Is Ripple (XRP) a Good Investment in 2024?

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Today, there are thousands of cryptocurrencies. In fact, there are more cryptocurrencies than all the different types of fiat currencies in the world. Just a few years ago, it was only Bitcoin. Now, there’s a cryptocurrency in virtually every sector of the economy.

Ripple is one of the cryptocurrencies that have emerged over the years. In fact, it was the rare crypto project that was around in the same form as Bitcoin. However, it took years before the blockchain-based payment system known as XRP and its founding fintech company, known as Ripple was started.

As someone who may be interested in investing in cryptocurrency, you may be wondering if it’s a good investment in 2023.

Read on to learn the many reasons to buy Ripple and the reasons why you shouldn’t invest in the coin.

Key points from the article

  • Ripple (XRP) is a cryptocurrency and blockchain network that aims to improve cross-border payments by enabling fast and low-cost international money transfers.

  • Potential reasons to buy XRP include its wide use case working with financial institutions, significant price correction in 2021-2022, new partnerships in the financial sector, and low transaction fees.

  • Reasons not to buy include the ongoing SEC lawsuit against Ripple which creates regulatory uncertainty, and the fixed supply of XRP with no new coins being created.

  • Tips for buying XRP include investing gradually at different price points, analyzing price charts, only investing disposable funds, using staking, and diversifying an investment portfolio.

  • Good exchanges to buy XRP include Bybit and eToro which offer various payment options and fee structures.

  • Price predictions estimate XRP could reach between $0.53-0.67 by end of 2023 and potentially $1-1.30 by 2025-2030 depending on market conditions.

Start Investing in Ripple now With ByBit!

What is Ripple (XRP)?

Ripple (XRP) is a blockchain network that was created with the aim to improve the existing and fragmented traditional banking system. It achieves this by unifying a network of independent banks and payment providers with a standardized protocol to communicate and send low-cost, immediate payments worldwide.

It maintains unique node lists that users can select to verify their transactions based on which participants they think are least likely to defraud them.

As a payment protocol, Ripple uses blockchain technology to process international money transfers. Many users choose Ripple because it offers low transaction fees and extremely fast processing times. In fact, Ripple partners with hundreds of financial institutions that use its technology.

Ripple’s native cryptocurrency is XRP, which is a token that’s designed to migrate transactions from central databases controlled by financial institutions.

This allows users to process payments with real-time settlement and improve payment efficiency and certainty. The XRP coin sources liquidity on demand and reduces the amount in nostro accounts required to make global payments. In addition, XRP uses RippleX, which allows developers and entrepreneurs to integrate blockchain technology into their applications with tools and services built on top of the XRP Ledger.

Interestingly, XRP drew on a number of aspects of Bitcoin’s design, but didn’t use its code. Unlike Bitcoin, the XRP Ledger doesn’t use mining or require specialized computing hardware to secure its ledger and validate transactions. Instead, XRP enables servers to send transactions for consideration by its network.

To help you understand the true value of Ripple, let’s explore how the blockchain works. Ripple uses a medium, known as a gateway, to act as a trust chain between two parties looking to make a transaction.

Instead of a third party, the gateway is the credit middleman, receiving and sending currency to public addresses.

This gateway is known as RippleNet. Thanks to RippleNet, the blockchain is able to streamline communication and help participants send and receive payments seamlessly.

Ripple Price Performance

Ripple Price 1y Return

-107.1%

Ripple Price 1m Return

-13%

Ripple Chart

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Top 5 Reasons To Buy Ripple in 2024

So, why should you buy Ripple in 2023? There are several reasons. We’ve listed a few of them below.

1. A Wide Use Case

There are many cryptocurrencies that are trying to replace the banking system. But Ripple aims to work with financial institutions with RTXRP’S remittance features.

Its founders and developers understand that it would be naive to assume that financial institutions will disappear in the future. So, instead of trying to replace banking functions. Ripple is trying to work with them by offering secured, quick, and easy settlement procedures.

This is why the blockchain has been such a favorite among many banks, including Axis Bank, Yes Bank, SBI Remit, and more. As an investor, you may see this as a great sign of trust and security.

2. The Price Has Corrected Significantly

In 2021, XRP saw a sharp drop in price, going from $1.83 to $0.51. During this time, the litigation between the SEC and litigation was taking place. However, factors that played a more significant role in the price movement of XRP was the overall negative dynamics of the crypto market. And although the court granted the SEC’s request to extend the case consideration by two months, XRP’s price still managed to rise from $0.51 to $1.39.

XRP’s price saw a plummet in January 2023 due to the fall of Bitcoin. Yet, XRP was still able to recover its price. And although it hasn’t reached the highs seen at the beginning of September, the uptrend is in force.

If the crypto market continues to grow and XRP wins the court case, its price is likely to see a significant increase.

3. New Partnerships in the Financial Sector

Ripple, more than any other cryptocurrency, has gained appreciation from banks and other financial institutions. Top banks all over the world are using Ripple for cross-border payments. In fact, the Ripple network works with global financial institutions from over 55 countries.

