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Liquidity Solution Explained by Ripple (XRP) Through the Use of xRapid

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Through their blog, the Ripple [XRP] group explained and stated vital information about liquidity solution by making use of xRapid.

It is important to know that liquidity is an essential aspect of any business operation and it is a stress-free way to accomplish the assets’ trade without altering its worth. However, liquidity can also be expressed as a simple way of transforming an asset into cash to be withdrawn. With all of these in mind, the liquidity solution that has been offered by Ripple team is a big answer to the financial market.

Furthermore, on Ripple’s blog, it was stated there that Ripple’s xRapid solution distinctively makes use of xRapid to give a high rate of liquidity.  Additionally, xRapid decreases risk and unleashes the complete capacity of payments by enhancing real-time and less costly transactions in every currency.

Funding a Nostro account before a foreign trade is actualized is hectic and also a costly method of attaining fluidity. The balance of this account is probably going be massive but stagnant, thereby making it a “tied-up” capital which may be expended in other beneficial ways.

To avoid the problems associated with Nostro accounts, a digital asset can be used as a substitute to decrease cost and enhance liquidity for different forms of transaction. Digital asset functions as a versatile currency, which helps to change any remittance into its needed money immediately and economically.

Nevertheless, any of the digital assets must be able to solve different transaction problems instantly, and XRP (Ripple) is one victorious enactment. It is also important to know that XRP, undoubtedly, is a distinct digital asset and different to Bitcoin in these powerful ways:

  • Bitcoin is not so fast when it comes to resolving a transaction because it takes 60 minutes to do so, thus, limiting its transaction to 16/second. But XRP can manage more than a thousand transaction per second that is on track with the frequency of vital payment networks like Visa.
  • XRP transactions are quick and efficient, and it also helps to protect the sender from the dangers of volatility, thus, enabling funds to be gotten without delays. On the other hand, Bitcoin is slower due to its low transaction frequency. This makes it an unsuitable digital asset for a stable of different capacity of transactions.

xRapid makes use of a unique digital asset, which is XRP, for offering liquidity at the low cost. Also, xRapid helps to lower the capital required to achieve higher liquidity, thus, assisting financial and payment companies to give their clients an unbeatable experience.

Consequently, xRapid was explained by CEO of Ripple [XRP], Brad Garlinghouse, as:

“xRapid as a digital asset was designed to have real-time liquidity. A bank like the Bank of Andy can decide to trade $1 to purchase XRP; this XRP can be transferred to an Argentinian digital asset exchange and can be used to purchase a liquid fund of an Argentinian peso within 10 seconds in another market”

We will be updating our subscribers as soon as we know more. For the latest on XRP, sign up below!

Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Global Coin Report and/or its affiliates, employees, writers, and subcontractors are cryptocurrency investors and from time to time may or may not have holdings in some of the coins or tokens they cover. Please conduct your own thorough research before investing in any cryptocurrency and read our full disclaimer.

Image courtesy of Chris Saulit via Flickr

Altcoins

Cryptocurrency Collateralized Debt Positions Are Growing in Popularity

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While Bitcoin (BTC) continues to hover around the magical 10,000 price level, altcoins continue to fight an uphill battle.  Simply put, hopes of a future bull run continue to diminish as Bitcoin maintains its dominance.  One school of thought is that a few altcoins will survive and flourish, but which ones are anyone’s guess.  That being said, it’s hard to go wrong picking against the top coins like Ethereum (ETH), Ripple (XRP), Litecoin (LTC), and EOS.  These projects have managed to find a foothold in the market and have a better chance than most of staying there.  While traders wait for their positions to increase in value, one opportunity that may be worth looking at is initiating a collateralized debt position.

What is a Cryptocurrency CDP?

In traditional terms, a CDP is essentially putting up collateral in order to receive a loan against the deposited amount.  There are several examples of this in our day to day lives.  Auto title loans from large companies like TitleMax are extremely popular with consumers.  Consumers are essentially able to use their car as collateral in exchange for a cash payment which can then be used for whatever needs the consumer has.  The consumer can continue using their car as long as debt payments are made.

The same concept applies to cryptocurrency CDPs.  Consumers are able to put up crypto tokens, such as…

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Altcoins

Hodium Presents a Compelling Opportunity for Outsized Investment Returns

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I’m sure all of us remember the cryptocurrency glory days of 2017 and early 2018.  It was one of the biggest bull runs in history and created incredibly wealth for quite a few early entrants.  Unfortunately, for most of us, those gains have most likely been wiped out during the altcoin apocalypse.  The truth is that traders probably thought a bit too highly of their trading abilities when the reality was that anyone could have thrown a dart at a board and ended up making money.

As markets mature (and the crypto market is definitely maturing) it becomes more and more difficult to generate alpha.  In that regard, it’s similar to traditional financial markets.  I can remember trading during my high school days.  It was the late 90s and right in the middle of the dot.com boom.  Eventually, however, the euphoria fades away and reality hits hard.  Now, it’s become rather difficult to actually trade profitably which has given way to the rise of hedge funds.

Hedge funds are investment funds that pool capital from accredited and/or institutional investors and invest in a variety of assets, often with extremely complex portfolio-construction and risk management techniques.  The professionals employed by hedge funds are the best of the best and have spent years honing their craft.  That is why they’re able to make the millions of dollars that they normally…

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Altcoins

KaratGold Proves Its Business Model By Providing Official Documents

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There has been a lot of renewed enthusiasm in the cryptocurrency market thanks mainly to Bitcoin’s strong move about 10,000.  Although Bitcoin continues to show its dominance, the altcoin market has yet to benefit from that rally.  A few of the largest altcoins remain popular but the rest of the market continues to lag behind.  In 2018, there was a lot of talk regarding a possible altcoin apocalypse where only the strong would survive.  That prediction appears to be playing out as expected.  Going forward, only the best projects that have a real world need will survive.  Crypto traders will have to spend a lot of their time doing proper research in order to find the best opportunities, just like in all financial markets.  One promising project that appears to have the makings of a future winner is KaratGold Coin.

KaratGold Background

KaratGold Coin is a cryptocurrency developed by the reputable German company Karatbars International, which maintains a leading position in the market of small gold items and investments. The project is part of a larger ecosystem, which involves several blockchain solutions that can be used for transactions, communication, investing and other tasks. During the past few weeks, however, the KaratGold ecosystem has been a target of unsavory scam allegations.  

Karatbars International and GSB Gold Standard Banking Corporation…

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