One of the best cryptocurrencies to invest in right now is Ripple. So, what exactly is Ripple? Well, if you a newbie to cryptocurrencies, Ripple is an alt-coin that is aimed at making financial transactions faster and more secure. It’s these attributes that make it a favorite of the bankers. In fact, it is considered a banker’s coin, and is expected to replace the SWIFT system that banks currently use in international transactions.
Currently, there are over 70 banks experimenting with Ripple. They are trying to find a way of applying it and make customer transactions more efficient in this era of decentralized transactions. Sounds interesting, right? So how can one invest in Ripple and take advantage of its value appreciation?
Investing in ripple is quite a simple and straightforward process. All you have to do is register with any of the major cryptocurrency exchanges, and you are good to go. However, you will need to buy bitcoin; first. That’s because most exchanges don’t allow fiat deposits. Once you have your bitcoins, you can exchange them for Ripple and hold for the long-run.
Alternatively, if you find an exchange that accepts fiat currency deposits, then you can buy Ripple in dollars or through any other currencies that such an exchange accepts.
While buying Ripple clearly isn’t hard, you may find yourself wondering whether buying it right now is a worthwhile investment. You will be excited to learn that there is a strong case for Ripple and its value growth in the long run. Here are some reasons why you should consider investing in Ripple.
One of the greatest movers of the cryptocurrency markets is the media. The more a cryptocurrency receives positive press, the more it grows. Take bitcoin as an example. Throughout the year, Bitcoin has been in the news, being hyped as the ultimate replacement to fiat currency. This positive press has contributed significantly to its meticulous rise throughout the year.
Similarly, Ripple is now in the news being hyped as the ultimate coin for fast and efficient banking transactions. The media is also hyping Ripple as technologically superior to other cryptocurrencies, and that banks are already testing it for mass adoption. This positive press will build momentum around Ripple and grow its value in the long-run. Therefore, buying Ripple now would be a wise choice, before other investors pile in and make it too expensive for you to realistically profit from it.
There is no denying, one of the greatest things attracting investors to alt-coins is the price. Investors want to put their money where they can get a high number of coins for their money. This explains why alt-coins are surging, while bitcoin, the premier cryptocurrency, seems stuck in the $16k -$20k range. People are pouring money into alt-coins because for the price of one bitcoin, they can get a large number of alt-coins and earn higher profits. Now imagine how much Ripple will benefit from this shift in focus towards alt-coins, given that it is still priced under a dollar.
If you don’t believe it, check out Ripple prices relative to bitcoin in the last few weeks. It has surge by close to 500%, which correlates with bitcoin’s increasingly untenable prices. This momentum is likely to continue as long as people consider it a cheap investment.
Investing in Ripple right now can give you exceptional returns as buying pressure pushes its value towards one dollar and beyond. It’s definitely a better long-term investment than bitcoin, when you consider the important role that volumes play, in magnifying profits in any investment.
One of the things that are pushing investors towards cryptocurrencies is transaction speeds. People no longer want to wait for days for international transactions to go through the banks. On this aspect, ripple takes the prize given that it can do up to 1500 transactions per second. That’s quite a feat when compared to other cryptocurrencies such as bitcoin, which take up to 10 minutes to verify one transaction.
This means that anyone using Ripple can carry our transactions almost instantaneously to any location across the world. As more people get to learn about this aspect of Ripple, its value will explode. Already people are beginning to take note especially, after bitcoin started experiencing slower confirmation rates in recent weeks due to an upsurge of investor interest. In that same period, the price of Ripple has short up by more than 300%.
Unlike most other cryptocoins that rely on the proof-of-work mining algorithm, Ripple is premined. Does this make a difference? Well, yes and a big one too! In cryptocurrencies that use the proof-of-work algorithm, developers have no control over the number of coins mined. On the other hand, when the coins are premined, excess coins can always be taken off the market, if supply outstrips demand.
That’s exactly what Ripple developers did recently by taking 55 billion ripple coins off the market, a move that drove up its price significantly. This controlled circulation makes ripple a great investment.
However ripple has its drawdowns too, that may discourage you from investing in it.
Ripple goes against the whole idea of blockchain technology and decentralized currency. That’s because unlike other cryptocurrencies such as bitcoin and Ethereum whose decisions are made through community consensus, Ripple is controlled by a small group of people. This makes it no different from the bank controlled fiat currencies that cryptocurrencies are doing away with.
Ripple is a great investment given that its price is still low as compared to other cryptocurrencies. It also has a controlled supply, which reduces any chances of a price collapse.
However, if you really believe in the idea of cryptocurrencies being all about giving power back to the people, then you may not like the idea of putting your money in Ripple. It has centralized control, which goes against the whole idea of blockchain decentralized control. This may also be Ripple’s undoing in the long run.
Though as things stand now, it is a great investment that can give you handsome returns!