The X Factor: Get to Know XRP
No other coin that begins with the letter “X” is quite as prominent as the XRP token, created and launched by Ripple Labs Inc. Love it or hate it, XRP has certainly managed to keep its seat as one of the Big Ten cryptocurrencies in the market by market capitalization year after year.
Does XRP truly have the X factor? Here’s the low-down on this cryptocurrency:
(1) What is XRP?
Frequently used for cross-border remittances, this virtual currency acts as an intermediary for senders all over the world to transfer their own currency to respective receivers in another currency. Imagine having cross-border transactions processed at lightning speeds that cost only a fraction of what individuals may have to pay at a bank for the same transfer!
This token is also being traded on the digital assets market for under a dollar each, but it has seen more than 280% year-to-date (YTD) returns in 2021.
(2) Proof of Work or Proof of Stake?
As it turns out, neither. While a majority of well-known cryptocurrency assets are native to networks that implement either Proof of Work or Proof of Stake mechanisms, XRP runs on the Ripple network, which in turn uses a consensus protocol. Transactions are confirmed via consensus with individual nodes on the network instead where all parties are in agreement. This means that no single entity has the authority to make changes to any transactions recorded on the network.
(3) Started from the bottom, now near the top
XRP began the year at a low of $0.24, so it is almost hard to believe that the token reached a peak at $1.96 in the span of six months. With a market capitalization of more than $40 billion and daily trading volumes hitting the highs of $2 billion, demand for the token has shown no signs of abating.
(4) An IPO on the horizon
The XRP token is poised for a move to higher places, as the company intends to proceed with a public listing soon. CEO Brad Garlinghouse notes that this development is a “natural evolution” for XRP, with many other cryptocurrency assets soon to follow in their footsteps. This is the future of XRP — A virtual asset presented in ways that are familiar to traders who spend most of their time on the traditional stock market.
New Times, New Trades
A new generation of traders certainly has their eyes on crypto where there is more room for diversification in trading portfolios. If you are ready to take the plunge, start with depositing XRP on Bybit and reward yourself with bonuses for every deposit you make.