Reasons to invest in Ripple
XRP has been a key player in the growth of crypto over the past two years. While its price is significantly lower than its previous peaks, there are several reasons that make us confident in its future value.
Let’s analyse why Ripple (XRP) may very well be the best investment of 2020, and how you can buy some for yourself.
1. The Bitcoin halving
The Bitcoin halving may not directly affect XRP’s value. However, it will act as a contributing factor to allow more people to invest and hold onto the popular cryptocurrency.
Here’s how it should work, when looking at previous halving events:
- Bitcoin’s dominance remains high prior to and during the halving event.
- After the halving is concluded, investors will start exploring and learning about cryptocurrencies.
- A short while later, investors are expected to diversify their holdings and buy other coins that are backed by strong projects. Investments will most likely be limited to the top altcoins, with XRP being one of them.
The large influx of new investors and the high likelihood of altcoin investments should increase the value of XRP multifold.
2. It’s cheap entry price
In the previous point, we discussed how the Bitcoin halving will drive new investors to the world of cryptocurrency. Now, let’s talk a little bit about the psychology of those new investors. Here’s how the majority of those new investors is expected to act, after the halving:
- Bitcoin will be seen as very expensive (on a unit basis) and will most likely not offer significant (unrealistic) returns.
- Due to this fact, it’s best to invest in smaller-cap coins that have previously seen a high appreciation in price.
- XRP is currently worth around $0,20. That is a 94% drop since its all-time high.
- Let’s invest in XRP and wait until a new peak price to sell.
While all this is purely speculation, one can’t help but wonder if Bitcoin could offer the same returns when looking into the future. Compared with the price drop observed with XRP, Bitcoin would need to reach almost $200.000 to offer the same returns that investors would see if they sold XRP at its previous all-time high.
3. The current outlook of our economy
Unless you are living under a rock, you might have noticed that the economy has seen better days (much better days in fact). Over the past few weeks, market signals have been pretty scary to look at.
The 10-year Treasury Yield crashes has seen a decline of 46% in 2020 alone. The last time such a drop was observed was in 2008, with 44,31% – the year of the financial crisis.
Meanwhile, HSBC, as well as other big banks, hit a two year record low.
This fact, in and of itself, makes banks look for alternative liquidity solutions. Liquidity is, in fact, one of the most important aspects in downturns like this. And this is exactly why XRP is expected to see a huge surge in usage from banks – it provides the solution they need to return back to baseline and “recover” from these devastating events.
With more than 200 banking partnerships, XRP has already proved its competence and ability to support the banking system. As such, in these bleak times, XRP may very well be on the brink of its biggest opportunity.
Ready to buy XRP?
While the current situation seems like the perfect setup for a successful long-term investment, you should act fast. After all, the Bitcoin halving is just days ahead of us.
Here’s how you can invest in XRP:
- Create an XRP wallet. Whether you use a simple online wallet (Such as Toast) or a hardware wallet (Ledger, Trezor, etc.), make sure you have a storage location for your coins.
- Buy XRP. Make sure you find the fastest way of buying Ripple with credit card, as the price of XRP is expected to increase very soon. The faster you buy, the faster you may start to make profit.
- Be patient. Things happen slowly at first, and then all at once. Set your goals and don’t let the market conditions scare you away. Crypto has been known to be way more volatile than other investment markets, and thus requires strong emotional control.
And that’s it. You now belong to the #HODL gang of XRP.