It’s barely noon and already it’s been a big day for digital currency. Ethereum passed Bitcoin in trading volume — a move prompted by investor confidence in China.
Investors are on the edges of their seats. Big things are stirring, and this has many people clinging or adding to their original investments.
But Ethereum’s growth actually marks a great time to diversify your digital currency assets.
As Ethereum skyrockets, more and more people are becoming aware of digital currency.
This means more investors are flooding the market. Novice investors are gaining experience, and with that experience comes a more diverse investing approach. Other currencies will soon benefit from Ethereum’s fame.
Today, there are dozens of promising digital currency opportunities that you can buy for less than a dollar. Some investors have chosen to invest through initial coin offerings (ICO). And though ICOs are often lucrative, they require you to take a bet on an unproven technology.
This is why many investors have chosen to stay with the established digital currencies like Ripple, which you can still get for under $0.50.
What Is Ripple?
Ripple isn’t a newcomer to the digital currency market.
It was developed in 2012 by the CEO and CTB of OpenCoin, a venture capital-backed currency payment system. Most of the developers behind Ripple also worked with Bitcoin. This gives Ripple a unique edge against its peers, who often come from inexperienced development groups.
Ripple hasn’t had a phenomenal week. Ethereum dethroned the currency from its spot as the second highest market cap. Then it plummeted alongside other digital currencies on Friday.
This isn’t surprising. Nor is it a reflection of Ripple’s underlying potential.
It just gives investors a chance to get in at a low price.
In yesterday’s Ethereum update, I talked about how Bitcoin influences other altcoins. And how investors tend to sell or move between coins when certain currencies falter.
But investors shouldn’t move out of Ripple. Like Ethereum, Ripple has a unique function that gives it long-term potential.
Remember, in the digital currency world, there are hundreds of potential winners.
It doesn’t have to be Ethereum or Bitcoin. So, it’s wise to pad your portfolio with dozens of promising technologies.
And what makes Ripple promising is its fundamental tech: the Interledger Protocol.
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The Interledger Protocol
Bitcoin is a currency exchange; Ethereum is a smart contract-capable network.
And Ripple is a channel that allows secure, fast currency exchanges.
Ripple relies on its Interledger Protocol to send money between individuals. Picture it like this: Both you and your friend share one password and are able to receive and send money through a channel opened by this password.
This will fix many exchange problems, including sending and receiving money between banks and overseas. Ripple is the answer to a lengthy, headache-inducing process.
It’s also a win for corporations. Ripple has tremendous support from the financial community, mainly because it saves banks money.
Currently, if a bank is using Ripple, it saves $3.76 per payment. That is a cumulative saving of $564,000 a year.
Let’s be honest — most progress in this world happens because of greed.
We are just lucky that in Ripple’s case, corporate greed will help create a more secure channel of exchange for individuals.
And Ripple’s potential doesn’t end in finance. Once the channel is constructed, Ripple can ferry any kind of information between two individuals. That is incredibly valuable in our increasingly security-sensitive world.
Perhaps this is why Ripple managed to drum up $55 million in a Series B funding round in 2016. It’s also the darling of tech giant Google.
Ripple is still under $1, which gives investors who missed Bitcoin and Ethereum in their foundational stages a second chance.
But no one expects it to stay at $1 for long.
We are in the thick of a digital currency gold rush, and promising currencies like Ripple are going to receive more investors in the coming months. Currently, Coinbase doesn’t allow users to buy Ripple. You would have to go to Kraken or Poloniex and buy Ripple with Bitcoin funds.
This has stalled the currency’s growth. But just imagine what will happen when this process is less complicated.
As Ethereum grows, begin to diversify and pad your digital currency portfolio. Remember that Ethereum will continue to surge and retreat and that moving among currencies won’t protect profits.
Invest wisely by basing your decisions on technology, not trends.
And if you are investing in tech, investing in Ripple is a no-brainer.
Editor’s Note: A lot of people ask questions in our comments section below. Feel free to tweet me at @AlexandraPerryC with questions or topics you would like addressed. I will try to supply you with timely information on article inquiries. Best of luck with your investments.