Ripple Price: When Is the Best Time To Buy XRP?

By  //  July 5, 2022

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It is conceptually very simple to make a profit on Ripple trading. The procedure couldn’t be simpler: Just buy XRP coins when the Ripple price is low and sell the coins when the price is high. If you follow this process carefully you will find that you have extra money at the end. That’s your profit.

Simple, right?

Profitability is simple in the abstract but harder to achieve in real life – especially when you’re strapped into a car on the rollercoaster ride of cryptocurrency prices. The market’s characteristic volatility sends the XRP price up and down like a kangaroo bouncing across the Australian outback, rising and falling dramatically with no warning and no obvious cause. When you buy Ripple, last week’s 500 € purchase may be worth 900 € today – or 130 €.

That’s why it’s so hard to make a profit in spot reading, where the whole point is to time the market: buying and selling XRP according to predictions about the rapidly changing Ripple exchange rate. XRP value rises and falls according to market dynamics, international regulatory changes, Twitter posts from billionaires and other influencers, and more additional factors than we have space to list here. 

Timing the market amid all these influences is nearly impossible. That’s why more than 90% of  day traders lose money.

Where Ripple came from

Ripple was created by Arthur Britto, Ryan Fugger, and David Schwartz and launched by San Francisco-based Ripple Labs Inc. in 2012.

The Ripple blockchain, XRPL, relies upon a unique Proof of History consensus mechanism for validating transactions. The result is that Ripple transactions are validated in three to five seconds. The XRPL ledger can handle 1,500 transactions per second, Ripple says – that’s 100 times more than Ethereum. And the average cost per transaction is just 0.0002 euros.

Better yet, the PoH consensus mechanism consumes just a fraction of the electricity used by Proof of Work blockchains like Bitcoin and Ethereum.

Ripple Labs describes Ripple as a real-time gross settlement system, currency exchange, and remittance network.

What Ripple is good for

It started with remittances.

When a family member leaves a poor country to secure work elsewhere, sending money back to support the family left behind, that’s a remittance.

According to Allied Market Research, global remittances added up to 669.7 billion euros in 2020. The market is expected to grow to 1.17 trillion euros by 2030.

In the world of national banks and fiat currencies, remittances are slow and expensive. Ripple was an attractive alternative, supporting instant transfers at virtually no charge. Ripple accepted local currency, converted it to XRP, transmitted it internationally, and exchanged it for the recipient’s local currency – all in seconds.

It wasn’t long before global remittance companies began inquiring about replacing their slow, expensive international money-transfer networks with XRPL. Today, those companies are Ripple’s biggest customers. Financial institutions and international corporations use Ripple technology to move funds quickly and inexpensively across borders.

The XRP cryptocurrency is central to Ripple’s business model because blockchain transactions are settled in seconds regardless of international borders.

Today, dozens of application developers are targeting the XRPL platform – either the public blockchain or private blockchains based on XRPL’s open source code – to create decentralized finance applications and other apps that benefit from instant transactions and low fees.

It’s no wonder Ripple has attracted the interest of crypto investors.

Investing in Ripple

Industry observers believe that Ripple has a bright future. It meets a real and growing need for individuals and financial institutions to transfer money internationally in an efficient way.

Ripple has also attracted the attention of regulators, including the United States Securities and Exchange Commission, which filed suit against the company and two of its executives at the end of 2020. The SEC says Ripple raised more than $1.3 billion through the sale of unregistered securities and that it did not make appropriate disclosures to XRP buyers.

In the long term, the XRP exchange rate will be greatly affected by the disposition of the lawsuit. In the short term, the XRP price rises and falls dramatically in accord with the same market dynamics that have made virtually all cryptocurrencies textbook examples of market volatility.

Learning From the Past

What if you had purchased Ripple a month ago? What if you had invested 100 € in XRP a year ago? What would your investment be worth now?

You needn’t wonder. The Kriptomat what-if calculator performs the calculations based on data that is updated on a 24/7 basis. The calculator reports exactly how much your 100 € XRP investment would be worth today – using actual historical price data.

Curious? Explore a little. The calculator displays similar statistics for all of the 350+ cryptocurrencies on sale at Kriptomat.

The calculator shows that if you take a step back, short-term volatility disappears and what you see is consistent strong returns for long-term crypto investors.

The best way to take advantage of long-term market trends is to use the Kriptomat Recurring Buy feature, which lets you set a schedule of regular purchases on a weekly, bi-weekly, or monthly basis. For the price of a daily cup of coffee, you can slowly but steadily build up your crypto portfolio in support of long-term goals like retirement, purchasing property, or paying for an expensive university education.

The Bottom Line

Ripple meets a real need with reliable, efficient technology. Only regulators and the ingenuity of potential competitors stand between XRP and a bright future in the world of remittances and international finance.

About Kriptomat

Founded in 2018, Kriptomat revolutionized the cryptocurrency world with the introduction of the simplest platform in Europe. Kriptomat makes digital finance so simple that everybody everywhere can access the freedom, fairness, and fulfillment that crypto represents.  Hundreds of thousands of customers across Europe and in 120 countries worldwide trust Kriptomat when they buy, sell, swap, earn, share, and invest in crypto.