Ripple is a cryptocurrency trading platform and a digital currency that relies on an ‘open-source protocol’ to enable swift and low-cost transactions. Ripple primarily aims to provide simple payment options to enable hassle-free transactions and users can create their own ‘RippleNet’ on the platform. RippleNet is a network of banks or money based service businesses and other institutional service providers “to provide a frictionless experience to send money globally.” In terms of its structure and technical aspects, Ripple is similar to other cryptos like Bitcoin. Litecoin etc. but it has been termed as “Bitcoin killer.” Ripple is faster than Bitcoin, although it offers the same level of security, and hence was expected to give a tough competition to Bitcoin as the leading cryptocurrency.
A major point of difference with Bitcoin is that Ripple was developed for use by banks or other financial institutions, unlike Bitcoin, which intends to keep these institutions away. Although Ripple has its own token, ‘XRP,’ yet it was created for real-time settlement of payments, currency exchange, and remittances. These are conducted on a shared and public ledger based on consensus needed for the task and therefore does not rely on mining or blockchain technology. Transactions would thus need less power and would be carried out by reaching a consensus within members of that network, which implies faster transactions. This project was first created in 2012 as the ‘OpenCoin’ protocol, which developed an open-source protocol called the ‘Ripple Transaction Protocol’ (RTXP) and is freely available, has been used by many financial institutions.
Ways of Investing in Ripple
The first step towards investing in Ripple is to buy it, which is the simplest and most obvious step. One of the best ways to invest in acquiring it and then waiting for the returns as this would bring very good returns in the long run, as Ripple is expected to grow manifold in its value. However, this kind of investment may bring high returns at the cost of some associated risks, as although Ripple is expected to grow in terms of value, we cannot be certain that there will be a substantial increase. Therefore it is suited for those who have sufficient time in their hands and also other cryptocurrencies because Ripple cannot be bought with ordinary currency, but only with other cryptocurrencies. To make the buying of Ripple less complex and smooth experience, certain trading platforms offer such services.
The second step or investment method in Ripple is investing in other companies or start-ups that deal with or are related to cryptocurrencies. This is a risky venture, but there is a potential to bring in huge revenue from such investments once the risk factor is averted. Investment in Ripple is slightly different from that of other cryptocurrencies because Ripple is a centralized currency, meaning the control is in the hand of the creators, which may cause the currency price to rise drastically. It is for the same reason that Ripple cannot be mined or tampered by any third party. You can check out our XRP news today for the same.
The best way, in this case, is to invest in a startup or a firm that seems to have the potential to earn huge profits. These startups are mainly driven by ideas, which sometimes can be far fetched and may not succeed. On the other hand, there are many examples where such ideas have worked brilliantly, and the startups have become immensely successful. One can go proper research and apply his experience and deduction skills to come up with a few names, where they may want to invest.
Before and After Investing
This option is certainly difficult for newcomers, inexperienced in the crypto business, but can prove highly rewarding for veterans. If one has had his share of profits in cryptocurrencies, he can definitely go for this option. Although one can also purchase and keep a reserve of such currencies, he should also look out for better investment options, albeit the high risks involved. Talking of risk, cryptocurrencies have almost always been volatile, with huge fluctuations in price, which result in uncertainties. Although there is a certain trend that cryptos tend to follow, yet fluctuations are highly plausible, and Ripple is also not an exception. Ripple is owned by its creators, and being a centralized currency tends to be less subject to these risks, yet they cannot be completely ruled out.
One positive thing is that Ripple’s price is always expected to rise, which can be a good incentive for crypto-enthusiasts to invest in. It is relatively scarce and works uniquely compared to popular currencies like Bitcoin, though it cannot remain untouched by external factors. Being placed in the crypto market with other digital currencies, its owners do not have much control over its distribution or price. However, Ripple is indeed creating ripples in the crypto market in recent times, a lot of positive reviews and exclusive content has come upon it, which can motivate people to invest in and buy it. Many pundits consider this the right time for investment in this exclusive cryptocurrency as its prices are speculated to rise. As regards risk, then no cryptocurrency is free from them, and as there are no rewards without risks, the same is also the case with Ripple. Therefore one should weigh the pros and cons of both sides of the coin before embarking on a major investment decision. Find out the price prediction & current price of XRP coin from our partner website to stay updated about Ripple (XRP).