The cryptocurrency market has been expanding and growing over the last few years and it has been attracting a larger number of users over time. Cryptocurrencies such as Bitcoin (BTC), Ethereum (ETH) and XRP have gathered the attention of investors and they are now the most popular cryptocurrencies in the world.
However, there are some users that do not know what Ripple is, what it does and how it works in the crypto market. In this guide, we will share with you what is Ripple and all the things you should know about this company in the cryptocurrency market.
What is Ripple?
This is a very common question that we will answer in this blog. Ripple is a company that works with cryptocurrencies and blockchain technology that aims at offering better solutions to organizations, financial institutions and governments to process cross border payments. This would also have a positive impact on individual customers despite the fact Ripple focuses on larger firms and institutions.
Ripple has been operating in the market for several years after being launched in 2012. In addition to it, Ripple works with the XRP virtual currency, which is not a synonym of Ripple and must be understood as a different thing.
Ripple is then one of the largest firms in the cryptocurrency space, while XRP is the virtual currency that Ripple is using in order to promote cross-border payments and transactions. This is going to be very important to reduce transaction times, improve services and reduce fees paid by users when they want to send money abroad.
What does Ripple Want to Achieve?
Ripple, as a company that operates in the financial market, wants to reduce transaction times when sending money across borders and make it cheaper and easier. Brad Garlinghouse, the CEO of Ripple, considers that it is not possible to be living in a world where it is faster to send money to London from New York flying rather than electronically.
Money is very difficult to move between borders and this is what Ripple wants to solve. Moreover, with the XRP cryptocurrency, Ripple is also helping to increase liquidity among fiat corridors that do not have large liquidity. Nowadays, exchanging Mexican peso (MXN) for Philippine peso (PHP) is a difficult thing to do due to the low liquidity between these two countries.
However, by using the XRP virtual currency it is possible to make it fast and simple to exchange these two fiat currencies across borders in just a few minutes and for almost no fee.
At the same time, Ripple has created the so-called RippleNet that is a network that helps banks and financial institutions to have easier access to each other. That means that they can have faster, cheaper and easier contact compared to traditional financial tools that are currently used (we are making reference to legacy systems in the financial market).
XRP In the Cryptocurrency Market
XRP has been growing as a very important player in the cryptocurrency space with a current valuation of $8.56 billion. That makes of XRP the fourth largest cryptocurrency in the world after Bitcoin (BTC), Ethereum (ETH) and Tether (USDT).
XRP was able to achieve an all-time high of $3.84 per coin at the beginning of 2018. However, the price of XRP fell down to $0.115, a 97% from its all-time high. This is similar to what other altcoins experienced in the last years, specifically since the end of the bull market of 2017 that saw many coins, including Bitcoin, reaching massive all-time highs.
The XRP cryptocurrency can be acquired in a large number of exchanges, making XRP liquidity to be among the largest in the crypto industry. There are several XRP trading pairs that would allow you to buy and sell this digital asset and exchange it for others in case you want. Moreover, there are some platforms that offer users the possibility to use fiat currencies to acquire XRP.
Although this virtual currency has been working as a tool for many companies and individuals around the world, there have also been speculators buying and selling it just to profit from its price fluctuations.
Ripple is one of the most popular and influential companies in the crypto market. Created in 2012, its goal is to improve the current financial system by using blockchain technology and virtual currencies.
The XRP digital asset has been working as a solution to improve cross border transaction times and to help fiat currencies increase their liquidity in specific corridors. Ripple is now working with over 300 companies and firms located in different regions around the world in order to make the financial system much more efficient and adapted to our current times.