Mariela is a former investment banking analyst and has been a cryptocurrency writer with LeapRate and Asktraders for the past two years
Ripple / XRP is a genuine contender for the title of the world’s cryptocurrency. Getting to the finish line in pole position will be exceptionally hard to do, but there are certain features of ripple that mean it might succeed. Founded in 2011, ripple is a blockchain system that works as a means of exchange. It’s already bridging the gap between crypto and mainstream finance and that is where its strength lies. As we explore ripple, this article will cover:
This review will outline the reasons why millions are buying XRP and how to buy XRP safely.
In its simplest form, the ripple platform makes use of blockchain technology to enable users to exchange digital currency. Sometimes referred to as the RippleNet, this framework has caught the attention of investors because of the additional layers it adds to the process.
Ripple’s cryptocurrency token is called XRP. On the ripple platform, XRP can be easily converted into fiat or cryptocurrencies or indeed traded in its own right.
The extra layers of functionality found on the ripple platform mean that internet-based exchanges can carry out real-time and cost-effective money transfers. This helps it stand out from other blockchain platforms which solely serve their native coins.
The range of financial transaction services which ripple provides includes the below:
If the ripple framework is going to leverage off all these tools and be the base for future financial systems, then ripple will see increased demand and go up in value.
If you’re asking yourself, how can I buy XRP? The good news is that price has fallen back from recent highs.
As cryptos go, ripple, which was founded in 2011, has been around a relatively long time. Looking at historical price data can go some way to helping predict future moves.
The price history goes a long way to answering the question – is ripple worth buying? The weekly candlestick chart dating back to 2019 shows the crypto’s wide spike and decline. What is noticeable is that ripple’s price volatility is less extreme than that of some other cryptos.
The relative stability in price since the last quarter of 2018 is down to ripple crossing over into being a ‘normal’ business. It processes payments between global institutions and individuals.
This might appeal to those looking to trade a market with some of the extra movement associated with crypto, but maybe not too much that they get shaken out of positions.
Ripple was developed a few years after bitcoin and the emphasis on payment processing shows how it benefits from being a second-generation project. It was also developed early enough (2011) to get a head-start on most other Altcoins.
Payment frameworks take time and money to set up and ripple has a distinct ‘first adopter’ advantage. Any likely challenge to the role of rippleNet is likely to come via technological upgrades rather than like-for-like competitors.
The really exciting features of ripple relate to the ability to also support other tokens and processes. It forms the moment when crypto blockchain frameworks shake hands with traditional financial systems.
One particularly attractive feature of ripple is that it supports multiple currencies and tokens. You can use the platform to exchange XRP but also, Japanese yen, US dollars, bitcoin, litecoin, pound sterling, euro, Russian roubles and many more.
The mechanics of the ripple platform also support the case for buying XRP.
The top-11 rankings of cryptos positions XRP as fourth placed crypto by market capitalisation.,
|Symbol||Last price||Avg vol (3-month) $Bn||Market Cap ($Bn)|
Source: Yahoo Finance
Ripple may not currently be regarded as effective a store of wealth as BTC. None of the Altcoins come close to matching bitcoin in that area. ripple is though some way ahead of BTC and most other Altcoins in terms of being an effective means of exchange.
Enthusiasm for cryptos does need to be reined in slightly as safety of trading should be your first priority. Market risk – the risk that price might go against you is a given. Unfortunately the crypto trading sector also has a reputation for scams and scammers.
The first step towards not being defrauded is to use a broker that is regulated by a tier-1 authority. Fortunately, the increased interest in cryptos has encouraged some big-name brokers to start offering the coins on their trading platforms.
There are a lot of brokers to choose from, and looking for one that is licensed by one or more of the below regulators is a move in the right direction.
Once you have a short-list of potential brokers then thinning down the number of contenders can be done in a variety of ways.
If you’re ready to purchase ripple, then it’s simply a case of signing up with your chosen broker. This should include some online form filling to ensure the broker satisfies their KYC (Know Your Client) obligations. Then wire funds into your account.
Specialist Exchanges are one option. If you’re looking for a cheap and convenient way to buy ripple cryptocurrency then the pricing at online brokers such as Pepperstone, IG and eToro, is worth checking out. The tariffs are fairly transparent and kept low due to competition between the brokers.
You don’t have to dive into the markets. If you are biding your time and asking yourself ‘should I buy ripple now?’, then you are starting from a good place. There’s no need to jump in and a clear strategy is an essential part of successful trading.
Once you buy ripple online, you can keep the position at the broker. The account is an ideal place where to store ripple.
The regulatory cover is determined by the country you live in. So, if you are looking to buy ripple in the UK, and use a broker authorised by the FCA, then it’s that organisation’s regulatory umbrella you will operate under.
Owned by Ripple Labs, the creators deserve credit for realising that their way of challenging bitcoin was to set up an Altcoin that offered cheaper and faster transaction processing.
This is important as there can only be one winner in the race to being the world’s future currency. Being an effective way of carrying out transactions will be key to winning the race.
Having been around for some years, XRP has gone some way to building brand recognition and breaking down the stigma associated with blockchain and crypto technology. That is important for a platform that aims to support fiat currencies and third-party tokens.
One significant headwind facing XRP is that the roots of cryptocurrencies have a firm anti-establishment feel. The open-source and decentralised processes were supposed to liberate cryptos from the big established institutions.
To be successful, XRP and ripple will need to balance the fundamental ethos of crypto with being an accepted and effective means of exchange. Nor is ripple the only crypto taking that approach, with this piece of research outlining how ripple compares to one of its direct competitors.
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