The cryptocurrency market has been growing over the past years. Individuals want to know how to invest in Ripple, one of the largest cryptocurrencies in the market. In this article, we will explain which are the most important things to take into account to invest in Ripple.
What Is Ripple?
Clearly, we need to understand what Ripple is before moving forward with this article. Ripple is one of the most important companies in the crypto market. This firm has been working in the last years to improve the services offered by financial companies.
Ripple created the so-called RippleNet. Through it, financial firms are able to get in touch with each other in a fast and easy way. This makes the whole system much more efficient. Communication between organizations must improve in order for them to offer better solutions. Currently, there are over three hundred companies that are connected to the RippleNet. Furthermore, the team behind Ripple is working to attract new firms.
Ripple is also working with the XRP virtual currency. This cryptocurrency is known for being fast and very cheap to be transferred. Indeed, it is one of the fastest and most efficient cryptos in the market. Ripple wants to expand its usage among firms in order for them to process faster and cheaper cross border transfers.
By using the XRP virtual currency, it is possible to increase liquidity between two fiat corridors. A company can acquire XRP using fiat currency through a local exchange. After it, the firm would make a transfer to another country using its XRP. Once the funds arrive, the XRP are sold for the local fiat currency. This can be done in just a few seconds and can be all automated.
Volatile Crypto Prices
One of the first things you must take into account to invest in Ripple is related to crypto prices. Virtual currencies are different than traditional assets. In general, virtual currencies fluctuate a lot and their prices change at all times. Of course, Ripple is not the exception.
Ripple (XRP) tends to have a price that fluctuates at all times. This could be very positive for many traders that want to have short gains. Swing and day traders tend to benefit from these price fluctuations.
There are several users and investors that would not like to hold a volatile asset. However, things change if we take into account the long term. Investors that place their funds in the market and expect long term gains, they would not be worried about volatility. This investment technique is known as holding and it could be very profitable in long-term strategies.
At the same time, taking a look at the XRP/USD trading pair is not the only way of profiting. It is also good to see price changes between cryptocurrencies. For example, many users follow the XRP/BTC trading pair in the market. Both Coinbase and Binance have great liquidity for these crypto to crypto pairs.
Despite the volatility in the market, there are several stablecoins that offer a hedge against fluctuations from virtual currencies.
Where To Buy Ripple?
Before starting this section, we suggest you check our full guide about how to buy Ripple. You will learn which exchanges can be available in your region and which suit better to your needs. XRPNow is working in order to offer you all the necessary and valuable information about Ripple.
You can acquire Ripple in a large number of exchanges. Most of these platforms will allow you to invest in Ripple. Before creating an account, the best thing to do is to check whether the platform supports XRP. If yes, you can move forward, fund your account and get exposure to cryptocurrencies.
One of the best platforms to acquire Ripple is Binance. This exchange offers a wide range of trading pairs for users to have a better experience. In addition to it, this platform has large liquidity. If an exchange offers several trading pairs but no liquidity, then it has no sense to use it. Binance focused on creating large liquidity for the trading pairs offered.
At the same time, this platform includes a large number of other services. This could be great for users that want to invest in Ripple and explore other opportunities. For example, it is possible for them to invest in several financial tools not available in other exchanges.
Coinbase is another platform that is great to invest in Ripple. This exchange is one of the oldest in the market and it can be a great way to gain exposure to cryptocurrencies. This platform offers a great interface that is good for users that are just starting to handle virtual currencies.
At the same time, Coinbase is also offering several large cryptocurrencies for traders. This is great to have a diversified portfolio if you invest in Ripple. Moreover, Coinbase has good customer support for individuals. This is going to make it easier for traders that are newcomers or do encounter issues while handling their funds.
There are many other exchanges that allow users to invest in Ripple. The aforementioned two platforms are the most popular and used but there are several others.
Ripple is working so as to expand the number of partnerships that it has with financial companies. This could have a positive effect on the price of XRP. More companies could start using the XRP virtual currency to process international transfers.
MoneyGram, one of the largest remittance companies in the world partnered with Ripple last year. The goal is to use Ripple’s solutions to perform cross border payments for its users. In this way, transactions can be done in just a few minutes for very low fees.
These partnerships are going to be very important for two main things:
- It will help remittance workers
- It would increase financial investments
Remittance workers will have cheaper and better services to send funds back to their home countries. This is very important considering they are spending large amounts of money on these transfers. MoneyGram and other Ripple partners are making it easier for individuals.
Regarding financial investments, there are many companies that hold large amounts of funds in nostro and vostro accounts. This is money that stays locked in these accounts around the world to process international transfers.
With billions sitting there without moving, banks and financial institutions are losing a lot. By using XRP to get liquidity on different fiat currencies, it would be possible to use these funds in Nostro and Vostro accounts and reinvest them in better infrastructure and solutions for users.
If you want to invest in Ripple these are very important things to take into account. In the future, the usage of XRP could increase, and the same can happen with its demand.
In this article, we have shown you the things you should take into account to invest in Ripple. We have explained to you what Ripple is and how it is investing in the crypto market. Moreover, we told you where to buy Ripple and how to invest in virtual currencies.