Investors who are interested in crypto shouldn’t look at Bitcoin as the only crypto worth investing in. Ripple, with XRP as its native coin, is another crypto investor who should consider buying. While XRP is a relatively new crypto (barely a decade), we are particularly interested in it because it ranks as one of the top 10 cryptos by market capitalization. And despite a pending SEC lawsuit, XRP has been able to remain a valuable coin. As you all know, cryptocurrency is a volatile market to invest in with high risk, nevertheless, it also comes with high rewards. XRP is quite riskier than the typical coin, but it is worth it to buy Ripple. Well, let’s enlighten you in this article why it is okay to buy XRP.
What is XRP (Ripple Coin)?
XRP is actually a token or crypto for products that are developed by Ripple Labs. Ripple Labs uses XRP for several transactions including asset exchange, payment settlement, and remittance systems that work more like SWIFT, a service for security transfers and to send money internationally used by a network of financial intermediaries and banks.
A financial institution like SWIFT may be replaced by Ripple, all things being equal. This is because people are more accepting of the decentralized market than they are of a centralized market because of the several advantages that come with it, especially the freedom to manage their finances how they want. Below, we highlighted some of the advantages that investors will get when they buy Ripple.
- Faster transactions, averaging not more than five seconds.
- Cheaper transaction cost averaging 0.0001 XRP.
- Ability to use XRP in financial institutions like banks to facilitate the exchange of currency.
We encourage investors to buy Ripple not only because of these benefits mentioned above, but because of how much progress it has made over the past years. Based on Ripple’s website, its RippleNet Payment has spread to over 40 countries and partnered with more than 300 financial institutions. Although networks like SWIFT have accomplished more as they are available in over 200 counties and partnered with more than 11,000 financial institutions considering they have been around since the 19’s.
SEC’s lawsuit against Ripple
While the SEC’s lawsuit against Ripple is a major obstacle to the crypto, the direction the suit is taking seems to be in favour of Ripple. The lawsuit is all about the SEC claiming Ripple sold $1.3 billion worth of unregistered securities through XRP. While this should be a crime, Ripple says XRP is not a security, hence they committed no crime. Moreover, it’s outside the jurisdiction of the SEC to sue XRP, which makes the whole lawsuit a flex of power. And if not till there is a ruling, this lawsuit will affect Ripple in the following ways:
- Prevent it from going public especially in the United States crypto exchanges.
- Prevents the price from rising.
- Limits the ability of users to use XRP to buy most crypto.
Why buy Ripple?
XRP is a valuable coin that will definitely bounce back after the SEC lawsuit against it. XRP is so valuable because of its multiple uses. While it is crypto, it is bank-friendly, which is not a very common feature. And despite the SEC lawsuit on the coin,
If your spare funds you could spare investing for a couple of years, then you should buy Ripple now. Note that the price of Ripple is considerably low right now. And when investing in anything, it is best to buy it when the price is low. So that in the near future when the price skyrocket, early investors will benefit from it greatly.
The reason we have so much faith in the coin is that it is valuable, and there is a limited supply of the coin. And if you understand the law of demand and supply, then you’d understand that when the supply of a commodity is limited, demand will increase. And when demand is not met, the cost of the limited supply will increase.
To sum things up, if you are looking to buy Ripple coins, Bitvavo is the best place to check. At Bitvavo, you can buy crypto at a low rate, enjoy up to eight payment methods, and also get a Ripple wallet. And importantly, when investing in cryptocurrency, ensure you invest only what you can afford to lose. This is because the market is very volatile.