Many crypto enthusiasts want to invest in cryptocurrency because of its popularity and potential gains in the future. However, it’s difficult to choose a digital currency to invest in. It’s volatile, the choices are almost endless, and it requires a ton of research to choose a suitable option.
Thus, some people consider converting XRP to USDT and vice versa. Others want to purchase ETH. So, should you buy cryptocurrency? This article covers information about whether to purchase XRP or ETH. It should help you decide which currency to choose.
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History And Goals
Ripple XRP is a digital currency developed to facilitate low-cost international money transactions. Ripple’s major goal is to change the old banking system by enabling facilitated cross-border transactions.
In comparison, Ethereum is an open-source blockchain platform that enables the creation and execution of smart contracts. It enables developers to create decentralized applications (DApps) and launch their own tokens using Ether (ETH), its native coin. Thus, ETH is popular on exchanges, such as WhiteBIT, since Ethereum is a widely-used platform and requires its native coin.
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Technology
XRP is based on the XRP Ledger, which implements a consensus mechanism: the Ripple Protocol Consensus method (RPCA). In comparison to the traditional Proof-of-Work (PoW) or Proof-of-Stake (PoS) procedures, RPCA depends on a network of trusted validators to confirm transactions and ensure the ledger’s integrity.
Ethereum began with a PoW consensus mechanism but finally switched to the PoS mechanism known as Ethereum 2.0 back in 2022. PoS relies on validators who “stake” their Ether in order to validate transactions and create new blocks on the blockchain, making the network more energy-efficient and scalable.
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Coin Utility And Use Cases
XRP is largely used as a bridge currency to facilitate transactions between fiat currencies. Its use case is around facilitating quick and low-cost international money transfers. XRP can be used by financial organizations to boost liquidity and shorten business settlement times.
Ether is the native cryptocurrency of the Ethereum network and has a wider range of applications than XRP. It functions as a payment for the creation of smart contracts and apps operating on the Ethereum platform. Furthermore, the decentralized nature of Ethereum has resulted in the establishment of different DeFi (Decentralized Finance) protocols and NFT (Non-Fungible Token) exchanges.