Showing an increase of 35,500% between 2016 and 2017, Ripple was one of the highest performing cryptocurrencies of last year. Even so, there is little to be shared among investors with many curious to know more about this particular cryptocurrency. These factors will help you get a better handle on Ripple, which may help you better invest in its future.
Ripple goes by another name
If you try to invest $100 in Ripple, you might experience a difficult time, since that is not the name it trades by. Instead, you will want to look for XRP tokens, which is what the cryptocurrency was originally named.
XRP is only used by one Ripple product
While the company offers a few financial products, only one of them accepts XRP tokens. xCurrent is a system devised to help banks communicate and to ensure greater compatibility between all currencies, both physical and digital. However, it does not accept XRP tokens, though it will allow users to use the platform to trade XRP tokens with another Ripple product, xRapid.
You will not be able to mine Ripple
Most cryptocurrencies can be mined, allowing savvy internet users to invest in special hardware that will let them create more of a particular brand. Ripple is different in that respect. There are currently 100 billion XRP tokens and that is all there will ever be.
Many Ripple tokens are still uncirculated
While there are 100 billion tokens, they are not all currently available. In fact, only 40% are available in the market as of this time. Ripple Labs maintains ownership of 60 billion tokens with 6.25 billion directly owned. The remainder is in escrow and awaits future distribution.
Do not try making a payment with Ripple
While some cryptocurrencies can be used to make purchases and other payments, many are not intended for that purpose. Ripple is one of them. Instead, Ripple and the majority of cryptocurrencies are meant to facilitate the easier transfer of money from one institution to another. It is much faster than using wire transfers.
Ripple offers a much lower transaction rate
Even if you could use any cryptocurrency for payment transactions, you probably would avoid it. The transaction fees can get pretty steep with Bitcoin topping the list with a $20 fee. On average, you can expect to pay a $1.15 transaction fee, though Ethereum offers a $0.30 rate. Ripple, on the other hand, keeps its fee under one penny with its highest rate up to this date having been $0.03 earlier this year.