Ripple has already emerged as the third-largest cryptocurrency by market cap as of Aug 2019. The unique technology and ideal business model of the cryptocurrency played a vital role in the astounding growth of Ripple. As the several other crypto projects emphasized on offering services to retail investors, Ripple made optimum utilization of its creativity to provide services to financial organizations. Now thousands of financial organizations all across the globe have switched to using Ripple’s technologies, namely RippleNet and digital coin XRP, to make swifter and economical cross-border transactions. Over the years, Ripple has played a crucial role in the crypto space.
You must consider the following points given below prior to investing in Ripple:
Understand the Price of Ripple
Ripple sought to issue a maximum of 1 billion XRP tokens every month controlled by an in-built smart contract. And, the present circulation is reportedly over 43 billion. A large number of these tokens are owned by the Ripple company itself. The value of every Ripple coin is evaluated based on how usable the coin is and how much someone else is ready to pay for your Ripple coin. And, this is how the demand and supply graph of Ripple coins works. If you are in possession of Ripple and a large number of people demand them, the price will go up. Many people have expressed their desire to own Ripple as some leading banks have invested huge capital in testing out Ripple. Some experts suggest that if Ripple becomes more accessible and starts getting available at the exchange, the number of buyers will surge, and it will cause a spike in price as well. Check out our other page to know about the XRP Prediction and current price of XRP.
You should have complete knowledge of the cryptocurrency scams surfacing every now and then. And protect yourself accordingly by amassing adequate information about the exchanges prior to start trading. You may also safeguard yourself by introducing an additional layer of security that will permit you to store your cryptocurrency outside the exchange with an external wallet. Precisely, you will continue to purchase Ripple, but you will take the crypto coin and shift it to an external wallet instead of letting it sit on the exchange. It will help you keep your coin safe in case if somebody plans to hack into the exchange. You will come across scores of external wallets and some wallets are physical while others are online. Carry out a research about the wallets and select the one that will meet your requirement.
You should evaluate the risk factors as well. Ban on cryptocurrencies in some nations and harsh government regulations may pose a big question on the existence of cryptos. XRP coins cannot be mined, unlike other cryptos. According to the protocol, XRP units that may become available in the market have been earmarked at 100 billion units. Presently, founders are in possession of 20 billion units and seek to circulate the remaining 80 percent in the market. Out of 80 percent, 67 percent are still in possession of founders. So, the prices of coins are still in tough control of the founders. They may flood the market with additional coins, thus leading the markets to crash. Stay tuned to get more information & stay updated about the Ripple (XRP).
Therefore, we may conclude here that Ripple is far more different than other cryptocurrencies such as Bitcoin and Ethereum. And, a centralized digital currency may buckle under pressure with the regulation. Therefore, you should always evaluate your choice before investing in Ripple. The large-scale adoption of this digital currency will ultimately depend on how many banks will use XRP in the time to come.