Unless you’ve been living under a rock, you know that Ripple has made several investors rich in the last 5 years.
Ripple is one of the most popular altcoins in the crypto universe. As the market continues to grow, Ripple's popularity is bound to soar higher. On a few occasions, the Ripple XRP coin had attained the position of the second-biggest cryptocurrency by market capitalization.
At the time of writing this article, Ripple’s XRP is the sixth biggest cryptocurrency, by market capitalization. At the time of writing this post, the XRP coin was worth $0.74. That’s definitely a long shot from what we had last year when it was traded for around $0.20.
It is important to clarify here that Ripple is the company while XRP is the digital coin. The company is involved in services other than the XRP coin. For the sake of this post, however, we will use Ripple coin and XRP interchangeably.
Are you considering turning to XRP for long-term investment? Do you plan to buy the Ripple coins and hold on to them for up to ten years? Then you need enough information to make a decision you won’t regret in the future.
People from all parts of the world have invested in digital assets. Many have made fortunes through Ripple trading. There is an abundance of proof that investing in Ripple can make people rich.
Here, we will discuss Ripple extensively to help you make an informed decision. Read carefully to understand the opportunities and the risks of investing in Ripple XRP for the next ten years.
- What is Ripple?
- What Makes Ripples Different?
- Is This A Good Time To Invest In XRP?
- Why You May Want To Invest In Ripples
- Why You Should Think Twice About Investing In Ripple
- Ripple (XRP) Price Predictions
- Should You Play The Long-Term Game With Ripple?
- Important Tips for Investing In XRP
What Is Ripple?
Ripple and XRP are used interchangeable, so it is important that we clarify the terms here. Ripple is a platform created as a payment processing solution for global transactions, using XRP as the native currency.
The XRP, on its own, is the native digital currency of the Ripple platform. It is a cryptocurrency that has become one of the most recognized digital assets in the cryptocurrency/blockchain universe.
In most instances, Ripple and XRP are used interchangeably. In this article, we will do the same. We will use Ripple to describe both the platform and the cryptocurrency, and we will use XRP when we want to be specific with the Ripple token (XRP as a cryptocurrency).
Ripple was originally created as a platform for fast and cost-effective global financial transaction. The platform has remained true to the goal of executing global transactions. Though based on blockchain technology, the platform is quickly finding its place in the real world of financial transactions.
Created in 2012, Ripple is a private company that has grown remarkably. The platform has been adopted by several companies that are not really affiliated with blockchain, including formal financial service providers. Ripple has also won the heart of several cryptocurrency enthusiasts.
Like most other cryptocurrency platforms, Ripple uses a blockchain ledger that is similar to Bitcoin. However, it has technical differences originally made to improve the speed of transactions without compromising the security of every transaction.
More About The XRP Coin
As stated earlier, the XRP is the native coin of the Ripple platform. It can also be called the Ripple Token, Ripple XRP, or Ripple coin. XRP is primarily used to facilitate transactions on the Ripple network. It can be used to facilitate money transfer between different currencies (including digital and fiat currencies).
The most spectacular thing about Ripple is that it allows for easy conversion of the value of transactions into XRP. Thanks to the unique nature of XRP, the conversion can happen seamlessly, allowing payments to be processed instantly without exchange fees.
The Ripple token has become a valuable payment tool for cryptocurrency users and those who are just getting familiar with cryptocurrencies and blockchain technology. The speed and efficiency of the system have endeared it to major financial players, including Bank of America and Santander, the Spanish banking giant.
At the time of writing this piece, Ripple XRP is valued at $0.74. It has a market capitalization of $35 billion. In March 2021, it ranked fourth behind Bitcoin, Ether, and Binance Coin, in terms of total market capitalization. You can find current statistics and information about the coin in the XRP Charts.
How Can You Make Money From Ripple?
There are different ways to make money from Ripple. Experts can create several applications on the platforms and monetize them. For regular online trading, Crypto is a good platform to invest in digital coins, especially XRP, and make profits.
Day-trading is one of the quick ways to make money from Ripple. The method mostly favours experienced individuals who are committed to trading cryptocurrencies and are open to taking risks in the market.
Another wonderful way to make money from Ripple is through XRP HODLing. This implies buying the cryptocurrency and holding it for a considerable period of time. Ripple HODLing is based on the strategy of buying a digital coin when the price is down and selling when the price is high. Though it is mostly based on speculation, it has the potentials of making the investor rich.
If you are considering buying Ripple XRP now with the hope of becoming rich in ten years, then HODLing is the strategy for you. However, you need to realize that it is still a risky venture that may bring a huge reward in the future or end up as a huge disappointment or heartbreak.
