Bitcoin is considered to be the standard of cryptocurrency, but it has got numerous followers and among them there is a coin that can rightfully be considered the best altcoin to invest in. What is this cryptocurrency and thanks to what merits is it spoken about as the most attractive one in terms of investments? The answers to these questions are given below.
Table of content:
- What cryptocurrencies are called “altcoins”
- How to determine the best altcoin for investments
- Why Ripple is the leader: evidences, opinions, facts
- The best way to invest in Ripple
What is an altcoin?
BTC is the very first cryptocurrency with which the history of virtual coins began. It can be generated or mined in other words with the help of special equipment. BTC is traded on the exchanges, bought for traditional money and even helps to create the digital assets. Bitcoin wasn’t left alone for a long time. Very soon it was accompanied by Lightcoin, Ethereum, Ripple, Monero and many other currencies. They are numbered not in hundreds but thousands, if we take tokens into account. All of them are altcoins, i.e. an alternative to the main currency.
How to determine the best altcoin to invest in?
Personal preferences – you like the logo or the name of a coin, its creators are charming and smart, etc. – are out of the question. In terms of investments these facts do not work. Here, the specific features are important, namely, the level of capitalization, the change in value during the past year, and the price change for a certain period of the current year. So, according to these characteristics Ripple is a leader at the moment. We are going to prove it using the facts only.
Ripple as the main leader in altcoin investing
As at January 2018, the capitalization of this cryptocurrency amounted to 54.2 billion USD with a total emission of 99.9 billion. During 2017 Ripple changed its value 361 times. And now we are going to highlight more details about the features of this coin.
The Ripple system is structurally similar to BTC, i.e. users deal with the analogue of the registration book, in which the movements of each monetary unit are fixed. However, the cardinal difference lies in the fact that Ripple does not work as a blockchain but as a network of gateways for making payments inside.
Protection against speculation and hacking
Only 35% of coins are in the users’ possession. The rest belongs to the Ripple Labs. That makes it possible to protect the cryptocurrency from speculations with subsequent rate depreciation. As for hacker attacks and technical failures, when the network is overloaded - it is a sure sign of fraud - payments for transfer (fees) automatically grow several times. It is not profitable for hackers to continue their actions.
Speaking of Ripple, it can not be said that this coin is completely decentralized. The system is managed by the Ripple Labs development team. The transaction cannot be considered as 100% anonymous, but there is a definite benefit in it: the trust of conservative customers is growing, and the system itself can be more easily integrated into the existing banking sector.
By the way, when the discussion is about the introduction of cryptocurrencies in the banking system is going on, most experts have Ripple in mind. Its good manageability, high transaction speed and multicurrency base attract the interest. The views of experts of the banking sector are shared by many representatives of state structures. It is important for them to find ways to control the payments in order to prevent crimes.
Will the digital currency replace traditional money in the future? Will digital coins become the evidence of a certain value? At this stage it is difficult to make any forecasts, but even if we assume such a probability, the value of the cryptocurrency will definitely increase. Therefore, investments are justified.
In order to replace the standard money for the cryptocurrency, you need to change the model of the money flow. In many countries work is being carried out to find an optimal and controlled system that would satisfy the demands of all its participants. When it is found, other ones will lose relevance.
Ripple in this regard is the most promising system. The principle of its work meets the requirements of the banking environment and government agencies best. It can be concluded that the price of XRP will increase faster than all. This is another fact that makes this coin the best altcoin to invest in.
Exchanges as the best way to invest in Ripple
Many investors use exchanges to buy the cryptocurrency. To do it they have to register in the XRP system and create a wallet. The exchange for its part requires registration. Ripple is sold on such platforms as Poloniex, EXMO, etc. After registration it is necessary to make an application for the currency purchase. The price should be maximally profitable but relevant at the same time.
It is better to spend a little more time, but wait for a favorable counter offer. As soon as the application is completed, money is withdrawn from your bank account and ripples are transferred to the cryptocurrency wallet, integrated into the exchange system. Experts advise not to keep funds on the service but put them onto your personal wallet. In terms of reliability and security, hardware wallets have proven themselves.
Not every user is educated about the details of the exchange trades, so the broker’s service will be useful. You should not save on this, especially if altcoin investing is allocated a large amount. The specialist has the necessary tools and skills for more profitable trading, analyzes the market and is always aware of all the changes, so that the investor gets maximum profit and reduces risks to a minimum.