Ripple is traded as XRP, which is one of the longest standing cryptos and most well-known while the name ‘Ripple’ itself is the brand name for the blockchain ecosystem that XRP operates within.
XRP is available for trading at most crypto exchanges. You will find that it is paired with the likes of BTC, BCH, ETH, and several fiat currencies such as US$, EU€, JP¥, and UK£. Moreover, numerous cryptocurrency wallets accept XRP balances making it one of the easiest cryptos to store.
When XRP was first introduced as a tradable cryptocurrency back in 2013, it traded at just $0.0002 per token. Today each token is worth $0.299265 and there are currently 44,862,646,997 XRP currently in circulation, which is around 45% of its total supply which is currently capped at 99,990,908,537 tokens.
If you are looking for a reliable cryptocurrency to invest in XRP, could be the answer. That said, no one knows exactly where Ripple as a brand is going at this time but one thing is for sure, it is an affordable crypto thanks to its low cost per token. There are plenty of enthusiasts that say XRP will one day hit the $1.00 mark per coin, while this crypto also has its fair share of haters.
In this guide, we will walk you through what XRP and Ripple are all about, and if you like what you see, then maybe you will see potential and invest or maybe you would prefer to see how this crypto evolves over the next few years.
One of the reasons this is tempting crypto to invest in is because just a $100 investment right now will buy roughly 335 XRP tokens which on volume does not seem like a bad deal at all. If Ripple does become the major transaction system globally, then that small $100 investment could be worth thousands in the future, but as with all crypto investments, success is never guaranteed and hard to predict!
To help you make up your mind, we have created a list of points we will cover in this guide.
· What is Ripple Vs XRP?
· The Ripple Platform
· The XRP Token
· Market Cap History
· Where to Buy XRP
What is Ripple Vs XRP?
Ripple is not a cryptocurrency – it is a blockchain platform while XRP is the cryptocurrency a.k.a. token that runs on the Ripple ecosystem and also a tool or indicator that tells how well the Ripple platform is performing. The more the token is worth, the better the Ripple brand is doing across the globe!
The platform itself uses an open-source protocol that is renowned for fast, reliable, borderless, and cost-effective transactions. It is important to understand that transactions on the Ripple ecosystem are not only used for XRP. Ripple’s platform is also used for fiat currencies.
Ripple’s aim as a firm is to become the number solution provider for global currency transfers and the price of XRP on the crypto market largely, but not wholly, depends on the success of Ripple platforms. it has seen its fair share of ups and downs, but wide-scale adoption of the Ripple platform is evident, and as such XRP’s value should rise as Ripple continues to spread.
The Ripple Platform
The Ripple payment system is so fast and well connected that its disruptive technology cuts out some of the mounting costs and time constraints that come as a result of dealing with physical banks. Its platform is also faster than other blockchain ecosystems such as Bitcoin.
It is for this reason and that companies such as MoneyGram, Western Union, and an entire consortium of Japanese banks use the Ripple platform. In fact, Ripple has reshaped the entire Japanese banking system which was outdated and in dire need of an upgrade. Subsequently, the SBI Ripple 'Money Tap’ app was launched.
In short, Ripple is a blockchain ecosystem that uses custom protocols that are far faster, more reliable, and more cost-effective than traditional banking IT systems used to store and move currencies.
Key take away points:
· Ripple process transactions quicker than the Bitcoin ecosystem
· Large corporations use the Ripple platform for its fast, efficient, and borderless transactions
· Using Ripple is far more cost-effective than sending fiat through traditional banking systems
The XRP Token
XRP is the cryptocurrency of the Ripple blockchain ecosystem. Any company that uses the Ripple company can use the XRP token to create a RippleNet for their specific purposes, while people that own a Ripple wallet can send/receive Ripple freely and instantly over the Ripple ecosystem much like any other cryptocurrency. It is quite simple and very effective!
Market Cap History
The XRP token has come under quite a lot of scrutiny throughout its existence but is still holding strong with a market cap as of August 2020 showing US$13.45 billion. This is a shadow of its once US$100 billion market cap back in 2018 but at the same time, many other cryptos took a huge leap of faith during that time only to see their peak drop so this is not a major worry for investors.
Nonetheless, XRP is still worth more than double its pre-2018 figures. It was first available on a few exchanges back in 2013 but it wasn’t until May 2017 did it start to make any noise in the crypto sphere.
In May 2017 its market cap was around US$250 million and by April 2017 XRP surpassed the US$1 billion mark. By the end of the year, XRP was worth US$62 billion. In 2018, it followed the same trend as many other cryptos like BTC and ETH which all saw their peak market caps during this period. Back then XRP surpassed the US$100 billion mark but that time was to be shortlived and today XRP’s market cap is worth around 15% of that amount.
Eventually, XRP fell along with many other cryptos. This is when the infamous period known as the crypto-winter kicked in – a period that has since been compared to the Dotcom crash. Right now, the feeling is that the crypto-winter is over and it is now time for all cryptocurrencies to shine.
Today XRP’s market cap remains steady. During 2020 it has climbed from US$8 billion to over US$13 billion giving hope to investors that XRP will start moving forward and make a worthy investment. However, it has been known for sudden drops but for now, the signs are at least positive.
Where Can You Buy XRP?
Many of the well-known exchanges allow you to buy and sell XRP freely. Below is the list of exchanges that are commonly known for their high volumes in XRP trades and exchanges.
Recap of Ripple (XRP)
XRP is the currency used on the Ripple ecosystem. In effect, Ripple is the blockchain technology that connects business and people across the globe while XRP is the cryptocurrency that flows through the Ripple platform. Therefore, when you say the word ‘Ripple’ you are referring to the brand’s platform and when you mention XRP, you are referring to the brand’s currency used.
Ripple’s platform is used by banks and businesses globally to make fast, frictionless, immutable, and cost-effective transfers. By using the Ripple network businesses are able to receive funds instantaneously with no time delays because banks are closed and those transactions come with low charges whereas a bank may charge up to 5% of the value of the transaction or apply a high fixed fee.
Trading or investing in XRP is incredibly easy. All you need is a crypto wallet that allows you to hold XRP and an account at an XRP exchange so you can trade and swap currencies with XRP.
As far as XRP being a safe investment, like many cryptos, there is always a risk. As XRP is attached to one of the largest brand names in the cryptocurrency market, there is little chance that XRP is going to lose too much value in the future. On the flip side of the coin, XRP could be a valuable investment as tokens are very affordable.
Should the Ripple brand’s vision to become the leading money transfer platform in the worldwide come into fruition, the price of XRP could suddenly skyrocket. Its RippleNet system is already used by some of the world’s biggest cross-border money transfer and currency corporations in the world. Furthermore, Ripple has a firm foothold in the Japanese financial market helping businesses and consumers speed up transactions.
With all this in mind, XRP is looking like a strong contender for future investment, but it is also susceptible to heavy fluctuations. For the time being it could be worthwhile investing a small amount just to see where it goes!