What Are the Pros and Cons of Investing in XRP?

What Are the Pros and Cons of Investing in XRP?

As many investors are now being towards cryptocurrency investment, most are still concerned if Ripple will be an ideal choice. Before you start investing in XRP, you must understand the currency and its price history and understand the same in detail. 

What Is Ripple and How Does It Work?

Ripple is a cryptocurrency (XRP) and a digital payment network that facilitates financial transactions. It was created by Chris Larsen and Jed McCaleb, two computer programmers, published in 2012 through their Ripple Labs Inc. corporation in the United States. Ripple’s goal is to make financial transactions as simple as possible. Typically, financial payment processing systems are unnecessarily complex and scattered.

Price History of Ripple

Before 2017, the asset’s value lingered around $0.01, but that quickly changed as the token gained traction and took advantage of the crypto industry’s bull run that year. By April 2017, XRP had risen to $0.05, and the steady rise continued until it hit $0.25 in May. 

The asset’s value increased throughout 2017 and into the first quarter of 2018, reaching an all-time high of $3.84. However, this was quickly followed by a significant decline in value that affected every other cryptocurrency; many had described the industry’s remarkable run as nothing more than a bubble, which was about to burst. Its price remained stable at roughly $0.30 until the end of the year, and it never crossed the $0.5 barrier.

The Pros of Investing in Ripple

Many experts think that Ripple can be an excellent long-term investment. here is the list of advantages of investing in Ripple: 

  • Ripple is affordable

Ripple is a cheaper way to invest in cryptocurrency. Since the valuation of XRP is lesser than $1.5, investors find it easier to invest in XRP and do not mind bearing small losses.

  • Market Cap

Ripple is the 6th biggest cryptocurrency with a market cap of over $50 billion, and a considerable market cap is a sign of confidence among investors. 

  • Ripple is not just another currency

Ripple is, in fact, a renowned company that promotes technology to financial institutions, investors, and the general public. And thus, it is one of the most trusted names in the digital world. 

  • Backed by Partners

Ripple is a known currency that financial institutions in the market bask. Ripple was used as a currency first with the prestigious partner, German Bank, in 2014. 

The Cons of Investing in Ripple

Now, let’s understand why people hesitate to invest in Ripple and why it is not their first choice of crypto investment. 

  • No new Ripple

While the amount of Ethereum and other cryptocurrencies are limitless, the available XRP is only 100 billion. And thus, XRP cannot be mined. Since there is a limited number of XRP coins, investors find themselves hesitant to invest. 

  • Overinflated price

Ripple Chairman owns One-third of XRP, while Ripple CEO and board members also hold a significant amount. This means that XRp price is overinflated, and thus, investors find XRP to be lesser profitable. 

  • XRP is not decentralized

Ripple was designed for the banking industry and thus cannot be mined. For this reason, XRP is technically not a decentralized currency as it does not follow the principles of digital economic autonomy. 

Is Ripple a Good Investment for the Long-term?

That depends on the goals of an investor. Ripple can be considered an excellent long-term investment if you wish to invest in a centralized currency designed for banking systems. You can get more details here about XRP long-term prediction. If the lawsuit filed by SEC against Ripple gets scrapped shortly, the long decline XRP will see a better and massive surge in the bullish movement. 

However, it is still a considerable choice for investment with slow and declining movement. 

What Crypto Experts Say on Ripple Growth

According to experts, Ripple will perform in a bearish movement in the coming years unless SEC takes back claims against Ripple. Many users ask if Ripple will ever make it to the $100 valuation; the answer is ‘it is certainly impossible.’ The market cap has to be 100 times more than right now, which is impossible considering the competition and investors’ good choice towards Bitcoin and other coins.

Future of Ripple(XRP)

The future of Ripple certainly depends on the long-term partnerships that Ripple will introduce. Once Ripple partners with more and more financial institutions and it become regulated in most of the system, the future of the currency is quite bright. 

However, users must understand that the future or value movement of XRP is not similar to decentralized currencies, and thus expecting the same results and returns might not be an ideal way to go. 


Ripple is a good choice of investment when you start to understand the currency and Ripple as a company better. All you is patience and thorough research to earn more returns in XRp. So good luck with your investment, and we hope you will find better bullish growth with Ripple investment.

Frank Weeks

Frank Weeks joined FxNews.Media as a junior editor. He covers the latest updates on the ongoing forex market & signals, trading platforms, prices & charts, and much more.

View All Posts