πŸ”₯ Invest in Ripple 2021: buy Ripple or not?

Ripple website

If you want to invest your money profitably, you will probably get on the subject sooner or later crypto currencies bump. Because it is above all the success stories of Bitcoin and Co., who ensure that interest continues to rise - but with cryptocurrencies it's not just about making profits, but also about corrections such as setbacks. Because hard crashes can be observed again and again. The market is unregulated - and it is unpredictable.

If you want to invest, it may be advisable to take a look behind the scenes. Because behind everyone digital currency there is a network or a platform, and in the end they are definitely involved in the price development. Because if it is a promising project that has already reached a number of stages, it may well be very promising.

All those who deal with cryptocurrencies will be on Ripple bump. Recommended or not?

Do you want to trade cryptocurrencies with the best conditions?

Start on eToro, the test winner crypto broker from Bitcoin-News.one

Your capital is at risk. Not ready yet? Read our Etoro review.


An overview

Ripple RippleNet explained

Ripple is a payment system based on an open source protocol. The idea came from Ryan Fugger, a web developer, and Chris Larsen, a company - the programming was done by Jed McCaleb. In the end, you want to be a distributed peer-to-peer payment method - including the foreign exchange market. The Ripple network supports every currency - regardless of whether it is yen, US dollars, euros or Bitcoin.

The US Securities and Exchange Commission filed a lawsuit in December 2020. The company Rippel, which is connected to the digital currency XRP, is accused of having raised more than 1,3 billion US dollars through an unregistered securities offer. As of today (May 31, 2021) there has been no decision in this regard.


How it works

Ripple advantages of the Ripple Network explained

The majority of modern monetary systems are based on trust. The cash as well as the government bonds are about government bonds. Especially when working with digital accounts, you have to trust the bank that the 1.000 euros in the account can actually be made available or paid out by the financial institution. At Ripple may it be an attempt to apply this mechanism to a digital currency transfers by then recording liabilities between institutions and individuals in a register that is publicly available worldwide. The register is saved in the peer-to-peer network by the computers on which the so-called Ripple software is located.

Ripple user interests

Promissory notes, called IOUs, are then stored in the register, so that one gets the information about which person owes how much money in one currency to another person and vice versa. Thus, there is an unbalanced IOU balance of private liabilities between individuals.

A special case is represented by the Ripple Gateways. Established means of payment are accepted here, and IOUs are then issued, which can then be redeemed at any time. The gateway is reminiscent of a bank. However, the liabilities of a gateway are recorded in a register and not recorded in documents to which only the bank has access. This means that the redemption of gateway IOUs means that there has been a payment outside of the Ripple network - for example through a transfer or cash. However, if the payment takes place within Ripple's network, then there is an adjustment of the liabilities between the individuals.

Ripple explains how the Ripple network works

It should be noted that liabilities can be saved, but there is no enforcement option. If there is no direct trust relationship between the receiver and the sender, the network will try to find out a path from users in order to be able to establish a trust ladder. The payments then seep through the social graph - this is referred to as β€œto ripple”.

The Ripple system also offers a distributed virtual currency exchange, where IOUs can then be exchanged for IOUs from other currencies or from another gateway.


The crypto annoyance

Ripple CoinMarketCap Price Chart 2014-2021

From the side of the cryptocurrency, which would like to called Ripple, but correctly called XRP, two network functions are fulfilled: XRP prevents network spam and also serves as a bridge currency so that other cryptocurrencies can be traded. In order to prevent so-called network spam, the following destruction of a minimum amount of 0,00001 XRP takes place with each transaction.

The number of available XRP is therefore less. Furthermore, XRP also functions as a source of funding for Ripple Labs. Ripple emphasizes again and again that even if the company no longer exists, XRP would continue to exist as an independent open source project. To make this clear, our own XRP logo was even designed in June 2018.


eToro: Online broker and crypto exchange at the same time

eToro website

One would like invest in cryptocurrencies or even speculate with it, you need access to the crypto market. If it is a matter of pure speculation with the price, then one can look for an online broker - but who Buy coins or plans to want to invest in the long term, must be active here via a crypto exchange.

