If you’re looking to invest in Ripple, it’s important to stay informed on everything before deciding where to place your capital. For instance, what exactly is Ripple, why should you invest in XRP, what should you look out for, and how to invest in it are all necessary questions to ask yourself so that you can influence your decision for the better.
Ripple is undoubtedly one of the most valued cryptocurrencies by the crypto community. Although Ripple is currently going through some problems with the Securities and Exchange Commission SEC, the cryptocurrency is still holding firm. However, let’s take a look at what could be your future in crypto holdings.
What Is Ripple?
Ripple is a digital currency provided and operated in part by Ripple Inc., a payment solutions firm that also runs the cross-border payment network of RippleNet. In reality, Ripple, the firm has a tradition of contextualizing how XRP integrates into its value proposition, initially endorsing it as the energy that drives its technology for cross border payments.
As both a platform and a currency, Ripple is an open-source protocol with a framework built to allow fast and cheap transactions. The network has its own currency (XRP), but it also encourages anyone to use the platform via RippleNet to create their own. RippleNet consists of a community involving institutional payment suppliers leveraging Ripple’s technologies to offer a comprehensive solution for transferring money internationally.
XRP is the digital token that is used across the Ripple network. The coin’s primary aim is to be a mediator with other exchanges, including cryptocurrencies and fiat.
Where Did It All Start?
The first draft plan had been developed in 2004, only as a prototype though. In 2013, Jeb McCaleb and Chris Larsen, along with the help of Arthur Britto and David Schwartz, were able to bring to life RippleLabs.
The creator of EDonkey network, Jed McCaleb, decided to gather world-known investors to begin the launch of Ripple by placing their funds into RippleLabs. McCaleb is well known in the crypto world. First starting off as a developer and programmer, he is now known for the creation of multiple crypto startups such as Mt.Gox, Stellar, eDonkey, and Ripple.
Chris Larsen was also a co-founder alongside McCaleb. Larsen was previously an entrepreneur in Silicon Valley and founded an online mortgage platform called e-Loan in 1996.
In January 2013, Ripple released its XRP coin. Like Bitcoin, XRP is built on a cryptographic signature public chain and thus did not need the original trust web or gateway architecture. Ripple, the business behind XRP, attracted several high-profile investors, such as Andreessen Horowitz, Pantera Capital, and Google Ventures, in April 2013.
Sceptics On Ripple
Unfortunately, one of the primary premises around cryptocurrencies is avoiding bureaucratic power, and Ripple doesn’t fall under this bracket. Many complain of its high levels of centralization with the bank-like ability of Ripple developers to control the entirety of the amount of XRP to release (or not).
Unlike other cryptos, Ripple holds its niche position in international transactions between banks, which sometimes creates scepticism among digital users. This, however, doesn’t take the spotlight away from the advantages Ripple carries.
Also, the Securities and Exchange Commission SEC accused Ripple of selling unregistered securities when it sold the digital token XRP to investors around the world, in which case many exchanges delisted Ripple from their platforms. Therefore, this has made investors sceptical about investing in Ripple and has caused huge losses to the cryptocurrency.
Why Invest In Ripple?
The best pros of Ripple are that it's fast and safe, performs transactions easily and has a pretty vast market presence. It also makes the process clearer and more streamlined.
Ripple certainly has a lot of pros that many other cryptocurrencies do not. The fact that it is intended to be used by major financial firms, and is getting adopted as such, means that there is a lot of room for growth in Ripple and that could making Ripple a good coin to invest in as the price could increase in value.
Ripple and its native currency, XRP, are among the most popular blockchain networks based on wide-scale acceptance of digital tokens. In unexplored regions and markets, the platform has worked relentlessly to expand penetration and achieved partnerships with large corporations.
Ripple’s grown a lot in Asia, North America, and Europe. XRP is also available on the payment portal headquartered in the UK, Uquid, and is open in more than 150 countries. One of its famous partnerships with India based tech chain, Tata Consultancy Services, which has a user base of over a billion, therefore opens infinite doors of opportunity for Ripple.
All of this not only provides advantages to users of Ripple and XRP but the entire crypto industry. Cryptocurrencies and blockchain have been brought to different markets through a commitment to crypto adoption through networks such as XRP, Stellar, SWIFT which were previously hesitant. In particular, XRP has played a major role in the rising global payments market.
The key purpose of Ripple has always been to establish a payment mechanism that will enable banks to use it to promote the flow of funds in both domestic and foreign markets. The project gained the trust of many prominent financial institutions until now, such as the Royal Bank of Canada (RBC), JP Morgan (JPM), HSBC Holdings (HSBA), and MoneyGram.
Famous crypto trader, Credible Crypto predicted on Twitter XRP to reach a price of $25-$30 within 2-3 years, but he also expects a drop in the market before this happens in the upcoming future.
Previous Goldman Sachs employee and billionaire hedge fund manager Will Meade purchased XRP, also his first crypto purchase, and predicts it to grow high in value in the near future.
So, when it comes to Ripple investing, it is important to know what makes this cryptocurrency so different from others.
Read More: Ethereum VS. Ripple: Which One Should Be In Your Portfolio?
How To Invest In Ripple?
You will find below a super simple 4 step run-through of how to invest in Ripple.