What Makes Ripples Different?
Ripple is different from most other cryptocurrencies in different ways. The first important difference is that it was created by a private company. While the identity of some of the creators of some popular cryptocurrencies remains unknown, the company behind Ripple is well-known.
When XRP was created by Ripple, 100 billion units were released into the market, with 20 billion held by the founding company (Ripple Labs). It is also on record that Ripple Labs has so far placed 55 billion XRP in an escrow account, just to ensure user stability in the marketplace.
As far back as 2014, Ripple was fondly described as a Bitcoin-killer. Though XRP has not overtaken Bitcoin in any way, it has become very relevant in the industry. Over the years, it has seen meaningful progress, but it gained significant traction and momentum in 2021.
Before we begin to discuss why Ripple has become so popular and endearing, let’s briefly summarize the facts that make it different from the regular crypto token:
XRP is Not Mined
Developers and crypto miners cannot create new XRP coins. The private (for profit) company that created the coin mined about 100 billion of it, releasing 35% into the market and keeping as much as 65% to keep the coin and its market stable.
XRP Does Not Rely On the Blockchain Technology
Though Ripple is described as a blockchain-based digital payment network and protocol, it does not entirely rely on blockchain technology. Instead of relying on blockchain mining, it utilizes permissioned consensus mechanism via a group of bank-owned servers to confirm transactions. The gateways of transactions are also supported by the company’s offices in different countries.
XRP Attracts Partner Banks
While most cryptocurrency platforms are concerned about attracting individual investors, Ripple focuses on attracting partner banks. The company was originally created to make banking transactions faster and affordable, and it is doing really well in that regard. The popularity of Ripple is highly dependent on the number of formal institutions it attracts. When the company signed a contract with 20 banks in 2016, the price of the token recorded a 200% increase.
High Speed and High Level of Protection
Ripple has set a standard for high-speed transactions. Transfers happen much faster than what we experience in Bitcoin, and conversions happen so fast with minimal commission. The Ripple network also offers a high level of protection against spams and hacking attacks.
Lack of Inflation
Ripple is so organized that inflation is almost impossible. All XRP are mined already and properly apportioned. It is impossible to generate new coins, and hypothetical excess of the coin is eliminated through burning when paying a commission.
Transactions in the Ripple network can be reversed if an error is noticed in time. This is one critical area it beats most cryptocurrencies. This also minimizes scam rates with this cryptocurrency.
Check Out: Is Ripple a Good Investment?
Is This A Good Time To Invest In Ripple XRP?
Ripple has come a long way. We also feel it is one of the most important cryptocurrencies at the moment. Currently, more than 200 financial institutions have adopted Ripple’s technology, and the growth is not slowing down anytime soon.
2022 is looking like the best year to invest in Ripple. Cryptocurrencies are fast becoming more popular than ever, and Ripple is clearly one of the most important ones. In 2021 it has had a remarkable year, without the price getting too high.
Crypto experts are feeling confident about Ripples. There are clear indications that the platform will become even more acceptable in the future, and the coins can become a lot more valuable. Since making a significant investment is still within the grasp of anyone, this is really a good time to invest in XRP.
Read Also: Should You Buy Ripple?
Why You May Want To Invest In Ripples
There are several wonderful reasons to invest in Ripples and we can’t fully cover all. However, we will briefly discuss some of the major reasons to invest in Ripples now:
The Ripple token is still very affordable. Compared to other popular cryptocurrencies, the coin is relatively low-cost that anyone can invest. At the time of writing, the coin is $0.74. XRP is one of the few top cryptocurrencies that has never crossed $2 per coin since its all-time high in 2018, and this is actually a good thing – it illustrates the stability of the coin. The coin value is set to appreciate with time, and buying at the moment gives you a major advantage.
2. Popular Alt-Coin
There are thousands of alt-coins out there and Ripple is recognized as one of the most important ones. As the cryptocurrency universe continues to expand, the coin will become a lot more valuable in the financial and investment world.
3. High Market Capitalization
High market capitalization is often regarded as a sign of investor confidence. Ripple has always been among the top cryptocurrencies when it comes to market capitalization. It was on the third spot for a long while and has now dropped to eight place. Considering that there is a legitimate company behind the coin and its platform, we can conclude that investors are pretty confident and will continue to back the coin for a long while.
4. Real Problem-Solving Digital Coins
As we’ve already stressed in this article, Ripple is a unique platform that solves a real-life problem. The platform and its native coin have improved the way many banking institutions handle financial transactions. It makes payment faster and many banks and financial institutions are already using it.
