Overview
Investing in Ripple is similar to other types of investments. It takes a new turn because it’s a cryptocurrency investment opportunity, and the fact that the coin of choice is Ripple sets it apart from, say, Bitcoin trading.
When it concerns Ripple investment, it’s crucial to understand what sets this cryptocurrency apart from others. While Bitcoin, Ethereum, and other popular currencies aim for decentralization, Ripple owns 100% of XRP.
Ripple is likewise attempting to create a cryptocurrency that will fit a particular niche in the financial world, believing that cryptocurrency can best serve banks. Bitcoin and other cryptocurrencies have been vying to replace or outperform banks, while Ripple wants its token to be a currency that banks can use to send money across borders fast and easily. To answer the question of investing in ripple, it is important to know about the performance of ripple in 2020.
In 2020, how did it perform?
It may seem counterintuitive, but based on the fact that Ripple had a particularly difficult 2020 and the years prior, the company’s trajectory through 2021 and beyond is likely to be rather favourable. Throughout 2019, the coin struggled and was one of the worst-performing leading crypto assets. However, this indicates that there is plenty of room for it to rise. When it first started, XRP was trading at around $0.005, and prices stayed relatively stable until 2017, when the entire crypto market experienced an incredible rise.
Most people are familiar with Bitcoin’s high in December 2017, but XRP soared to $0.40 per token in April and May 2017, before resting in the $0.20 level for the next six months.
However, what goes up must come down, and when February 2018 rolled around, XRP had fallen below the $1 threshold. XRP struggled throughout 2019, and even as other leading crypto assets gained traction in 2020, XRP remained a distant second.
Considering Ripple as a long-term investment in 2021? Is It a Smart Move?
XRP is suitable for a variety of traders and investors. It’s an excellent coin for general cryptocurrency aficionados because it’s an altcoin — that is, it’s not Bitcoin — yet it’s still respected and grounded enough to be considered a top-five coin with a thriving market.
At the same time, because XRP is a coin aimed at mainstream financial institutions, it is a fantastic investment for thematic investors in the financial industry. This means that anyone interested in investing in the future of transactions and payments should consider XRP.
If you believe you are an XRP investor or trader, the next step in determining whether this is the correct currency for you in 2021 is to observe how the market evolves. As is common in the cryptocurrency industry, overall ecosystem patterns play a role, and XRP is known to move in lockstep with other coins, most notably Bitcoin.
More importantly, mainstream acceptance is a huge market mover because Ripple’s platform fulfils the needs of many financial institutions and other enterprises in the industry, so any time it is adopted by a well-known brand, it can boost its value.