Step 1: Open an account with a regulated broker
Step 2: Deposit funds
Step 3: Choose the amount you want to invest in Ripple
Step 4: Confirm the investment
The amount you purchase is dependent on the market price of XRP at the time of purchase. Stashing it and keeping it as a long-term investment is always a good way to go as it can bring some healthy profit in your way toward the future.
You can buy Ripple using fiat currencies, including the USD and EUR. You can also purchase a fixed amount of some other cryptocurrency, for example, Bitcoin, and then purchase the amount of Ripple you like with that.
Ripple is also available on many exchanges, such as Binance, Kucoin, and Bittrex. You can choose an exchange of your choice, and start your investment.
A great place to invest in Ripple is eToro. You can use existing cryptocurrencies to trade for XRP if you have any. You can swap them through your exchange wallet. For these funds to emerge, it will only take a couple of minutes. When they appear, you can go to the trading window for Bitcoin/XRP and complete your exchange.
There is also the option to invest in Ripple stocks. However, this is not the same as investing in XRP. In order to invest in its stocks, you have to be quite familiar with the stock market and meet all current securities laws in place in the US.
Would You Consider Investing In Ripple XRP?
Tips And Strategies Before Investing In Ripple
1. Security is Key
Cryptocurrency is usually stored in crypto wallets. The wallet is essentially a software program, or mini hardware device sometimes, that stores the private and public keys that bind you to the blockchain where your cryptocurrency resides.
They don’t necessarily store your crypto but allow your public key (which acts as an address) and private key to access it on the blockchain (known only to you). eToro has launched its authentic exchange and wallet eToroX where you can keep your coins safely.
2. Start Small, Rather Than Big
Taking financial risks leaves some individuals tense, while some grab the opportunity when it arises and leap on a future chance. Ask yourself where you belong here. It’s important to bear in mind that you should only invest the amount you’re willing to lose, in case things don’t work out how we expect them to.
Also, the golden rule, when planning to invest, is diversifying. Reduce your level of risk by spreading out your investments across cryptocurrencies. Try to not invest all the capital you have wholly in Ripple or any other coin - diversify. Although they are volatile, it’s unlikely for them all to follow the same downward trend, all at once.
3. Patience is a Virtue
Try not to dwell too hard on what is happening today, unless the plan calls for it. Instead, strive to pick a plan and investment, stick to it, and maintain a long-term market view. As you understand more, it’s fine to alter your approach mid-way through, just ensure you have a mission with clear intentions.
Overall Ripple has performed well. Unless you want to take up day-trading — buying and holding may be a good idea when picking your Ripple investing strategy.
4. Don’t Lag Behind Trends
It’s helpful if you know how to analyze market trends. However, external factors outside the market also play a role in predicting XRP’s moves. The Covid-19 pandemic can be used here as a great example of how force majeure can impact financial assets of all sorts.
Many cryptocurrencies have lost their value after the wider market collapse in March 2020. However, the coin’s price has since regained its losses to reach a high of $1.83 in May 2021 and it's currently trading at $0.74. Certain signs such as this will help factor in toward your overall decision in placing your bets on Ripple.
5. Bear Taxes in Mind
Complex tax laws and a few regulations remain. When you plan in advance, nothing is unimaginable, but nothing you can neglect either. Cryptocurrencies now fall under US capital gains tax. This means that if you sell your Ripple for more than what you bought them for, you’re liable toward capital gains taxes. In order to avoid any problems with the law, keep a transaction history of all your purchases.
Investing is still about diversifying and ensuring that the bets can be hedged. Cryptocurrency investment is also challenging since a number of coins are very similar and Bitcoin is often driven by their markets.
Although, since Ripple is a stand-alone business aiming to try something fresh in the financial room for blockchain, it also moves separately. Compared to other well-established players, such as BTC, ETH, or LTC, the coin is still comparatively inexpensive, making it a decent fit for casual or beginner crypto investors.
Investing in XRP is indeed really worthwhile since not only is it a good option with its discrepancies in the crypto room, but also a coin that is actually on the lower hand. This suggests that it has space to go higher.
Start Investing In Ripple With eToro
eToro is a great place where you can invest in Ripple. Except for Ripple, eToro continues to expand by introducing new products and other cryptocurrencies, allowing beginners and professional investors to explore multiple possibilities in the crypto world.
eToro – The Best Cryptocurrency Platform To Buy Ripple
eToro have proven themselves trustworthy within the industry over many years – we recommend you try them out.
Virtual currencies are highly volatile. Your capital is at risk.
Key Points
- Ripple is undoubtedly one of the most valued cryptocurrencies by the crypto community.
- Ripple was brought to life by Jeb McCaleb and Chris Larsen in 2013.
- As both a platform and a currency, Ripple is an open-source protocol with a framework built to allow fast and cheap transactions.
- xRapid and xCurrent are at the forefront of international money transfers.
- Ripple has prominent partnerships with financial institutions; Royal Bank of Canada (RBC), JP Morgan (JPM), HSBC Holdings (HSBA), and MoneyGram.
- Ripple is the current driver for its technology for cross border payments.
- Ripple is one of the first coins to regain its losses post-Covid crash.
- Pick a safe wallet and prepare an investing strategy before investing in Ripple.
- Be aware of tax liabilities when investing in Ripple.
Read More:
Is Ripple a Good Investment and Should I Invest in it?
5 Reasons Why Ripple Could Double Your Money
How To Make (Or Lose) Money With Ripple (XRP)