Written by Daniel Da Costa at The Motley Fool Canada
As cryptocurrencies continue to gain popularity and become mainstream, there is no doubt that they offer a lot of potential. New developments that address specific needs in the real world continue to be created, which is why the industry is no longer closely associated with speculative investing. Ripple is a company that you may have heard of, that offers some of the best opportunities for investors today.
Ripple operates its RippleNet platform, which allows anyone to send and exchange currencies or transact across borders. original code XRP, which is currently the eighth most valuable cryptocurrency, is what is used to block transactions, which is also what very small fees are charged.
RippleNet’s innovation is a direct competitor to the SWIFT (Society for Global Interbank Financial Telecommunication) banking system used today for international money transfers.
If you’ve ever sent or received a bank transfer, you’ve probably heard of the SWIFT code. You’ll also know how long it takes to send and receive money, how complicated it is, and how expensive it is.
Ripple offers investors a great opportunity. It already has hundreds of organizations in more than 55 countries that have registered and use its services.
So, if it offers a lot of potential, is it one of the best cryptocurrencies to buy today?
Ripple offers potential, but it is not without significant risks
One of the biggest risks for investors considering investing in Ripple today is that it is currently being sued by the US Securities and Exchange Commission (SEC).
When the company sold its XRP tokens to investors to raise funds (US$1.3 billion) to develop its platform, the SEC claimed that this was an unregistered security offering using digital assets, which is illegal. However, Ripple claims that XRP is a virtual currency and not a token, so it has not broken any regulations.
The lawsuit began about a year ago and is still ongoing. Meanwhile, XRP tokens are mostly up, although there has been a lot of volatility, and are about 60% higher today than they were when the lawsuit was announced.
Should You Buy XRP Tokens Today?
Whether you should invest in XRP today will depend a lot on your risk tolerance and how optimistic you are about the potential of the cryptocurrency.
If Ripple wins the case, it will definitely have a bullish effect on the tokens. However, there is still a huge risk for you to take, especially with so many other high-potential cryptocurrencies.
If you are looking to diversify your investments, I would also look for exposure to blockchain networks that can run smart contracts like Ethereum and its native currency, ether.
Improved payment processing and the capabilities generated by smart contracts are among the most important developments addressed in the cryptocurrency industry.
While there is still a lot of volatility and risk involved in investing in the cryptocurrency industry and gaining exposure to companies like Ripple, the opportunity cost of the crypto boom could be huge.
So, if you have a long timeline to commit to investing and can afford the volatility, finding quality crypto stocks or even cryptocurrencies like XRP might be one of the best investments to make before 2022.
Post Is Ripple the Best Cryptocurrency to Buy in 2022? He debuted in The Motley Fool Canada.
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The fraudulent shareholder Daniel Da Costa has no position in any of the stocks mentioned. Motley Fool owns and recommends shares in Ethereum.