5. Evidence of Success in Real-World Use
There is an abundance of evidence that Ripples has solved real-world problems. As we’ve mentioned severally, it has been adopted by several banking institutions for money transfers. The platform has been found to be very fast, efficient, and affordable. XRP is more than a coin, which is why it appeals to banks, investors, crypto enthusiasts, and the public.
Why You Should Think Twice About Investing In Ripple
Though there are several spectacular things about Ripples, there are a few reasons you may want to hold back about investing so much in the token. Here are summaries of these reasons:
It Was Created and Currently Controlled By a Private Company
Ripple was created by a private company that is actively after profit. This fact puts a question mark on the genuineness of XRP as a true cryptocurrency. It is apparent that if Ripple Labs makes a costly mistake, XRP can fail. Centralized control favours investors in a way, but it can also be a problem for those who desire a truly decentralized system.
It Is Not Decentralized
Chris Larsen, the chairman of Ripples own as much as a third of all XRP. Though this is not causing any real problem at the moment, it is still considered an anomaly in the cryptocurrency universe. It makes the platform feel like a centralized and controlled system, which is against the tenets of cryptocurrency.
It Is More Useful To Companies in the Banking and Financial Industry
Let's not fool ourselves, Ripple was created for companies in the banking and financial industry. This is quite ironic as cryptocurrencies are ideally viewed as being anti-banking. Though ordinary people can benefit from the platform, it caters to the needs of banks and financial institutions more.
Though Ripples has been able to attract many banks, it still faces serious competition from SWIFT. In fact, Ripple is seen as trying to solve the exact problem SWIFT solves. Though Ripples obviously performs better than SWIFT, the latter is still a big threat to Ripple and XRP.
Ripple has been enmeshed in a legal battle with the US Securities and Exchange Commission on the ground that the company sold unregistered securities to US citizens when it offered XRP. The company believes it is recovering from the case. No matter how you choose to look at it, this has elements of risks.
Ripple (XRP) Price Predictions
Different experts have predicted that Ripples can reach new heights in the coming years. While you should not make investment decisions based on predictions alone, they can guide you towards making a decent decision.
It has been predicted that Ripple XRP will likely touch the $1.5 in 2022, and it appears the prediction is in line to happen. The digital coin is also expected to reach new heights in 2023, but much will depend on its legal battle with SEC.
In ten years’ time, Ripple is expected to become very valuable. According to Ripple Coin News, the price of XRP can hit $30. Smartereum is a lot more optimistic, predicting that the Ripple token can be worth as much as $100 in ten years.
While XRP has some potential, you can’t just bank on the prediction of these sites. You need to consider the pros and cons of Ripple and decide if it is worth the risk.
Read More: Ripple Price Predictions
Should You Play The Long-Term Game With Ripple?
You can make money by buying Ripple XRP when the price is low and selling when it is high. This strategy will work for many people, especially those who have a lot of money to invest. But is XRP also an ideal platform or cryptocurrency to invest in in the long run.
Playing the long-term game with Ripple can be rewarding if the company grow bigger and the token becomes more valuable. But considering the risks involved, is it really worth it.
Ripple appears to be a very wonderful platform with a solid crypto coin that is relatively stable. The platform solves real-life problems and has already been adopted by many banks. Investors appear to be pretty confident about XRP, judging by its market capitalizations.
Considering the factors highlighted above, Ripple seems like a decent option for long-term cryptocurrency investment. It has also been predicted that the value of XRP will soar in the coming years. The coin may be worth so much in ten years’ time that it will make you rich.
Important Tips For Investing In Ripple XRP
Playing the long-term game with Ripple XRP can be rewarding. However, you need to play carefully to minimize risks and maximize your potential reward. Here are a few tips to keep in mind.
1. Do Not Invest Everything You Have
It is not wise to invest everything you own in any venture or asset. Ripple is a cryptocurrency and, therefore, has some limitations. It is best to invest a reasonable amount but it must be something you can lose without losing your mind.
2. You Don’t Necessarily Have To Wait For Ten Years
You don’t have to wait for ten years before cashing out on your Ripple’s investment. If you invest now and the token records a dramatic rise in value in the next four or five years, you can cash in and enjoy the reward of your investment.
3. Keep Learning and Keep Improving
The world of cryptocurrency is evolving. The investment world is also changing every day. You must keep learning and improving yourself to stand a chance of maximizing your returns and making real progress as an online trader or investor. Reading the best trading and investment articles will be helpful.
Invest The Smart Way
Investing in cryptocurrencies can be tricky. It is a little harder to succeed than how it used to be in the past. Traders and investors must learn the smart ways to invest.
Ripple has the potentials of making you richer in ten years. However, it is important you understand how to invest and how much you can comfortably invest.