With so much buzz happening in the crypto space, it can be difficult to keep track of everything important. One of the various things that deserve attention is the list of cryptocurrencies constantly performing well on the charts. There are hundreds of digital currencies available in the market, but only some deserve your attention. Of the top digital coins dominating the space, one is XRP, the native currency of the Ripple network. Many investors tend to use these two terms interchangeably, so don’t get confused when someone tells you about XRP.
If you’re new to cryptocurrencies, you should start your journey with Ripple (XRP), as it has a secure spot on the list of top cryptocurrencies. But if you’re willing to acquaint yourself with this digital token first so you can invest wisely, you’re at the right place. To help crypto enthusiasts like you, we’ve listed down the top five things everyone should know about Ripple. So let’s head straight to the five points shared below:
- Ripple: A Cryptocurrency Exclusively for Financial Institutions
To understand Ripple better, you should be clear with the basics. XRP is a cryptocurrency that is used on Ripple’s payment settlement system and currency exchange network. Ripple Labs created it to improve the existing cross-border payment system, which is slow, expensive, and inconvenient for many. Ripple works on the advanced blockchain technology that ensures third parties can alter any transactions.
Every transaction taking place on the Ripple network is secure and pretty affordable for everyone. It is what made several international banks and financial organizations join hands with Ripple to facilitate faster international transactions. Currently, Ripple has over 300 financial institutions as partners, and the token’s creators expect this number to grow.
Ripple is the only cryptocurrency that was created exclusively for financial institutions. Using this technology, many banks have saved a significant amount of money as transaction fees and also benefited from its blazing fast transaction speed and reliability. Ripple has emerged as a cryptocurrency with real-world implications.
- Ripple forms the Bridge between Different Fiat Currencies
If you thought Bitcoin and Ripple serve more or less the same purpose, you’re in for a surprise. While both are digital currencies, there is a stark difference between the two. While Bitcoin aims to become the currency of the future, Ripple, on the other hand, seeks to improve the existing financial system, especially in terms of cross-border payments.
Ripple also acts as the bridge between different global fiat currencies, making it easier to conduct cross-border transfers. For example, if a company in the United States wants to pay their contractors in South Korea, they can use the Ripple system to transfer the funds almost instantaneously and for a fraction of the traditional international payment cost. It is what made many buy Ripple in India and abroad, and its demand continues to rise.
- Miners Cannot Mint XRP Tokens
While miners can mine cryptocurrencies like Bitcoin, Ethereum, Litecoin, Dogecoin, and others, it is not the case with XRP tokens. Ripple Labs has put a cap on the total number of XRP coins at 100 billion. It means the market can never have more than 100 billion Ripple coins in circulation. But rarely do people know Ripple Labs has already created these tokens.
No miner can mint XRP coins, and the circulation of these coins is in the hands of Ripple Labs. They currently hold around 60% of the 100 Billion coins, and they plan to release approximately 1 Billion XRP coins in the coming years in a phased manner.
- XRP’s Transaction Costs are Way Cheap
Those who have used Bitcoin, Ethereum, and other digital tokens know how expensive their transaction charges are. XRP, however, is different from the lot in terms of the transaction cost. While the world’s leading cryptocurrency, Bitcoin, has raised eyebrows for its notoriously high transaction fee, XRP keeps it relatively low by keeping it under a penny. The highest transaction cost Ripple ever charged was $0.03, while the highest transaction fee ever charged by Bitcoin was a little over $20.
- Ripple Pleases its Users Base with a Blazing Fast Transaction Speed
Another aspect that earns Ripple a brownie point is its transaction speed. While other popular cryptocurrencies like Bitcoin and Ethereum take around ten to thirty minutes and two minutes, respectively, XRP is believed to complete its transaction in less than four seconds, which is hugely impressive. It is Ripple’s transaction speed that made it reach the good books of various banks and other financial institutes.
Get Ripple a Place in Your Portfolio
Now that you know what makes Ripple stand out, you might consider adding some XRP tokens to your crypto portfolio. If you’re willing to buy Ripple in India, consider signing up on a trustworthy cryptocurrency exchange that will let you make the purchase using Indian currency. If the exchange facilitates hassle-free INR to Ripple conversion, go ahead with the platform.
Ripple has managed to turn heads around the globe, and its promising roadmap is expected to make this digital currency more popular and valuable in the coming years. While we’ve shared every important detail that an investor should know about Ripple before investing in this token, you should keep an eye on the market trends and factors that influence its value. If you manage to do it, you might end up making crazy profits from this one cryptocurrency alone.