Ripple (XRP)

Ripple XRP

The RippleNet payment network makes it easier for companies and institutions to quickly, cheaply and securely transfer different types of values ​​- to recipients all over the world. The currency of the network is called Ripple (XRP).

Today, Ripple has agreements with several internationally large banks and payment services. Among others, SEB, JP Morgan and Bank of America use their networks.

The total value of Ripple in October 2020 was $ 11,190,432,525. It was then the fourth largest cryptocurrency in terms of total market value. In the box below this text, you can see Ripple’s value and development right now.

The purpose of Ripple is to offer fast, cost-effective and secure payment solutions via the Ripple payment network. This is regardless of whether it is the transfer of national currency, cryptocurrency or other values.

Investing in Ripple means investing in the international network that RippleNet is and hoping that they will enter into agreements with more and more banks and institutions.

What is Ripple (XRP)?

It is important to distinguish between the company, the network and the currency – with almost the same name. To clarify what is meant, the currency abbreviation is usually used (XRP) when the currency is specified and RippleNet is used to refer to the payment network.

Ripple Labs Inc – The company that develops RippleNET and owns the majority of all XRP.

RippleNet – Nätverket som underlättar för internationella betalningar, Ripple Transaction Protocol (RTXP)

Ripple XRP – The network that facilitates international payments, Ripple Transaction Protocol (RTXP)

The network began to develop in 2004 under the name Ripplepay. The idea was to create a decentralized system for transferring values. In 2012, the company created Open Coin and then Ripple Transaction Protocol. A network that has several advantages over today’s systems for transferring currency and other values.

Unlike many other cryptocurrencies, Ripple is not a “competitor” to fiat – but a complement. For example, it facilitates the transfer of USD between a bank in Sweden and its branch in Australia. At the same time, it is part of the development of blockchains and cryptocurrencies.

The benefits of RippleNet can be briefly explained by:

  • Short waiting times

A transaction takes a few seconds, which can be compared to a Swift transfer that can take a couple of days. There are today lots of cryptocurrencies where a transaction takes a few seconds but this network is both scalable and can handle fiat.

While Bitcoin can handle 7 transactions per second, Ripple can handle 1500 and also scalable for greater handling in the future.

  • Low transaction cost

The fastest way to send national currency today is via PayPal. But then a couple of percent can be paid in fees. With Ripple, the transaction cost is reduced extremely.

  • Systems that handle all curriencies

Ripple Transaction Protocol can handle different types of fiat currencies, cryptocurrencies but also bonus points such as Frequent Flyer Miles and commodities.

  • ”Bridge” between currencies

The network can be used as a bridge between different currencies and networks. For example, the “Bitcoin Bridge” service has been used to allow users to send money to a BTC address without having BTC in their wallet.

“We really want to solve that cross boarder payment transactions”/ Brad Garlinghouse (CEO på RippleLabs

To send value (not just money) via Ripple, so-called Gateways are used, which can be explained as inputs to the network. This is similar to the fact that you need to log in to your PayPal account to take advantage of their service.

It is through these gateways that banks, companies and institutions can interact with the network. In theory, private individuals can do the same, but the network is primarily built for companies and institutions. It is also these that primarily have advantages in reducing transaction costs and getting faster transactions.

XRP is the token used on the network to facilitate both transfers of value on the blockchain and switching between different currencies. Like other blockchains, there are validators that have the blockchain’s ledger and verify the transactions. However, this article does not focus on the technology behind Ripple but its use today – and in the future.

Technology – Simplified explained

In part, Ripple’s protocol is similar to how money is transferred today via exchange offices. Although there are fundamental differences in both security, transfer speed and lower cost.

If you want to send money to a relative in the United States, you can go to a store that offers transfers via Western Union. You pay the fee plus the amount you want to send. This is noted in their system whereupon the recipient can collect the amount at the corresponding office in the United States.

