At the beginning of the year, I analyzed Five promising Cryptocurrencies Under $1. Ter this article, I’m analyzing Ripple, which, right now (25/01/2018), has a price of $1.31.
Is Ripple a good investment? I can’t say yes or no, because there are too many factors to analyze and what could be a good reaction today, could be a very bad one tomorrow, because the screenplay switches everyday.
Te my Udemy course, Cryptocurrency Investment 2018: Invest te Bitcoin &, Altcoins, I give some criteria to understand the value of an altcoin. I’m going to report them here and analyze Ripple (XRP) specifically.
- The altcoin vereiste be present ter many major Exchanges. Ripple is quoted on Bittrex, Poloniex, Cex.io, Binance and many others. From this point of view, Ripple is a very good investment.
- The altcoin voorwaarde have a valid project. Ripple’s objective is to switch entirely the structure of payments, especially international payments. They take too long, you pay a toverfee for transferring money and you pay a toverfee for the foreign exchange rate. This is what you can read on the White Paper: The developers of Ripple believe that payments should stir like information moves on the web today: globally, securely, instantly, loosely.
The project looks good, Ripple Network is very prompt and a payment takes around Five seconds to be processed.
You can read all the details about it on Ripple’s webstek: ripple.com.
The altcoin vereiste be sustained by a trustworthy company and competent developers.
Maybe not everyone knows that Ripple is a company that wasgoed already active ter the Financial industry, even before the creation of the cryptocurrency. It serves several banks, including the $60 billion Spanish banking giant BBVA. Te addition, at the beginning of 2018, MoneyGram also integrated Ripple’s altcoin (XRP) into its payment system. Developers know what they are doing.
An active team ter the community is another signal that the project is moving forward. Trust mij, the team is VERY active! I have added Ripple and some team members on Twitter and they share informatie and reply to questions every day.
The scarcity of an altcoin can also contribute to the growth of the price.
Circulating Supply is the best approximation of the number of coins that are circulating te the market and ter the general public’s palms.
So it is very effortless, Ripple has a circulating supply of almost 39 billion, this means that presently there are almost 39 billion Ripple ter the world.
When it comes to total supply, wij need to make a differentiation inbetween total supply and max supply.
Max Supply is the best approximation of the maximum amount of coins that will everzwijn exist ter the lifetime of the cryptocurrency.
Total Supply is the total amount of coins te existence. So it is the maximum amount of coins that can be supplied minus any coins that have bot verifiably burned. The most common way to burn coins is when you send Ripple to a Bitcoin address or any other address that doesn’t support Ripple.
Ter any Financial market, the price is made by supply and request. The request for Ripple is represented by people who want to buy it. The supply is represented by people who want to sell AND by the creation of fresh coins.
Ripple has reached almost two-fifths of the total supply, there’s still a giant amount of fresh coins (around 60 billion) that will be supplied ter the next years, so the request needs to grow te order to sustain the growth of the price.
Looking at thesis Five criteria, I would say that Ripple is not a bad investment. But wait, is there something that I’m missing? Of course there is! Wij also need to consider the most significant factor: the price.
Let’s have a look at Ripple’s price at the beginning of each year:
Today (25/01/2018) = $1.31
It is effortless to see that there has bot one fundamental year for Ripple: 2018. Let’s have a look at the growth year by year:
I think that more than one person became rich te 2018 with Ripple, but you can see that 2018 has commenced off on the wrong foot. Is it going to be like this for the surplus of the year? Is there a chance that the price will go up and form a fresh high? It is hard to say.
This chart shows the price of Ripple from 2013 to Jan 2018. You can see that investors began to be interested te this cryptocurrency only ter the middle of 2018. It is a relatively fresh market and it is hard to say if the price will proceed to fall or it will increase and form a fresh high during the 2018.
So… is it a good investment?
Consider Two different screenplays: the price goes up and the price goes down.
If the price goes up, the best script I can think of is that it reaches $Ten during 2018. I can’t imagine a higher price for Ripple.
If the price resumes to go down, it may reach the $0.15-$0.30 range that has characterized two-thirds of 2018.
The potential prize looks amazing, but the potential risk is also very high. Wij are talking about a cryptocurrency, after all.
What I suggest is to apply the very first rule of any investment: diversify your portfolio. Ter this way, your risk to lose all your money will be lower.
Let’s suppose that you invest te Ripple only 10% of your total balance.
This looks much better. You keep the same ratio inbetween profit and loss, but you are not taking a chance to lose all your money.
How do I buy Ripple?
To buy Ripple, the easiest way is to open an account with an Exchange.
Thesis are some popular Exchanges that permit you to buy Ripple. The process to buy a cryptocurrency is very intuitive and you can find many movies about it on Youtube. If you already bought my course or you’re going to do it, don’t worry, because everything is there: how to deposit money, how to buy a cryptocurrency, how to withdraw your money, etc.
Related movie: How to find my blockchain private key