While most of Ripple’s products have received excellent reviews, XRP trading reviews are not. It is the subject of a class-action lawsuit alleging that the CEO created millions, if not billions of XRP coins out of thin air. While this lawsuit is still underway, we cannot recommend buying or selling XRP coins. There is still just too much information up in the air about them.
Ripple Pros And Cons
- We cannot recommend that you buy XRP
- If you want to buy Ripple products, they seem to work well
- To buy Ripple products is a fairly straightforward process
Ripple debuted in 2005 as a way for banks to transfer money back and forth more quickly. At around the same time, they built XRP cryptocurrency as a way to get this done. This Ripple trading and mining had begun.
The founder was Jed McCaleb and it was built by Arthur Britto and David Schwartz. By 2013, many banks had adopted the Ripple method of allowing customers to send money back and forth. Many also adopted their messaging system.
The desire to invest in XRP was a different matter, however. XRP trading never really took off, as many banks considered the cryptocurrency for trading to be even more volatile than other similar currencies. So, XRP trading has never really become a part of the market.
If you want to buy and sell XRP you certainly can, but there are a lot of warning signs about the currency. A class-action lawsuit was filed against Ripple in May 2018 “alleging that it led a scheme to raise hundreds of millions of dollars through unregistered sales of its XRP tokens, [creating] billions of coins ‘out of thin air’ and then profited by selling them to the public in ‘what is essentially a never-ending initial coin offering’.” That lawsuit is still pending, and people are waiting on the outcome to decide whether it is a good idea to invest in XRP.
Ripple trading is primarily done through its currency exchange service. Ripple trading is also highly focused on its messaging system. Along with its currency exchange service, Ripple developed XRP with the idea that it would be the standard unit of currency used to make the transactions happen.
Banks never really bought into the idea to buy and sell XRP, however. In general, they find the currency to be very risky. And the lawsuit alleging that the company was simply making XRP out of thin air certainly didn’t help the company.
Currently, the ongoing lawsuit is what is driving people to buy XRP or to sell XRP. Whether you believe the company is going to win or lose the lawsuit, it makes sense to follow the news about the currency and watch how it evolves.
The statistics for Ripple’s cryptocurrency XRP are very hard to come by. Just exactly how many are out there is unknown, which is the basis of the lawsuit against the company. If they simply invented millions or even billions of XRP out of thin air, then the currency would be virtually worthless. It’s simply impossible to tell at this point.
While the rest of the company seems to offer great products and to be run well there is a huge amount of mystery involving the XRP currency. To trade XRP now would seem to be a fool’s errand. Of course, if Ripple wins the lawsuit and can provide information about how many XRP are actually in existence that would change everything.
When it comes to trading Ripple, everyone is really in a holding pattern awaiting the results of the lawsuit, as it could go either way.
Ripple’s XRP cryptocurrency is primarily designed to be used internally by banks. It would be the currency they use to make consumer transfers of money possible. Ripple’s XRP was not generally designed to be bought and traded by individual people.
How secure XRP is up to debate. The ongoing lawsuit will probably end up revealing if XRP is honestly secure or if it is just a game of smoke and mirrors. When it comes to making global payments, Ripple is certainly secure. It is used by some of the biggest names in the business, including MoneyGram. There have been no allegations of any type of fraud involving their system of money transfer or their messaging system. So Ripple trading is still looking solid, but just how much the availability of Ripple’s XRP would affect any of this is unknown.
They use the highest level of encryption available to make their money transfers. There are no complaints about the security of using Ripple to make money transfers. Banks trust them and you can be sure they were fully vetted, which makes it very difficult to talk about Ripple’s security.
One would assume that a company that has created very secure systems for moving money around and for their messaging program would also have very tight security on their cryptocurrency trading.
Ripple is arguing for the lawsuit to be thrown out and completely deny any issues with the XRP currency. That said, their CEO is alleged to have sold a ton of XRP right after he said he was going long on the cryptocurrency. That is certainly not a good sign. We await the results of the lawsuit and may update this article once the verdict has come in.
How To Trade Ripple
Trading Ripple’s XRP currency is somewhat different than with other cryptocurrencies, mostly because it was not designed to be traded. Its only purpose was to facilitate trading between banks.
When most people obtain crypto, they are doing so to have a currency where they can buy things. That is not the case when you invest in XRP. And there certainly may be XRP trading scams out there.
XRP prices certainly fluctuate quite a bit, making it perhaps not the best cryptocurrency to be trading at the moment. To make a Ripple price prediction at this point would be folly. Any Ripple prediction would not be based on fact.
If you do want to trade XRP, there are several ways to do so. First, you can simply go to the Ripple website and buy or sell XRP. But most people go to one of the major cryptocurrency exchanges. Nearly all of these exchanges offer XRP to buy and sell. Finding the best XRP trading sites is one of personal preference.
Once you are on the site or trading app of your choice, you can use your credit card or a direct wire transfer. The price changes fairly wildly day by day, making it attractive to day traders. But at this point, you certainly would not want to choose it as a place to park your money. Nobody knows what its long term worth is going to be.
Speculating on currencies is as old as time. Some people will win, and some people will lose. But rarely has the downside of a currency investment been as obvious as it is with Ripple XRP. Of course, if they win the lawsuit then the value of the currency could move up very quickly.
Ripple’s Future Outlook
The future outlook for Ripple and its XRP currency is certainly in flux, which can make it exciting for crypto fans.
While we would not want to bet on a cryptocurrency losing all of its value, everything at this point rests on the result of the lawsuit against Ripple. This is a question for the courts to decide. Quite honestly, it could go either way.
With that kind of outlook, and with the knowledge that any investment is about risk, the rewards you could reap if they win the lawsuit could be amazingly high.
As a company, Ripple has a very good reputation. Their messaging software for banks works well, and they are adept at making interbank transfers happen.
As to the currency itself, people are strongly divided on its worth and its reputation. You will find detractors but you’ll also find rabid fans who believe it may just be the future of cryptocurrencies.
At this point, there is much more negative attention on XRP than on most cryptocurrencies. How that will play out is anyone’s guess.
If you are a bank looking for a good messaging system, Ripple is a top choice. If you are a financial institution looking to have your customer’s money transferred quickly over international borders, then Ripple makes sense as a decent solution. There’s no way to predict what will happen with any cryptocurrency. In the meantime, you might want to compare it to currencies out there that you can also invest in for crypto trading.