Don't invest unless you're prepared to lose all the money you invest. This is a high-risk investment and you should not expect to be protected if something goes wrong. Take 2 mins to learn more.
Estimated reading time: 2 min
Due to the potential for losses, the Financial Conduct Authority (FCA) considers this investment to be high risk.
What are the key risks?
1. You could lose all the money you invest
The performance of most cryptoassets can be highly volatile, with their value dropping as quickly as it can rise. You should be prepared to lose all the money you invest in cryptoassets.
The cryptoasset market is largely unregulated. There is a risk of losing money or any cryptoassets you purchase due to risks such as cyber-attacks, financial crime and firm failure.
2. You should not expect to be protected if something goes wrong
The Financial Services Compensation Scheme (FSCS) doesn't protect this type of investment because it's not a 'specified investment' under the UK regulatory regime – in other words, this type of investment isn't recognised as the sort of investment that the FSCS can protect. Learn more by using the FSCS investment protection checker.
The Financial Ombudsman Service (FOS) will not be able to consider complaints related to this firm or Protection from the Financial Ombudsman Service (FOS) does not cover poor investment performance. If you have a complaint against an FCA regulated firm, FOS may be able to consider it. Learn more about FOS protection here.
3. You may not be able to sell your investment when you want to
There is no guarantee that investments in cryptoassets can be easily sold at any given time. The ability to sell a cryptoasset depends on various factors, including the supply and demand in the market at that time.
Operational failings such as technology outages, cyber-attacks and comingling of funds could cause unwanted delay and you may be unable to sell your cryptoassets at the time you want.
4. Cryptoasset investments can be complex
Investments in cryptoassets can be complex, making it difficult to understand the risks associated with the investment.
You should do your own research before investing. If something sounds too good to be true, it probably is.
5. Don't put all your eggs in one basket
Putting all your money into a single type of investment is risky. Spreading your money across different investments makes you less dependent on any one to do well.
A good rule of thumb is not to invest more than 10% of your money in high-risk investments.
If you are interested in learning more about how to protect yourself, visit the FCA's website here.
For further information about cryptoassets, visit the FCA's website here.
Finder's panel of fintech experts anticipates, on average, XRP will close 2024 at a price of 66 cents.
Looking further ahead, on average, our panel estimates XRP's value to hit US$1.05 by the end of 2025 and $2.49 by 2030.
Let's look closer at the reasons behind these predictions, as well as some of the opportunities and challenges ahead for XRP and Ripple.
Sathvik Vishwanath, the CEO of Unocoin Technologies, is by far the most bullish panel member, predicting XRP will be worth $1.50 by the end of the year. This estimate would be a 215% return based on the price of XRP at the time we conducted the survey.
"XRP's price predictions are influenced by its unique positioning in the financial sector, especially its focus on cross-border payments and partnerships with major financial institutions."
However, he added, "[w]hile XRP has the potential for significant growth, it also faces regulatory challenges that could impact its long-term valuation."
Mitesh Shah, the founder and CEO of Omnia Markets, is also bullish on XRP having a good 2024, expecting XRP to hit $0.75 come the end of 2024 based on three key factors:
"A period of 4 to 6 months seems most plausible to me for XRP's decoupling to continue due to a combination of factors:
Short-Term Momentum: The recent decoupling appears to be driven by positive sentiment surrounding Ripple's legal developments and stablecoin initiatives. This momentum could sustain itself for several months.
Regulatory Clarity: A potential resolution of the SEC lawsuit in the coming months could further solidify XRP's independent path and maintain the decoupling trend.
Market Cycle: The current bull market in cryptocurrencies could provide additional support for XRP's price, even if Bitcoin's price experiences fluctuations."
Dimitrios Salampasis, the FinTech capability lead and senior lecturer of emerging technologies and FinTech at Swinburne University of Technology, says that "XRP still remains a solid player with advantages in the payments sector" and should close out 2024 at roughly $0.50.
John Hawkins, senior lecturer at the University of Canberra, is the most bearish panelist, with a prediction of just $0.30.
"Legal arguments with the SEC have affected XRP's price in the short run. But in the medium term, if Bitcoin's price collapses, there will likely be a "contagion" taking down XRP and most other coins."
Looking further ahead
Shubham Munde, team lead of research at Market Research Future, is the most bullish panel member about XRP's long-term price. Munde believes XRP will be worth $6.45 by 2030 based on its low entry point compared to other cryptos.
"XRP is expected to climb faster owing to the massive adoption by the financial institutions, banks, and payment systems. Moreover, new investors will give preference to XRP because of [its] low price as compared to other competitor crypto."