It is not exactly the same money that is collected, but by noting in their system that money can be collected, it can happen. With Ripple, this is done digitally, quickly, securely, decentralized and at a low cost.

(Ripple explained in video)

We use to trade and invest in this cryptocurrency. On Etoro you can buy or take a short position in stocks, indicies, commodities, cryptocurrencies etc in a very easy way both directly in the asset or using CFD:s with or without leverage.

78 % of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money


One criticism that is often raised against Ripple is that the currency can be considered centralized – unlike other cryptocurrencies that are decentralized. This is because the company Ripple owns about 60% of all its tokens. This allows them to determine and change the blockchain based on their opinion.

Another common criticism is about the number of coins available. Although the company has said that more coins will not be created, it is theoretically possible for them to create more. This also creates uncertainty about inflation and real value.

Invest in Ripple

Investment in Ripple is primarily based on the belief that RippleNet will grow in terms of transactions and users. It is mainly supply and demand that determines the price and since a micro part of all tokens is “burned” daily, the supply is smaller.

The easiest way to invest in Ripple is to buy certificates that follow the value development. For those who are interested in cryptocurrencies and blockchains, however, there are several benefits to buying real XRP.

Take a position via CFD

Etoro is one of the trading venues offering trading in Ripple with CFD:s. Investments are made in CFDs, which are contracts that follow the asset’s value development. If Ripple increases by 3%, the value of the contract will also increase by 3%. If you trade with leverage x2, the value will increase by 6%.

Why invest in Ripple via CFD?

  • Easily take buying and selling positions
  • Choose between trading with or without leverage


  • You do not own XRP and can therefore not use the currency in other services
  • Cannot be transferred to crypto exchanges or to friends

78 % of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money

Take position via real cryptocurrency

The big difference between buying a certificate and buying real cryptocurrency is its uses. Certificates are linked to the place of trading where they are traded – real cryptocurrency can be sent and used as a means of payment.

At you can invest directly in cryptocurrencies in a very smooth and easy way. You create a regular account and then just buy the cryptocurrencies you want to own.

78 % of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money

Why invest in Ripple via cryptocurrency?

  • Can be exchanged for hundreds of other cryptocurrencies
  • Can be stored on a hardwallet (safest storage)
  • Security in own ownership – do not have to rely on the trading place
  • Can be traded with leverage and Buy and Sell positions ( a little more advanced)


  • More knowledje about blockchains is required if trading is to take place in a place other than for example Etoro.

Value development of Ripple

In 2017, Ripple was one of the cryptocurrencies with the largest increase in value. In January the value was 0.0063 USD and in December just over 1 USD!

Ripple price

Then came the “cryptocurrency crash” whereupon all currencies fell sharply in value. Since January 2019, XRP has had a downward trend that may have been broken in March 2020 when the price began to get higher bottoms.

Ripple price development

It is still one of the most rewritten and debated cryptocurrencies. This is based on both positive and negative factors.

On the positive side, Ripple already has agreements with hundreds of banks around the world. They have solved a clear problem, have a finished product and do not turn against today’s monetary system. It is a system that facilitates transactions – of both fiat and crypto.

The payment solution, which is based on blockchain technology, could enable real-time transfers of capital between for example SEB´’s offices in Stockholm and its offices in New York. Other collaborations that Ripple have are Santander, MoneyGram and American Express.

The negative that is usually mentioned is the lack of decentralization and how the value of its tokens can actually be determined.

”If we work with the system to solve this problem….there is a lot of opportunity to create value to XRP” / Brad Garlinghouse (CEO på RippleLabs)

How the service is developed, as well as how many people use it, will affect the price of XRP. But also, as always with cryptocurrencies, it is about speculation. Although RippleNet offers fast, cheap and secure transfers, the company is still a small player in an extremely large financial market.

Can they take over the Swift system and become the obvious choice for the world’s banks in international transfers – or will the banks develop their own system and turn their backs on Ripple?


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