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ID XRP is a token that is quite active on cryptocurrency exchanges. This token from the Ripple ecosystem has performance that cannot be underestimated. However, does this token really have great potential as an investment or trading asset? Before starting buying and selling transactions, it would be a good idea for us to first examine Ripple's decentralized system together.
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What is Ripple (XRP)?
Ripple started as an innovative decentralized financial system developed by Ryan Fugger since 2004. Its name at that time was RipplePay. In 2012, Jed McCaleb and Chris Larsen joined the team. Then, they changed the company name to Ripple Labs Inc., and released the Ripple Network protocol as we know it today.
In fact, the Ripple protocol is not a blockchain technology like other cryptocurrencies in general. Ripple uses their own unique protocol called XRP Ledger which in general is somewhat similar to a blockchain system. This protocol allows real-time payment transactions to occur and is integrated with other financial systems, both fiat and crypto. The main goal of developing Ripple is as an efficient and practical payment mediator.
XRP Ledger does not use a mining system like other cryptocurrencies. Therefore, consensus is managed by a network of independent validartor nodes bound by rules called the Ripple Consensus Protocol Algorithm (RCPA). In this case, each transaction must be verified by at least 80% validator nodes. Everyone in the Ripple ecosystem can become a validator. However, Ripple regulates which validators can be trusted.
In 2013, more than 100 registered banks adopted the Ripple system. However, Ripple's peak in history was in 2017 when they succeeded in obtaining various strategic partnerships. Not to mention, XRP Ledger also has payment system integration with many other crypto-based platforms. After that, the company Ripple Labs continuously carried out developments and improvements that made the XRP token even more reliable.
Advantages of XRP as a Crypto Currency
It is not without reason that Ripple tokens are in great demand among cryptocurrency observers. The technology developed in this ecosystem offers innovative solutions for decentralized global payment transactions. Compared to so many other crypto networks, Ripple offers the following advantages and uniqueness:
Incredible Transaction Speed
The payment process with XRP can be completed in just a few seconds, even for payments on a global scale which usually take weeks. This kind of payment speed will greatly facilitate various matters, especially those related to buying and selling. Various companies and business institutions will be able to be more productive and efficient, while individual users can also enjoy operational practicality.
Low Transaction Fees
Not only is it fast, but transactions on the RippleNet network are also very cheap, and almost free. The fee is only 0.0001 XRP per transaction, or the equivalent of less than one cent USD. Apart from the unique consensus method, Ripple's low transaction fees are because all XRP tokens have been pre-mined. So, Ripple does not charge additional fees related to mining like other crypto networks.
High Scalability
The Ripple network is designed for companies and financial institutions, so scalability has been one of its main focuses from the start. The Ripple system alone can complete more than 1,500 transactions transfer online together in one second. Operations run 24 hours every day without interruption
Extensive Interoperability
One of Ripple's main advantages that other blockchain ecosystems rarely have is its flexibility to integrate with various other existing payment systems in the market. Not only fellow crypto platforms, but the interoperability of XRP tokens can also reach conventional banking systems. These advantages open a wide path for wider payment system adoption and transition.
Efficient and Environmentally Friendly Consensus Protocol
The XRP Ledger uses a unique consensus algorithm known as the Ripple Protocol Consensus Algorithm (RPCA). With RCPA, Ripple can reach consensus for each transaction without the need for miners like other cryptocurrency networks. This efficiency not only speeds up the transaction process and reduces costs, but also significantly reduces energy consumption.
News and Market Developments Related to Ripple Network
Recent events and developments have had a significant impact on crypto asset price movements on the market. The movement itself can be positive or negative. Therefore, when investing in XRP, you need to diligently pay attention to the latest news, both about cryptocurrency in general and about developments in Ripple technology itself.
Quite sensational news just came in mid-March 2024 where the XRP asset finally entered the list of the Top 10 Best Performing Cryptocurrencies. This significant achievement occurred when the price of XRP experienced a very rapid increase in a short time, to be precise, worth 18.9% in just 24 hours. However, trading volume data also shows the high liquidity of XRP assets by investors. This means, not everyone wants to hold their XRP assets for a long time.
The latest positive development regarding the XRP Ledger came in mid-March 2024, where this decentralized network has succeeded in expanding its interoperational scope through integration with Coreum Bridge. Previously, on mid-February 2024, Ripple also announced a new collaboration with Commercial International Bank (CIB) from Egypt. These two pieces of news show that the Ripple Network is becoming increasingly reliable and used by a wider audience.
Other interesting news is on early March 2024 where the CTO of Ripple Labs, David Schwartz, announced that there would be an upgrade to the XRP Ledger that could be utilized by all stakeholders. This upgrade includes bug fixes and various infrastructure improvements. In the 24 hours after this news was published, the price of the XRP currency on the market experienced a jump of 6%.
XRP Price Strategy and Analysis in the Crypto Market
How good is XRP's potential to generate profits? What trading strategy is appropriate for investing in this digital asset? When is the right time to sell, buy, stake, etc.? You can answer all these questions yourself through technical analysis. Even though it's best to do the analysis yourself, there's no harm in starting by looking at the analysis that has been done by other more experienced traders.
