Some scams are easy to see, but others might look like a worthwhile investment opportunity. Here are some crypto red flags to look out for.
Ripple/XRP is one of the most talked-about currencies at the moment, with many traders and investors discussing the excellent returns seen this year. While the system may have been designed to make global transfers easier, it has grown in popularity for a completely different reason: its eco-friendliness.
What is Ripple (XRP)?
Ripple can be used to process international transactions. Ripple acts as a trusted agent between two parties in a transaction. The network can quickly verify that the exchange was completed properly. Ripple is able to facilitate exchanges between fiat currencies and cryptocurrencies such as Bitcoin and gold.
Ripple was created from the beginning to replace SWIFT [a major money transfer network] or to replace the settlement layer between financial institutions.
The network charges a fee for each transaction made using the network’s services.
Energy Consumption of XRP vs. BTC
As the world becomes more focused on becoming greener and lowering its environmental impact on the world, both traders and investors look for more ways to invest in and support green investments. This includes cryptocurrency, where enthusiasts are looking towards greener currencies.
So, where does the mighty Bitcoin, abbreviated as BTC, rank on this eco-scale? Horribly, to put it lightly. Bitcoin uses about 707kWh to produce 1 BTC coin. As most of the world’s electricity is not produced in an eco-friendly way, this makes the currency unsustainable.
So where does the popular coin Ripple (XRP) come into the scale? extremely well! The digital currency has been named one of the most energy-efficient currencies around, with 1 XRP requiring 0.0079kWh to produce. Much more environmentally friendly than Bitcoin.
How to buy XRP?
The two best places to buy XRP/Ripple are via a trading broker or an exchange. An exchange is great for users who want to buy and hold the currency, whereas a broker is great for people who want to try and get a return out of XRP. There are certainly returns to be had with the currency, as the year-to-date return is around 400%.
When looking for an exchange or a trading broker, you need to do thorough research to ensure the exchange and brokers are licensed, safe, and not a scam. Read our exchange reviews and broker reviews.
While Ripple is not as well known as Bitcoin, its eco-friendliness and system backing make it favorable for future growth. Many experts predict that the currency will become one of the most popular due to its security, usability, and eco-friendliness.