XRP's Value Surges 880% Since 2020
2min read XRP, a cryptocurrency introduced in 2012, has gained significant attention for its focus on payment solutions. It is the native digital asset of the XRP Ledger, which can settle transactions in just three to five seconds. This digital token is widely available and can be purchased through various exchanges and marketplaces. XRP has seen substantial appreciation since its inception, with its value rising from approximately $0.25 at the start of 2020 to around $2.45 at the time of this writing. This makes it one of the most valuable cryptocurrencies by total market capitalization, ranked fourth at the time of this writing.
Investors interested in XRP have several options for purchasing the cryptocurrency, including exchanges, payment platforms, defi platforms, and even some ATMs. Each method has its own unique costs and benefits, so due diligence is essential before making any transactions. One of the first steps in preparing to buy XRP is choosing a cryptocurrency wallet. Hardware wallets, also known as “cold” wallets, offer a high degree of security because they are not connected to the internet. However, they can be expensive. Online wallets, or “hot” wallets, are connected to the internet and are more susceptible to hacks. They also put your private keys in the hands of a third party. Popular hardware wallet providers include Ledger, Trezor, and Cypherock, each offering different models with varying features and price points.
Cryptocurrency exchanges serve as marketplaces where interested parties can buy and sell digital assets. Several exchanges, including coinbase, Binance, and Kraken, offer trading of XRP. However, it is important to note that most crypto marketplaces have been hacked at one point or another, resulting in significant losses. To buy XRP on an exchange, investors need to create an account, deposit funds, and then purchase the digital asset. The process involves verifying identity, adding a payment method, and following the exchange's specific steps for buying crypto. Once purchased, XRP can be stored in an exchange wallet or transferred to an outside wallet for added security. It is crucial to double-check the destination address during transfers, as they are irreversible.
To protect XRP holdings, investors should use strong passwords and enable two-factor authentication (2FA). Hardware security keys and authentication apps like google Authenticator are recommended for 2FA, as using SMS can make investors vulnerable to SIM-swapping schemes. Selling XRP can be done through exchanges or platforms like MoonPay, where investors can exchange their XRP for fiat currency or other digital currencies. The process involves selecting the digital asset to sell, specifying the amount, and choosing the method for receiving payment.
Managing an XRP investment involves staying updated on crypto market trends, diversifying the portfolio, and understanding one's risk tolerance. Investors should research both the underlying technology of cryptocurrency protocols and market conditions. Diversifying the portfolio helps mitigate risks, and understanding one's risk tolerance involves evaluating investment objectives and time horizons. XRP, while benefiting from notable returns, lacks the fundamentals of traditional investments like stocks or bonds. Therefore, investors should approach it with caution and thorough research.
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