Here is Everything You Need to Know About Ripple Cryptocurrency
Cryptocurrencies will inevitably change the world as we see it. In the next few years, transactions will be faster, secure, and convenient, thanks to the blockchain. Though the crypto space is currently in infancy, it has caused ripples in the financial scene. Even the big players (Banks and other financial institutions) have started investing in this “new” digital currency, a substantial assurance that cryptos are here to stay. They have made it possible to transact cheaply and 50X safer than traditional ways of moving money.
Ripple, for example, promises users of a cross-border payments solution for financial institutions based on the blockchain technology. Typically, institutions that need to complete thousands of transactions daily have had to part with significant transaction fees to facilitate the slow process. Now, Ripple can solve that issue entirely.
Ripple’s Grand Idea
Due to security issues, every financial institution builds their payment system. This difference makes it hard to transfer money from one institution to the other. For instance, you cannot move money from PayPal to Payoneer directly. It means that only a few financial institutions can directly link their services, yet we are living in the 21st century – what a shame.
Ripple fills this gap by facilitating super fast transaction speed, with delays of not more than four seconds. In the long run, there will be more competition in the financial sector that contributes to lower transaction fees. The financial institutions have received this news with excitement.
Is Ripple Similar to Bitcoin
Putting Ripple in the same sentence as Bitcoin is like comparing apples to oranges. The two serve different purposes and work well in their respective roles. Ripple’s target customers are the financial institutions (B2B) while Bitcoin aims at providing P2P transactions. Additionally, Ripple has an internal ledger that is accessible to the moderators. But Bitcoin uses a public accounting approach, where anybody can view the status and history of transactions.
Experience Lightning Fast Transactions
Let’s face it; a two-day transaction in this time and age is an embarrassing situation. Luckily, Ripple has come to our rescue. Its primary focus is to smoothen B2B operations and help other cryptocurrencies in the process of digitizing money transfer. Unlike other currencies, this transactions will be monitored and permanently recorded on the blockchain. Currently, these institutions use the SWIFT network to transfer money from one bank to the other.
The aim of Ripple is not to rival Bitcoin, the idea is to strengthen it by targeting the customers that needed some special services. Banks and other financial institutions don’t want their records available to the public, but they could still enjoy the blockchain’s agility. Since Ripple supports global payments, the system allows the conversion to local fiat currencies on arrival.
What About the Price?
For now, the Ripple price is at $0.89 and may continue to drop as we go deeper into 2018. There is no telling where it’ll reach. Nonetheless, the cryptocurrency has attracted big names in the financial industry. The likes of American Express, Santander, SBI holdings, and LianLian but the number is expected to grow. The reason that makes users hold back is the start-up nature of the coin and the fact that it’s prone to inflation.
How About the Circulation?
Users cannot mine Ripple; it’s issued – a factor contributing to its inflation. In total, the Ripple coins are 100 million, but they circulate only a half and hold the rest. However, they release the coins using an unknown strategy. If the plan fails, then a significant amount of trust will be withdrawn from cryptocurrencies. But if it pulls through, people will regret not buying it for under a dollar.
How to Buy Ripple
Unfortunately, Ripple is not available on Coinbase, but you can follow its trends on Coinmarketcap. Because Ripple, a privately owned company, owns a substantial number of the coins. Therefore, if you are looking to buy some, you’ll have to purchase Etherum or Bitcoin then use it to buy Ripple – sounds complicated? No, it’s not, get some Ether from any exchange and move it to Binaca – a relatively new trade platform that offers the coin alongside other cryptocurrencies. After a successful transaction, you can finally keep your Ripple safe until you can sell it at a profit.
This digital currency has gained popularity and funding over the years. The only problem is their nature of doing business; they don’t have transparent strategies like Bitcoin. Though it takes a significant amount of time for Bitcoin’s transaction to complete, people have to trust it and continue to hold it in hopes of making a kill one day.
Cryptocurrencies are complicated and unstable, but some people have positive things to say about them. If you are thinking of buying some coins, take your time to consider all the information here and keep your eyes open for new developments.