When it comes to cryptocurrency investing and trading, there are a lot of digital currencies interested investors can explore and invest in as they continue expanding and diversifying their portfolios. This includes Ripple’s XRP.
What Is Ripple
Essentially, Ripple is a payment system used for digital money transfers, payment settlements, remittances, and cross-border transactions. It offers a more convenient and transparent alternative to traditional bank transfer systems. And in this case, XRP is the cryptocurrency used to facilitate these transfers.
If you’re looking to invest and buy XRP Ripple, then this article can be for you. To help you get started, below are some of the pros and cons worth considering when it comes to investing in Ripple.
Pros of Investing in Ripple
Unlike other cryptos, Ripple is centralized. And given its relationship with the banking community, investing in it seems like a good move.
Here are a few more advantages to help enlighten you in cryptocurrency investing.
- Cheap to purchase
Ripple’s XRP has a lot of potentials. At the moment, the cost of purchasing Ripple is really low. Unlike other cryptos, you do not have to spend so much. Buying XRP can be a smart choice, especially if you are looking for a coin that might become the next big thing.
- Favorable transaction cost
The cost of transacting in Ripple is minute. Unlike other cryptocurrencies that have a higher transaction fee, Ripple allows you to carry out your transfers without consuming too many XRP coins.
Generally, the price for transactions on the network is set at 0.0001 XRP. This shows you how cheap it is to get a transfer done on the network.
- Quick and secure transactions
Transfers done using the Ripple network are not only considerably cheaper, but they’re also secure and fast. In general, Ripple transfers can happen within four to five seconds and are not affected by the volume of money being transferred. While on the other hand, a regular bank transaction may take up hours or even days before the transaction gets verified.
Aside from the speed, the transfers done in the Ripple network are also secure. Moreover, the validation process of a transaction is considered more efficient and safer than the traditional coin mining method.
- Enterprise optimized
The original intent of the Ripple network was to make transactions more convenient for the finance industry. This means that the method for moving large sums around the world has been made easier. Enterprises can use the Ripple network to do their mega transactions with less stress and hassle on their end.
Cons of investing in Ripple
If there are advantages, there are disadvantages too. Investing in Ripple may have some drawbacks that you must pay attention to also. To name a few, here are some of them:
- Lawsuit issues
The SEC lawsuit against Ripple claims that Ripple had sold and distributed unregistered securities trades. Because of this issue, it makes it difficult for it to achieve its full potential. More so, Ripple has been delisted from several U.S. exchanges, which temporarily halted the trading of XRP tokens. This means that buying Ripple is an even more difficult feat to achieve now.
The volatility of the Ripple coin is also worth considering. Much like other cryptocurrencies, the price and value of XRP also fluctuate. Because of this, it can be difficult to depend on its value. XRP can quickly skyrocket and come crashing without any kind of warning whatsoever.
Due to the kind of system that Ripple runs, it is not as centralized as other cryptocurrencies. It uses trusted validators to verify transactions and to keep the integrity of the blockchain. In addition, with no mining activity happening, it is left to a few people to regulate all transactions.
One of the ways the value of many cryptocurrencies can skyrocket is via mining. For Ripple XRP, all its coins have been pre-mined. And since there is no mining, it cannot appreciate like other coins are doing. This can make it a coin with a rather stagnant value.
Should you buy and invest in Ripple’s XRP? Well, that’s a question you will have to answer for yourself. The coin does have potential that can make it a hot cake shortly. But much like other cryptocurrencies, it has its setbacks too.
As listed above, this article has outlined some of the pros and cons of Ripple investing to help you make a more informed decision on whether investing in Ripple’s XRP can be a smart move.