Ripple XRP is a cryptocurrency that has seen a rapid increase in value this year, bumping over 650% higher since the first day of 2021. While it was not originally very well-known, this sudden growth has made it a big contender for another major player in the crypto market. But is it really going to get that big, considering how niche it used to be?
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What are XRP and Ripple?
Ripple is the company behind the Ripple network, the system that runs transactions with XRP tokens. Unofficially, Ripple also refers to the XRP currency, with some people using the same to refer to both. The Ripple network and the XRP currency are directly linked as part of the same system.
Ripple has seen a massive spike in the value of their XRP currency, a token that was already often used to settle international payments. XRP has been used by major institutions and a variety of different banks, as has the entire Ripple system. This might be part of the reason for its sudden spike since it has gradually become more and more useful over time.
Is Ripple Good?
Ripple is known for being quite a fast and cheap option for sending cryptocurrency, with the downside being that it is privately owned and controlled by a regular company instead of being fully open like Bitcoin. For people who just want to send money, though, this is not a problem at all, and it means that the Ripple system can be maintained constantly.
XRP tokens are not gained through high-energy-usage computer programs, relying on independent servers that are not quite as bad for the environment. This can make it feel like a better option for people who hate the energy usage of regular cryptocurrencies.
The entire Ripple system is managed across multiple servers, which are owned by different institutions in different parts of the world (mostly banks and other major groups). This means that the servers are not all contained in one place and will not all go down if something happens to one of them.
How Does The XRP Price Work?
Since XRP is privatelyowned, you might think that Ripple could fix the price. However, this is not true – XRP prices are altered based on supply and demand, with each trade setting a new base price. The contained system means that there is not any unwanted spread or inflation of the price, and the number of potential buyers and sellers can raise or lower how much a token costs.
This is a good thing because it means that XRP tokens follow a similar formula to almost all other cryptocurrencies. Ripple owns the system, but they can’t easily manipulate the servers to make XRP much more expensive, and it still adjusts based on the actual supply and demand that users are experiencing.
Where Can You Buy XRP?
XRP is still small enough to not appear on every platform, but it is also gradually growing. More and more platforms have taken an interest in XRP, so bigger sites and apps are starting to host it as well. If you are interested in getting it, look at larger sites where there are more crypto assets on offer.
On some sites, it is as easy as clicking a ‘buy now’ button and letting the system automatically send you your tokens. Some of them even have automated trading features to help you avoid unexpected losses, allowing you to auto-buy and auto-sell without needing to watch the data constantly.
Should I Buy XRP?
XRP is still just another cryptocurrency, and it functions in the same way. However, Ripple’s network is the part of it that matters more: as long as you do not mind a private company owning it, it is a lot better for avoiding the environmental damage of other crypto options. The spread-out network also reduces the chance of a single server ruining the entire system.
XRP’s sudden increase might just be a one-time fluke, but considering that they are working with some major banks and gradually spreading their network further and further, it could happen again. If you want to be ready for the next possible XRP boom, then there is no better time to get in. Take a look around and see which platforms offer it, because you might already be only a click or two away.