Is Ripple a good cryptocurrency to buy?
Many sites like SA gaming affiliates now accept cryptocurrencies. Initially, sites like these would only accept Bitcoin as a mainstream tender, but there has been a swing towards altcoins as the idea of digital currency takes off. Today, you might pay using Ethereum, Ripple, Dogecoin, and a wide variety of other options.
The uptake by businesses worldwide also provides cryptocurrencies with a usage boost. If you’re not on the cryptocurrency bandwagon yet, you may want to consider making your first investment in altcoins.
Why not start with a coin with a little controversy—Ripple’s new XRP? Is it a good cryptocurrency to buy? Let’s find out.
What is XRP from Ripple?
XRP is the token that Ripple issues as a means of tender. Ripple’s buyers may hold on to these cryptocurrency tokens as a means of investment or use the altcoins to fuel transactions within the network. Some banks may also accept XRP, facilitating fiat currency trades more effectively.
What Makes Ripple Special?
When the company emerged in 2012, its innovative real-time cross-border transfers sent shockwaves around the globe. By 2017, the coin gained huge value, briefly overtaking Ethereum as the world’s most popular altcoin in 2018. Some experts even believe it could replace the current Swift system of transfers in the future.
From a transactional standpoint, Ripple is an excellent transactional cryptocurrency. It works on a consensus model rather than a proof-of-work model, so authorizations continue to be quick and inexpensive. It also costs a fraction of a cent to make a transaction, and each transfer takes only five seconds.
The Ripple team is known for its ambitious strategies. They work with large corporations, banks, and governments, and transactors even have the option to stick with Ripplenet instead of holding the more volatile XRP. The future for Ripple seems bright, but will it reach the same heights as Bitcoin, the current race leader?
Before You Rush Out to Buy XRP
One of the advantages of XRP is that it is a less expensive option compared to Bitcoin or Ethereum. Investors draw confidence from research into the coin and its company’s management. However, much has happened since XRP was the top altcoin in 2018.
In December 2020, the SEC filed a case against Ripple, claiming that it classified XRP as a security. It also stated that Ripple didn’t follow proper procedures. The court case dropped Ripple’s value massively, and several exchanges halted the trading of XRP.
The SEC also claimed that Ripple issued $1.3 billion in unregistered securities, which sent the market scrambling for cover.
A Wave or a Ripple?
Things are not as dire as they seem, though. Ripple argued that they operate in the same space and manner as other top altcoins and further questioned why the SEC waited so long to lodge their complaint. Why is XRP is the only coin under attack?
Pundits tend to agree that the SEC’s failure to act sooner nullifies the case, and others suggest that the organization overstepped its bounds. While Ripple awaits vindication, the future of XRP is in question until the courts settle the case.
All cryptocurrency investments are volatile and present some level of risk, so is it worth investing in XRP? The price is attractive, but you should be sensible about the parameters. Don’t invest money that you cannot afford to lose, and stick to using XRP for purchases on sites like SA gaming.