Ripple is a payment platform working on an open-source protocol made to enhance transaction processing times and costs. The platform also has a cryptocurrency called the Ripple or XRP which acts as a token that permits the transfer of money and payments on the Ripple Network, be it fiat currencies or cryptocurrencies. The distinct advantage of the Ripple is its really low transaction cost that is almost $0.00001 per transaction. The prototype of the platform was created in 2004 but it only got developed into an active practical platform in 2013. It was the brainchild of the Ripple Lab, a company founded by Chris Larsen, an angel investor and Jed McCaleb, a software developer who had co-founded a number of start-ups in the crypto industry. The cryptocurrency is now ranked second amongst all the cryptocurrencies in the world in the context of market capitalization and has grown by over 3800% in the last few months.
Cover Ripple Coin common Issue:
Some issues that the XRP has come under ever since its inception are: –
1. This year itself some of the investors of the crypto coin have raised issues about the network selling off unregistered securities calling it a scam coin in the US. In fact, a lawsuit has been registered against the coin with the US Securities Exchange Commission (SEC) recently.
2. There has been a case of freezing transactions with Ripple. The founder Jed McCaleb had tried to sell off Ripple coins worth millions of dollars through the transaction did not proceed and was reversed later. It was a breach of contract by Jed leading to disgruntled investors who are aware that freezing transactions are not in line with basic cryptocurrency rules.
3. Ripple is more of a company into selling banking software with blockchain protocol to banks and financial institutions where most of these institutions are not using XRP but using the other product of the company called the current. With the company being happy to be working with Ripple Network and banks; XRP investors on the other hand or the traders who buy the Ripple crypto coin view it more on the lines of Bitcoin. This dual nature of Ripple is not seen to be good for building the confidence of the investing community.
4. In a recent study by Purdue University, it has been found that the architectural structure of the Ripple network can become soft targets for hackers thereby putting some 50,000 wallets at risk on an immediate basis.
Pros and Cons of Ripple Coin
Some of the distinct advantages of the Ripple Coin are: –
1. The Blockchain protocol of the Ripple Network is gaining faster acceptance amongst banks and financial institutions. It is currently having a partnership with more than 100 financial bodies including 60 major financial institutions from the world over. Hence, it is steadily being able to break the barrier that existed with other cryptocurrencies that we’re unable to integrate with the official financial world that is controlled and managed by central governments or government-sponsored bodies. This way, Ripple is being hailed as a trend-setter in the world of cryptocurrencies.
2. With the increasing acceptance of Ripple amongst the banking community, the value of XRP has increased at a fast pace and will go on increasing as more banks engage with the Ripple Network. This means exceptionally good fortune for the initial investors of XRP.
3. Ripple is much safer than any other cryptocurrency today for it is backed by its payment platform. This also leads to faster transactions at very cheap prices.
4. XRP can be exchanged with any cryptocurrency or fiat currency or other valuable metal like gold.
5. XRP has no inflation-related issues and is able to maintain the privacy of the individual or business that is using the network for transactions
1. Since the XRP coins are already mined, a lot depends on the Ripple developers on when they want to mine and how much they want to release in the market. This makes the Ripple network highly centralized – an aspect that is greatly criticized by investors.
2. The fact that the owning company of XRP – Ripple Labs – owns as much as 61% of the crypto coins is also one of its biggest disadvantages.
3. The architecture of the Ripple network can be accessed and broken into by online hackers making the network quite vulnerable.
How to sell or Buy Ripple Coin
XRP can be bought from any cryptocurrency exchange where it is listed. The process has been explained below:-
1. Create an account with the chosen exchange for which you would be required to visit the official site of the exchange.
2. You would be required to provide certain personal information along with your email id. The account will be created by the exchange.
3. Login into the exchange using the login details provided at the time of sign up.
4. Enable the two-factor authentication for security.
5. Many exchanges would ask for the photo ID during registration and some will ask for it during the verification process.
6. Once the verification is over, you need to deposit funds into your account before buying or selling. Choose the country and your preferred method of money transfer.
7. Once the money transfer is completed you will be informed via an email.
8. Now in order to buy XRP, go onto the buy screen and choose the currency in which you wish to buy XRP. Enter the amount you want to spend and then click on buy for the transaction to proceed further.
9. The XRP coins will now be bought and added to your account balance. You are ready to trade with the purchased Ripple coins.
10. In order to sell, you need to go to the Sell option. Enter the amount of XRP and the currency in which you wish to sell. Review the details once and then click on sell for the transaction to complete.
Is Ripple Coin safe for investment? /or legally approved
Just like any other cryptocurrency, Ripple also comes with an element of risk – in the world of digital money no investment can be considered a safe investment. The cryptocurrency prices universally are prone to volatility and investors can gain or lose depending on the market conditions and lots of external factors that are beyond their control. It is a gamble after all, and the same is true with Ripple too. Having said that, Ripple has a powerful blockchain platform supporting it and with the owning company already in partnership with many banks across the globe, there seems to be some sort of meaningful semblance here. In a crypto market where there are more than 2000 different currencies, the XRP has some credibility and reputation to it. However, investing in XRP should be the complete discretion of the investor and the buyer and as a rule of the thumb; you should only invest as much as you can afford to write off all. As per as the legalities are concerned, users are recommended to always check with experts on whether cryptocurrencies in general and XRP, in particular, is legal in their country of residence or not before venturing into the crypto market.