As Ferris Beuler said in the 1986 John Hughes film, “Life moves pretty fast. If you don’t stop and look around once in a while, you could miss it!”
The same is true of cryptocurrencies, if you don’t take time to look around at coins other than Bitcoin you could miss it! Such is the case with Ripple. XRP (symbol for Ripple coins) had been around since 2012, but given the 38.7 billion outstanding coins, it seemed like it would take a extraordinary set of circumstances to budge the cryptocurrency.
Flash forward to late 2017, when cryptos broke into mainstream, as Bitcoin’s surge captivated traders and investors around the world.
I’m sure Ferris would agree that a picture is worth a thousand words. But even the man that impersonated the “Sausage King of Chicago” couldn’t have imagined the move Ripple would make in the past month.
I took a look at CoinMarketCap.com to see that a mere 30 days ago XRP was traded for $.22. According to our HeatSeeker that was on an average turnover of just over $275,000,000 per day. Two weeks later XRP broke $.50 and dollar trading volume had accelerated to as much as $6B per day! Ten days later Ripple surged through a dollar and volume held between $2,500,000,000 and $4,000,000,000 per day.
Today (1/7/2018) XRP trades for $3.39, and put in its all-time high of $3.81 just three days ago (1/4/2018). That high was on turnover of $9.5B, and over the past 3 days that feeding frenzy has relaxed back to $2.5B per day.
A $1,000 investment in XRP 30 days ago would have bought you 4,545 coins. Today, those 4,445 coins would be worth $15,409.
The cryptocurrency world is full of similar success stories. If you’re an experienced investor/trader you know that’s the sizzle that sells the steak, but it should serve as and example of the potential in this space. As we push into the second week of 2018 I’m sure there will be other winners and of course, losers. So just as we emphasize in our trading of stocks, options and futures, you must discipline yourself to take profits and cut losses. It may seem that cryptos bend the rules of investing, but one constant is that pigs get fat and hogs get slaughtered.
**Important note, I am not recommending any cryptocurrency with this post. I as of this writing own Bitcoin and Ethereum and have no Ripple holdings.