Ripple XRP What You Need to Know?

 

With so many cryptocurrencies on the eToro platform, one may become confused about which option to invest in. However, you don’t have to be.

 

In this guide, you are going to learn about Ripple and how it works. This guide is divided into three parts, RippleNet, XRP, and the benefits and uses of Ripple.

Ready? Let's get started.

 

ETORO XRP - What Is Ripple?

 

Ripple is an American Fintech company that has created the Ripple payment protocol in order to revolutionize international currency exchange and remittance services.

XRP is the cryptocurrency that the Ripple company used. It has been created in 2013 by Ripple labs. Therefore buying XRP on eToro is like buying an utility token ( and not a share of the Ripple company ). The Ripple's network has grown steadily and has come to be used by banks and payment networks all over the world.

 

RippleNet

 

Ripple incorporates two things in one – it is both a platform and a currency. The platform side is called RippleNet. It’s a vast network of payment providers such as banks and finance businesses which use solutions developed by Ripple to send and receive funds globally. RippleNet is revolutionary in that it allows payments using Bitcoin and any other currency. It is also very cheap to use the platform with a small commission of $0.00001 charged per transaction. Thus you can say the primary objective of Ripple is to allow one to make financial transactions quickly and cheaply.

 

XRP

 

RippleNet has its currency called XRP.
XRP is merely a token for representing the value transferred. You can use XRP tokens across the platform, or you can create your currency using RippleNet. While other cryptocurrencies rely on Blockchain technology, Ripple doesn’t. How then does it verify the transactions carried out? It uses the Ripple Protocol Consensus Algorithm (RPCA).

 

Uses of Ripple

 

- Low commission currency exchange - Since many people need to convert various currencies for their needs, currencies cannot be directly converted to each other. What do banks do? They use the US Dollar as a mediator. However, converting currency A to the US Dollar, then converting the US Dollar to currency B is expensive. You are charged twice to convert. With Ripple, it's cheaper and therefore more efficient.

- Quick international transactions - Regular bank transactions, as well as other cryptocurrencies, take a few days to complete an international transaction. However, with Ripple, the average transaction time is 4 seconds.

- Revolutionary Payment system - With Ripple, you can create your currency for fast and cheap transactions.

 

Benefits of Ripple

 

- Ripple was initially designed to be used as a day to day payment system. Therefore, the developers made Ripple safer than other cryptocurrencies.

- By using Ripple, your transactions are much quicker and cheaper.

- Ripple can be exchanged with any other currency cheaply and quickly.

 

Advantages 

- Ripple is an official organization whose main objective is to be used by banks. Thus, it is not subjected to multiple regulation checks as other cryptocurrencies.

- Ripple has been growing steadily since its inception in 2012. With Ripple, you don't have to worry about inflation. All the tokens have been mined and already exist.

 

- The more banks continue to use Ripple as their transaction platform, the higher the value of XRP. Thus, if banks decide to adopt Ripple as a unified bank currency in the future, all investors of Ripple will get good returns.

 

Final Thoughts

As you have read above, Ripple is taking the financial world by storm. What makes it exceptional is its RippleNet platform that is being adopted by banks around the world. This tells you that Ripple is not yan average altcoin but a leading cryptocurrency.

If you want to buy Ripple on eToro, just remember that you are actually buying Ripple's XRP coin and not a share of the Ripple company.

 

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