Yay Or Nay: XRP Is A Good Choice For Long-term Investment
XRP, also known as Ripple cryptocurrency, has been a good investment choice for the long term. This article provides you with reasons to invest.
b) Safe and secured
c) Faster way to transfer money
a) Utilizes ‘trusted validators’
b) Highly volatile
c) Currently faces legal battle
Ripple and XRP are mistakenly referred to as the same thing in the press, most of which don’t know the difference between them. To clarify, Ripple is known as a money transfer network, while XRP is the company’s cryptocurrency.
In addition to buying XRP, you may also invest with it. The majority of crypto traders buy and sell it just like what they do on their stocks. Some hoard it with their beliefs that it will increase its value someday.
The good thing about XRP is it is a pre-mined cryptocurrency. Meaning to say Ripple releases a predetermined number of coins to outstanding validators in the network. The validators own a substantial amount of XRP, which they can then put out in the markets or use to promote the network and market it.
The coins that circulate in the system have been pre-mined by Ripple. And then it released them as intentions of growth and expansion. Moreover, the Ripple company does not benefit from the transaction fees collected from its customers. The only profit generated comes from the total XRP out of circulation. This is why it is said to be cost-efficient.
Why does XRP is a good long-term investment?
Popular for its cost-effective infrastructure, XRP earned a special place in the world of the crypto ecosystem. It is a very reliable and secure cryptocurrency that costs less than Bitcoin.
Although the digital currency was already behind other altcoins in price gains last year, it still received full support from different giant investors these past few months.
If you are not aware, XRP is one of the first crypto assets in the industry. In the last four years, it experienced different price volatility. XRP price reached more than $3.50 last January 2018, its all-time high record. But later it dropped to $0.20.
Why buy XRP?
It is because Ripple is much more than just a cryptocurrency. It was designed to be a money transfer network that could handle more transactions than all the other blockchain networks combined.
XRP, the digital asset, is used by companies signing up with the network to facilitate fast and cheap money transfers worldwide. It would eventually solve one of blockchain’s biggest problems: scalability.
Another reason is that XRP’s transaction fees are incredibly low compared to other mainstream crypto networks. Finally, XRP’s volatility is another reason it is good for long-term investment. In the crypto world, when a coin loses its value and experiences a fall, it is usually met by a “bull run”, when it rises and starts to gain value again.
Why is XRP so volatile?
Many experts and analysts believe that the high volatility rate of XRP compared to other cryptocurrencies is because of its actual function. XRP is purely created for transferring money for businesses.
It is not a cryptocurrency that you can store and save, like Bitcoin. Instead, it is intended to be used as a tool that payment providers can use to transfer money across borders with low cost and quick processing times.
Buy XRP at a low price and sell it when the current price is higher. Look for coins with a high chance of succeeding in the near future.
Furthermore, Ripple has partnered with big companies like American Express to use their credit networks. They are interested in using XRP as a tool to facilitate payments that could eventually include cross-border payments, paying invoices, sending funds instantly and paying them back without waiting for interest.
This is why one can also consider buying and holding XRP as an investment. But it is highly recommended not to do so with fiat money for your security.
Ripple has been battling different legal issues with other giants in the industry. Ripple’s legal team is seeking to convince major banks and financial institutions to integrate their validator program for XRP. However, best-known companies like JP Morgan Chase, Santander Bank, and UBS are not interested in it yet.
You may need to consider this and the effect of legal issues on the price of XRP.
In summary, XRP is a good investment for the long term. Of course, XRP price is always fluctuating, but if you are willing to invest, it could turn out to be good news for you in the future.
Be it a bull or a bear market, XRP has the potential to grow 100% gains in a short amount of time. However, if you are willing to invest, try to do your research first before actually deciding, so you will know how to maximize profit and, at the same time, lower risk. If you have any comments or question, leave us a message below.