Capital Properties FX
Capital Properties FX

Ripple – What Is It and Its Market Capitalization


The cryptocurrency space is a budding atmosphere with a promising future. Asides Bitcoin, there are other cryptocurrencies which have further enhanced the growth of the industry.

What Is Ripple

Among these include tokens like Ethereum, Ripple, Dash, etc. The cryptocurrency market capitalization is presently over $280 billion.

According to CoinMarketCap, Bitcoin takes the lead with a market share of 57%, followed by Ethereum, Ripple, and Litecoin, respectively. Ripple’s market capitalization is $18 billion.

In this article, we aim to educate you about the cryptocurrency, Ripple. We shall discuss in depth what Ripple is, how it works, its applications, and how to trade it.

What is Ripple? XRP

Ripple is a real-time settlement system, currency exchange, and remittance platform created by Ripple Labs Inc. It is one of the most popular cryptocurrencies in the world.

Ripple

Ripple coin, identified as XRP, trades on about 400 altcoin exchanges as revealed on CoinMarketCap.

Ripple is open-source, and it has a Consensus Ledger which stores information about all Ripple accounts. By Consensus, it means that a network of independent validating servers manages the blockchain.

Ripple price is at present $0.42+ on many exchanges. It has a maximum supply of 100 billion XRP, of which about 99 billion are in total supply and over 42 billion XRP in circulation.

It allows for fast and cheap transactions. Payments on the platform are irreversible. Therefore, it doesn’t support chargebacks.

It has a goal to be the world’s only blockchain solution for global payments. Transaction fee on the network is $0.00001.

Ripple connects banks, and all financial service providers, i.e., digital asset exchanges, payment providers to provide secure transfer of money globally. It presently has over 200 customers as revealed on its website, e.g., Standard Chartered Bank, CIMB, MoneyGram, American Express, etc.

The company interacts socially with its community via its ‘@Ripple’ handle on Twitter. Follow the account for more ripple news.

What is RippleNet?

RippleNet is a network of businesses, i.e., banks, financial service providers, etc., that use solutions developed by Ripple. It facilitates easy and efficient money transfer across the globe.

Ripple Market Capitalization

As earlier noted, Ripple has the third largest market share in the cryptocurrency ecosystem. By calculation, it holds 6.4% of the entire cryptocurrency market capitalization valued at $18+ billion.

The Ripple chart from 2013 – 2019 shows that its all-time-low using XRP/USD valuation was $0.002802 on 7th July 2014. Also, on 4th January 2018, Ripple hit its all-time high of $3.84.

The market capitalization for both times is $24.1 billion and $141.4 billion, respectively. On most exchanges, Ripple value is against Bitcoin.

Therefore, a change in the price of the latter affects the value of the former. There is a need to have more massive adoption by banks and various financial providers to achieve a higher market capitalization.

Ripple Protocol Consensus Algorithm – How Does It Work?

Unlike Bitcoin and other cryptocurrencies, Ripple doesn’t have a blockchain. So, how does the Ripple network operate?

It uses an open source protocol called the Ripple protocol consensus algorithm (RPCA) designed by Ripple Labs. The system functions effectively when every node is in agreement, hence the term “Consensus.”

Ripple Vs. Bitcoin

Bitcoin is the first cryptocurrency that took the blockchain revolution mainstream. However, a lot of altcoin traders search for a Bitcoin alternative.

Market Capitalization

Some have assumed Ethereum would take its place, some Ripple, Litecoin, etc. Thus, it is important to compare both tokens to arrive at a definite conclusion.

Bitcoin has notable similarities with Ripple such as;

  • Transactions: Bitcoin is a currency used to make payment for goods and services. A lot of companies supports Bitcoin for its operations such as Microsoft, PayPal, Shopify, etc. In the same vein, Ripple is used for interbank payments. It serves as a mediator for both cryptocurrency and fiat exchanges.
  • Fast System of Payment: Bitcoin and Ripple transactions are quick, and the average time is 10 minutes and 4 seconds, respectively.
  • Open source technology: Both cryptocurrencies are open source protocol. They both operate a decentralized peer-to-peer platform to carry out transactions.

