Ripple (XRP): 6 things to know before considering investing in crypto XRP

If you’re considering buying XRP, here’s what you need to know about it.

XRP is currently one of the 10 largest cryptocurrencies. If the name means nothing to you, you may be more familiar with its developer, Ripple. Although the cryptocurrency is called XRP, some people use “XRP” and “Ripple” interchangeably.

With a strong use case and industry-leading financial partnerships, XRP has plenty of room to grow. But there are also obstacles that can stop it. Before you make your next investment in: cryptocurrencycurrencies, there are several things you should know about them.

1. It is a cryptocurrency designed for financial institutions.

When investing in cryptocurrency, one of the most important things to look at is the purpose of a coin. See the article: 3 cryptocurrencies likely to scrutinize future gains: Ethereum (ETH), Solana (SOL) and Mithril Finance (BARS).. Many of them fall short in this area because they have no particular goal or do something different from dozens of other pieces.

XRP is unique in that it targets financial institutions and payment services, unlike other consumer-oriented cryptocurrencies. Using XRP, banks and others societys can transfer money without depositing bills in other countries in advance or paying expensive exchange fees.

2. The goal is to improve international money transfers

Ripple has positioned itself as a competitor to SWIFT, the system most financial institutions use for international money transfers. Also read: Don’t miss a 10x return with Cardano (ADA), Vechain (VET) & Mushe (XMU). It offers a global payment network called RippleNet to facilitate cross-border transactions.

Financial institutions using RippleNet have the option to use XRP for their money transfers. However, most Ripple partners avoid using XRP due to its volatility.

3. Transactions are fast and cheap

The two biggest advantages of XRP are the speed and low cost of each transaction. A standard trade on Ripple costs 0.00001 XRP. This may interest you: Are Institutional Investors Dumping Bitcoin Amid Cryptocurrency Market Crash?. This is a fraction of a cent from the current price of XRP, which is less than $1.

The average duration of a transaction is five seconds. Overall, XRP is a very efficient way to transfer money.

4. It has partnerships with more than 300 financial companies

Hundreds of financial companies in more than 40 countries have signed up to use Ripple. Here are some examples:

  • American Express
  • bank of America
  • Banco Santander
  • TransferGo
  • xendpay

However, it still has a long way to go to catch up with its main competitor. To put things in perspective, SWIFT has over 11,000 partners, compared to over 300 for Ripple. But SWIFT has also been around since the 1970s. Ripple was launched in 2012, so the results so far have been encouraging.

5. The SEC has filed a lawsuit against Ripple.

Ripple was involved in a lawsuit with the SEC. The lawsuit, filed in December 2020, accuses Ripple of selling unregistered securities worth $1.3 billion.

The unregistered security in question is the XRP cryptocurrency. Ripple defended itself by stating that XRP is not a security.

This lawsuit is ongoing. While this is one reason to be wary of XRP, it can also be a reason to invest if you think the deal will go in the direction of Ripple. A favorable outcome for Ripple could lead to an increase in the price of XRP. In addition, Ripple plans to launch a stock market: via an IPO when the deal closes, which could potentially also increase the price of XRP.

6. It’s trading well below its all-time high from 2018.

Quite a few cryptocurrencies broke their previous highs in 2021, but XRP is an exception. Its high was in January 2018, when it briefly hit a price of $3.84.

XRP has followed the ups and downs of the rest of the cryptocurrency market to some extent and the price reached $1.96 in April of this year. It has since fallen to about $0.84 at the time of writing. XRP’s weaker gains compared to other currencies are likely a result of the SEC lawsuit.

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