Better Crypto for New Investors: Bitcoin vs. XRP
The actual utility of Bitcoin is fairly limited. Hardly anyone uses it as currency. Instead, it's a digital asset investors hold to diversify their portfolios and for its growth potential. And although Bitcoin is highly volatile, it has rewarded patient investors, as it has rebounded from every bear market.
XRP's appeal is its real-world utility and growth potential. The cryptocurrency has a legitimate role in Ripple's payments network. If Ripple succeeds in its mission to win a chunk of SWIFT's market share, then XRP could be a cryptocurrency that explodes in value.
XRP also has more room to grow than Bitcoin because of its smaller size. It has a market cap of $88 billion, so it takes far less money for XRP to double or triple than it does for Bitcoin.
But XRP is much riskier than Bitcoin, and the real-world utility is unproven. Ripple has done well at finding banking partners -- it has over 300 -- but most of those partners only use the payments network, not XRP.
Bitcoin is better for new investors
If you're starting to build your crypto portfolio, Bitcoin is the best option, ahead of XRP and any other cryptocurrency. It's not always the top performer. But because of its size, its performance tends to correlate with the market as a whole. The fact that institutional investors are on board is also a sign that Bitcoin has a higher floor than it used to.
XRP has gone through much longer downturns than Bitcoin. After reaching an all-time high of $3.84 in January 2018, it fell by over 90% within a year. It didn't cross $3 again until 2025, and it still hasn't set a new high yet. Bitcoin, on the other hand, has set new highs in 2017, 2020, 2021, 2024, and 2025.
Investing in cryptocurrency is a risky venture. The safest strategy is to keep your positions small and to make Bitcoin your core position. You could still invest in XRP if you believe in its long-term value, but I'd prioritize Bitcoin considering its track record.
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Lyle Daly has positions in Bitcoin. The Motley Fool has positions in and recommends Bitcoin and XRP. The Motley Fool has a disclosure policy.
Better Crypto for New Investors: Bitcoin vs. XRP was originally published by The Motley Fool
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