Advancements in technologies and rapid digital transformations recently, have incurred huge adaptations in the business and finance sectors. With inflation on the rise, many businesses and investors are now investing in cryptocurrencies and considering them an alternative to government and bank regulated fiat currencies. With so many new cryptocurrencies and alternatives to bitcoin emerging, it can be difficult to know where to start. This article considers the altcoin xrp usdt generated by Ripple and suggests why it might be an interesting trading option in 2022.
What’s an altcoin?
An altcoin is quite simply any alternative cryptocoin to a bitcoin. Everyone has heard of Bitcoin (B), the first crypto currency leader, but there are thousands of cryptocurrencies to choose from now. Bitcoin (B) is an expensive trading option whereas many of the alternative altcoins are more affordable. Next to Bitcoin (B), the best known and most popular altcoin cryptocurrency is Ethereum (ETH). However, Ripple (XRP) is on an uptrend and as the largest cryptocurrency in capitalization, it’s getting a lot of attention from traders.
How long has Ripple (XRP) been in existence?
The Ripple platform was designed in Vancouver in 2005 by Fugger, as a financial payment solution for global payments within an online community. In 2011, the digital currency XRP was issued. The Ripple (XRP) cryptocurrency has been growing in value and stability ever since and the trend appears to be continuing. The advantages of Ripple (XRP) as a trading option are considered below:
Benefits of Ripple (XRP)
- It’s the third most valuable cryptocurrency next to Ethereum (ETH).
- Ripple (XRP) is widely used globally and is legitimate among financial institutions.
- Fidor, American Express, Santander and MoneyGram have adopted Ripple.
- It’s speedy, secure and efficient as a global payment system.
- Ripple accelerates capital flow.
- It’s built to manage 1.500 transactions per minute.
- Banks now use it and its credibility within banks suggests greater stability and longevity, compared to other cryptocurrencies.
- The Ripple platform facilitates fiat currencies, digital currencies and commodities.
- It’s a well established key player in cryptocurrency trading.
- Also, it’s primarily a payment system with a focus on transfer of credits and debits.
- It’s less expensive as a trading option at entry level
- The price makes it low risk
Cons to consider
- No more XRP coins will be released and since the developers own a considerable percentage, whispers suggest that the Ripple company could potentially control the currency – making it less decentralized
- Swift is very well established in the banking and financial sector and is still a strong competitor to Ripple.
All things considered, while every investment carries an element of risk, its price and endorsement from mainstream banks and financial institutions make it an investment well worth researching.