What is Ripple? Should you buy it in 2018? (UPDATED)


Ripple- The Cryptocurrency growing faster than Bitcoin

Blockchain technology having an open-source nature has allowed developers to introduce us to wide range of new cryptocurrencies.

Believe it or not there are 1384 different cryptocurriences available over the internet according to CoinMarketCap.  Among them the leader of has always been Bitcoin, which has substantially grown in the 2017.

However if you have missed the Bitcoin boat don’t be disappointed.  There are many other Altcoin’s you can go for.

One of these alt-coins is Ripple.

People are actually going crazy over it since its price surged over 36000 per cent in just a year. Making it the second largest cryptocurrency by market capitalization of more than $120Bn and rising rapidly as more people investing in it.

Updated 10/01/2018

As of today, Ripple (XRP) is now the third largest cryptocurrency, as its Market cap fell to about $68Bn from $120 Bn.

So before you jump on to the ripple bandwagon, let’s try to know everything about it.

What is Ripple?

Unlike Bitcoin and other cryptocurrencies like Litecoin or Ethereuem, ripple‘s only purpose is not just of digital currency.

Ripple is a payment protocol and a cryptocurrency made by Ripple Labs in 2012; however the investors tend to consider them to be the same thing.

This is not true!

Ripple Transaction Protocol

Ripple Transaction protocol (RTP) was born as a solution to transfer money between countries in a faster and frictionless way.

Even in these technologically advance times it takes days to transfer money from one country to another.  Brad Garlinghouse  said in his interview with Bloomberg TV that the fastest way to transfer money from US to London would be to fly it their (if the sum is allowed as a carry on).

The RTP is a real-time gross settlement system(RTGS) which is used by banks & financial institutions to seamlessly process their customer’s transactions (remittance, payments & currency exchanges) rapidly (Literally in a few seconds).

The whole concept behind the Ripple transaction protocol is to replace old age systems like SWIFT.

XRP- Ripple Cryptocurrency

Ripple is also a digital currency made by Ripple Labs with a token (XRP). The payment network uses it for  transactions, pay fees and it is mandatory for users (Banks and financial institutions) to hold XRP reserves in their wallet address.

So in simple words, if banks agree to use ripple transaction protocol to transfer money and make transactions they would need to first buy some XRP and trade that in order to avail real time payment settlements.


The internet has really shrunk the world and opened new avenues for business around the world, leading to globalization. In this process of globalization in order to grow your business more you need to make payments fast, cheap and securely. This is what ripple is providing you now!

Think about it if a company in U.S needs to pay their vendors in china in YEN, don’t need to first exchange their currency and pay expensive fees and wait several days to do so. All they have to do is make payments with XRP, which the vendor can convert in to their choice of currency.

You need to understand; right now XRP is not a currency but more of a token against traditional currencies. 

Should you invest in Ripple (XRP)

Well let’s be honest, it’s safe to say that the world is actually going crazy over cryptocurrencies at the moment. People who were skeptical about Bitcoin now wish they could have invested in it and actually made a lot of profit. They are now seeking a new currency like Bitcoin.

Ever since people have seen an extraordinary hike in price of Ripple ($3.84), it is now one of the most favorite currencies to invest in 2018.

It’s cheap and has a solid purpose, and one day it might actually end the society for worldwide interbank financial trade (SWIFT) for payments.

However many still believe the price escalation is all because of a hype and rumors. It was believed that Coinbase  the largest cryptocurrency exchange company in the US would add ripple in their system.

However this rumor was categorically denied by Coinbase in their blog on 6/12018.

Thus affecting the price of ripple and plummeting it to $2.38. Currently trading at $1.75

Some believe one of the reason why coinbase did not add Ripple was the lack of centralization. 

Though the CEO Brad Garlinghouse answering a user on Quora clearly said

“Ripple is not centralized. To be clear, if Ripple disappeared today XRP would continue to function. To me that is the most important measure of whether something is decentralized.”

However the debate is, only 40 % of the total XRP have been issued and the rest are being held by the company to be issued at their will. Making ripple more centralized than decentralized.

Other reason for price fall is because CoinMarketCap decided to exclude Korean investment XRP, removing its capital from the total market cap, eventually hurt ripples capitalization by $20Bn taking it to the third position.

Anyways having that said, you need to understand XRP is mainly for financial institutions, which would use it to make transactions under three seconds. And for them ripple is much better than Bitcoin. It’s definitely faster than Bitcoin (payments will settle in 3 seconds) and there is no anonymity.

This is why 100 banks around the world have chosen to use Ripple according to Mr Garlinghouse.

If you look go on ripples website you would realize that many major financial institutions are backing the company.

Here is a screenshot of their investors from their website.

Reading these names I actually fell confident in the product they are offering, the globally recognized companies wouldn’t risk their money in a product they don’t believe in.

So whether you should invest in Ripple (XRP) comes down to your confidence in Ripple labs and their success. if they succeed to replace SWIFT with their protocol then the prices will surely skyrocket, if not then you know the rest.

Another reason that could persuade you to buy it is its position in Altcoins. Right now more and more investors are buying digital assets and they only invest in the top 10 currencies (for liquidity reasons). Thus being on the 2nd or 3rd positions is favorable for XRP in terms of money coming in.

Although Coinbase is not currently adding ripple on their website. There are several other famous digital currency exchanges that are already trading Ripple.

Here are some of the exchanges where you can easily buy and sell XRP:

Final Words

Well in this article I have given  you all the information you need to know about Ripple. However from my research I can easily say that XRP has  the potential to become one of the leading digital currencies in the future.

Best of luck with all your investments

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