As an alternative to traditional systems, these financial institutions are using XRP to source liquidity during cross-border transactions, as an alternative to traditional systems.

4. Low Fees

Unlike other blockchains like Bitcoin and Ethereum, Ripple processes transactions quickly. This has resulted in lower transaction fees, making it a very useful cryptocurrency for trading purposes. The cost to complete a transaction on Ripple is 0.00001 XRP, which is a small fraction of a penny at current rates.

So, although many investors have written off Ripple due to its SEC lawsuit or its decrease in popularity, this coin is still going strong due to its relatively low transaction fees. And it’s remained one of the biggest cryptos in the world by market cap.

5. Strong Community

The Ripple XRP community is one of the largest and strongest cryptocurrencies communities in the world. Anytime XRP is criticized, members of its community fight back on several online platforms, from Twitter to Reddit.

Recently, the XRP community has rallied together in response to the court case that’s being built against the blockchain. This shows just how loyal the community is to the coin and that people really believe in XRP. As a result, this can attract even more investors to the XRP network in the long run. This will, in turn, drive up its value in the market.

Top 2 Reasons Not to Buy Ripple (XRP)

There are many reasons why you may choose not to buy Ripple in 2023. It could be the tight monetary policy of the Fed, negative crypto market conditions, or that the price may still fall, according to some forecasts.

Below we’ve listed two of the main reasons why you may need to avoid investing in XRP right now.

1. SEC Lawsuit

The SEC lawsuit against Ripple is perhaps the main reason why you probably shouldn’t buy XRP right now. Near the end of 2020, the SEC accused Ripple of selling $1.3 billion in unregistered securities through its XRP cryptocurrency.

However, Ripple claims that XRP isn’t a security, and that SEC didn’t properly warn that selling the token would be considered a securities offering.

In July 2023, Judge Analisa Torres had ruled that Ripple's sale of its XRP token on public exchanges did not violate securities laws, as purchasers did not have reasonable expectation of profits based on Ripple's efforts.

The SEC sought permission to appeal some of Judge Torres' findings related to "programmatic" and "other distributions" of XRP tokens.

However, in her new ruling, Judge Torres said there was no "substantial ground for difference of opinion" in her earlier decision and an appeal would not materially advance the case.

So, despite the first victory of Ripple, the fight is far from over and the SEC case will now proceed to an April 2024 trial.

So, what happens from here? It’s possible that Ripple and the SEC could come to some sort of settlement agreement. But until then, the lawsuit could have a significant negative impact on the success of Ripple. It’s already hindering the blockchain/cryptocurrency from going public and has caused many major crypto exchanges to remove XRP. The lawsuit may have also played a role in keeping XRP’s price down.

2. There Won’t Be Any More New Ripple

To understand the value of Ripple (XRP), it’s important to look at other cryptocurrencies and the number of coins that are in circulation. For example, there will only ever be 21 million Bitcoins. And while Ethereum is limitless, its production will slow down over time.

The limited supply for both Bitcoin and ETH could increase demand in the future, which can lead to larger price increases and bigger profits for early investors. However, Ripple is different. All the XRP coins are pre-mined and new ones won’t be created. Every XRP coin that will ever be is already in circulation.

Top 5 Tips for Buying Ripple

1. Invest gradually at different prices.

If you're considering buying Cardano, investing gradually at different prices is essential. This will help you average out your costs and reduce your risk. Because the price of Cardano is very volatile, it's vital to spread your investments out over time.

2. Analyze the chart for key levels to increase positions.

It is important to consider that when analyzing the Cardano chart. You need to look for key levels where you can increase your position. In this way, you will be able to take advantage of any potential price increases and maximize your profits along the way.

3. You should only invest what you can afford to lose.

It's always advisable to invest only what you can afford to lose. This is especially true when it comes to buying volatile assets like crypto. Cardano is a very volatile asset, and its price can change rapidly. This means you could lose all of your investment if the price falls sharply.

4. Use staking as a smart long-term investment method.

One of the best ways to make a long-term investment in Cardano is to use staking. Staking is a process where you lock up your ADA tokens in a wallet for a period of time. In return, you earn interest on your investment.

This is a very effective way to earn a passive income from your investment and reduce risk. It's also an excellent way to keep your ADA tokens safe if you're worried about a potential price crash.

5. Add Cardano to a broader investment portfolio.

Don't invest everything in Cardano. It's always a good idea to diversify your investment portfolio. This means investing in various assets, including fiat currencies, stocks, bonds, and other cryptocurrencies.

By investing in various assets, you'll be able to reduce your overall risk and increase your chances of making a profit in the long term.

Where to Buy XRP

Below is a list of the two best crypto exchanges supporting Ripple (XRP). To choose, consider several factors, including assets, payment methods, fees, and security.

Bybit

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Your capital is at risk.

Bybit is one of the leading cryptocurrency derivatives exchanges. It offers a user-friendly platform and supports multiple assets, including XRP.

