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Ripple (XRP) is the fourth-largest cryptocurrency by market capitalization as of the time of writing. Unlike the top two cryptocurrencies, Bitcoin and Ethereum, the price of Ripple has somewhat escaped the spotlight. In this guide, we will explore what determines XRP Ripple Price AUD and what you, as an investor, should look out for!
Firstly, it is important to understand that similar to Ethereum, ‘Ripple’ refers to the network. The cryptocurrency is XRP, much like the Ethereum cryptocurrency is actually Ether. However, many investors use Ripple and XRP interchangeably.
Ripple is very different to Bitcoin and Ethereum for a number of reasons. We have covered many of these in our previous post, however we want to briefly reiterate them below:
There are a number of factors that will drive the AUD price of all cryptocurrencies, including XRP. This includes:
If some or all of the events above begin to crystallise, then there is little doubt that Ripple, alongside many other cryptocurrencies, will receive a boost to its price in Australian dollars.
Many see the fact that XRP being a centralised currency as a disadvantage. However, this is a double-edged sword and can become an advantage. This is because by being centralised, it is much easier for Ripple to interact with institutions, including government departments.
For example, the New York State Department of Financial Services (DFS) approved Ripple’s XRP token for custody by companies. However, the same department did not approve XRP for listing. The market reacted strongly to these news.
Also, in Q2 2020, over-the-counter (OTC) institutional sales of XRP jumped 1700% as compared to Q1 2020. This level of institutional adoption is unprecedented for an alt-coin.
Ripple, with its centralised team and backing, is able to communicate more effectively with these external institutions. This allows XRP to grow through partnerships and build more credentials. On the contrary, Bitcoin and many other decentralised cryptocurrencies will need to rely on the masses to preach its cause.
The movement of large holders of the cryptocurrency, also known as ‘whales’, will also significantly impact the price of XRP. This ‘whale affect’ can be more profound in the case of XRP, in comparison to Bitcoin and Ethereum. This is because XRP has a relatively smaller market capitalisation, therefore any movements by the whales can send shockwaves through the market! Further, some of the founders and senior executives are also whales in XRP. The size of their holdings, coupled with the information they possess, is a force to be reckoned with.
XRP is often viewed as a more ‘affordable’ cryptocurrency among retail investors. This is somewhat illogical, given the circulating supply of XRP is a lot greater than that of Bitcoin or Ether. Further, cryptocurrencies are highly divisible, meaning that comparing 1 XRP vs 1 Bitcoin is not comparing apples with apples.
Having said the above, newcomers to the cryptocurrency scene typically look at the price of Bitcoin and think ‘wow that is too expensive, surely I have missed the boat’. On the other hand, when they observe the Ripple XRP Price AUD (trading less than one Australian dollar at the time of writing), they think that it is much more affordable.
This ‘perceived affordability’ is not new to the investment space. In fact, even Warren Buffet had to issue B-class shares for his company Berkshire Hathaway because the A-class shares are getting too prohibitively expensive.
Look no further! Coinstash is the best platform for Australians to buy Ripple with AUD. With live customer support 7 days a week, Coinstash is one of the most simple, secure, and engaging XRP trading platforms in Australia. Find more about XRP Price AUD through our best crypto trading platform in Australia.
About the author
Ting is a finance professional and an accomplished investor. Ting is well-conversed in financial markets, as well as having a background in taxation and law. Having previously worked for a top-tier accounting firm and an US-listed fintech company, Ting decided to pursue his passion in cryptocurrency in 2017 by joining forces with high school friend Mena.
Did you know you don’t need to buy a ‘whole’ Bitcoin-like one pictured above? Note to our readers: as Star Wars fans and with the 9th installment of the franchise due to release as at the time of writing, we feel that it is obligatory to list them out in terms of Light vs Dark Side.
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Coinstash is a registered digital currency exchange based in Australia. Our customers praise Coinstash as one of the most user-friendly, educational, and supportive platforms. Through its live support 7 days a week, Coinstash has accumulated numerous positive reviews from its customers. Coinstash is also one of the only digital currency trading platforms that have participated in the Australian government Austrade’s landing pad program. Find more about BTC Price AUD (Australia) by visiting our BTC trading platform. Note: nothing in this article should constitute general or specific financial advice. Coinstash does not take into account your circumstances when publishing articles. Any content on Coinstash.com.au or related domains are informational only.