Ripple (XRP/USD)

Ripple is an international network that was launched in 2012. The major objective of the developers was to give their customers the possibility to execute rapid and secure money transfers within the system. The founder of the startup declared that the ambitious aim of the Ripple network was to become an equal alternative to Swift.

The Ripple coin is traded under the ticker XRP. The XRP Ledger blockchain powers it. It is designed to make the transactions within the platform faster and safer.

You can invest in Ripple by buying the XRP coin. Crypto exchanges also offer the possibility to trade this product paired with fiat currencies or other cryptocurrencies. Is it a good idea to buy XRP today? Will it bring profits by the end of 2022? These are the question we will try to answer in this short review.

How does XRP work?

It’s quite interesting to learn how XRP works, simply because its key principles of work are different from the other mainstream projects. If you are interested in this market, you must know about two basic models for cryptos – proof-of-work and proof-of-stake. XRP doesn’t apply either one or another.

The protocol applied by the ecosystem to make secure transactions, made within this network, is called the XRP Ledger Consensus. With it, all the operations are approved by validators. However, here they don’t get any rewards. This helps to ensure that all the participants are distorted.

There, new blocks are developed within 3 seconds. To get approval from the system, each new one has to be approved by at least 80% of the participants. Thanks to such an architecture, the crypto environment is capable of executing 1,500 transactions per second. Its token is involved in every operation and destroyed when the process is over.

Key Events Impacting XRP Price

1. XRP didn’t show impressive performance until 2017. Throughout 2016, for example, the XRP price increased only by 5.86%. However, in 2017, the XRP token started at the mark of $0.0066. By December, it blasted through the mark of $1.97. This was a 32.9% yearly growth.
2. The start of the following year was very profitable for Ripple investors. In January 2018, the XRP coin reached its historic maximum of $3.28. The rest of the year wasn’t quite successful for those who kept holding the coins. By the end of the year, the coin dropped to as low as $0.349. It was an impressive 82% annual crash.
3. The following year was another failure for Ripple investors. The opening price of 2019 was 44% lower than the closing price. At the end of 2019, XRP was traded at $0.173.
4. 2020 is marked by the high volatility of the crypto market. XRP was impacted by this trend as well. Throughout the year, its price rates have been changing both upwards and downwards. The good thing for investors was that at the end of the year, XRP was closing around 14% higher than it was opening.
5. 2021 is considered the second-best year for the Ripple coin. In April 2021, it reached its second historic maximum of $1.59. After this increase, the price dropped and was stabilized at lower quotes. As of the 10th of June 2022, it’s traded at $0.39.

Trade Ripple (XRP) with DotBig

Looking for a safe online trading platform via which you can invest your funds in Ripple? DotBig.com would be a great choice of yours. The DotBig forex broker is known for its dedication to the fulfillment of the KYC standards.

The DotBig company is well-remarked as a safe environment for trading cryptos and other assets. Except for XRP paired with other cryptocurrencies, with DotBig, clients can trade 600 more crypto products, over 60 forex pairs, more than 200 real stocks, and others.

Pros of Investing in Ripple (XRP)

• It is an innovative project that applies different techniques for validation. Therefore, the operations are very fast. Additionally, Ripple requires lower than industry average fees.
• The initial goal of Ripple developers was to completely substitute Swift. Well, this goal wasn’t achieved to the full extent. However, Ripple is already being used by big financial institutions in different countries.
• XRP has a low entry-level. Therefore, it might be a good investment product for beginning traders who cannot operate big amounts of capital.
• Ripple is a very popular means to make fast and secure money transfers by small businesses. The more small businesses will adopt it, the bigger XRP demand and price will become. Considering the level of security and low fees, we forecast that Ripple will become more widely used by small entrepreneurs.
• XRP can be used as a bridge currency for international currency transfers.

Cons of Investing in Ripple (XRP)

• Ripple offers an innovative model that differs from proof-of-work and proof-of-stake techniques. This might be a benefit, but some experts and crypto investors believe that this consensus system has fewer capabilities to provide complete security of transactions.
• Not all the partners of the project use XRT cryptocurrency when executing transactions. Many prefer RippleNet which doesn’t apply the crypto token. This negatively impacts the supply of the XRP coin
• The majority of the US-based crypto exchanges don’t list the XRP cryptocurrency.
• Investors doubt whether it’s a safe idea to put funds in XRP due to the issues of the operating company with the SEC.

Conclusion

The XRP cryptocurrency is often criticized by the crypto community. It’s considered to be a controversial investment because of the impressive volatility and issues against the SEC. Despite that, we cannot deny the fact that Ripple has great prospects. Partnership ties with banks and the ambitions of the project to substitute the most widely-used international transfer system make us think that the investment in its token might be beneficial in the long run.