Many people have kept their eyes glued to any changes in the value of bitcoin. However, you’ll want to ensure that you remain aware of Ripple which is another type of cryptocurrency. Due to the recent popularity of cryptocurrency, it’s important to ensure that you’re investing in this currency wisely. With that in mind, here is more information regarding the many benefits of Ripple.
Ripple utilizes a network that requires multiple parties to take part in any type of transaction. On the other hand, bitcoin makes use of a singular authority. Many have noted that any transfer fees seen with Ripple tend to be lower than while using bitcoin. It’s wise to invest in a form of cryptocurrency that offers little in the way of transfer fees. In addition, many banks are backing Ripple. Having these financial institutions back Ripple is a big advantage over bitcoin which continues to face problems in regard to backing from banks.
Another reason that many feel bitcoin still has problems to be fixed related to confirmation time. Many who partake in exchanging cryptocurrency often feel that confirmation times can become quite a burden. However, Ripple utilizes a system that drastically reduces confirmation times, allowing traders to obtain or send funds faster than normal.
One major advantage of utilizing Ripple over bitcoin is that the former is backed by one company. Ripple Labs doesn’t have to worry about as much fluctuation as bitcoin because this type of cryptocurrency began with a large number of funds. Therefore, those utilizing Ripple funds haven’t had to worry as much about funding limits in the early stages of investing. Digital Trends reports that Ripple Labs currently holds an estimated $60 billion worth of cryptocurrency funds.
To summarize, the recent growth of cryptocurrency has many investors excited. However, you’ll want to consider other types of this currency including Ripple, before making the jump into purchasing bitcoin. Ripple tends to offer lower transactions fees, short confirmation times, and less worrying over fluctuations in value. In addition, Ripple is being backed by many large financial institutions. While the cryptocurrency market continues to change, many feel that Ripple is one the safest forms of this currency type.