Business

What is XRP and why is the price falling?

CRYPTOCURRENCY XRP has continued its multi-month price decline this week, hitting its lowest price since July.

The eighth-largest coin has been struggling since early September, losing more than half of its value as dozens of cryptocurrencies struggled.

🔵 Read ours Cryptocurrency live blog for the latest Bitcoin updates

We Explain How XRP and the Ripple Network Work

first

We Explain How XRP and the Ripple Network WorkCredit: Alamy

Before investing in any cryptocurrency, you should be aware of all the risks involved.

Cryptocurrencies are highly volatile, which means your investments can rise or fall quickly, often losing significant value in short periods of time.

This means that you should never invest anything that you cannot afford to lose.

Investing in cryptocurrencies or stocks and shares is not a guaranteed way to make money.

(Ad) An easier way to buy crypto with eToro

Join the 25 million users who trust their investment with eToro.

You can start investing with as little as $10.

Choose from a list of crypto assets including Bitcoin, Ethereum, and Dogecoin. You can practice risk-free, with a virtual investment account.

Own Cryptocurrency with eToro

Cryptocurrency investments within EU (by eToro Europe Ltd. and eToro UK Ltd.) & USA (by eToro USA LLC) are volatile, unregulated in most EU countries and UK. No consumer protection. Not monitored by EU or UK regulatory frameworks. Investments are subject to market risk, including loss of principal. Taxes on profits may apply.

What is XRP?

XRP is a form of digital currency that can be used on the Ripple network.

It can be transferred between individuals or banks.

For example, if you need to send euros to someone using dollars, the Ripple network will convert the amount into XRP.

XRP is a coin, while Ripple is a platform that allows money transfers.

The founders of Ripple created XRP before Ripple even existed.

Ripple was originally founded in California in September 2012 as Newcoin, Inc. before changing its name to Opencoin, Inc. in the following month.

In 2013, Opencoin Inc. was renamed to Ripple Labs Inc., which was incorporated as a Delaware company in 2014.

XRP has been used as a method of transferring money over the network since 2012.

At the time of writing, one XRP coin is worth about $0.6834, according to CoinMarketCap.

This is a 10.12% drop from yesterday’s value, continuing the coin’s plunge.

That price is slightly above the sixth-month low of $0.6092 in mid-August last year.

The coin’s all-time high is $3.29, reached on January 4, 2018.

It then hit $1,8392 on April 14, 2021, but has struggled since.

One of the key differences between XRP and Bitcoin is that a certain amount of XRP has been produced, while new Bitcoins can be mined.

In total, there are around 100 billion XRP, although not all of them are in circulation.

It is thought that up to a billion XRP coins are released each month, while Ripple owns a backlog of 55 billion coins in case of market volatility.

Another difference is that Bitcoin transaction confirmation can take minutes, while XRP transactions take seconds.

5 Risks When Investing in Cryptocurrencies

The Financial Conduct Authority (FCA) has warned people about the risks of investing in cryptocurrencies.

  • Consumer protection: Some crypto-based high-return promotional investments may not be subject to regulation beyond anti-money laundering requirements.
  • Price volatility: Significant price volatility in cryptocurrencies, combined with the inherent difficulties in valuing cryptocurrencies reliably, puts consumers at high risk of loss.
  • Product complexity: The complexity of some crypto-related products and services can make it difficult for consumers to understand the risk. There is no guarantee that cryptocurrency can be converted back to cash. Converting a cryptocurrency back into cash depends on the demand and supply available in the market.
  • Fees and charges: Consumers should consider the impact of fees and charges on their investment, which may be more than the impact of fees and charges on managed investment products.
  • Marketing materials: Companies can overstate product returns or minimize the risk involved.

Why is XRP price falling?

There are a few big reasons behind XRP’s drop over the past few months.

A crackdown specified in Russia, the world’s third-largest crypto market, hastened painful months for cryptocurrencies.

And the fear of Interest rates rise in the US to stave off inflation spooked investors.

Meanwhile, China has banned financial institutions from offering crypto-related transactions and warned investors against speculative trading in them.

How risky is XRP?

Investing is always risky but investing in cryptocurrencies is even more risky as they are VERY volatile so you should be prepared to lose your money.

Another risk is that there is no guarantee you will be able to convert your cryptocurrency back to cash, as it may depend on demand and supply in the current market.

It is also important to note that fees and charges may be higher than for investment products.

Cryptocurrency companies are not regulated the way other financial firms are. This means you won’t have any protection if something goes wrong.

An accused British soldier Tied and forced a couple to hand over £300,000 by electronic money.

And Bitcoin boy Erik Finman defied all odds to become the world’s youngest cryptocurrency billionaire at the age of 18.

Inside the Bitcoin Booming Texas Town as Photos Reveal the Inside Workings of Two of the World’s Largest Mining Companies

https://www.the-sun.com/money/2929694/xrp-price-what-is/ What is XRP and why is the price falling?

DevanCole

Daily Nation Today is an automatic aggregator of the all world’s media. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, all materials to their authors. If you are the owner of the content and do not want us to publish your materials, please contact us by email – admin@dailynationtoday.com. The content will be deleted within 24 hours.

Related Articles

Back to top button