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The first name which crosses our minds whenever we think of cryptocurrency is Bitcoin. Meanwhile, Pioneer Crypto faces fierce competition from Ethereum and Ripple. However, Ripple is considerably different from the first two cryptos as it has a lot more to offer to the crypto market. It is primarily a platform and secondarily a cryptocurrency.
If you are thinking about investing in cryptocurrency, then you have come to the right place. Here’s a broad analysis of investing in Ripple so that you can make a well-informed investment call. Different financial institutions and banks can transfer financial assets in a secure manner by banking on the RippleNet payment network.
Every transaction undertaken using Ripple gets recorded in a decentralized XRP ledger for bringing downtime and money requirements of cross-border payments. It takes just a few seconds for processing each transaction which stands out in stark comparison to Bitcoin which takes over an hour and Ethereum which takes more than 2 minutes. Let us now take a look at the points which weigh in favor of Ripple investment:
Unique Transaction Protocol
The advanced transaction protocol of Ripple removes the hassle from international remittance by allowing users to transfer fiat currencies and digital currencies. Participants of the transaction are extremely benefitted from a secure channel which makes Ripple well suited for being used by both individuals and banking institutions.
Super-Fast Transaction Speed
Ripple can undertake 50000 transactions per second which even exceeds Visa, the world’s biggest digital payment processor having a maximum limit of 24000 transactions every second. You can easily convert XRP to INR while befitting out of the platform’s top-notch reliability which is bound to enhance its popularity in days to come. The speed of transactions also helps in boosting up the confidence level of its participating parties. Delayed transactions cause them to lose faith by increasing the chances of fraud. However, the transaction speed should never come by making sacrifices in quality. While traditional systems would require days for completion of a transaction, Ripple can do the same in an instant and that too in a safe and secure manner.
Decentralized Payment System
Open-source technology serves as the skeleton of the Ripple framework and allows ample customization and capability distribution for conforming to the requirements of different users. As a result, you can convert 1 Ripple to INR and other fiat currencies, digital currencies, and commodities for easy transfer.
Extensive Usage
The market acceptance of a transaction is a major determinant of its legitimacy. 39 billion tokens of Ripple have been issued worldwide which can help you undertake ‘n’ number of transactions. Ripple has gained acceptance from 100 companies worldwide which helps in undertaking transactions easily. It is currently backed by heavyweight investors like Star One Credit Union, Cambridge Global Payments, SBI Remit, SEB, BBVA, eZforex and technical mammoths like Apple, Google, Asana, Airbnb, Facebook, Snap, Coinbase, BuzzFeed, and Twitter.
Numero Uno Spot
This fintech company based in San Francisco was founded in 2012 by Chris Larsen and Jed McCaleb. Its present team comprises Chief Cryptographer David Schwartz, CTO Stefan Thomas, and CEO Brad Garlinghouse. The supremely talented bunch of leaders carry years of experience which helps them in implementing the right method to offer greater value to the investors and co-operations. Its well-connected founders have helped Ripple in garnering major investors and venture capital by banking on their complex networks.
Jed McCaleb is also the co-founder of its prime competitor, Stellar, but the massive functionality of Ripple still remains unmatched, courtesy of its raw appeal to huge corporations and banks. Stellar, on the other hand, focuses mostly on providing low-cost financial services to the unbanked sector of developing countries around the globe.
Affordability
In spite of securing its position in the top-tier in terms of market cap, Ripple comes with an extremely affordable price tag. You can buy Ripple’s XRP by shelling out less than 1 dollar which makes it ideal for low budget investors.
Scalability
How well a system can serve the market also determines its overall strength. XRP delivers incredible consistency and accuracy in handling more than 1500 transactions per minute. This impressive speed can boost up your confidence in undertaking transactions and engage in partnerships.
Security
Suppose Bank A wants to remit money to Bank B, then Bank A will have to specify a gateway before forming the transaction. Next, the transaction is sent to a validator who turns them into proposals before sending it to other validators. Proposals receiving more than 50% consensus in the first round have to participate in three more rounds before receiving the green signal. This intricate process helps in removing doubtful transactions like double spending to make the entire process more secure.
Stability
Since its inception back in 2012, Ripple has experienced phenomenal growth which has helped it deliver significant value to the investors. This level of stability has helped lure in more enterprises and investors who now prefer XRP over other coins.
Conclusion
Investment in cryptocurrency tags along with an inherent risk factor but Ripple stands out as a safe haven compared to its peers coupled with the low price of its tokens and low entry barrier. These along with the other attributes listed above, make Ripple a viable investment option for anyone who is hoping to multiply their capital in years to come. Recently Ripple announced that its XRP tokens are going to play a functional role in the stack, wherein all of its technology solutions are going to merge. It has even entered into numerous financial partnerships with big names like Money Gram, HSBC, Barclays, WorldCom Finance, etc., which is already receiving a lot of interest from various institutional investors.
