Ripple takes third place in popularity and liquidity behind Bitcoin and Ethereum on the market. What is Ripple exactly? It was made for a simple need for money transfer, and it still acts more often as a network for digital financial transactions. It came to life in 2012 thanks to Jed McCaleb and Chris Larsen.
As a cryptocurrency, Ripple is marked as XRP and by market cap is the third biggest cryptocurrency. As a payment system, Ripple is far more used by banks and other big institutions, unlike Bitcoin, used by individuals for payment and exchange. If you want to start trading Ripple, you should understand the basics and what you can expect in the year ahead.
2020 hasn’t been so light on Ripple. Its price on the market fell more than 60 % in twelve months. Ripple enthusiasts are still hoping XRP will recover like we saw it happen with other leading cryptocurrencies. It’s expected to see that in 2021. That is why we are giving you an insight into what you should pay attention to if you’re going to invest or already have Ripple.
Some websites predict the lowest price next year for XRP will be one dollar. Considering it’s now around $0.18, that offers a possibility to gain about 500 % more, and that’s not even the boldest prediction for the next year!
What caused Ripple to crash so much?
Being in a bear market means Ripple was in a low position for more than a year because of Bitcoin. Bitcoin exchange-traded funds (ETFs) were rejected continually by the SEC (Exchange Commission) for a couple of years. This brought disappointment to various investors because they saw more money coming with the Bitcoin ETF being approved. They began reaching for ETFs for other cryptocurrencies like Ethereum and Ripple, but it is still uncertain if that will be authorized any time soon.
What changed in 2020?
Is Ripple still profitable despite the difficulties? If you think cryptocurrencies will become the primary system of payment worldwide, you should invest in Ripple. Your investment can only add up to that belief and make it more believable, thus possible. This is a very speculative reason, so you should trust your gut and consult with your broker if you have one.
Another good reason to invest is to make fiat terms profit (government-issued currencies). We always advocate not to support more than you can bear to lose and still be okay. Putting your faith (and bets) on Ripple has lesser risk than other smaller cryptocurrencies at the moment. It’s always a question of speculation.
What to expect in 2021?
We have already mentioned that Ripple is expected to go up with Bitcoin and Ethereum, despite the current difficulties. Analyst Craig Cole is convinced Ripple will reach $1 and even grow to $5 in 2021. Comparing it with this years’ price that is $0.18, can you see the potential? It would be a gain of 2,678 percent! Many experts believe Ripple is still the best way to move money, so their hedge funds tend to be big and filled with Ripple.
About the most significant prediction for 2021
SeedUps CEO Samson Williams predicts Ripple will rise to sixteen dollars, which is almost nine thousand percent more than its current price. He thinks it will happen because of the upcoming recession because of the pandemic we are still fighting, and Ripple will get a push from that and limit its supplies.
As you can see, working with cryptocurrencies, especially Ripple, requires a lot of knowledge but even more a sense of speculation and observation. It changed so much in a couple of years, and we are yet to witness what will be of it in 2021. Experts are indeed very optimistic about it, and so are we. It would be a smart move to talk to your broker, or if you are an experienced trader, do a more in-depth analysis and decided whether you want to invest since we have predictions of this magnitude. See if you are comfortable and interested enough, and start! Good luck!
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