1. What Is XRP?

XRP is a cryptocurrency and the native token of the XRP Ledger (XRPL), an open-source, decentralized blockchain designed to facilitate fast and cost-effective cross-border transactions. Unlike Bitcoin, which relies on energy-intensive mining, XRP uses a unique consensus mechanism called the XRPL Consensus Protocol, allowing it to process transactions within seconds at minimal cost.

 

XRP is widely used in financial institutions to improve liquidity and enable near-instant settlement of payments. It serves as a bridge currency, making it easier to exchange between different fiat currencies without the need for a central intermediary. Ripple, the blockchain services company, utilizes XRP in its RippleNet network to enhance the efficiency of global payments. However, XRP is independent of Ripple, and its decentralized network operates with various validators beyond Ripple’s control.

 

 

1.1 XRP Founding Team

XRP was created in 2012 by engineers David Schwartz, Jed McCaleb, and Arthur Britto. Their goal was to develop a faster and more energy-efficient alternative to Bitcoin for financial transactions. Shortly after the XRP Ledger’s launch, Chris Larsen joined the project, and the team established Opencoin, which later became Ripple Labs.

 

Jed McCaleb eventually left Ripple to found Stellar, another blockchain-focused on financial transactions. Today, Ripple Labs continues to support the adoption of XRP, with Brad Garlinghouse serving as the CEO and David Schwartz as the Chief Technology Officer.

 

1.2 XRP Tokenomics

The total supply of XRP is capped at 100 billion tokens, with the initial distribution as follows:

20 billion XRP allocated to the founding team.

77.8 billion XRP given to Ripple Labs for network development and partnerships.

0.2 billion XRP distributed via airdrops to encourage adoption.

 

Unlike Bitcoin, XRP is pre-mined, meaning all tokens were created at launch. To control supply, Ripple placed 55 billion XRP in escrow, releasing 1 billion XRP per month for controlled circulation. This mechanism ensures that XRP’s supply remains predictable and minimizes inflation risks.

 

1.3 XRP vs. Bitcoin

While Bitcoin and XRP are both cryptocurrencies, they have key differences:

 

Consensus Mechanism: XRP uses the XRPL Consensus Protocol, which does not require mining, making transactions faster and more energy-efficient compared to Bitcoin’s Proof-of-Work (PoW).

 

Transaction Speed & Cost: XRP transactions settle within 3-5 seconds, while Bitcoin transactions can take 10 minutes or more. XRP’s average transaction fee is $0.0002, whereas Bitcoin’s fees can range from $1 to $50+.

 

Scalability: XRP can handle 1,500 transactions per second (TPS), whereas Bitcoin processes only 7 TPS.

 

1.4 XRP’s Legal Challenges and Market Impact

In December 2020, the U.S. Securities and Exchange Commission (SEC) sued Ripple Labs, alleging that it conducted an unregistered securities offering worth $1.3 billion through XRP sales. This lawsuit significantly impacted XRP’s price and exchange listings.

 

However, in July 2023, Ripple secured a major legal victory when a U.S. judge ruled that XRP sales on public exchanges did not violate securities laws. This decision boosted XRP’s market confidence, leading to a price surge and renewed adoption interest.

 

 

2. Is XRP a Good Investment?

As of June 5, 2024, XRP’s price is $0.52, with a market capitalization of $29.3 billion, ranking it #7 among cryptocurrencies. XRP’s all-time high was $3.37 in January 2018, but regulatory challenges and market downturns have kept it below that level. Historically, XRP has delivered an average 169.9% year-over-year return, making it a high-risk but potentially rewarding investment.

 

XRP’s investment potential has gained renewed attention after U.S. President Donald Trump included it in the proposed U.S. strategic crypto reserve, alongside Solana (SOL) and Cardano (ADA). This move sparked a 32% price surge for XRP, reflecting increased investor confidence.

 

Moreover, market analysts predict a potential bull run, with some suggesting XRP could follow its 2017 growth pattern, where it surged from $0.003 to $3.31, a 110,233% increase. Optimistic projections indicate XRP could reach double-digit or even triple-digit prices, though such targets remain speculative.

 

Despite the bullish outlook, XRP still faces risks, including regulatory scrutiny and market volatility. Investors should conduct thorough research and consider consulting a financial advisor before making investment decisions.

 

 

3. How to Buy XRP?

For those looking for how to buy XRP, purchasing it on popular cryptocurrency exchanges is a simple and straightforward process. One of the most cost-effective ways to buy XRP is through BingX, a well-established trading platform.

 

To begin, users need to create an account on BingX, complete identity verification, and secure their account with two-factor authentication (2FA). Once the account setup is complete, users can deposit funds via various supported networks such as POLY, BEP, and ERC, or use the TRC-20 protocol, which offers highly cost-effective deposits with fees as low as $1. This method is far cheaper compared to credit card transactions, which incur higher processing fees due to traditional banking intermediaries.

 

After funding the account, users have two primary trading options: spot trading and derivatives trading. Spot trading allows users to purchase and own XRP tokens, benefiting from long-term price appreciation. Derivatives trading enables traders to profit from XRP’s price fluctuations without actually owning the tokens, making it a suitable choice for those looking to take advantage of both bullish and bearish market movements.

 

BingX supports direct spot purchases through its exchange market or peer-to-peer (P2P) transactions with other users. For derivatives trading, users can engage in USDT-M futures markets or Coin-M futures markets, allowing for diversified trading strategies.

 

Now BingX offers exclusive gifts up to $6,000 by signing up for a BingX user account. Register your account and trade now!