XRP is a digital coin and native token of the XRP ledger, an open-source blockchain. The XRP coin aims to improve global financial transfer. Interestingly, XRP transaction speed is one of the fastest in the digital world. Your XRP transaction will be completed within less than 20 seconds.
Unfortunately, the quest for Bitcoin, Ethereum, Dogecoin, etc., doesn’t allow people to see this cryptocurrency’s potential. Did you know that XRP was created in 2012? Since its creation, XRP has remained consistent despite other coins going extinct. This article aims not to blow the trumpet of XRP but to offer an unbiased view of this coin.
7 Features of XRP Coin You Should
Investing in a cryptocurrency requires more than looking at the charts. You should learn about the individual features of the coins before you proceed. For instance, this native cryptocurrency created by the Ripple network has the following features.
High transaction speed
The XRP coin’s transaction speed is the foremost thing that attracts investors. Can you imagine concluding your transaction in less than 5 seconds? Other coins like Bitcoin take up to 1 minute to complete a transaction. Furthermore, the XRP Ledger carries out over 1,500 transactions in one second. Currently, no cryptocurrency can handle this amount of transactions within this timeframe.
Low transaction costs
The cost of transactions on XRP is just a fraction of what other cryptocurrencies charge. XRP is undoubtedly one of the most popular coins and has an inexpensive transaction cost. In addition to the low transaction cost, the speed is fast.
Scalability
One of the issues popular cryptocurrencies have is handling many transactions at a time. Fortunately, that is one of the few problems of XRP. The XRP can handle several large transactions within a jiffy. Remember, we told you it can carry our 1,500 transactions in less than 1 second.
Low energy consumption
The energy consumption rate of XRP is lower than that of other coins. No wonder XRP is referred to as one of the most environmentally viable coins. XRP consumes less energy because it uses consensus protocol instead of proof of work. Coins that use proof of work are likely to use more energy.
Decentralized network
The XRP Ledger is not managed by one central authority like other cryptocurrencies. The beauty of investing in a decentralized network is that it offers you some level of control. Furthermore, the nodes on the XRP network operate independently.
Fixed supply
The supply rate of XRP Ledger is high compared to other cryptocurrencies. Furthermore, XRP supply is fixed at a maximum of 100 billion tokens. In other words, the XRP supply rate is vast and can accommodate demand.
Used by several financial institutions
Will you be surprised to hear that major institutions in the US use XRP? Major financial institutions like Santander and Bank of America use the Ripple transaction platform, validating that XRP is secure and has various potential.
How to Use XRP?
XRP is a bridge currency used for cross-border transactions. With XRP, you can send your coin directly to other wallet addresses for cryptocurrency exchange transactions. In addition, you can send settlements directly. Also, XRP allows users to have custom tokens and smart contracts to build decentralized applications. Using their open-source protocol, financial institutions can use the XRP ledger to build payment solutions. This network also allows payment streaming, escrow mechanisms, and multi-signature wallets. More businesses opt for XRP because it allows you to create automated payment systems. You can set up various transfers or even develop a financial product.
Where can I buy XRP (Ripple)?
Interestingly, you can source the XRP coin from various exchange platforms. Binance is an exchange platform offering XRP trading pairs against other cryptocurrencies and fiat currencies. Nevertheless, you cannot buy XRP on Binance or any other platform if you don’t create an account. Importantly, every user must complete an identity verification exercise before they are allowed to deposit funds for trading. Meanwhile, every trading platform often has a minimum deposit of 10 XRP. You can store your XRP on Binance and also trade it on this platform.
Ripple (XRP) Risk you should know
Ripple Labs is undoubtedly expanding its reach through various partnerships with financial institutions. They focus on emerging markets and helping traditional banks that lack efficiency succeed. Despite their efforts to improve their platforms, there are a few cons that you should know before you invest in XRP.
Ripple Labs and the SEC are currently involved in a lawsuit. Questions remain about whether the sale of XRP constitutes an unregistered securities offering, and the legal battle has increased the uncertainty regarding this coin. The uncertainty affected the coin’s viability, and the outcome of the suit could affect how digital assets are classified.
Aside from the SEC, other blockchain platform payment solutions and central bank digital currencies also challenge Ripple’s position. Not to mention that the concentration of XRP tokens created by Ripple Labs is a concern.
The Future of the XRP Coin
No cryptocurrency is without issues. The major challenge of all digital coins is that they are vulnerable, and their prices could drop and increase radically. However, the future of coins like XRP seems bright because Ripple Labs is not relenting in trying to expand its partnerships with other platforms. Currently, Ripple Labs is partnering with traditional banks in Asia, Latin America, and other places. These regions offer a growth opportunity for the future of cryptocurrency.
The introduction of central bank digital currencies has opened new possibilities for platforms like Ripple. Remember that Ripple is already partnering with major financial institutions, and these platforms will increase their partnerships. Based on this, the Ripple Lab XRP Ledger offers a ready-made infrastructure that helps with CBDC deployment.
Their push into tokenization and smart contracts will improve diversity and increase its use beyond payments. Ripple Labs is developing features like NFTs, DeFi applications, etc., to improve its platform. All these developments will expand Ripple Labs’ network and improve access to XRP.
Frequently Asked Questions About XRP
What are the differences between XRP and Bitcoin?
Bitcoin and XRP are highly valued cryptocurrencies, but they operate on a different level. Ripple offers payment solutions for financial institutions, while Bitcoin operates on a decentralized payment system. Bitcoin transactions can take up to 1 minute to be successful. XRP transactions are completed within seconds. Also, transaction fees on Bitcoin are more expensive than those on XRP.
Should I invest in XRP?
No matter how viable a digital coin may be, there is no guarantee that its past success will reflect on the future. Nevertheless, before you make any financial investment about XRP, carry out substantial research.
How can I get started with XRP?
To start investing in XRP, you must create an account on a cryptocurrency exchange platform that lists XRP. Usually, new users are requested to complete an identity verification process before depositing funds. You will be required to transfer a minimum deposit amount into your wallet. You must maintain a secure password to protect your funds from third parties.
What are the possible risks of investing in XRP?
Generally, cryptocurrencies have a high price volatility and often face regulatory uncertainties. For instance, some countries have banned the use of several digital coins. Therefore, the same risk that other digital coins face affects XRP.
Bottom line
Compared to other cryptocurrencies, the XRP coin offers users an alternative to traditional banking. XRP’s captivating aspect is its speed and low-cost fees for any transaction. In addition, its scalability increases its adoption by major financial institutions. Even though Ripple Labs is facing some legal issues with the SEC, it has continued to evolve through better partnerships. Meanwhile, it is listed on major trading platforms like Binance. You can check the XRP price and learn about other cryptocurrencies. Finally, seeking financial and investment advice from top cryptocurrency experts will help you decide whether to invest in XRP or any other digital coin.
