The dazzling success of Bitcoin tends to eclipse other crypto currencies, or altcoins, whose number is nevertheless close to 1400. Among them is the Ripple, cryptocurrency third in terms of market capitalization behind Bitcoin and Ethereum. So what is the Ripple? Clarification.
The Ripple, Crypto Currency and Payment Protocol
Ripple refers to both the name of the company that originated the Ripple, the crypto currency Ripple, abbreviated as XRP, and the Ripple payment protocol, called RTXP (Ripple Transaction Protocol).
Being both a crypto currency and a payment protocol is what primarily distinguishes the Ripple from other virtual currencies. Its payment protocol, very serious, is already used by major banks in the world (for example Bank of America, Credit Agricole, HSBC or Unicredit) and already competes with the traditional interbank Swift network.
Crypto Ripple Currency: How it works
Like Bitcoin, the Ripple is based on blockchain technology but the similarities stop there. The manufacturing process of Ripple is radically different from that of Bitcoin.
The manufacture of Bitcoin is based on mining, or mining in French, whose algorithm controls the progress and ensures that it is increasingly slow to finish 21 million units in circulation in 2140.
Conversely, the Ripple, it was completely undermined at once, before being put on the market. 100 billion units of XRP have been issued but only about 39 billion are in circulation:
About 15% have been placed on the market,
About 20% have been preserved by the creators of the Ripple,
About 65% are kept for later injection into the network.
Crypto Currency Ripple: Investing or not
The Ripple has serious advantages over Bitcoin or Ethereum.
First, the price of the Ripple experienced in 2017 the largest increase: + 36000%, against + 9162% for Ethereum and + 1318% for Bitcoin. In terms of market capitalization, the Ripple reached 52 220 billion in January 2018, against 189 963 billion for Bitcoin and 100 662 billion for Ethereum. The Ripple is therefore in the top 3 crypto-currencies.
In terms of cost, the Ripple is also much cheaper to buy than Bitcoin. In March 2018, 1 XRP is indeed 0,686 dollars while 1 BTC (Bitcoin) is exchanged on the same date at 8617,40 dollars!
Finally, the Ripple is much less volatile than other crypto-currencies. Very stable, it is one of the virtual currencies with the lowest volatility. And it is a considerable asset. This comes in particular from the fact that the society owns two-thirds of its currency and therefore massive buying by investors is limited.
Ripple Trading: How to Invest in the XRP?
Ripple does not sell its cryptocurrency directly to individuals. To buy ripples, it is possible to buy bitcoins or ethers and then convert them into ripples, but the best way to invest in the Ripple is to trade in CFD.
Some online brokers allow the Ripple CFD, such as Admiral Markets, FCA regulated broker, which allows to trade the CFD Ripple vs. US Dollar (XRP / USD) with a typical competitive spread of 1 point. It is also possible to trade the Ripple CFD on a demo account, which allows you to practice Ripple trading without taking risks.
Crypto Currency Ripple: Reviews
In the general opinion of professionals, relayed in the press, the Ripple is the main rival, or even the successor of Bitcoin.
Less expensive, less volatile, more reliable because of the very serious payment protocol associated with it, the Ripple has a better reputation than Bitcoin.
Conclusion: the future of the Ripple in 2018?
The future of the Ripple in 2018 is rather promising. If, as we have seen in recent months, the fall of the main cryptocurrency leads to that of other virtual currencies, the Ripple still seems less dependent on Bitcoin than competing currencies.
What allows us to predict at Ripple a radiant 2018 future is based on 3 key elements:
1. The Ripple is less subject to speculation,
2. The Ripple is more regulated than other crypto-currencies because of Ripple's hand-put on its currency,
3. The Ripple is also a reliable payment protocol that has already conquered large banks.