consider Ripple, you may ask: “How much could Ripple be worth?”

Making crypto predictions is hard, experts believe that Ripple might rise sharply. Based on price projections and Fibonacci extensions, Ripple experts claim it may reach extreme highs in the next five years.

While this price can’t compare to other top coins, we have to acknowledge the fact that Ripple has grown over the years.

The year 2021, in particular, was a turbulent year for the cryptocurrency market as a whole. Though Ripple fell victim to the coronavirus crash, and its performance on social media also suffered, some experts predict that Ripple might reach $12 in the years to come.

If Ripple manages to integrate smart contracts and adapt to the new crypto regulations coming into play, for instance, both demand and prices may increase.

While nobody can predict the future of Ripple, Ripple is definitely an investment option worth considering.

Ready to dive into Ripple?

Cryptoasset investing is highly volatitle and unregulated in some EU countries. No consumer protection.
Tax on profits may apply.

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.

So… Should You Invest In Ripple Then?

investing in ripple

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.

eToro – The Best Cryptocurrency Platform For Both Traders and Investors

eToro have proven themselves trustworthy within the industry over many years – we recommend you try them out.

Cryptoasset investing is highly volatitle and unregulated in some EU countries. No consumer protection.
Tax on profits may apply.

Conclusion: Is Ripple a Good Investment and How Much Will XRP Be Worth? 

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.

If done properly, investing in Ripple can potentially become a profitable investment over time.

Key Words

  • Ripple is one of the top cryptocurrencies after Bitcoin, Ethereum, and Tether.
  • Unlike many cryptocurrencies, Ripple has been tested in the real world and is now used to move money across the globe.
  • Ripple is being adopted by hundreds of companies worldwide, such as Santander.
  • Though Ripple’s main adopters are large financial institutions, private investors are slowly turning to Ripple too.
  • Whether you decide to invest in Ripple or another cryptocurrency project, always do your research and consider possible risks.

Getting Started With Ripple Investing

To start investing in Ripple or other cryptocurrencies you first need to register online with an exchange which will allow you to buy and invest in Ethereum. An exchange broker is an online platform that enables you to buy and sell Ethereum as well as any other cryptocurrency that they have listed.

If you want to buy and invest in Ripple quickly and easily with your credit card check out eToro.

Cryptoasset investing is highly volatitle and unregulated in some EU countries. No consumer protection.
Tax on profits may apply.

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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.

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.

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 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. 

Further Reading:

Ethereum VS. Ripple: Which One Should Be In Your Portfolio?

A Beginner’s Guide To Stablecoins

Pros and Cons of Investing in Ripple, Will It Be a Millionaire Maker?

Popular Cryptocurrencies In The UK

Top 10 Cryptocurrencies To Invest In

Most Popular Cryptocurrencies In The USA

7 Golden Rules To Making Money On The Crypto Market

Cryptocurrency Investing Tips And Mistakes To Avoid

Disclaimer: Cryptocurrencies are highly volatile. Your capital is at risk and Past performance is not an indication of future results.