Despite the brutal beating taken by the cryptocurrency market in 2019, investors remain hopeful. Those who are wise have turned their attention to Bitcoin’s successors. Ethereum and Ripple (XRP) seem to offer the most upside in crypto investments. Ripple is especially interesting because it holds vast potential for blockchain development.
CryptoSwede has prepared a 2019 Ripple (XRP) Buying Guide for those who are interested in obtaining this digital currency. We’re going to look at what Ripple is, its uses and applications, and how you can buy this cryptocurrency for your own investment portfolio.
What is Ripple?
Ripple is a payment platform that supports the XRP cryptocurrency. It is important to understand the distinction between Ripple and XRP. You buy the XRP token. Investing in XRP helps to support the continued development of the Ripple platform. It’s very similar to Ethereum and Ether. Ethereum is the platform. Ether is the “gas” or token that is used in platform applications.
There are a few advantages that set Ripple apart from its cryptocurrency competitors. It has the benefit of being reliable, secure, and able to scale on some level. It allows for cross-border transactions that can be accomplished in about three seconds. Behind the platform is a development team that is committed to blockchain applications for financial institutions. xCurrent, xRapid, and xVia are all Ripple applications that are being developed for banks, payment processors, and businesses.
Since its debut the XRP token has shown some significant promise. Before the market began to plummet in 2018 XRP reached a high of $3.80. It can be had now for far less, and many people believe that there is much potential for growth.
A reason for the speculative interest in Ripple and XRP is the willingness of major financial businesses to get involved. These businesses include MoneyGram and American Express. The businesses are interested in how the Ripple platform can improve their operations. Many Japanese banks are also taking a close look at how Ripple can benefit the financial sector. This type of involvement is somewhat unique to Ripple. Other cryptocurrency platforms have struggled to gain such widestream acceptance.
Why Ripple May be a Better Cryptocurrency Platform
The consideration of XRP as a good crypto investment hinges on some distinctions that may make Ripple a better cryptocurrency platform.
First among these is transaction speed. Payments on the Ripple network settle in about 4 seconds. Compare that with the 2 minute and 1 hour averages of Ethereum and Bitcoin, respectively. Transaction speed has always been a primary concern when it comes to establishing a cryptocurrency as a viable alternative to payment processing which involves fiat currency.
The token creation process is also different for XRP. XRP is not created through a mining process like many other digital tokens. Instead, the company created 100 billion XRP tokens. 55 billion of the tokens are placed in escrow as a surety for payment processing and applications on the network. In some ways, Ripple has a solvency aspect that is lacking in other cryptocurrencies.
The Ripple platform is decentralized, just like other cryptocurrencies, but it has the lowest cost per transaction of any popular digital token. Security is well-fashioned on the Ripple network, with information tracking being more advanced than it is on other platforms.
Should You Buy XRP in 2019?
In our opinion, XRP is a strong cryptocurrency buy for 2019. At the time of this writing the XRP token is valued at around $0.31. This would appear to make the token undervalued when one considers its potential.
In January of 2017 the token was trading at $0.006. By the end of 2017 the token had reached $2.80. That is massive growth, growth that was all but wiped out in 2018 when the crypto markets took a deep plunge. What investors should remember is that the underlying factors which made XRP soar in 2017 are still present. Financial companies are still showing an interest in Ripple’s blockchain as a solution. This is a type of support than many other cryptocurrencies simply lack.
All cryptocurrencies declined in 2018. The key is predicting which tokens have the best ability to recover. In our opinion, Ripple displays bullish signs that point to another round of growth. There is no way to predict if it will become another Bitcoin, but the signs are definitely in place that investors could reap a sizable profit when buying XRP now while it is undervalued.
A number that Ripple speculators often throw out is $7. If the token were to reach that number, XRP would have a market cap which exceeds that of Bitcoin. That number would make XRP the largest cryptocurrency in the world in terms of market value. At that point the interest in the token could soar even higher, further increasing the price.
XRP should be on your list of cryptocurrencies to buy in 2019. There is simply too much upside to ignore, and the price at the moment is ridiculously low.
How to Buy XRP in 2019
The best practice for those that wish to buy XRP in 2019 is to stick with the suggestions made by the Ripple developers. They recommend using exchanges which support the Ripple platform. Here are a few places where you can buy XRP with Bitcoin or even with a credit or debit card.
- This is one of the most popular instant cryptocurrency exchanges. It allows individuals to make purchases of digital tokens with Bitcoin or with a debit card. The process is instant and all you need is a wallet for Ripple to make the purchase and transfer. You should be aware that when buying XRP with a debit card you will first need to purchase Bitcoin and then convert it to XRP with Changelly.
- Kraken is one of the world’s largest and most trusted cryptocurrency exchanges. It now includes support for the Ripple platform, and users of the exchange can buy and sell XRP. It is even more exciting that Kraken recently announced futures trading for XRP and other digital tokens.
- Bitstamp is another trusted exchange which permits individuals to buy and sell XRP with an exchange account. You can use either fiat currencies or digital tokens to make a purchase of the XRP token.
Before you buy XRP using a cryptocurrency exchange there are few things you should know about the process. While simple and straightforward, there are some requirements.
First of all, most exchanges will ask you to verify your identity before you are allowed to make purchases. This is done to keep the exchange in compliance with existing financial regulations. There are generally tiers of verification which can involve higher degrees of verification.
Some exchanges also only permit the use of Bitcoin to purchase XRP and other tokens. In other words, you may find that some crypto exchanges do not allow you to make purchases with a debit or credit card. You will have to deposit digital assets from a wallet into your account where you can then begin trading for the tokens you want.
As a final word, always remember that cryptocurrency markets can be very volatile. Investing in digital tokens, including XRP carries an inherent risk. You should do your research and recognize the risks before you invest.