Paul Levy, senior lecturer at the University of Brighton, is also bullish on XRP over the medium- to long-term, with a prediction of $6.10 by 2030.
"XRP's price will likely benefit a lot from the Bitcoin halving and potential regulatory clarity in the near and medium term. Volatility is still an issue in the short term. I notice many predictions are quite upbeat toward 2027."
XRP's price in relation to BTC
Back in June, there were reports that XRP's price decoupled from BTC. However, nearly two-fifths (39%) of the panel don't think XRP's price ever truly decoupled from BTC.
However, 6% say this trend will last for the next three months, 33% say this trend will continue for the next four to six months and 22% say this trend will continue for more than a year.
A period of 4-6 months seems most plausible to me for XRP's decoupling to continue due to a combination of factors: 1. Short-Term Momentum: The recent decoupling appears to be driven by positive sentiment surrounding Ripple's legal developments and stablecoin initiatives. This momentum could sustain itself for several months. 2. Regulatory Clarity: A potential resolution of the SEC lawsuit in the coming months could further solidify XRP's independent path and maintain the decoupling trend. 3. Market Cycle: The current bull market in cryptocurrencies could provide additional support for XRP's price, even if Bitcoin's price experiences fluctuations.
XRP's price predictions are influenced by its unique positioning in the financial sector, especially its focus on cross-border payments and partnerships with major financial institutions. The decoupling from BTC could be attributed to specific developments within the XRP ecosystem, such as legal outcomes or new technological advancements. While XRP has the potential for significant growth, it also faces regulatory challenges that could impact its long-term valuation.
XRP is expected to climb faster owing to the massive adoption by the financial institutions, banks, and payment systems. Moreover, new investors will give preference to XRP because of low price as compared to other competitor crypto.
Legal arguments with the SEC have affected XRP's price in the short run. But in the medium term, if Bitcoin's price collapses, there will likely be a 'contagion' taking down XRP and most other coins.
Ripple's XRP remains an important part of crypto history, but as time passes, competitors are likely to take over. However, due to its established history and price action, there will always be network participants who prefer using the XRP network over newer competitors.
XRP's price will likely benefit a lot from the Bitcoin halving and potential regulatory clarity in the near and medium term. Volatility is still an issue in the short term. I notice many predictions are quite upbeat towards 2027
XRP's future hinges on several key factors. The regulatory environment is crucial, especially the ongoing SEC lawsuit against Ripple, which significantly impacts XRP's price. A positive outcome could boost adoption and prices, while a negative ruling might lower its value. Technological advancements also play a vital role. Ripple's ongoing improvements to the XRP Ledger and strategic partnerships, such as those in Japan, increase its utility and adoption potential, driving long-term growth.
Been this cheap, it is fairly quick to grab momentum and volume when there are some crypto hype. Last time we ran to 0.70s+, i believe we can do that again and higher.
XRP's value may now be influenced more by its own market dynamics, news specific to XRP, or other factors like adoption and regulatory developments, not just following BTC anymore.
XRP still remains a solid player with advantages in the payments sector. Its long-term prospects depend on regulatory developments and clarity, market conditions, broader adoption and technological advancements.
XRP price has been heavily weighed down by regulatory actions for some time, so therefore could stand to gain in this period of accelerating support for Bitcoin and crypto from politician leaders.
Key question will be the SEC lawsuits and whether an XRP ETF is coming
Methodology
Finder surveyed 29 fintech specialists in July 2023. Panelists are able to answer as many or as few questions as they like, meaning the number of responses received varies by question. 14 panelists gave their price predictions for XRP by year-end 2023, and 14 panelists gave long-term predictions for 2025 and 13 for 2030. Panelists may own some cryptocurrencies, including XRP. All prices are listed in US$ per XRP.
Changes to methodology: In 2021, this research was conducted using the simple mean of all answers supplied to Finder. From 2022, we switched to using the truncated mean, with the top and bottom 10% of responses removed in order to attain a more consistent result. Any 2021 results quoted in this analysis have also been re-calculated using the truncated mean.
*Cryptocurrencies aren't regulated in the UK and there's no protection from the Financial Ombudsman or the Financial Services Compensation Scheme. Your capital is at risk. Capital gains tax on profits may apply.
Cryptocurrencies are speculative and investing in them involves significant risks - they're highly volatile, vulnerable to hacking and sensitive to secondary activity. The value of investments can fall as well as rise and you may get back less than you invested. Past performance is no guarantee of future results. This content shouldn't be interpreted as a recommendation to invest. Before you invest, you should get advice and decide whether the potential return outweighs the risks. Finder, or the author, may have holdings in the cryptocurrencies discussed.
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