Top Reasons to Invest in Ripple (XRP) in Australia
XRP is a centralized cryptocurrency created by the company Ripple Labs, developed as a solution to allow banks and financial entities of all kinds to use the power of blockchain technology to improve their cross-border transaction systems. Basically it is a project that tries to lead blockchain to improve aspects of the financial system that we still have.
The XRP token is a cryptocurrency that has been operating on Ripple’s open source platform since 2012. The bases of its creation have been very different from other traditional cryptocurrencies, this being a centralized currency. Choosing to invest in Ripple means taking advantage of the pros that come with cryptocurrencies while staying in a financial safe zone, as several banks support this project.
What is Ripple (XRP)? And how does it work?
XRP is known as the banks’ cryptocurrency, since the Ripple protocol is intended to be a complement to the current banking system, where it helps international transfers to transform from fiat money, gold and even air miles. The goal behind its design was to make such transactions faster and cheaper. This cryptocurrency — unlike Bitcoin — does not require as many confirmations to process a transaction and its consensus system is its own. It seeks to be used to make cross-border payments almost instantaneously.
Much to the contrary of Bitcoin and other cryptocurrencies, Ripple does not operate under blockchain technology as such. Instead, it employs DLT (Distributed Ledger) technology alongside its own consensus protocol called the Ripple Protocol Consensus Algorithm (RCPA). This helps them to validate the transactions that are carried out within the RippleNet system. Thus, RippleNet has special servers in charge of validating transactions and XRP tokens.
These servers do not offer a reward like the case of Bitcoin, but rather it is a network managed by independent servers. This type of structure is what makes Ripple highly centralized. And it is that most of the XRP nodes are owned by the same banks that make use of the system and by the company Ripple Labs. Furthermore, it is estimated that more than 60% of their tokens are in the hands of their own developers.
What can I do with Ripple (XRP) in Australia?
Like other cryptocurrencies, Ripple has a ton of uses that will benefit you in one way or another. However, we must first clarify that although the price of Ripple is relatively stable it is NOT a stablecoin. The XRP price does fluctuate and in fact has grown a lot since it was launched on the market. Currently 1 XRP token is worth AUD $0.3, although it is not close to its maximum price (or its minimum price), which means that in the face of any market movement we will be able to buy cheap XRP directly with our AUD and benefit from price variations.
For those who invest in Ripple, buying several items with XRP such as video games, hardware wallets (Trezor and Ledger), purchase VPN services, Internet Hosting and more is very easy. Also, since it is totally legal and Australia has been so adoptive with cryptocurrencies, you will surely find some merchant who is willing to offer you a product/service in exchange for XRP.
It is worth mentioning that you can also use XRP to carry out international transactions at very low commission rates and without the possibility of fraud. Also, an XRP transaction is processed much faster than a Bitcoin transaction (which takes about an hour to be confirmed). This is ideal if you have a business or a company that has to work from other countries or you need to make some kind of significant investment.
Why should I invest in Ripple (XRP)?
Ripple Labs has established alliances with several of the main major banks worldwide. Among them are BBVA, Santander, Axis Bank, Yes Bank, Westpac, Union Credit, NBAD, UBS and Itaú. We can also review the association it has with the Federal Bank of India, which is one of the largest in this Asian country, and also an important financial center. All of these banks have decided to use Ripple’s technology to make cross-border payments where they can relate to the remittance market they manage. This makes Ripple a trustworthy project and gives us an idea of how serious it actually is.
As the use of Ripple is greater in the financial ecosystem, its price in the market will increase significantly, so if someone were to invest in Ripple right now, they would be getting amazing returns within the next months. Since its launch, the coin has been growing in value steadily but perhaps a little slower than other cryptocurrencies, but if the forecasts are met, it may become the second cryptocurrency by market value in very few years. A revaluation potential that will allow those who buy it today to enjoy a great return on their investment.
Ripple does not use blockchain technology in a similar way to the rest of cryptocurrencies, since it uses its own encryption system through its own network, faster and capable of greatly reducing transaction costs. Its system allows real-time payments and users can send and receive money at any time and between people anywhere in the world. A unique technology in the cryptocurrency market that undoubtedly turns Ripple into a payment system with its own personality.
Thanks to all of the above, Ripple is a cryptocurrency that enjoys great stability in the cryptocurrency market. While other digital currencies grow and decline randomly with the ups and downs of the markets, Ripple shows a more stable situation with sustained growth. This provides a guarantee for investors, who will not have much chance of losing a significant amount of their investment if they need to sell their ripples. As you can see there are many reasons that invite investors to buy Ripple before other cryptocurrencies. Its multiple benefits for companies and users and the growth potential that it has thanks to its irruption in the banking business can make this cryptocurrency one of the great protagonists of the coming years in the crypto ecosystem.
How to start investing in Ripple (XRP) in Australia?
The first step to invest in Ripple will be to register for a wallet service where, after obtaining an XRP address, we can receive direct payments. Another option would be to register with an exchange company, although it will totally depend on your level of experience to successfully buy XRP tokens, considering that you have chosen a platform that offers a Spot market and not only perpetual contracts.
If you are starting in the world of cryptocurrencies and want to know how to buy Ripple in Australia, you can opt for a local exchange platform with integrated cryptocurrency wallet, just like Easy Crypto Australia (AU) is. On this platform you can register and verify your data with KYC procedures to be able to buy the available cryptocurrencies (NANO, BAT, BTC, LTC, ETH, EOS, XRP, DASH, OMG, XTZ, DGB, DOGE and many more) through bank wire transfers with your AUD funds, saving you the time to buy BTC in another exchange and then convert them to XRP tokens.
Once you have made the first purchase, your experience level will change and you will have understood the purchase mechanism, so you can then explore the Swap options and other functions that the platform allows.