Is XRP a good investment? While this is a project with immense potential, some doubts about its perspectives appeared after the SEC lawsuit in December 2020. Some exchanges de-listed the coin from their offering. Now though, Ripple is returning, and those platforms that removed it, are reconsidering their decision. So, investing in XRP is a valid option if you consider a long-term investment.
What Is Ripple (XRP)?
Ripple and XRP are frequently used as interchangeable terms. While it is understandable, such a mix is not completely correct. Ripple is the name of a company, and XRP is the name of cryptocurrency developed by that company. The cryptocurrency powers a platform called RippleNet that runs on top of a distributed ledger database. The ledger itself is open-source and is not based on a blockchain but on the mentioned ledger database.
The Ripple payment system is a kind of real-time gross settlement system that aims to enable instant and cheap cross-border money transfers.
How Is Ripple Different from Other Cryptocurrencies?
Ripple differs from any other cryptocurrency project due to its purpose. While other cryptocurrencies, including Bitcoin, were created with an aim to replace fiat money and to eliminate bank participation in money transfers, Ripple was created to assist banks and financial institutions to move to a different level in money transfers.
When one party wants to transfer funds to the other party, and the transfer shall be made through the Ripple Network, the process looks like this:
- One party deposits funds in their cryptocurrency, say Euro;
- The funds are converted to XRP;
- The other party receives the amount in the needed currency, say, USD, based on the exchange rate.
One transaction is processed within 3-5 seconds, which is significantly different from a common SWIFT transfer that might take several days in some cases. The fees are almost absent. The entire process is safe and transparent.
Why Buy XRP? Is Ripple a Good Investment?
Ripple is aimed at offering a system for money transfers that can be used by banks and financial institutions. The potential of the project is immense, indeed. Moreover, it is the only cryptocurrency project that, instead of trying to replace banks, aims to make the already existing banking system more efficient and friendly.
Where Can You Buy XRP?
Just several months ago, XRP was delisted from major exchanges. Now, the situation has changed completely. Many platforms have already reconsidered their decision by accepting that the project has significant potential and ignoring it would mean losses to the platform. Other major exchanges are on the way to turn back to the coin. However, Ripple has been constantly available on such platforms as LetsExchange, and others.
How to Store Ripple (XRP)
You store cryptocurrency in a special wallet. There are different wallets designated for different purposes:
- A web wallet is the most convenient option for those who intend to trade. A web wallet is always online, and from it, you can easily make swaps. However, this wallet type is the least safe. Due to its constant presence online, it is more vulnerable to hacks than other wallet types.
- A mobile wallet is an application that you can install on your mobile device and use it from there. It is convenient for any purpose.
- A desktop wallet is an application that is downloaded and installed on a desktop. You can turn it into a cold wallet (the one not connected to the web) if you disconnect the device from the web.
- A cold wallet (it can be hardware, a piece of paper, a sheet of metal) is something where you keep your private keys.
How to Buy Ripple
1. Get a wallet that will be able to store XRP.
Make sure you choose a wallet developed or manufactured by a reliable company with extensive experience in the field. Make sure the wallet is easy to use and offers the needed functionality.
2. Find the best place to exchange Ripple
There are different platforms where you can swap XRP. When choosing a platform, make sure you are fine with the requirements there. Some platforms, like LetsExchange, do not require registration, you can swap your coins immediately. There are services where you have to follow registration and verification procedures. Usually, on the latter websites, you can use fiat money to purchase crypto.
3. Buy Ripple with a credit card or another cryptocurrency
When the wallet is chosen, and the platform is determined, you can make your purchase. In some cases, you will be allowed to use cryptocurrency only. In other cases, you will be able to buy XRP with a credit card, too. On LetsExchange, you can swap BTC, ETH, and nearly 2000 altcoins for XRP.
Conclusion
Ripple is a promising project with a unique application. Instead of aiming to replace the existing financial infrastructure, the project intends to improve it. This is the main strength of the Ripple project.
Disclaimer
Please keep in mind that the above information is based exclusively on our observations and is provided for informational purposes only. It doesn`t constitute any kind of financial advice nor represents an official forecast. Cryptocurrency is a highly volatile asset, and you are investing in it at your own risk.