With eToro, however, speculating and investing is possible. Because eToro is an online broker who also offers the services of a crypto exchange - even provides its own internal wallet here.

eToro may be one of the best-known and most popular brokers on the market, which scores above all with a fair fee model and is also regulated by the Cyprus Securities and Exchange Commission, the CySEC. This is the Cypriot financial regulator, as the broker is based on the island.

eToro Social Trading explained

With social trading, eToro also offers another option to get support as a beginner. Because with social trading it is possible to copy decisions as well as strategies of successful traders - thus one participates in the success of the trader. It is important that you should not believe that there is a profit guarantee - even the experienced trader can go wrong and lose money.

If eToro meets the self-imposed requirements such as ideas, it may be advisable to open an account.


# Account opening

Create eToro account

If you are of the opinion that you have found the right provider with eToro, then it is a matter of opening an account.


# Registration

Verify eToro Account FAQ

eToro convincing here too, as the registration is completed within a few minutes. All you have to do is fill out the self-explanatory form - eToro requires a few personal details here: first and last name, an email address, as well as a user name and password. With the password you should make sure to choose a combination of upper and lower case letters, digits and special characters.


# Deposit

Deposit money on eToro account

eToro provides various deposit methods. So there is the option of opening the account by credit card, bank transfer, PayPal or can charge with various eWallets. Depending on the selected deposit method, the money is then available either immediately or after two to four working days in the eToro account. It's particularly quick with a credit card or PayPal, you need more patience with bank transfers.


# Invest

eToro markets overview

You can buy XRP or speculate on the price. Whoever wants to invest indicates how many coins should be bought. eToro then shows the price to be invested. You can also specify the price you want to invest, and eToro already shows how many coins you get for it. After confirming the transaction, the Coins transferred to the internal wallet - but you can also use an external wallet.

If you click on X2, then speculations are made about the price. In this case, you do not buy coins, but only speculate on the further price development of the cryptocurrency.

Do you want to trade cryptocurrencies with the best conditions?

Start on eToro, the test winner crypto broker from Bitcoin-News.one

Your capital is at risk. Not ready yet? Read our Etoro review.


The lawsuit - what's next?

Ripple Leadership Team

It cannot be ruled out that Ripple, the company behind XRP, will one day go public. However, the outcome of the legal dispute between the US Securities and Exchange Commission, the SEC and the company Ripple remains to be seen first.

The lawsuit filed in late 2020, above all against the management team around Executive Chairman Chris Larsen and CEO Brad Garlinghouse, is concerned with the allegation by the US regulatory authority that the company had more than 1,3 billion US dollars from an unregistered and ongoing offer of digital Marketed securities - this should be the offer with XRP that has existed since 2013.

Ripple Chris Larsen Chairman

What impact could a guilty verdict have? Ripple emphasized several times, that XRP will persist - but how do investors and crypto fans react?


The price development

The market capitalization is (as of May 31, 2021) 41.333.738.528 US dollars. This puts you in 6th place in the ranking of the top cryptocurrencies according to market capitalization. The price? 0,89 US dollars. While this may be a tad higher than before the SEC filed the lawsuit, the price was $ 0,69 in November - and was approaching $ 0,22 when the lawsuit was reported.

Ripple CoinMarketCap course 2020-21

The Cryptocurrency was able to recover in spring 2021 and even climbed to 15 US dollars on April 1,84. However, it is still a long way from the all-time high of 3,40 US dollars, which was set on January 7, 2018. At the moment it is 73 percent below the record.

If Ripple loses the process, this could have fatal consequences for the further price development of the cryptocurrency. However, one can expect a true bull run if Ripple prevails in court.

It is not yet possible to say what the chances are that Ripple will win or lose.


