Crypto · Investing

A different buy: Crypto Coin – Ripple

As you have seen on different blogs, a part of the community has jumped on the crypto-bandwagon. I have been interested in crypto currencies for multiple years, actually owning a mining rig for a few months to mine LTC (Litecoin). Unfortantely I did not have the foresight to just buy bitcoins when they were cheap but my interests in the subject never wavered.

After reading the blog of Investmunt Hunting on his purchases I was triggered again to do something with my ongoing interests. So after some investigating I decided to buy into the Ripple coin.

Ripple’s website describes the opensource protocol as “basic infrastructure technology for interbank transactions – a neutral utility for financial institutions and systems.” And it already has the attention of large parts of the financial and banking world.

The protocol allows banks and non-bank financial services companies to incorporate the Ripple protocol into their own systems, and therefore allow their customers to use the service. Currently, Ripple requires two parties for a transaction to occur: first, a regulated financial institution “holds funds and issues balances on behalf of customers.” Second, “market makers” such as hedge funds or currency trading desks provide liquidity in the currency they want to trade in. At its core, Ripple is based around a shared, public database or ledger that has its contents decided on by consensus. In addition to balances, the ledger holds information about offers to buy or sell currencies and assets, creating the first distributed exchange. The consensus process allows for payments, exchanges and remittance in a distributed process. According to the CGAP in 2015, “Ripple does for payments what SMTP did for email, which is enable the systems of different financial institutions to communicate directly.”

 

Market capitalization overview:

coin_marketcap

As of April 2017, members of the network known as the Global Payments Steering Group (GPSG) are Bank of America Merrill Lynch, Canadian Imperial Bank of Commerce, Mitsubishi UFJ Financial Group, Royal Bank of Canada, Santander, Standard Chartered, UniCredit and Westpac Banking Corporation. The group will “oversee the creation and maintenance of Ripple payment transaction rules, formalized standards for activity using Ripple, and other actions to support the implementation of Ripple payment capabilities.”

15 of the 50 largest banks in the world are already testing with the Ripple Network and it has received investment capital from Google Ventures, China Growth Capital and other like Standard Chartered, Accenture Ventures, SCB Digital Ventures, and SBI Holdings.

So what did I do? I opened an account at an online trader and bought €500,- worth of Ripple Coins (XRP). I received (minus the fees) about 2641 coins at a price of €0,189. Part of what interested me on this coin was the relatively low valuation of the coin similar to the early days of Bitcoin.

So is this an investment or a gamble? I think it is a bit of both to be honest. Technically it is an value investment since I hope that the coin will steadily grow in value so I can make a healthy profit when the coins hits $1 (or maybe $15? :)) and I sell them. But with the volatility (in 1 week + 40% and now -12%) of the crypto currencies this is a lot more of a gamble then my dividend stocks.

So anyone else decided to start buying crypto currencies?

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15 thoughts on “A different buy: Crypto Coin – Ripple

  1. Interesting purchase. Personally I’m not investing in any cryptocurrency. Way too volatile for me. I’ll just stick to dividend stocks :). My reasoning is that if cryptocurrencies succeed and become a real currency, the companies I’m invested in will adopt them, and that will give me exposure to it.

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  2. Wow, that’s an interesting step indeed! I don’t have guts to step into this category yet 😀 I always feel that it’s already too late and the bubble is going to burst but it looks like the cryptocurrency market keeps on growing. I actually have a colleague at work who invested to Ripple more than a year ago and let’s just say that his earnings are incredible. He is saying that there is value now as well but I am still staying with dividend stocks for now. Maybe I should investigate this more and give it a go!
    Good luck with this one, I hope you will post your updates on this investment as well.
    -BI

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    1. Hi BI, no worries I’m also sticking to my dividend stocks. I’ll defintely post and update later on, but I’m betting that it will take a while before there is something noteworthy to post. Thanks for the comment!.

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  3. I guess now I can follow you and IH’s journey in the cryptocurrency world. I have to admit, I am intrigued by it as well. Seems like more of our fellow DGI peers want a taste of this world. Thanks for sharing your buy. Do you plan to pick up other currencies going forward or just stick with XRP?

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  4. It’s a gamble for sure, but all investing is. I like Ripple. I used to own 5,000 coins, but I sold half of my coins last week on the rise. I did this so I could put the money into another coin. I actually sold a bunch of coins last week for profit of almost $5k. I then repurchased the same coins 48 hours later on the dip. It’s a good way to get more coins in the mill.

    Thanks for the mention, and best of luck with Ripple.

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  5. If I were a betting man, I’d say that Etherium will become the most valuable coin, passing Bitcoin at some point in the next five years. There are a lot of coins to like though, NEO, ARK, BAT, ETH, XRP, LTC to name a few.

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