Ripple
Ripple Returns vs S&P
-4.20%
Versus S&P
•
2 hours ago
-4.20%
Versus S&P
•
2 hours ago
6m High
6m Low
Ripple
$0.72
$0.48
S&P 500
5,254.35
4,117.37
Ripple
S&P 500
Does not follow the stock market
Sources: XRP, SPX
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In the Market
Buy individual shares of Coinbase (COIN), the largest exchange for Bitcoin and other altcoins (including Ripple). Coinbase went public back in April 2021.
Highlights
Good For
High risk, high return
Time Horizon
3-5 years
Diversification
Environmentally Friendly
For years now, XRP has held a place among the top 10 largest cryptocurrencies. And for good reason. XRP is not disrupting fiat money. Rather, it's designed to help banks settle international transactions faster and cheaper. And it appears that they’ve been doing a good job, as XRP is the only cryptocurrency that has been adopted by financial institutions so far. But on a more sour note, Ripple Labs is currently embroiled in a legal battle with the SEC over whether or not XRP is a security. For this very reason, XRP's price has been in a long-term downtrend. However, if Ripple Labs ultimately beats the case then XRP's price would likely rally to its previous all-time highs — perhaps even surpass them.
Did you Know
XRP outperformed Bitcoin, Ethereum, and Binance Coin as the best-performing crypto asset of 2017, gaining 36,018%.
XRP has a total supply of 100 billion tokens, with over 40% of the supply being held in escrow by Ripple Labs.
Ripple’s network is currently 1,000 times faster than Ethereum, with the company claiming they can still scale to 65,000 transactions per second and rival Visa itself.
Considerations
XRP is one of the largest and most recognized cryptocurrencies in the world, up there with Bitcoin (BTC) and Ethereum (ETH). This level of brand awareness could ensure that XRP remains a top 10 crypto for years to come.
In terms of specs, XRP beats most other cryptos at 1,500 transactions per second (TPS) and a minimum transaction cost of only 0.00001 XRP. It does, of course, sacrifice decentralization to achieve this.
XRP is one of the only cryptocurrencies thus far to be adopted by hundreds of financial institutions worldwide.
Reasons to Invest
In December 2020, the SEC sued Ripple Labs for selling $1.3 billion worth of XRP tokens through what regulators claim to be an unregistered securities offering. This lawsuit instantly sent the price of XRP crashing down.
Some crypto purists don’t consider XRP to be a real cryptocurrency since it is centrally controlled by Ripple Labs.
A large portion of XRP’s circulating supply is concentrated in the hands Ripple Labs’ Chairman, Ripple's CEO, and Ripple's co-founder. In other words, these insiders could unexpectedly tank XRP by dumping all their tokens.
Drawbacks
How You're Taxed
Capital Gains
Income Tax
When it comes to capital gains taxes, cryptocurrencies are lumped together with other assets like stocks. This means that the exact percentage that you owe is determined by: your holding period and your personal tax bracket. U.S. investors who’ve held XRP for less than 12 months are subject to the short-term capital gains rate, which is the same as your income tax rate. Those who’ve held for more than one year owe 0% to 20% in long-term capital gains taxes. Lastly, a taxable event isn’t only triggered when investors sell crypto for fiat currency (e.g. U.S. dollar). Taxable events also include: trading from crypto to crypto, spending crypto on goods and earning income in crypto.