Ripple (XRP) is the third-largest cryptocurrency by market cap and is an independent digital asset that is native to the Ripple Consensus Ledger. Its primary function is to be an effective financial settlement option for major financial institutions and various liquidity providers across the World and hence is one of the only cryptocurrencies to be relatively centralized and directly involved with the traditional banking community. Here are the top 10 reasons why you should invest in Ripple.
Ripple has a great relationship with Banks
Ripple is one of the first (if not the first) cryptocurrencies to be widely accepted by major financial institutions and banks and hence has an upper leg in widespread industry adoption. It capitalizes on this synergy between fiat and cryptocurrencies that no other major cryptocurrency has successfully achieved, and has been adopted by over 100 banks including major global players like BBVA, Axis Bak, MUFG, SEB, etc. Another benefit of this great relationship with banks is their relative immunity to changing cryptocurrency regulations globally due to their partnerships and tie-ups with such financial institutions.
The Ripple Transaction Protocol
Ripple’s Transaction Protocol (Trading Symbol being XRP) is used for a variety of purposes including transferring/receiving digital currencies and for money transfer and information transfer. Ripple’s Transaction Protocol is also famous for being to handle very large transfers across various nations for the lowest fees possible compared to centralized financial institutions.
Institutional Investment Backing
Funding growth is the lifeline to the growth of any company and Ripple has raked in over $55 million of VC (Venture Capital) funding in a single funding round including investments from tech giants Google and Apple to further their cause of making money transfers and payments as efficient as possible. The fact that several investment giants such as Andreessen Horowitz, FF Angel IV, and Lightspeed Venture have invested in Ripple shows the investment community’s faith and trust in the project’s long-term potential.
Value & Potential ROI
Ripple’s value has skyrocketed since its release (Initial Coin Offering) and even though its price has largely fluctuated correlated with other cryptocurrencies, it has grown steadily overall with its price currently trading at $0.28 at the time of writing. Hence, considering the increased rate of adoption, investment, and partnerships that Ripple has been investing along with their current rate of value growth, investing in Ripple may prove to give an investor a decent ROI in the future.
Ripple’s underlying technology is promised to be really secure and capable of lightning-fast transfer speeds. Ripple can process transactions usually with an average time of 4 seconds at the rate of 1,500 transactions per second (Ethereum can perform up to 15 transactions per second while Bitcoin can perform 7 transactions per second) as it uses a 3rd generation blockchain consensus algorithm whilst in comparison, the traditional international banking transfer system (SWIFT) takes around 2 to 3 business days to confirm a transaction’s validity.
All major cryptocurrency exchanges globally including Coinbase, Gemini, Binance, etc enable users to buy, sell, and trade Ripple (XRP) and hence, it is extremely accessible to any blockchain enthusiast and investor.
As mentioned earlier, Ripple’s strong investment backing implies that it is well-poised to grow in the near future and be relatively insensitive to external market shocks and price volatilities. Moreover, it has a very large market cap and uses consensus ledgers to perform transactions unlike Bitcoin, which uses proof-of-work algorithms that make it increasingly harder and expensive to conduct transactions.
Ripple is not just a small cryptocurrency company, but a full-fledged financial business that also has a large public relations team focusing on ensuring that they cultivate the company’s image and culture positively in the eyes of all entities they are involved with: customers, investors, banks, and the general public.
Low Transaction Fees
The article mentioned earlier how Ripple has extremely quick transaction times in comparison to traditional banking SWIFT transfer systems. An added benefit to this quick transaction times is the fact that Ripple has very low transaction fees and hence positions itself as the most price-competitive money transferring system out there.
Many cryptocurrency enthusiasts were initially very skeptical of Ripple’s projected success and growth as it was not a fully decentralized currency unlike traditional cryptocurrencies like Bitcoin. Ripple is a partially decentralized (Centralized-Decentralized Currency) owned by Ripple Labs. However, over the years, this partial centralization has helped ensure that the value of the currency is relatively stable and that it achieves the success and growth it was projected to using the other advantages and points mentioned earlier in this article.
Note: All views mentioned in this article are solely those of the author. Cryptocurrencies are volatile assets, invest at your own risk.
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Disclaimer: The authors of this website may have invested in crypto currencies themselves. They are not financial advisors and only express their opinions. Anyone considering investing in crypto currencies should be well informed about these high-risk assets.
Trading with financial products, especially with CFDs involves a high level of risk and is therefore not suitable for security-conscious investors. CFDs are complex instruments and carry a high risk of losing money quickly through leverage. Be aware that most private Investors lose money, if they decide to trade CFDs. Any type of trading and speculation in financial products that can produce an unusually high return is also associated with increased risk to lose money. Note that past gains are no guarantee of positive results in the future.
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