Further Reading:
6 Things to Consider Before Investing in Bitcoin
4 Things to Consider Before Investing in Cryptocurrencies
Why Start-ups Should Consider Using Bitcoins
5 Things to Keep in Mind While Buying or Selling Ethereum
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Is Ethereum Safe To Invest?
The Bitcoin market is unquestionably more volatile than the stock market. This may not be the market for you if you are incredibly risk-averse. Ethereum, on the other hand, may be a terrific investment for you if you're a diamond-handed investor who won't lose sight of short-term losses. Ethereum is a relatively safe investment as it is also based on blockchain.
Is Bitcoin And Cryptocurrency The Same Thing?
Bitcoin is a cryptocurrency that was designed to facilitate cross-border transactions, eliminate government control over transactions, and streamline the entire process without third-party intermediaries. The absence of intermediaries has resulted in a significant reduction in transaction costs. Satoshi Nakamoto, the creator of Bitcoin, created the first cryptocurrency in 2008. It began as open-source software for money transfers. Since then, plenty of cryptocurrencies have emerged, with some focusing on specific fields.
Are Cryptocurrencies Legal In India?
In India, cryptocurrency is legal, and anyone can buy, sell, and trade it. Because India lacks a regulatory system to regulate its operations, it is presently uncontrolled. According to the Ministry of Corporate Affairs, companies must now document their crypto trading/investments inside the financial year.
Is Pi Cryptocurrency Safe?
Pi Network (PI) is the newest digital token to catch the cryptocurrency community's interest, even before it has wholly debuted. Some users see it as a chance to get engaged in a cryptocurrency from the beginning and profit in the future, similar to how early Bitcoin adopters made huge profits by mining and keeping the coin. Other users have compared Pi to a worthless multi-level marketing (MLM) scheme.
Who Invented Cryptocurrency?
Satoshi Nakamoto invented cryptocurrencies and the technology that makes them function in 2009. The presumed pseudonymous individual or persons who invented Bitcoin used this identity. In addition, Nakamoto created the first blockchain database. Even though many people have claimed to be Satoshi Nakamoto, the person's identity remains unknown.
How Cryptocurrency Works?
Cryptocurrencies use cryptography technology to keep transactions and their units (tokens) secure. Cryptocurrency works via a technology called the blockchain. A blockchain is a decentralized technology that handles and records transactions across numerous computers. The security of this technology is part of its value.
Is Bitcoin Cash A Good Investment?
Bitcoin Cash is a hard fork of Bitcoin formed in 2017 to address Bitcoin's scalability and challenges. Bitcoin Cash seeks to make global transactions faster, cheaper, and more secure. Bitcoin Cash is now accepted by thousands of online and offline businesses all over the world. Studied correctly, Bitcoin Cash may be an investment worthy of consideration.
What Is Virtual Currency?
Virtual currency is a type of uncontrolled digital currency that can only be used online. It is exclusively stored and transacted using designated software, mobile or computer applications, or unique digital wallets, and all transactions are conducted through secure, dedicated networks. Because digital currency is just currency issued by a bank in digital form, virtual currency is not the same as a digital currency. Virtual currency, unlike ordinary money, is based on a trust structure and cannot be issued by a central bank or other banking regulatory organization.
Is Cryptocurrency Banned In India?
No, cryptocurrency is not banned in India. India has seen its ups and downs in the crypto sector concerning its legal status. The Reserve Bank of India (RBI) issued a circular in April 2018 advising all organizations under its jurisdiction not to trade in virtual currencies or provide services to assist anyone in dealing with or settling them. A government committee proposed outlawing all private cryptocurrencies in mid-2019, with up to ten years in prison and severe penalties for anyone dealing in digital currency. The Supreme Court overruled the RBI's circular in March 2020, allowing banks to undertake cryptocurrency transactions from dealers and exchanges.
What Is Crypto?
Crypto or a cryptocurrency is a digital currency protected by cryptography, making counterfeiting and double-spending nearly impossible. Blockchain technology is used to produce cryptocurrencies (a distributed ledger enforced by a distributed network of computers). Cryptocurrencies are distinct in that a government does not issue them. The word "cryptocurrency" refers to the encryption methods employed to keep digital currencies and the network secure.
Disclaimer: Cryptocurrency is not a legal tender and is currently unregulated. Kindly ensure that you undertake sufficient risk assessment when trading cryptocurrencies as they are often subject to high price volatility. The information provided in this section doesn't represent any investment advice or WazirX's official position. WazirX reserves the right in its sole discretion to amend or change this blog post at any time and for any reasons without prior notice.