Furthermore, it offers a variety of payment methods to its customers, such as bank transfers and credit cards. Currently, Bybit has a tier system for its fee structure and charges, which ranges between 0.2% and 0.10%.

The exchange is also very secure, as it uses multiple layers of security, such as 2-factor authentication and SSL encryption.

eToro

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eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk. Don’t invest unless you’re prepared to lose all the money you invest.

eToro is a social trading and multi-asset brokerage platform with over 10 million users. The platform allows you to buy, sell, and trade various assets, including crypto.

eToro supports multiple payment methods, including bank transfers and credit cards. The platform also charges a small fee for each transaction.

When To Buy Ripple

Ripple price prediction by TU is prepared automatically on the basis of technical analysis of moving averages and indicators for each timeframe (interval) separately. Select the timeframe you need to find out XRP price prediction for today.

NOTE!

Signals may differ on different timeframes. If you want to buy XRP and hold the cryptocurrency for longer than one week, it is best to use the signals on daily and weekly timeframes. Timeframes from 5 minutes to 1 hour are best suitable for short-term transactions.

How High Can Ripple Go in 2024, 2025, 2030?

Coin Price Forecast provides a long-term XRP price forecast for the period from 2023 until 2033. The analysts are generally optimistic, although the growth rates might seem not as high as it happened previously in the history of cryptocurrencies. The table shows the average annual forecast

Year Price in the middle of the year Price at the end of the year Average growth, % per year
2023 $0.59 $0.63 +90%
2024 $0.59 $0.63 +90%
2025 $0.59 $0.67 +102%
2026 $0.75 $0.83 +150%
2027 $0.90 $0.83 +150%
2028 $0.86 $0.92 +177%
2029 $0.96 $0.88 +165%
2030 $0.93 $0.98 +195%
2031 $1.03 $1.08 +225%
2032 $1.13 $1.13 +241%
2033 $0.96 $1.00 +201%
2034 $1.04 $1.08 +225%

Should I Invest in Ripple (XRP) Right Now? Conclusion

Ripple shows great promise in terms of investing. In fact, many investors in XRP have been able to quadruple their earnings.

With partnerships with notable financial institutions across the world, fast transactions, low gas fees, and a strong crypto community, it’s easy to see why XRP has gained in popularity over the years. However, there are a few negatives to consider when looking at the up-and-coming cryptocurrency.

For example, if you take on XRP as an investment, you’ll be buying an increased risk of uncertainty. So, if you’re thinking of investing in XRP, it’s best to wait until the situation with the court is cleared up.

Either way, if you choose XRP as your next crypto investment, you could end up seeing great returns. However, it’s always important to invest responsibly, do research, and perform due diligence. But most important of all, remember to only invest as much as you’re willing to risk.

FAQs

Does Ripple partner with banks?

Yes, Ripple partners with dozens of banks and payment providers worldwide through its RippleNet blockchain solution to facilitate cross-border payments using XRP.

Is Ripple centralized or decentralized?

Ripple is more centralized than other cryptocurrencies like Bitcoin. It uses a unique consensus protocol dominated by trusted nodes instead of mining.

What is the difference between XRP and Ripple?

XRP is the cryptocurrency asset, while Ripple is the company that developed it. Ripple created the XRP ledger blockchain and software that's used by its banking partners.

Is Ripple a bubble?

Some argue the volatility and legal issues make XRP speculative in the short term. However, if Ripple delivers on its vision and use case, it may establish long term stability and demand from banks rather than be a "bubble."

Team that worked on the article

Ivan Andriyenko
Author at Traders Union

Ivan Andriyenko is a financial expert and analyst. He specializes in trading in the Forex, stock and cryptocurrency markets. His preferred trading style is conservative strategies with low or medium risk, medium and long-term investments. He has 7 years of experience in the financial markets. Ivan is involved in preparation of articles for novice traders, and also of the reviews and evaluation of brokers, analyzing their reliability, trading conditions and peculiarities.

Ivan continuously tests new strategies for various assets, choosing the most effective options. In addition, he believes that helping novice traders is an important aspect of work. He shares information that beginners require – educational materials, strategies.

Ivan’s motto: continuous studying and experimentation lead to success.

Dr. BJ Johnson
Dr. BJ Johnson
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Dr. BJ Johnson is a PhD in English Language and an editor with over 15 years of experience. He earned his degree in English Language in the U.S and the UK. In 2020, Dr. Johnson joined the Traders Union team. Since then, he has created over 100 exclusive articles and edited over 300 articles of other authors.

The topics he covers include trading signals, cryptocurrencies, Forex brokers, stock brokers, expert advisors, binary options. He has also worked on the ratings of brokers and many other materials.

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Mirjan Hipolito
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Mirjan Hipolito is a journalist and news editor at Traders Union. She is an expert crypto writer with five years of experience in the financial markets. Her specialties are daily market news, price predictions, and Initial Coin Offerings (ICO). Mirjan is a cryptocurrency and stock trader. This deep understanding of the finance sector allows her to create informative and engaging content that helps readers easily navigate the complexities of the crypto world.