Is Ripple A Good Investment? – Different Investment Options You Can Try
One of the cryptocurrencies that hits the headline for the past year is Ripple XRP. The Ripple Company prides itself from having the third largest cryptocurrency by market cap while being a digital payment protocol at the same time. It has an immense transaction solution offering to the market. This is why it has been constantly the talk of the town in the field of finance.
Will all the news you have heard about this company, you might ask: is ripple a good investment? Will it make me grow money for the next years? As an investor, you want to have the full picture of how the company works, as well as the potential value of its cryptocurrency. Read this article to help you out.
What is Ripple?
Ripple, Ripple XRP, Ripple Consensus Ledger, and RippleNet – what are the differences? To start, Ripple is a tech firm based in San Francisco. It was founded and 2012. This company developed the Ripple payment protocol, under which are the RippleNet and the Ripple Consensus Ledger (RCL). RippleNet is a network of banks, non-financial institutions, and digital currency exchange. The native digital asset for RCL is Ripple XRP.
The broadness of Ripple’s ecosystem alone can give you an initial insight in answering “is Ripple a good investment”? Let us deepen our understanding on this on the next topics.
RCL and XRP
Ripple and XRP are almost interchangeable terms in the world of finance. However, this is not technically true. Ripple, the company, created RCL which uses XRP as a digital money used to facilitate the network’s facilities in the whole of Ripple Ecosystem. Its purpose is essentially to bridge exchange transactions than can be facilitated in the RCL which may involve either flat assets or other cryptocurrencies.
Picture this scenario: a US financial institution must send 5 million USD into another entity housed in another continent. The usual protocol is that both parties will have to contract a third-party verification system that will help ensure the presence of sufficient funding and the security of the transaction. This could be a tedious and costly process, not to mention the additional money it will cost them to cover conversion loss.
Using a more sophisticated method offered by RCL, the institutions involved in the transaction may simply utilize their service and come up with a faster and more efficient solution. With the use of Ripple XRP, flat assets may send that 5 million USD to the receiving entity in a matter of seconds. The best part is that transaction fees are much cheaper. The parties will just have to spend cents, instead of thousands of dollars. Imagine how great of a deal this is.
The above characteristics of Ripple and Ripple XRP is a major factor of why the public keep on asking - is ripple good to invest in. People realize the intelligence and efficiency that the creators put on their work. Imagine a business framework serving an in-demand service. This ensures the liquidity of XRP for the next years.
In asking is ripple a good investment, you might wonder, how does this company able to deliver such ideal services? This is where RippleNet comes in.
RippleNet is a network between financial institution that is built on an advanced blockchain system. With this technology infrastructure, members are ensured of security. RippleNet allows frictionless transactions globally.
The integrity of the business is attested by RippleNet’s impressive roster of membership. The list includes Bank of America, SBI Holdings, Santander, American Express, Royal Bank of Canada and Moneygram. Hearing these big names lead you to a YES when asking is ripple a good investment.
To help you decide if you will go for an investment in Ripple, let us discuss what the opportunities that you can avail in this company.
Cryptocurrency Investment: Ripple XRP
Any newbie in the cryptocurrency arena might have started by buying a cryptocurrency. You can absolutely do the same for Ripple XRP. This RCL native coin is also made available in several exchange platforms including Coinbase, Kucoin, Binance, Poloniex, and Bittrex. Here are steps to help you get started. Let us have Coinbase exchange as an example.
- Create a Coinbase account. You will be directed to undergo a verification procedure will to help secure your identity and future assets. Pro tip: avail a 10 USD bonus if you deposit 200 USD
- Navigate through the app and buy Ripple XRP. By clicking on Ripple XRP, you can choose then place your trade. You have the option to pay using flat money via debit or credit card. Your transactions will appear in your account.
From its opening value of 0.1 USD, Ripple XRP is now worth 0.6 USD. It recently doubled its price from its October 2020’s base value. Despite the pandemic, Ripple XRP have been impressively stable. Is ripple crypto a good investment? It has proven its stability and liquidity in the market which makes it a good bet if you are to pour in some capital today.
Stocks Investment: Ripple Company
Is ripple a good investment worth considering for stocks buying? Why not! If you are impressed by the entire genius business framework, consider officially partnering with them by buying stocks to grow your money.
In buying stocks, you will have to abide by the US’ security laws. This could be a tedious process for those who have no experience in stock market yet. Another consideration is that Ripple stocks are posted under public trade. This means that only “sophisticated investor” can only avail. Ripple’s current minimum requirement to qualify either you possess at least 1 million USD in liquid assets, or you have earned a minimum of 200,000 USD yearly for 3 consecutive years. Learn more about Ripple cryptocurrency here!
Ultimately, is Ripple a good investment? The company and the cryptocurrency have shown promising performances throughout the years. The company continuous to be innovative in providing services. Their network of reputable financial institutions also continues to broaden. Of course, there is always a risk in investing. But Ripple proves itself to be a good bet amongst the players in the market. Who knows, your Ripple investment today can be the most fruitful assets in the next years to come.
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