Crypto Currency News
Ethereum Classic

5 things you didn’t know about Ripple

If you were to think about which cryptocurrencies have broken through as major assets in the past two years, it would be difficult to come up with a more fitting answer than Ripple.

This cryptocurrency concept – consisting of the RippleNet platform and the XRP token – was developed to make money transfers easier and cheaper. And because this idea is believed to have significant potential for all types of transactions around the world, Ripple has become an extremely well-known cryptocurrency, even though it currently has relatively little tangible value.

(( Also read: A Complete Guide to Halving Bitcoin)

If you’ve felt like you’ve heard and read about Ripple a lot but haven’t looked at the asset too closely, take a look below.

Here are some of the most important things about Ripple

  1. Built for banks

    When we wrote about digital currencies, we included Ripple and pointed out that it was essentially intended for banks. In particular, it works so that “banks can process cross-border payments in real time more easily, in order to receive less money and more transparency.” Ripple also uses less computing power than its counterparts, which makes it all the more attractive for large financial institutions.

    This doesn’t mean that Ripple is only for banks. Since its main function is to make wealth transfers easy and inexpensive, its main potential is to revolutionize the way banks handle money – especially where international transactions come into play.

  2. Market capitalization is lucrative

    We noted above that Ripple has little tangible value right now, and we’ll get into that in our next point. However, Ripple’s market cap is lucrative. In fact, at around $ 12.78 billion, it is the third highest cryptocurrency market cap.

    Market capitalization is basically the estimated value of all currency in circulation if you are unfamiliar with the term for cryptocurrency. While a single XRP token doesn’t have a lot of monetary value, Ripple is responsible for a total of nearly $ 13 billion in circulating wealth.

  3. You can buy it for less than $ 0.50

    To dig deeper into Ripple’s low practical value – despite its huge market cap – we’ll find that for now you can buy an XRP token for less than $ 0.50. At the exact time of this writing, it is actually only costing you $ 0.2816.

    This makes Ripple a pretty easy investment for those interested in getting their hands on the currency in case it should ever withdraw. This is not necessarily a likely outcome, but it is worth mentioning.

  4. You can trade it through CFDs

    Another option for those interested in investing but not wanting to manage their own XRP tokens is trading CFDs against Ripple. CFDs are contracts between traders and brokers about forecast price fluctuations for the respective asset.

    In this case, it means that if you set up a CFD that expected the ripple to increase and the price went from $ 0.2816 to $ 0.3, you were correct and get the appropriate return based on the CFD. It’s basically a method of speculation, but one for people who may prefer not to own cryptocurrency.

  5. Some think it’s overrated

    All of this speaks volumes about how useful, valuable, and accessible Ripple is. However, there are also some who think it’s overrated. An article on why XRP is underperforming (through some measures) pointed to a crowded market as the reason for this thinking.

    While Ripple’s focus on wealth transfer is somewhat original and largely unique among the top cryptocurrencies, there are now alternatives that perform similar functions. It is possible that Ripple has too many competitors to become as significant as some hope it will soon.

Comments are closed.