XRP Has The Potential To Make You Rich In A Very Short Time
Bitcoin is the number one cryptocurrency by market capitalization. It has also given investors a pretty high ROI since entering the market in 2012. While buying Bitcoin is an excellent path to wealth, other cryptocurrencies have much higher potential.
One of the cryptocurrencies that could beat Bitcoin is XRP. Ripple (XRP) is currently trading at $0.7126 and has a market capitalization of $34.25 billion.
While XRP is a high potential cryptocurrency, it is the only top 10 cryptocurrency yet to retest its all-time highs since 2017. XRP has underperformed the market due to the SEC's lawsuit against Ripple. The case saw XRP lose its spot as the 3rd largest cryptocurrency.
Essentially, while all cryptocurrencies are risky investments, XRP carries a much higher risk than most. With this in mind, is XRP a growth cryptocurrency to buy now? To help you decide on whether to buy XRP or not, let's take an in-depth look at it. By the end of this article, you should be able to decide whether or not to invest in XRP today.
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 2022 despite all the issues around Ripple.
Ripple is proactive in pushing for adoption
One thing that makes XRP stand out as a top 10 cryptocurrency to buy now is that Ripple is proactive in pushing for adoption. While the lawsuit has slowed down and even reversed some of Ripple's gains in the US, adoption is rising globally, especially in Asia.
Ripple claims that they have already partnered with over 300 financial institutions in more than 40 countries, which is just the beginning of what's possible for them. While they are still far behind SWIFT in adoption, Ripple's value proposition points to the massive potential for long-term adoption.
For instance, as regulations get more transparent on crypto adoption, a bank would find it hard to pass on the idea of instantaneous transactions that cost as low as 0.0001 XRP. If the lawsuit ends in Ripple's favour, XRP is without a doubt a top cryptocurrency that could explode in 2022.
Don't Miss: Ripple (XRP) Price Prediction
Pros And Cons Of Investing In XRP
|Low transaction costs||Ripplenet doesn’t need XRP|
|Almost instantaneous transactions||Lawsuit against Ripple by the SEC|
|Adoption is on the rise|
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.
Should You Invest In XRP?
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 top 10 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.
Using The Wrong Broker Can Be Catastrophic
While cryptocurrencies can make you rich quickly, stocks are ultimately the safer way to build wealth long term. However, like cryptocurrency, using the wrong broker can be catastrophic to your investment plan.
Luckily for you, we have analyzed the top online stock brokers that you can use to make your investment journey a success. Follow this link to check out our top broker's features, and how you can leverage them for successful investing.
eToro – The Best Platform To Buy XRP
Open an account with eToro, deposit some funds with USD, and finally – buy Ripple from just $10.
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Virtual currencies are highly volatile. Your capital is at risk.