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What are the benefits of XRP?

Ripple’s native XRP token is quickly gaining traction as an efficient and cost-effective way to transfer funds around the world, especially compared to traditional settlement systems like SWIFT or Western Union. 

But what are the benefits of XRP that make it so unique? This article will go over all the different uses of XRP and how you can use them in your everyday life. 

From day-to-day payments to international transfers, there are multiple reasons to look into using XRP.

High transaction speed

While Bitcoin transaction speeds can reach hours, Ripple’s technology offers a faster, more reliable alternative. 

Compared to banks, whose transactions take days to process and require large fees in order to exchange currency from one country to another, XRP processes in seconds and at pennies per transaction. 

This means that Ripple is not only simpler but far cheaper than traditional remittance options (at least when sending cross-border payments). 

Moreover, unlike other cryptocurrencies like Bitcoin and Ethereum, which use proof-of-work consensus algorithms that require massive amounts of electricity to function on a global scale, Ripple works using an old-fashioned technique called Byzantine agreement.

So it doesn’t need as much electricity or computing power.

Low transaction cost

The cost to send money internationally can be exorbitant. For example, a transfer from Canada to Mexico through traditional financial institutions could incur fees as high as 15 percent. Ripple’s transaction fee is just 0.00001 XRP  or 10 drops.

On top of that, its speed means that transactions will process much faster than they would with other currencies, often in mere seconds after it is initiated. 

These factors make Ripple ideal for remittances, especially when there is no urgent need for a transaction to process right away. In fact, many online businesses accept XRP because of how inexpensive and fast transactions are compared to credit cards or wire transfers.

No need for mining

Unlike other cryptocurrencies that require mining, you can Buy XRP digital currency to move money across borders easily. 

And since there’s no need for mining, there’s also no threat from hackers or attacks from malicious miners. 

This makes Ripple an extremely secure way to send and receive money without having to pay high processing fees. 

Since Ripple is completely distributed, it doesn’t rely on miners or a central authority to function properly. 

This means that unlike most crypto coins, which can be inflated indefinitely due to inflationary practices by their creators, XRP has a predictable rate of production that makes it much easier to understand its value (and predict how much your investment will grow).

Security level comparable to Bitcoin

Unlike Bitcoin, which has been subject to numerous denial-of-service attacks and hacks, Ripple’s technology is built from scratch with security in mind. 

The company holds 60 percent of all XRP that will ever exist, so it has a vested interest in preventing malicious actors from infiltrating its systems. 

It uses unique node lists to reduce reliance on external connectivity and geolocation (all members must be physically located where they claim to be) and a consensus algorithm that increases security as more nodes join. 

All transaction information is processed by validators who constantly check each other’s integrity-sort of like how Wikipedia relies on community members vetting one another’s edits to prevent fraud or abuse.

Available on exchanges worldwide

Many investors will be able to trade Ripple on an exchange, so long as it’s available in their country. 

Unlike other cryptos with many geographic limitations to where they can be purchased, you can use Changelly to exchange bitcoin for XRP without issue. This is likely a huge benefit for new crypto investors, who may find barriers when they try to purchase alternative coins. 

If you live in South Korea and want some Ethereum (ETH), it could be very difficult or impossible, depending on where you live and what laws currently exist regarding cryptocurrency trading. In contrast, Ripple has no such issues and is completely open to anyone who wants to own XRP.

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