So I was randomly scrolling through my Facebook feed and this ad pops up about the next thing to be larger than bitcoin. So I looked at it, then checked the comments. So some people in the comments looked into it more and found the company being referred to. Its Ripple. Its trading at $1.86 a share, and it has a market cap of 71 billion dollars. Its 52 week range had a high of $3.29. I think it is a crypto currency. I haven't read up on it too much yet, but I'm going to see what I can find. I thought I would post and see if anyone is thinking about buying any? Or was the crypto currency with bitcoin a 1 time thing? Also, would this be considered a penny stock?
I would recommend looking into cryptocurrencies in great deal before you even consider investing. From what I read Ripple is one of the few which is backed by some form of asset but these cryptocurrencies are extremely volatile and high risk. As they say, not for widows and orphans!
Historically the moment when investors buy into new investment trends without being fully aware of what they are buying can indicate a crash/correction is on the way!
I'd be very, very careful with any of these crypto currencies. The smartest and richest guys in the world seem to fall into 1 of 2 categories with this... They have either avoided them completely, or else the younger ones seem to say that they've put no more than 1% of their wealth into it, and did so long ago when it was much cheaper. A 71 billion dollar market cap on a fairly new digital coin offering strikes me as being highly inflated - General Motors is currently about ten billion dollars less than that. Another thing in general to be careful about is buying into anything that is very new to the market. Even if it is totally legit, there are things one should be careful about when buying securities that are new to the public exchanges. What we often see with most securities that hit the market is that the insiders often start selling off at least some of their shares as early as they are allowed to - which may be months after the IPO, or may be immediately once it starts trading on a public exchange.
Another thing to consider - the vast majority of these cryptocurrencies will fall by the wayside, leaving just a handful of mainstream currencies. Which ones is anyones guess - if you pick the right one you could do very well, but pick the wrong one and you could lose the lot. I predict growing popularity for cryptocurrency collective investment funds giving you exposure right across the board.
Ripple seems to be the cryptocurrency of choice for more and more investors these days - anyone dipped their toe in yet?
The thing I like about Ripple is the fact it is not being talked about in the context of a pump and dump stock. It is actually attracting some reasoned arguments and seems to be the safer professional play in the sector.
Is Ripple the safest crytocurrency to buy when the market finally settles down? It seems to be the least volatile although it has been dragged downwards on the coat tails of Bitcoin.