As an initial example, let's look at the graph below which shows changes in the price of XRP from its release in 2012 to today. In the short term, XRP price movements tend to be sideways. However, if you look at the big picture, Ripple does appear to be experiencing a positive trend.
However, what is unique here is that there is a repeating trendline pattern. In the first trendline pattern, namely during 2013-2017, it was seen that the price of XRP was increasingly cornered, until finally reaching the breakout point. After that, XRP assets on the stock exchange immediately jumped sharply until they reached a record high, namely around $3.4 in early 2018.
The same trendline pattern appears to be repeating itself over a slightly longer period, namely around 5.5 years. This trend may also extend to 6 years. However, what is certain is that the price of XRP is now increasingly cornered and approaching the breakout point.
From the same graph, we can also apply different analysis methods and indicators, but produce similar conclusions. It is clear that the XRP price triangle pattern for the 2018-2024 period is a repetition of a similar pattern in the 2013-2017 period. In fact, the fractal formation is very similar, only the period is slightly longer.
Interested in more short-term analysis? The following is a graph for a 3 month period, starting from January 2024.
Using Elliot Wave, the price of XRP is predicted to be quite volatile over the next few months. The lowest price prediction that is quite reasonable in the near future will occur in a few weeks, where the XRP price is likely to touch a figure around $0.53. This is a good time to add assets before the price moves sharply higher afterwards. Of course, you can also use this lowest point as a stop loss benchmark if you don't want to take a bigger risk.
XRP Coin Investment Tips
Considering the performance and potential of a blockchain project and crypto assets is not enough to guarantee your future profits. Therefore, you should try to apply the following tips when making transactions trading buy and sell XRP for your investment:
Understanding Ripple and XRP Ledger Technology
Read various information about the Ripple project and the technology it is developing, both from whitepapers and various online articles that you can find. Understand what the advantages and potential are, as well as the existing shortcomings. From here, you can assess the extent to which you can trust the XRP token to be used as an investment asset.
Regularly monitor development news from Ripple Labs
Crypto financial technology can develop very quickly. Competition between projects is quite tight. Every development update can usually have a strong influence on price movements on the crypto exchange. Ripple is no different. By following the latest news and information regarding Ripple developments, your analysis of the XRP currency will be more accurate. So, you can make better decisions.
Understand Potential Price Fluctuations
Crypto assets usually have high volatility, including the XRP token. For this reason, you need to learn how to carry out analysis, both fundamental and technical. You can also listen to analysis from experienced traders. Without good analytical skills, investors tend to panic more easily when there are significant price movements. This panic often causes investors to make wrong decisions.
Compare with Other Crypto Assets
Don't limit yourself to just XRP currency. You also need to look at various other digital assets. Apart from comparing it with Ripple, you also need other cryptocurrencies to diversify your portfolio. The price of XRP will experience ups and downs all the time. Having asset diversification will balance your portfolio and ensure your investment remains safe.
Choice of Crypto Exchange for Ripple Transactions
Once you are sure that XRP is the right crypto token for you, the next step you have to do is choose the right crypto exchange. So that you don't have to be confused about searching and comparing each other, you can choose directly based on at least one of the following recommendations:
Binance
As one of the most popular crypto exchanges in the world, Binance can be considered for Ripple investment and trading activities. This platform also offers many interesting features, including the Binance Launchpad service for token sale projects. The digital assets available are very diverse, allowing you to diversify your portfolio optimally.
Bybit
The Bybit application is very interesting to consider because of its fast execution process, very responsive customer support, and level of security data tall one. This crypto exchange really supports traders because of its various very useful features. One of them is leverage trading, which allows you to gain greater XRP profits with smaller capital.
Kucoin
Another crypto trading platform that is suitable for Ripple trading is Kucoin. With a large selection of assets and support for new coin listings, this platform gives you a great opportunity to be active on the exchange every day. Apart from that, there are also many unique features and services, including Kucoin Share, where you can get discounts on trading fees and returns.
MEXC
Apart from fairly stable assets such as XRP and so on, MEXC also offers a variety of new cryptocurrencies. No need to worry, this platform is known to be quite selective in curating token listings, so your transactions will tend to be safer. This trading application also provides various standard features, such as spot trading, staking, and margin trading.
HUOBI
If you want to focus on trading, HUOBI could be the right choice because of its relatively high liquidity. Besides sell Ripple tokens, you can also diversify your trading using various other crypto asset options which are abundant here. Of course, this application also comes with many advanced services and features. One of them is HUOBI Prime for crypto project token sales.
BingX
Part of the Binance Exchange Group, the BingX platform is directly integrated with the Binance ecosystem. This gives you access to various very useful Binance trading services, such as staking programs and easy liquidity. The crypto assets available are also very diverse, of course with the XRP coin as one of them.
Etoro
More than just a regular crypto exchange, eToro is a social trading platform. Here, you can interact with other traders, either just to greet each other or also to share experience and knowledge. What's more unique is that you can even replicate trading strategies from experienced users, so you can make as much money as they do without having to worry about determining your own strategy.
Considering the various characteristics of Ripple as a decentralized financial system, what do you think about the potential of XRP? Is this token promising enough for you and worthy of being part of your crypto portfolio?
