What Is Ripple and Is it a Better Investment than Bitcoin?

All anyone is talking about is Bitcoin (BTC), which has quadrupled in value over the past year and has experienced a bull run that has taken the price to an all-time high of $60,000, growing by 63% since the start of 2021 alone. But what about other coins?

Is there another cryptocurrency out there that can compete over the long term with the incredible success of BTC? One of the most interesting contenders, that has achieved a great deal of recognition, is Ripple (XRP).

What Is Ripple (XRP)?

what is ripple XRP

Ripple is a US based tech company that has developed a real-time gross settlement system, currency exchange and remittance network. The enterprise focused payment network, based on blockchain technology, supports global transactions using its own native token, XRP, as well as multiple fiat currencies.

So, who uses Ripple cryptocurrency? Basically, people looking to make secure, rapid, cross-border transactions through a decentralized system.

The Ripple Payment System

The Ripple cryptocurrency and network are steadily gaining a mainstream following that is close to rivalling that of Bitcoin. If you are looking to invest in cryptocurrency, Ripple offers a strong utility. The Ripple network allows for secure global transactions and is commonly compared to the traditional centralized SWIFT system that uses networking technology to enable international inter-bank transfers.

Transaction Validation

transaction validation ripple

XRP is the main token used in powering the Ripple network and is behind the unparalleled transaction speeds, of just 4 seconds. In fact, a central Ripple and Bitcoin difference is that while the Ripple network can perform over 1,500 transactions per second, Bitcoin can only handle around 15 per second!

One other major difference between XRP and other native tokens is that the Ripple cryptocurrency is not required to perform transactions. This has been somewhat controversial in that it has mean that XRP is not tied to the popularity and expansion of the network. However, it has also meant that Ripple has been able to capture a significant share of the enterprise-scale applications market that might not be supported by other network tokens.

It should be noted that XRP is now solidly in fourth place in terms of crypto market capitalization, at around 140 billion USD, while Bitcoin is miles ahead of the rest of the pack, with a market cap over a trillion USD.

XRP Key Facts

XRP key facts

You can see from any examination of the cryptocurrency news, Ripple has an excellent reputation as a reliable partner for the processing of cross-border transactions. It is therefore unsurprising that the company has tripled in growth year-on-year.

So, what is Ripple offering token owners and how much is Ripple cryptocurrency worth?

XRP is currently worth $1.539 and its growth in value is in part due to the fact that the company offers one of the lowest transaction fees anywhere, at around $0.29. If you are wondering how to buy ripple cryptocurrency, it is available on all major exchanges and crypto-enabled trading platforms. Although XRP can be used to make payments, it is essentially a middleman form of currency to facilitate easier international payments between banks. It is also able to handle an exceptionally high number of transactions per second, as a result of its small validator count of around 150.

The value of XRP is on track for steady growth, particularly since there is a cap of 100 billion tokens that can ever be created, so that as demand increases, supply will drop, raising the price.

What Is in Ripple’s Future?

We’ve asked: “What is Ripple?” and “What is the difference between Ripple and Bitcoin?” Clearly, Bitcoin is head and shoulders above all the altcoins that have followed it in terms of market cap and current price, but Ripple’s future is still being written and if it continues on its current trajectory, continuing to provide unique benefits with regard to cross-border payments, it may one day catch up to or even exceed “digital gold”.

However, whichever cryptocurrency you choose to invest in, the crypto markets are exceptionally volatile, and you are opening yourself up to a profound level of risk. So, how can you invest in crypto without endangering your capital?

Trading Crypto at Close to Zero Risk

trading crypto xrp with arbismart

Here at ArbiSmart, our EU licensed, fully automated crypto arbitrage platform enables you trade crypto with no effort, minimal risk and generous returns.

Crypto arbitrage involves taking advantages of temporary price inefficiencies- instances where for a few minutes a coin is available at different prices on different crypto exchanges at the same time. ArbiSmart is connected to 35 different exchanges which it monitors 24/7, tracking hundreds of currencies at once, looking for price inefficiencies. It will buy the coin on the exchange where the price is lowest, then instantly sell it on the exchange where the price is highest to make a profit before the temporary inefficiency resolves itself.

All you need to do is sign up and deposit funds then the automated algorithmic trading system takes over to earn you a passive profit of up to 45% a year, depending on the size of your investment. You will also benefit from compound interest on your crypto arbitrage profits as well as capital gains from the growing value of RBIS, the native token that powers the platform, which has already more than tripled in value in the two years since it was introduced.

The RBIS price has shot up by 350% already, due to the increasing popularity of the ArbiSmart automated crypto arbitrage platform, which has experienced steady, year-on-year growth of 150%. It is also set to go much higher, not only because a number of new products and services in the pipeline for later in 2021 will mean new utilities for the token, but also because it is already in the process of being listed. Once it is tradable on the exchanges in a few months, this will drive the price higher. In addition, as demand grows, supply will fall since there is a limit on the number of coins that can be created of 450 million.

Crypto arbitrage is a great hedging strategy against any sudden drop in the crypto market, since temporary inefficiencies will always keep appearing and providing lucrative opportunities whatever is happening to the value of Bitcoin or Ripple.

To learn more about all kinds the various aspects of crypto investing, check out the ArbiSmart blog, or to learn more about crypto arbitrage specifically, click here.