If you’re considering buying XRP, here’s everything you need to know.
XRP is one of the top ten cryptocurrencies right now. If the name doesn’t strike a bell, you may be more familiar with Ripple, the company that created it. Despite the fact that the cryptocurrency is called XRP, some people confuse the terms “XRP” and “Ripple.” XRP has a lot of space to develop, thanks to its solid use case and high-profile banking collaborations. However, there are numerous roadblocks that could slow it down. There are a few things you should know about it before making it your next cryptocurrency investment.
It’s a cryptocurrency made specifically for banks and financial institutions.
One of the most significant aspects to consider while investing in crypto is the coin’s purpose. Many fail in this area because they lack a defined function or perform no differently than dozens of other coins.
Unlike other cryptocurrencies that are aimed at consumers, XRP is designed for financial institutions and payment providers. Banks and other financial institutions can send money without having to pre-fund accounts in other countries or pay high foreign currency rates by utilizing XRP.
Its purpose is to make international money transfers more efficient.
Ripple has positioned itself as a competitor to SWIFT, the international money transmission system used by major financial institutions. RippleNet is a global payments network that facilitates cross-border transactions.
Financial institutions that use RippleNet have the option of transferring funds using XRP. However, because XRP is volatile, most of Ripple’s partners avoid utilizing it.
Transactions are quick and inexpensive.
The speed and low cost of each transaction are two of XRP’s main advantages. On Ripple, a basic transaction costs 0.00001 XRP. At the current XRP price of under $1, that’s a fraction of a penny. Five seconds is the typical transaction time. Overall, XRP is a very efficient method of money transfer.
It has around 300 financial companies as partners.
Ripple has been adopted by hundreds of financial institutions in more than 40 countries. Listed below are a few examples:
Bank of America
7It still has a long way to go to catch up to its largest rival. To put things in perspective, SWIFT has over 11,000 partners to Ripple’s 300. SWIFT, on the other hand, has been around since the 1970s. Ripple was founded in 2012, and its early results have been promising.
Ripple has been sued by the Securities and Exchange Commission (SEC).
Ripple has been sued by the Securities and Exchange Commission (SEC). Ripple is accused of selling $1.3 billion in unregistered securities, according to the lawsuit, which was filed in December 2020. The XRP cryptocurrency is the unregistered security in dispute. Ripple has responded by claiming that XRP is not a security.
This matter is still being heard in court. Although this is a cause to be wary of XRP, it might also be a reason to invest if you believe Ripple will win the lawsuit. A positive conclusion for Ripple could result in an increase in the price of XRP.