The risk is currently extremely high

That's why we're at Bitcoin News.one find that an investment can hardly be recommended at this point in time. Even if the price is low and the forecasts, if you ignore the SEC lawsuit, are promising, it is still extremely risky to invest in Ripple at this point in time.

Do you want to trade cryptocurrencies with the best conditions?
eToro logo

Start on eToro, the test winner from Bitcoin-News.one

74% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money. Read our Etoro review.

Thomas Cormik

Thomas Cormik started out with the sole focus on educating his readers about Bitcoin and its potential impact on traditional financial systems. Thomas prides itself on bringing quality content to the masses under the Bitcoin-News.one banner.

More articles on the topic:

Day trading with cryptocurrency βœ… Here's how

Day trading is considered one of the most lucrative ways to make money in the crypto market - we explain how it works in a clear way.

Learn more...
How to trade successfully?

Access to trading is easy, but practice is hard. Here you will find tips on how to avoid typical mistakes and how to identify the right strategy.

Learn more...
πŸ”₯Bitcoin & Ethereum mining calculator 2021: this is how it works!

Bitcoin & Ethereum Mining Calculator 2021 πŸ₯‡ Our experience: How to use the calculator πŸ₯‡ We explain how it works! πŸ₯‡

Learn more...
πŸ”₯ Invest in crypto funds 2021: buy a fund or not?

Invest in crypto funds 2021 πŸ₯‡ Buy crypto funds or not? πŸ₯‡ Is it really worth it πŸ₯‡ The best at a glance πŸ₯‡

Learn more...
πŸ”₯ Invest in Ripple 2021: buy Ripple or not?

Invest in Ripple 2021 πŸ₯‡ Buy Ripple or not? πŸ₯‡ Is it really worth it πŸ₯‡ What are the chances πŸ₯‡

Learn more...
πŸ”₯ Invest in Ethereum 2021: buy Ethereum or not?

Invest in Ethereum 2021 πŸ₯‡ Buy Ethereum or not? πŸ₯‡ Is it really worth it πŸ₯‡ What are the chances πŸ₯‡

Learn more...
πŸ”₯ Cryptocurrency Investing 2021 | In which crypto invest?

Cryptocurrency Investing 2021: Which Cryptocurrency Should You Invest In? πŸ₯‡ Are cryptocurrencies still worthwhile? πŸ₯‡ Tips and crypto future forecasts πŸ₯‡

Learn more...
πŸ”₯ Investing in Bitcoin 2021: buy Bitcoin or not?

Invest in Bitcoin 2021 πŸ₯‡ Buy Bitcoin or not? πŸ₯‡ Is it really worth it πŸ₯‡ What are the chances πŸ₯‡

Learn more...
The Best Scalping Strategies: How To Use Scalping Successfully In Trading!

BC1 tells you what scalping is and how you can use scalping strategies to improve your trading! βœ“ Step by step instructions βœ“ Click here for more information!

Learn more...
Binance Trading: How to Trade on the Best Exchange!

What you should know about the Binance exchange! BC1 explains how to get the most out of Binance and what tips and tricks there are. βœ“ Trading instructions βœ“ Our experiences βœ“ Click here for more information!

Learn more...
πŸ”₯ Chart analysis for cryptocurrencies: how to read forecasts!

Chart analysis for cryptocurrencies πŸ₯‡ How to optimize your trading πŸ₯‡ Read crypto charts correctly πŸ₯‡ Beginners guideπŸ₯‡

Learn more...
Day Trading: How To Avoid 4 Of The Most Common Mistakes! [Beginner Guide]

What you need to know about day trading! BC1 explains what the most common mistakes are and gives tips from personal experience. βœ“ Our experiences βœ“ Day trading for beginners βœ“ Click here for more information!

Learn more...
Trading for Beginners: How to Trade Bitcoin & Altcoin Step by Step!

As a trading beginner, you should definitely know this about crypto trading! BC1 explains whether it is worth it and what is important when trading. βœ“ Trading for beginners βœ“ Step-by-step instructions βœ“ Click here for more information!

Learn more...