Ripple Price Swims Against the Raging Crimson Tide

The ripple price posted a solitary advance on Friday as the wider cryptocurrency markets plummeted by a combined $125 billion.

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Ripple Price Fights Against the Crimson Tide

Traders woke up to a sea of red on Friday, and virtually every top-tier cryptocurrency saw its price crash by more than 20 percent against the dollar. However, there was one notable exception.

Ripple, the fourth largest cryptocurrency, managed to post a 24-hour increase of two percent against the dollar, although it had ebbed from the record high it set on Thursday afternoon. At the time of writing, the ripple price was trading at $0.95 on Bitfinex, struggling to tread water as the storm raged across every other corner of the market.

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Ripple’s USD, BTC, and USDT markets have all dropped below the dollar mark, but Bithumb, Coinone, and Korbit — South Korean exchanges — continue to price it at a premium of approximately 25 percent. In Korea, XRP is trading at an equivalent price of roughly $1.24 against the won — a full 30 cents over Bitfinex’s XRP/USD pair.

Factors & Outlook

As CCN has reported, ripple has traded up in recent months in response to a number of bullish announcements, including partnerships with American Express and prominent Asian banks.

However, its resilience in the face of Friday’s severe market correction may be a product of the rumor— as yet unsubstantiated — that Coinbase is preparing to add full support for ripple in the coming days. Now that Coinbase has added bitcoin cash, many investors believe ripple is the most likely candidate to become the fifth coin to be added to the trading platform.

However, as today’s market retrace has demonstrated, Coinbase integration does not necessarily ensure a sustained rally. The crash dealt bitcoin cash a 33 percent blow, according to the CCN price index, forcing the third-largest cryptocurrency’s price down to $2,349.

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Ripple

XRP, Ripple’s native currency, has taken the banking world by storm, soaring from under $0.01 to $0.79 a coin in under a year, with it currently worth around $0.73. But why did its value suddenly increase by 4300 per cent?

How does Ripple work and are there any risks?

Ripple acts as a payment network, RippleNet, and a cryptocurrency, Ripple XRP.

The platform makes it easy to transfer almost any currency to almost any other currency in the world in no longer than four seconds.

Currently, Ripple is focused on working with banks and other institutions in a bid to offer an efficient and cost-effective way of sending real-time payments around the world.

Using Ripple, if one wanted to transfer currency directly from China to the USA, they can trade CNY to XRP, (Ripples currency), and then send XRP to the recipient who will have an online Ripple wallet or a bank in the USA. From there, they can trade the XRP back into USD.

In comparison, transactions on Ethereum can take more than two minutes, and on Bitcoin payments can take more than an hour to be processed.

Ripple claims banks can save an average of $3.76 per payment using their network.

Since XRP only works directly with banks, the budding cryptocurrency is set to focus on developing networks to benefit finance corporations.

Although critics have questioned why the platform now focuses exclusively on banks, because it was launched to help everyday people make global transactions much easier.

But Ripple can appear risky. It’s open nature means nodes are vulnerable to attack, which could leave users unable to access their accounts.

Its technology is still in its infancy, so this means Ripple is subject to competition, and innovation.

Why has the cryptocurrency XRP spiked?

Ripple soared by 46 per cent on December 15, reaching a new record high of 0.8051, CoinGecko reported.

XRP reputedly gained such a boost in its value because Bitcoin’s continued growth has benefited the entire cryptocurrency market.

The global market is currently valued at around $488billion, Bitcoin accounts for less than 40 per cent of the daily turnover and Ripple accounts for a minor 4 per cent.

But experts believe it will enjoy a larger boost in value in 2018.

XRP also enjoyed a surge because of its new partnership with credit card company American Express, who are looking to offer instant block-chain based payments.

How to buy XRP

Ripple can be easily purchased using other cryptocurriencies like Bitcoin.

It is available on Bitstamp, where users can purchase them with their local currency.

Using an online wallet like GateHub, XRP can be stored in an online wallet. This will allow them to make purchases and even send XRP to other Ripple users.