At the very mention of cryptocurrencies, most people will think of Bitcoin, which is probably the best-known crypto and certainly the most popular by market capitalization. However, there are many more digital currencies for investors to diversify their portfolio with Ripple’s XRP, Litecoin, and Ethereum closely following Bitcoin as valuable cryptocurrencies. In March, XRP ranked fourth in the list of the most valuable crypto by market cap behind BTC, ETH, and BNB.
If you want to know the value of your Ripple tokens, you will need to use an XRP calculator.
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What is Ripple (XRP)?
Ripple and XRP are frequently used interchangeably; however, they are not entirely the same thing. Ripple is the brand name behind the XRP crypto. The Ripple company was originally launched as a P2P trust network relying on social media.
Users on the Ripple network could circumvent traditional banks and open credit lines with one another. However, the original network didn’t take long to fail.
3 years after the introduction of Satoshi Nakamoto’s Bitcoin, Ripple rebranded its track as OpenCoin1 — ushering in a new network for digital money transfer. Financial businesses acted as partners to transact on the network.
The XRP crypto was then launched as an intermediate means of exchange between two networks or currencies. By September 2013, OpenCoin had become Ripple Labs. On their website, Ripple describes its services as an international payment network with major banks and crypto investors as its customers. Ripple uses XRP to facilitate easy and fast conversion between different currencies.
XRP Profit Calculator
If you are a Ripple HODLer who wants to calculate the potential returns on your investment, it helps to use the XRP profit calculator. This calculator can represent any currency, and it’s based on the valuation model initially developed by Ripple’s board of directors in their paper “A Fundamental Valuation Framework for Cryptoassets”.
An XRP value calculator takes into account the circulating supply of the digital currency, daily transaction volumes, store of value in USD, and other parameters to calculate how much your XRP is worth at any point in time.
As XRP tokens become highly valuable with increasing trust, more users will HODL the crypto like gold.
Earn interest on Ripple – XRP Savings Account on YouHodler
On YouHodler, your XRP could earn you 4.5% APR + compound interest. Generate interest anytime you deposit Ripple on YouHodler with guaranteed returns paid out to you every week.
XRP has more coins in the market than Bitcoin
Over one billion Ripple coins were pre-mined during the launch and have been made available to the market by its top investors. On the other hand, BTC’s supply chain is capped at 21 million, which means no more than 21 million Bitcoins will ever exist. Bitcoin’s artificial scarcity generates investor interest in its potential as a store of value.
XRP is cheaper and faster than Bitcoin
Because of the complicated and energy-intensive nature of mining Bitcoin cryptocurrencies, the transaction confirmation takes a longer time and this is associated with high fees. XRP transactions are much faster as they can be confirmed in a matter of seconds. In general, Ripple transactions cost less.
Just like the BTC network charges processing fees, the Ripple network also charges a small amount of XRP each time a user performs a transaction on the network.