Disclaimer: This article is intended for informational purposes only and should not be considered as investment advice or recommendations.
XPR differs from other types of cryptocurrencies in that it was never intended to serve as a standalone currency. XPR was created to serve as a moderation layer when making transactions using the Ripple Lab platform.
It only exists within the Ripple Lab platform and is used predominantly as a bridge currency or to cover transaction fees.
The cryptocurrency market cap for XRP increased from $0.01 billion on January 11th, 2017, to $28.7 billion today. On December 31st, 2018, there were over 12 million active addresses holding XRP. This number represents an increase of over 3 million addresses since March 30th, 2019.
The XPR token now has a life of its own within cryptocurrency exchanges and achieved an impressive feat of holding a spot in the top five cryptocurrencies.
Like nearly all other cryptocurrencies, XPR is highly volatile and sometimes shows double-digit fluctuations in a single day.
A Short History Of XPR
XPR’s origins can be traced back as far as 2004, with Canadian developer Ryan Fugger creating RipplePay. A number of years later, a new system based on Fugger’s concepts was built called OpenCoin.
OpenCoin enabled quicker processing of transactions whilst consuming less electricity than Bitcoin’s blockchain platform.
In 2013, OpenCoin merged with Stellar Development Foundation (SDF) to form Ripple Labs. The company’s mission was to create a global network where financial institutions could send money across borders quickly and cheaply.
In 2014, Ripple Labs released their first product, xCurrent which allowed banks to connect directly to each other via RippleNet.
Ripple Labs also developed xRapid, a solution that allows companies to use XRP to settle international payments more efficiently. In 2016, the company launched xVia, a tool that enables businesses to pay suppliers instantly by connecting them to the Ripple Network.
Ripple Labs’ goal is to make it easier for people to move money around the world. By doing so, they hope to improve the efficiency of cross border settlements. They are working towards this goal by developing products like xCurrent, xRapid, xVia, and xDai.
Who Should Invest In XPR?
There are a number of different classes of cryptocurrency traders who should consider adding XPR to their portfolio. We’ve broken down the top 4 types of traders below:
Enthusiasts
If you’re a cryptocurrency enthusiast, then it is worthwhile looking into XPR stock. XPR is most definitely a part of the crypto-boom we’ve seen sweeping the market in the past few years, and should be considered a sound addition to a well-balanced portfolio.
Bitcoin Or Ethereum Traders
In theory, XPR could be used as a hedging tool when investing in other currencies, as some factors which influence the XPR token are different to that of other currencies.
Thematic Financial Sector Investors
XPR is recognized and used by many financial institutions and as such could be used as part of a portfolio based on the financial sector.
Day Traders
As mentioned above, XPR is highly volatile and could present day traders with short term trading opportunities for either long or short positions.
Disruption To The Transaction Industry
One of the main reasons why XPR is so popular is because it is designed to disrupt the traditional payment industry.
Traditional methods of sending money have always involved high costs and slow processing times. These issues are compounded by the fact that these systems are centralized and vulnerable to hacking attacks.
XPR solves this problem by creating a decentralized network where payments can be processed quickly and cheaply. In fact, XPR was created for secure, instantaneous multi-currency transactions based on a blockchain protocol, like Bitcoin.
Unlike Bitcoin, Ripple Labs have the digital payment industry in their crosshairs, as they intend on disrupting it through a reduction in processing times and transaction fees.
It’s worth noting that while Bitcoin is seen as an investment tool used to turn a profit, XPR is in constant use on the Ripple Lab platform. This means that as more and more institutions adopt this platform to conduct their business transactions, XPR’s token price should, in theory, stabilize.
How Does XPR Work?
XPR works using a similar concept to that of Bitcoin. It uses a distributed ledger system called the xRapid Network to transfer funds between banks.
Ripple Labs’ CEO Brad Garlinghouse described the process as follows: “The way it works is there’s no need for any central authority to facilitate those transfers. Instead, the bank just connects directly to each other”.
This decentralization allows for faster and cheaper transactions than what is currently available.
Why Do People Like XPR?
Many people see XPR as a potential game changer in the world of finance. As stated earlier, Ripple Labs wants to disrupt the traditional banking industry by reducing transaction costs and improving speed.
However, this isn’t the only reason why XPR has become so popular. There are also several benefits associated with owning XPR tokens.
No Fees
When transferring money from one account to another, most banks charge a fee. However, with XPR, you don’t pay any fees at all.
Instantaneous Transactions
Unlike traditional methods of sending money, XPR transactions take seconds rather than minutes.
Multi Currency Support
Ripple Labs claims that XPR supports up to 100 different currencies. This makes it ideal for international businesses who send money across borders.
High Liquidity
One of the biggest problems facing cryptocurrency investors is liquidity. While some cryptocurrencies such as Bitcoin have a very liquid market, others such as Ethereum are far less liquid.
With XPR, however, the opposite is true. Because XPR is traded on multiple exchanges, its liquidity is extremely high.
Low Transaction Costs
Another benefit of XPR is that it doesn’t cost anything to transact. This is because XPR is not a currency, but a utility token.
Security
Because XPR is built on top of a blockchain technology, it offers security features that make it difficult for hackers to steal your information.
Scalability
Because XPR is built on a blockchain, it is highly scalable. This means that it will continue to grow over time.
Privacy
Although XPR is built on blockchain technology, it does not require users to reveal personal data. This gives XPR a distinct advantage over many other cryptocurrencies.
Transparency
As mentioned above, XPR is built on the blockchain, which means that everything connected to it is transparent and open source. This helps to ensure that everyone can verify the authenticity of XPR.
Decentralized Exchange
The decentralized exchange (DEX) is a method of trading digital assets without the involvement of third-party intermediaries.
Smart Contracts
Smart contracts are computer programs that automatically execute when certain conditions are met. They allow for greater transparency and trust between parties.
In Conclusion
As there has been a huge increase in the creation of cryptocurrencies in recent years, the question of their longevity looms over them.
XPR is different. There’s very little chance of it fading away, as the platform is used by many mainstream financial institutions, with many more adopting its services.
However, this fact doesn’t equate to XPR’s strength, but rather its stability.
The magic happens when we combine this stability with the fact that major cryptocurrencies are growing in popularity and the fact that these currencies move in conjunction. This translates to Ripple Labs XPR remaining an enticing investment opportunity.
So, if you are interested in cryptocurrency, and you are eager to find out more about XPR stock, you are in the right place. Check out the guide above to find out all you need to know about XPR stock before you invest.
But remember, this article is only intended for informational purposes. So, if you want advice regarding this investment route, it is best to speak to an investment specialist.