It also has some differences such as;

  • Algorithm: The blockchain records Bitcoin transactions. A blockchain is a ledger that records every transaction carried out within the network. However, Ripple doesn’t have a blockchain. It operates on a self-made technology identified as Ripple Protocol Consensus Algorithm (RCPA).
  • Authority: Bitcoin is a decentralized currency. Thus, no one owns the network. However, Ripple is more of a centralized token as 61% of the coins belong to Ripple Labs.
  • Mining: Miners work as nodes on the blockchain to earn Bitcoin via mining. Ripple, however, is a pre-mined cryptocurrency. When transactions are carried out, every Bitcoin transferred are recorded on the blockchain to prevent double spending while XRP tokens get destroyed in the process.

Ripple; Its Pros and Cons

Pros

  • Ripple is a payment system from a reputable and registered company. It has partnerships with several banks to make currency exchange and interbank settlements easy.
  • All its token are pre-mined to guide against inflation.
  • Mass adoption of the system by banks leads to a positive change in its value, thereby profiting early investors.

Cons

  • Ripple is a centralized cryptocurrency. This is against the decentralized system of money which Bitcoin preaches since the developers are in control of the token.

How to Buy and Trade Ripple

To buy Ripple coin, you can make use of several available altcoin exchanges such as Bitstamp, Bittrex, Bitso, Binance, Poloniex, etc.

Ripple Capitalization

To buy ripple, take the following steps;

  • Open an account on any Ripple-supported crypto exchange.
  • Buy Bitcoin: Most exchanges allow users to buy other cryptocurrencies with Bitcoin as the exchange pair. Thus, create a Bitcoin wallet on Blockchain, or Coinbase. Buy BTC with USD via PayPal or credit card. After buying Bitcoin, copy the Bitcoin wallet address on the account created in Step 1 above. Paste the address into the corresponding box in your Bitcoin wallet and send the Bitcoin to the address.
  • Trade: Exchanges like Binance provides an easy trading interface which allows users to trade cryptocurrencies. Thus, click the XRPBTC trading pair on the exchange and buy your Ripple coins.

Note: You can trade Ripple for profit on exchanges. Very recently, in February 2019, Ripple price has increased by +956%. Therefore, it provides financial opportunities for speculators.

Best Ripple Wallets

Ripple Market Capitalization

Listed below are presumably the best wallets to store XRP tokens:

  • Ledger Nano X: This is an improved version of Nano S. It is a hardware cryptocurrency wallet (i.e., cold wallet) and is the best for storing tokens. Ledger Nano X provides ample storage for a large number of crypto assets such as Bitcoin, Ethereum, Ripple, etc. It has features such as Bluetooth Connectivity, Longer battery life, Backup, etc.
  • Atomic Wallet: This is a software wallet. It supports over 300 cryptocurrencies and is available on Windows, Linux, MacOS, and Android devices. Atomic Wallet charges zero fees for a transaction, and it is secured. It also has 24/7 customer support.
  • Guarda Wallet: This is another software wallet. It has an inbuilt cryptocurrency exchange and encrypted wallet backup.
  • Toast Wallet: It is a multi-platform application available on Windows, Android, and iOS phones. Toast wallet is easy to use and has zero TX fees.
  • Coinpayments: This a payment website with inbuilt wallet services. It accepts over 1300 cryptocurrencies. Its transaction fee is 0.5%. Registered in Canada, Coinpayments is an authentic cryptocurrency payment platform.

Conclusion

Ripple seeks to become the world’s only blockchain solution for global payments. It presently has over 200 partners amongst banks and other financial service providers. Its market capitalization and price might increase in the coming days if it signs an agreement with new partners.