This guide is dedicated to solving your issue “Is Ripple a good investment.” Ripple is the fourth most prominent cryptocurrency in terms of capital.
Basically, with the revolution in technology, the world is turning into a digital community. From mortgages to investments, everything is now through the use of technology.
Before investing in digital currencies, you must consider the element of volatility. There are several cryptocurrencies in which you can invest, such as bitcoin, Ripple, etc.
Although Ripple did not gain fame like Bitcoin, it is one of the most significant digital currencies regarding market capital. But experts are hopeful that it will grow in the next few years. In this article, we are sharing details about how lucrative the investment in Ripple can be.
XRP is the type of cryptocurrency used for transacting money, and the Ripple Lab developed it. It is quite different from Bitcoin as they are not powered by a central leader such as blockchain. The technology system of Ripple Labs regulates it.
What is XRP?
Ripple is the parent company of the XRP. Ripple is an open-source protocol that Ripple Labs created. XRP has now been spent in more than 180 countries. The fundamental reason behind XRP development was a platform to transfer money between the countries by using the Ripple network.
The Ripple is designed to assist you in the faster transactions of the funds than various other online money transfer systems. But it is not restricted to transactions as it is the owner of almost 60 billion XRP.
How does XRP Work?
Ripple is a private company that collects funds from venture capital and investors. Moreover, their revenue model is established on the services of professionals.
The digital currency XRP aimed to assist the money transfer in the Ripple Labs. XRP works as an intermediate mechanism between two networks or currencies for exchange.
XRP Price History
From the day it launched, it had witnessed some rapid fluctuations. Till 2017 its price had hardly reached more than $0.01. However, in the March and April of that month, its price starts to surge. At the end of April, it had hit the figure of $0.05.
As May ended, its value increased and was reached $0.25. It retracted in the following months of 2017, but as 2018 started like various other cryptocurrencies, its value enhanced. On January 4, 2018, its value was $3.84.
But surprisingly, after a fortnight, more than half the value of XRP was lost. At the beginning of 2019, its value was approximately $0.30.
At the end of 2020, the value surges again, but due to the SEC lawsuit uncertainty value of XRP dropped again. Now the XRP is doing pretty well and about to hit the mark of $2.
XRP Price Prediction
Different analysts have various decisions regarding the future of the XRP. Some experts think that its value will increase and reach $17-$20 by 2030. On the other hand, some analysts evaluate that it will not progress rapidly. Moreover, various factors can affect the XRP price.
Is Ripple a Good Investment?
We can say that it can prove an excellent decision to invest in the XRP as it has a great tendency to grow. Its low price attracts people to invest in it. Moreover, the Ripple network makes it convenient and effortless to do transactions with ultra-low fees. That’s why it has extensive use in multinational banks.
But don’t get excited after reading its benefits because it has disadvantages as well. Before investing in Ripple, please search for its value and market trends as well. Furthermore, if others earn a profit, then it does not give you a license. That same will happen to you.
As we all know that the government does not back cryptocurrencies, so before investing, evaluate your risk tolerance as well. Moreover, concentrate that “is ripple a good long-term investment.”
Benefits of Ripple
The benefits of ripple currency are listed below.
Cheap Financial Transactions
The current trade rate of Ripple is $1.32 per coin. It is affordable to buy as compared to the other cryptocurrencies. You can get a significant amount of XRP for only 100 dollars.
Some experts believe that its price will increase fastly in the ten years. So, Ripple could be the best option to minimize the risk of loss.
Backing of Multinational Banks
Probably, Ripple has the best backing system as multinational banks support them. That’s why a group of experts prioritize XRP over Bitcoin and other cryptocurrencies. Here is the list of organizations and banks that involve Ripple in their strategic plans.
- BMO financial group
- Axis Bank
It’s More than Just Currency – It’s A Company!
Ripple is not merely a cryptocurrency, but it is a company. Their company, Ripple Labs Inc, has more than 500 employees. They have marketing and public relations experts that lend a helping hand in promoting their cryptocurrency to users and investors.
Cons of Ripple
Besides advantages, cryptocurrencies have some hazards related to them that will let you know why not to invest in Ripple. Here we discussed some of them.
It Looks Like a Bank Currency
XRP is launched by Ripple and is more often used as an exchange of the product that made it quite different from the other digital currencies. The customers and employees use the XRP to do transactions. That’s why people feel that it is more like bank currency.
It Cannot Be Mined
Unlike the famous bitcoin and several other cryptocurrencies, it can not be mined. However, it has a limited supply of its digital currency named XRP. The actions taken by the miners do not create this digital currency, but its own company Ripple created them.
When launching, the 100 billion coins were issued, but now less than half are inflow. The benefit to having a mining-based cryptocurrency is that market trends can assist you in evaluating exertion in establishing blocks on the distributed ledger technology blockchain.
Those blocks can affect the price. Let’s suppose if the value of the cryptocurrency is low, less mining will take place as it will not be impactful.
The Company Holds a Significant Chunk in Ripple
The chairman of Ripple, Chris Larsen, owns a significant portion of the Ripple. Moreover, the other senior members of the company hold substantial shares of the XRP. In this way, it will be concentrated to a few hands and will not circulate.
It is a big hurdle that hinders XRP from excelling. Moreover, in this way, people’s confidence will shatter as they feel lonely investing in this digital currency.
Frequently Asked Questions (FAQs)
Here are some frequently asked questions associated with the Investment in Ripple.
Why 2021 is the best time to invest in Ripple?
Ripple is one of the most popular cryptocurrencies. Due to the SEC issues, people are reluctant to invest in Ripple. They are trying their best to get out of the issue, and hopefully, they will get rid of it in 2021. On the other hand, it has incredible benefits as well.
Firstly it is backed by influential financial groups. Secondly, its value is expected to grow exponentially. So, decide after financially and statistically analyzing market trends. Moreover, try to figure out that “Is Ripple dead or not.”
What is Ripple(XRP)?
The US-based technology company named Ripple Labs Inc is a gross settlement system. Moreover, they rendered services in the money exchange. Ripple utilized the XRP cryptocurrency for the transaction of money.
Is Ripple (XRP) a good investment in 2021?
Ripple(XRP) has a marked tendency to grow In the coming years. As we have mentioned above in the article, financial experts are highly optimistic about the growth of the XRP.
So, if you have experience and have comprehended the game of cryptocurrency, then you can invest. Moreover, the values of cryptocurrencies change drastically, so keep in mind that as well.
How to invest in Ripple?
It is not convenient to invest in Ripple. Here is the step-to-step procedure of investment.
- Create a Coinbase Account
- Purchase Ripple
By following the steps mentioned earlier, you can invest in Ripple.
Is Ripple risky?
Price volatility is the most considerable risk associated with Ripple and other cryptocurrencies. Their value drops suddenly. Moreover, Ripple has SEC allegations as well. So, be ready for all the complications that you may face. Not only this, your all money can be lost too. Therefore, before investing your wealth in the Ripple, consider all those risks as well.
What is the minimum amount to invest in Ripple?
The cost of one Ripple is $1.57, so to buy one Ripple, you must have this amount. Moreover, depending upon your budget, you can buy as much digital currency as you want.
Although people have concerns about cryptocurrency, on the other hand, many people are earning a profit from it. So, before diving into the Ripple, analyze whether it is your cup of tea.
If you did not know much about cryptocurrency and how they work, then first elevate your knowledge.
Moreover, Ripple has SEC allegations that make it risky. We will suggest you make a decision wisely and do not get fascinated by the hype. We hope that after reading this article, your query “Is Ripple a good investment” will be solved.